Contractor complaints consistently rate among highest in state

Source: Chippewa Herald

August 13, 2007

MADISON — John Raymond was looking for warmth. Instead, he got burned.

It has been almost two years since Raymond hired a Cambridge heating and cooling company to install a boiler in the 84-year-old house he bought in Cambridge in 1992.

But after countless phone calls to Rudi Bittner, owner of Bittner Heating & Cooling, and a complaint to the state, Raymond is still without a boiler and the $2,000 he gave Bittner as a down payment for the $3,700 job.

And it’s unlikely Raymond will ever see a full refund. Last week, Raymond got a letter from Bittner’s attorney saying Bittner had filed for Chapter 13 bankruptcy.

“I trusted the guy,” said Raymond, who works at Ephraim Faience Pottery in Deerfield and wanted a local contractor to do the job. “I was just trying to help the little guy and got stung.“

Raymond isn’t alone.

Of the more than 14,000 complaints filed in 2006 with the Department of Agriculture, Trade and Consumer Protection, the home improvement category ranked fourth, with 738 complaints.

Telemarketers, telecommunications and landlord/tenant categories finished ahead of the home improvement category, which over the past 10 years has consistently been in the top five.

Typical complaints include not doing the job promised, using less-expensive materials, not doing the job on time and shoddy workmanship. The money involved can range from a few hundred dollars to thousands of dollars.

The companies involved are big and small. Some, like Raymond’s complaint against Bittner, involve a locally owned company.

Others involve transient contractors who sweep into a community going door-to-door offering services such as seal coating driveways or roof repairs.

Consumer Protection tries to work with contractors and consumers to solve the disagreements. If a resolution can’t be found, it could result in civil action by the consumer, who, under state law, can sue for twice the amount in damages. In some cases, the result can be criminal charges against the contractor.

“We take the lowest level of enforcement action to gain compliance,” said Dave Tatar, a former police officer who oversees consumer protection investigators in Madison, home to one of the four regional state offices for consumer protection investigators. “There are some bad apples out there.”

Bad at business

Even those who do good work may be hampered by a lack of understanding of what it takes to run a small business. Taxes, insurance, money management and proper communication with clients can all lead to problems, said David Krekeler, a business bankruptcy attorney who sits on an advisory panel for consumer protection and represents Bittner.

“You can ask these small-business people if they’re making money and they don’t even know,” Krekeler said. “They just kind of live out of the checkbook.”

In Bittner’s case, unpaid payroll, unemployment and Social Security taxes along with a divorce, delinquent child support and student loans led to a bankruptcy filing after Bittner’s bank threatened foreclosure on his house, Krekeler said.

According to an online state court database, Bittner owes thousands of dollars in unemployment compensation to the Department of Workforce Development.

Unpaid taxes can be particularly challenging for small-business owners, according to Krekeler, who has more than 25 years of legal experience. Unlike a vendor, there may not be calls from the government hounding the small-business owner about what is owed. Instead, it may sneak up on the owner.

“I see it all the time,” Krekeler said. “It’s not like he’s one of these transient guys who’s out there ripping people off.“

Tatar has one investigator at this time of the year whose sole job is looking at transient contractor complaints. In addition to sub-par work and cheap materials, transients have also been known to steal from the homes while they’re doing jobs, Tatar said.

Tatar is also a member of the Transient Task Force, which met this spring to bring law enforcement, consumer protection and other agencies together to talk about transient contractors.

“It’s always been a problem,” Tatar said. “It’s a challenge every year, but they keep coming through.“

Pick the right one

Allie Berenyi, program director for the construction and remodeling program at Madison Area Technical College, said consumers also need to be patient and not rush to use a contractor simply because the contractor is available.

Students in the MATC program are also taught about trying to change the image of contractors who have a reputation that “is right up there with used-car salesmen,” she said.

“One of the things I really push is being honest and respectful of people,” Berenyi said. “It’s really their job to change that reputation and it starts with that honesty and politeness. All those tangible things that go with gaining people’s trust so they hire you.“

The phone book, newspapers, bulletin boards and Internet are filled with those claiming to offer home-repair services. Finding the right one usually takes a little bit of homework, according to experts.

Asking for references, looking at similar work done by the company and even checking online court records can help with the decision. Once a contractor is selected, everything should be in writing, Tatar said.

Code of ethics

Unlike someone who cuts hair, is a bartender or drives a car, there are no licensing requirements to become a “home improvement specialist,” but there are resources that can help.

Organizations include the Better Business Bureau, Madison Area Builders Association and the Madison chapter of the National Association of the Remodeling Industry. NARI publishes a 52-page guide that lists members and provides tips on how to find a contractor.

“Any remodeler can have an issue on any job, but what NARI members take pride in is how they handle them,” said Kathy Raab, NARI’s executive director in Madison. “Usually it’s a breakdown in communication, but after that, it can go to our ethics committee, which can lead to a revocation of their membership.“

NARI members are required to abide by a code of ethics and had to be in business for a year in the area to join.

When Ryan and Shannon Meyer wanted the lower level of the family room of their Verona home finished off, Shannon looked through the Verona phone book in search of a contractor.

She called several and got a few phone calls back. One contractor came out, but the Meyers dropped the contractor because he took too long to provide an estimate.

Instead, the Meyers found Hefty Construction through a contact on her husband’s soccer team.

“He really knows what he’s doing and knows what we can do,” Shannon Meyer said. “So far, it’s been a good experience.“

The Meyers had lived in Chicago and had extensive remodeling done to their home there. The key to that success was using contractors recommended by friends.

“We occasionally have complaints, but for the most part we don’t have a lot of problems,” said Joe Jameson, who has worked in building inspection for Middleton for the past nine years and has 30 years of experience. “Ask for references. Go over and take a look at the job they did. It’s similar to buying a car.“