Beware of Unlicensed Contractors – And Let The Unlicensed Contractor Beware
by John Weckerle
In a letter to the Independent on May 13, the Bernalillo County Sheriff’s Department provided information on an unlicensed pavement company that has apparently been working illegally and doing poor quality work, leaving homeowners with a mess afterward. My own recent experience in a dispute (now in its 20th month) with a contractor who turned out to be unlicensed has required me to learn a few things about protecting oneself against predation by contractors who appear legitimate, but who may be something else entirely. NM-Central.com is happy to share some potentially useful information on avoiding and/or rectifying problems with unlicensed contractors.
The best way to protect yourself against unlicensed contractors is not to do business with them. An unlicensed contractor may not be easy to spot at first – they can be convincing, and one might not think to even ask the question: “Are you licensed to do this work?” Be aware that having a storefront, a business card, a sign on the side of the truck, or a lengthy business history does not equate to having a license; it is important to confirm the legitimacy of the business – a lesson I am continuing to learn.
First, demand a copy of the business’s contracting license and insurance certificate. This is a standard request, and any legitimate business should not hesitate to provide the requested information. Even if these materials are provided, however, it is important to confirm that the license is still valid. One resource of which I wish I had been aware is the New Mexico Regulation and Licensing Department’s Construction Industries Division web site at http://www.rld.state.nm.us/CID/index.htm. Tools here include a contractor database, which provides information on the contractor’s license classification and status. This is an easy tool to use – by entering my contractor’s last name and first initials, I was able to quickly view information both for himself and his business. It may also be useful to contact CID directly to determine whether the contractor is currently licensed. The web site provides a wealth of information on selecting contractors and items that should be included in contracts.
Another indication of a contractor’s (unlicensed or otherwise) suitability may be the degree to which the contractor has been involved in litigation, and the nature of the litigation. The New Mexico Judiciary Case Lookup at http://www.nmcourts.gov/caselookup/app may be of some help. The case lookup does not provide extensive detail, but the presence of extensive cases may provide some insight into whether the contractor is someone with whom you would wish to do business. I find it useful to enter the contractor’s last name and first initial, which may provide additional search results for first name misspellings.
If you should find that you have unwittingly entered into a relationship with an unlicensed contractor, there are resources available to you. Attorney General Gary King’s Consumer Protection Division (http://www.nmag.gov/office/Divisions/CP/Default.aspx) is staffed by dedicated and helpful consumer advocates who can work with you in attempting to resolve disputes with your contractor, unlicensed or otherwise. The Consumer Protection Division does not provide litigation services, but can provide information and act as an intermediary in negotiations.
Contracting in New Mexico without a license is a crime, punishable by substantial fines and up to 6 months in prison. The Construction Industries Division conducts investigations into unlicensed contractor activity, and may refer the matter to the District Attorney for criminal prosecution. The CID web site contains all the forms and information you need to make your complaint. If you are in a dispute, or even if you have only received a proposal from an unlicensed contractor, consider reporting it to the CID.
We have been advised by several people, including an attorney and a licensed contractor, that under New Mexico law, an unlicensed contractor is not entitled to any compensation for services – which may mean that you may, through litigation, be able to obtain a refund for the entire cost of the project. Further, two sources have indicated that case law precedent exists that finds some unlicensed contractor activity to be a violation of the Unfair Trade Practices Act, and you may be entitled to triple damages and reimbursement of attorney’s fees!
In the end, your best bet is simply not to do business with unlicensed contractors, and report them when you run into them. Whatever money you think you are saving may well end up costing you peace of mind – and you may even find yourself spending more money than you would have with a licensed operation.
7 Responses “Beware of Unlicensed Contractors – And Let The Unlicensed Contractor Beware”
I just came across this and am intrigued about the outcome of your case. We are still in the throes of a lawsuit with an unlicensed contractor here in Arizona. Too late we found out the facts about the contractor using the very suggestions you mention in your story: the AZ Registrar of Contractors had revoked two licenses; he had been sued 52 times in civil court; and even had an outstanding warrant for his arrest for contracting without a license issued by a neighboring town. The bottom line is that we never would have signed a new home construction contract had we not been duped by his being a friend of our in-laws (they also did not know his dark side), and had instead used the resources you mention that we found out about too late to get the facts about the guy. Our pursuit of “justice” has cost us into 6 figures for legal fees.
We eventually recovered $4,000 from the contractor (The Water Boys, owned by Nobert Pohl). We received a few initial payments, and then the payments stopped. Fortunately, just as we were preparing to take legal action, someone else filed an unlicensed contractor complaint with CID, which forced him to obtain a licens and settle all outstanding complaints.
My own experience involved an unlicensed and very unresponsive contractor who built us a garage and sunroom. The main issue was the stucco, which was improperly done, resulted in multiple leaks, and ultimately began to fall off. It took two years and a lot of involvement by the New Mexico Attorney General’s Office’s Consumer Protection Division, but we finally got the money out of him to repair the damage.
Laws are state-specific, but it’s a good idea to check into the license status of the contractor before starting a project. Other resources, such as the Better Business Bureau, Angie’s List, or even just Google are other ways to get a heads-up on whether your contractor is worth contracting.
In New Mexico watch out for J. B. Grading owner is Joseph (Joe) Bustos. This is an unlicensed contractor. States to be licensed and appears as a very legit firm. Even signs contracts. Issue is one contract was signed and told he will get us copies of the other contracts when he has time. That time never comes. Becomes unresponsive and tells us to sue him. Had to use the BBB to get the last of the first contract completed. The work was horrible and now will cost us to redo the work in addition to other damage his team did.
Again, we recommend working with the Consumer Protection Division; they’re very dedicated and effective.
In New Mexico do not hire any company involving Braxton Haze. He is a fraud and con artist. We hired him for work on our home. He supposedly represented one call services at the time. He low balled the bid and began to cut corners immediately. When questioned about the work he began acting very aggressively and made a threat to place a lien on our home. I wish I had used our RLD website to check him out. Look him up on NM courts and you will find a number of legal disputes involving Braxton Haze. Google the name Braxton Haze and you will find he changed his name from Shane Harger. Do not hire this joker.
Unlicensed contractor