Professional Alpharetta, GA on Oct 24, 2011

A definite Beware of Contractor for consumers. Always check the info yourself!

I received an email from another website that consumers often ask about. This particular advertisement offers "$299 for a General Contractor for a FULL Day--Good for 9 Man Hours of Labor!" [Okay, I'll ignore the sexism]. The deal details says that the contractor is "fully licensed and insured general contractor" -- not true. The company is not a state licensed contractor much less a fully licensed General Contractor (which is a specific license in GA) and the company has been administratively dissolved by the Georgia Secretary of State and has no registered agent. I can't tell you if they are insured or not. So they are advertising that this can be used for room additions, finished basements, full kitchen/bath remodeling....... but they do not hold the required state contractor's license that would allow them to pull a building permit for that type of work or to construct it.

All I can say is that I hope no consumers fall for these types of ads, but I know they do everyday. Your "savings" may include risking the entire value of your home. It took me a few minutes to check this online. Even if a consumer were to have paid me $50 for my time, think how much I could have saved them upfront versus a nightmare situation where they actually used an unlicensed contractor to perform work ...»

9 Comments

Miriam I New York, NY

Kevin, thank you so much for posting this. We all constantly talk about the importance of checking info before you hire and this is another wake up call.

on Oct 24, 2011 · Like 0
EXOVATIONS Cumming, GA

Thanks for sharing! I've been receiving same type emails and trusted the source that they were coming from. As you said, always check for yourself! Candice, Exovations

on Oct 24, 2011 · Like 0
Donna Dixson Buford, GA

When it is too good to be true.......

on Oct 24, 2011 · Like 0
Dan's of Central Florida,... Clermont, FL

Agreed 4 Seasons. What you will find many times down here is a GC that is offering to "qualify your business." I see ads for it all the time on Craig's List. They will go and pull the permits for the person who brought them the job. After that they have nothing to do with the job and the poor homeowner has no idea this 3rd party person is involved.

on Oct 24, 2011 · Like 0
Kevin M. Veler, Law Offic... Alpharetta, GA

Dan, not sure about Florida (although I suspect the rules are close since our law started out based generally on FL law) but unless the contractor who pulls the permit is the contractor named in the contract with the owner, its a licensing violation. One of the 1st cases was a guy who was advertising on Craigslist to pull permits. One of the investigators met with him and got offered a great deal. Instead of making money, he lost his license and got a $25,000 fine.

on Oct 24, 2011 · Like 0
Steve G Fort Collins, CO

Thanks Kevin. Good tip. I think for as much as we all consider ourselves hip to the scams, it's easy to slip into thinking that legit contractors are desperate enough for business in this economy to offer deals like this.

on Oct 24, 2011 · Like 0
Dan's of Central Florida,... Clermont, FL

Kevin, yeah, I would never try to get a hold of one of those people myself. While I am not a GC, I have reputable GCs that I am allied with if the need actually arises. I'm quite sure its illegal to pull the permit and walk away here as well. As you well know though, that doesn't stop people from doing it. Not sure how it is in GA there, but its pretty easy to get a business license here in FL (just pay the fee really). Those who get caught and fined around here just file bankruptcy (or ...»
have a corporation with no assets), close down, and reopen up under a different name. That's why it is important down here to see just how long a company has been in business. Some idiot might be on his 5th business entity for the year.

on Oct 25, 2011 · Like 0
Kevin M. Veler, Law Offic... Alpharetta, GA

Dan, I would agree on the business occupational tax license (which is a form and fee) but its not that easy to get serial professional licenses. That is why I recommend that consumers to check into more than the company if they can, check the principals, the address of the office, etc. I have even checked registered agents to see what other companies they are agent for and that can sometimes turn up something. There are no complete safeguards but its getting harder and harder to hide thanks to the internet.

on Oct 25, 2011 · Like 0
Courtier Construction Mount Dora, FL

Though a few bad apples do slip by, here in Florida, it takes quite a bit to get a contractors license. To get my license, I had to be able to prove (by notorized letter of reference by a licensenced contractor) that I had experience in the construction field (it has been so long ago that I don't remember the amount of years of experience, but I think it was at least 5 years. Then you take classes because you may be a great builder, but you not only have to know your trade, but all of ...»
your subs also. Plus you have know all the lien laws, tax info, workerscomp, etc.
Then you finally sign up to take two test. One being business and the other trade.
If you pass both test, you are still not done. Next you have to have a bond, insurace and workerscomp policy or exemption before you can officially ever begin to bid jobs.
As for the occupational licenses, they were eliminated because too many people were getting them and then claiming to be licensed contractors. Today they are called business licenses.
If you want to check to see if a company is really a licensed contractor in Florida, go to www.MyFloridaLicense,com and look up the company name or the contractors name or the license number. If they are legimate they will be listed there.
That way you will not be responsible for the liabilty which could result from hiring an unlicensed contractor in Florida.
As for companys who sell their licenses to others, that is also against the law here and should be reported.
Remember, in Florida the law states that all construction contracts must include the name of the company, the phone number, the address and THE LICENSE NUMBER.
Good Luck
Gary

on Oct 25, 2011 · Like 0