Scamming contractors pose next threat to storm victims

Victims of the May 4 storms may face another threat as they try to put the pieces back together: contractors who aren't all they seem to be.

Demand is high for construction contractors to repair storm damage or rebuild ruined structures, and property owners may face delays in getting work done.

As a result, they may be susceptible to people looking to capitalize on their misfortune.

Richard Ollis, president of Ollis and Company Insurors, said his company received several calls from people who had never been in the contracting business seeking insurance so they could perform work as contractors.

"The insurance market for contractors is fairly tight anyway, so if you have a brand new contractor that does not have any experience, (insurance) can be very difficult to find for that particular individual," Ollis said.

Missouri Attorney General Jay Nixon on May 5 warned that Missourians hit hard by tornadoes and windstorms should beware of scam artists looking to exploit the situation through repair fraud.

"There's going to be a lot of people who have seen this on the national news and they're going to be coming to town looking to do work," said Brett Godfrey, president of the Home Builders Association of Greater Springfield and owner of Built by Brett Inc.

"In my estimation, it would be a large gamble for a builder, who knows what he is doing, to have someone that is unproven come and do work on a job," Godfrey said.

Missouri has no specific licensing requirements for construction contractors, which means anyone with a business license can claim to be a contractor.

Who to hire

Matt Morrow, executive officer for HBA said there are many ways to protect against unqualified contractors and scam artists.

"In a time like this it is very tempting to try and get the job done and get it done quickly, but it is important to not take leave of your senses," Morrow said.

Qualities of a reputable contractor include good references, proof of workers' compensation and general liability insurance, and two to five years of experience in the profession. Morrow said buyers should always get more than one bid on a construction job.

"Our warning to the general public is to know who you are hiring before you give them any money," said Sheryl Letterman, Springfield Contractors Association.

Godfrey said on new construction, anyone who asks for a lot of money up front should not be considered for a job.

"If your gut feeling is telling you, Be careful' or I feel a little bit uneasy about this,' then walk away," Godfrey said.

Membership in the local HBA is another indicator of a contractor's background. HBA members must meet several standards to be part of the organization, including two years of experience and peer inspection of the member's work. Members are required to provide references and proof of insurance.

Strain on labor

The contracting business is currently very busy and reputable builders and remodelers have plenty to do, Godfrey said. With this strain, finding a good available contractor could be challenging.

"From a material standpoint, materials are not hard to get. There is an ample, ready supply of materials. Unfortunately, it is the good, qualified labor that is in short supply. The good, quality labor we have right now is scheduled very tight, and everyone is very busy," Godfrey said. "One thing about this particular industry is that we are one of the few industries that was going really strong before all this. This added business will just stretch them a little thinner."

With busier schedules some construction projects could be delayed. Godfrey said delays could average about 30 days for contractors and subcontractors who are picking up extra work from damaged areas. Godfrey said property owners should be patient during this time and not work independently or hire someone who makes promises of a quick fix.

"I can't say strongly enough that I hope people don't give in to that temptation to try and take something on like this themselves. They've been through a personal and emotional disaster and I would hate for them to have a financial disaster right behind something like that," Godfrey said.