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Banking & Finance

Tips On How To Choose Contractors And Avoid Scams

By Johanna Cano, posted Sep 21, 2018
Many people face the task of rebuilding or repairing their homes and businesses after a disaster like Hurricane Florence. Some repairs might be simple, but others may require hiring a contractor who can do the work efficiently. As more people are looking for contractors to hire for the job, many organizations like the N.C. Licensing Board for General Contractors (NCLBGC) and the Wilmington-Cape Fear Home Builders Association, have been providing tips on how to hire a contractor and ways to avoid getting scammed.

“In the aftermath of Hurricane Florence, thousands of North Carolinians with damaged homes, businesses, and other property will be prime targets for scam artists,” stated a news release from the NCLBGC.

The board advises residents to “exercise extreme caution” to avoid becoming a victim of a scammer posing as a legitimate contractor.

Licensed general contractors have passed an examination and have met the financial requirements for being licensed in the state, states the release.

“Unfortunately, natural disasters like Hurricane Florence lead to an increase in individuals posing as legitimate licensed contractors in an effort to prey upon vulnerable citizens,” C. Frank Wiesner, NCLBGC's executive director, said in the news release. “Individuals who hire unlicensed contractors are putting themselves at great financial risk.”

Cameron Moore, executive officer at the Wilmington-Cape Fear Home Builders Association said he has not heard of any scams in New Hanover County but has been aware of some scams in Brunswick County in relation to tree and debris cleanup.

He said New Hanover County has been issuing emergency permit applications. A permit for electrical mechanical or plumbing work is required in the county.

An important thing to consider when hiring a contractor is whether he or she is local, Moore said. A local contractor knows the environment and is more likely to use local materials.

Hiring a licensed contractor is not only good for your property but also for the safety of the contractor, considering the possibility that an unlicensed contractor could hurt themselves while doing work they are not capable of doing.

One important thing to verify before hiring a contractor is whether he or she is licensed. There are multiple ways this can be done:

• Ask for proof that the contractor is licensed; a licensed contractor is required to list their license number on all contracts.
• Search the NCLBGC’s website at nclbgc.org if you know the contractor’s name or license number.
• Call NCLBGC at (800 220-7185
• Download the Board’s free mobile app for Apple and Android devices by entering “NCLBGC SEARCH” in the search feature wherever you download apps.
 
Some important information from the NCLBGC regarding general contractors includes:

• Projects quoted at $30,000 or more requires a valid North Carolina general contractors license.
• Projects less than $30,000 do not require a license. However, hiring a North Carolina licensed general contractor may offer security in knowing that you are dealing with a legitimate
contractor who is authorized to engage in construction or repairs.
• Be wary of door-to-door repair solicitations or people who demand payments in cash.
• Require a written contract that details the work, materials, a payment schedule and a timeline for work to be completed.
• Contact your insurance company before beginning any work.
• Contact the local permitting office or inspections department to determine if permits are required to assure building code compliance. If permits are required, be sure the contractor acquires them before construction begins.
• Before making the final payment, evaluate the completed work and ask your contractor to confirm that all subcontractors and suppliers have been paid to eliminate potential liens on your property.

If you have a complaint or have been a victim of a scam, NCLBGC advises:
• File a complaint at nclbgc.org/complaints against the contractor if they are licensed or if they are unlicensed and the contract is $30,000 or more
• Contact N.C. Attorney General’s Consumer Protection Division (919) 716-6000 or online at ncdoj.gov
• Call local sheriff or police department if the crime is in progress. Wilmington Police Department's phone number is 343-3600.
 
The NCLBGC has a brochure with further information that can help those looking for contractors.
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