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New board to license contractors

As posted on June 29, 2008 on www.jacksonville.com

By Jake Armstrong

ATLANTA - It'll be done in two weeks.

Anyone who's dealt with a contractor who plays fast and loose with deadlines, or is familiar with the depths of residential contracting as portrayed in the film The Money Pit, knows that phrase is a death knell for getting a home improvement job done.

People who've heard it have probably even wished contractors were held to some type of standards. They'll soon get their wish.

Starting Tuesday, residential and general contractors in Georgia will fall under the purview of the state's Professional Licensing Boards Division, a division of the Secretary of State's Office.

The licensing board has laid out minimum standards of practice, and accompanying penalties for violators, in an industry that receives a fair share of the consumer complaints lodged in the state. Georgia will join about 30 other states that license such contractors.

Matt Carrothers, spokesman for the Secretary of State's Office, answers questions about licensed contractors.

Residential contracting is one of the most complained about industries in the state, second only to automobiles. What does the licensing board expect in terms of the volume of complaints, and how will it handle what may be a huge workload?

The State Licensing Board for Residential and General Contractors cannot predict the number of complaints it may receive. Complaints will be processed as they are with any other professional licensing board.

Can consumers expect licensing to weed out all bad contractors?

The licensing law was created to protect both the contracting industry and Georgia consumers by establishing and enforcing professional standards. The law established criteria, which require applicants to meet minimum standards in order to be licensed in Georgia.

The law and board rules also allow for disciplinary action including suspension and revocation of a license which may be taken against licensees who violate state laws or board rules.

Will complaints against contractors be available to the public?

Anyone may file a complaint against a licensee, and the State Licensing Board for Residential and General Contractors considers all complaints. Per Georgia law, complaints received by the Board office are not available to the public. However, public actions taken by the Board, including public board orders, suspensions and revocations, are available to the public on the Professional Licensing Division's Web site, www.sos.ga.gov/plb.

If complaints are not public, how can consumers find out if they are dealing with a reputable contractor?

The public may check the Professional Licensing Division's Web site to determine if a contractor is licensed and to check the status of the contractor's license.

Complaints aplenty

Next to automobiles, contracting draws the second-highest number of consumer complaints and inquiries. Since July 2007, the Governor's Office of Consumer Affairs has received 1,500 complaints, spokesman Bill Cloud said.

Unless the complaints were about fraudulent activity, there was little anyone could do about a poorly performing contractor, Cloud said.

"I believe this licensure program is going to be part of a long-range solution for any substandard work that is being done in Georgia," Cloud said.

The industry's take

Contractors look favorably toward the debut of licensing because it will increase the legitimacy of those who ply the trade, according to Ed Philips, executive vice president of the Home Builders Association of Georgia.

"We're looking forward to it because we think it will separate the professionals from the non-professionals," Phillips said.

Until now, the lack of any regulation has left the bad contractors in the same pool as the good ones, Phillips said.

"We've had a really poor reporting system as far as complaints," Phillips said.

There hasn't been a centralized authority to which contractors reported, which meant there was no way for consumers or the industry to keep tabs on bad contractors who might perform poorly in one town, then move to another and begin operating under a different company name, Phillips said.

Now licensees, which numbered 19,322 as of Friday, can be tracked online.

Nearly 11,500 contractors were exempted from examination requirements because of their past experience and qualifications.

The exemptions do not undermine the licensing system, Phillips said. The bar to qualify for an exemption is high, and the fines the board can impose - up to $10,000 - add incentive to keep all licensees on the straight and narrow, he said.

The law also presses consumers to choose licensed contractors. Contracts with unlicensed contractors will be null and void after July 1, meaning unlicensed builders may not get paid and consumers may not get their jobs finished, Phillips said.

jake.armstrong@morris.com, (404) 589-8424 Tips for selecting a contractor - Ask around. Friends, neighbors and coworkers may be able to refer someone who worked well for them. Also contact trade organizations to find local contractors. - Check references. Find out if the contractor has done similar work, then ask references if you can inspect the work. - Shop around. Get written estimates from several contractors. - Get it in writing. Insist on a contract for work, and get all guarantees, warranties and promises in writing. Make sure start and completion dates are in the contract. - Pay as you go. Consider payment terms that match completed stages of the project. Source: Governor's Office of Consumer Affairs