Contractor Complaints in Massachusetts

Contractors have a famously bad reputation. So it is not surprising to hear that in one state, Massachusetts, complaints about contractors are more frequent than about any other kind of service provider or business -- even used car dealers. As reported recently in Boston,

The top complaint category from the Office of Consumer Affairs and Business Regulation concerned over 5,000 calls on home improvement contractors – and, this was only for half the year after Consumer Affairs took over contractor regulation on July 1, 2009. Consumers' top complaints about home improvement contractors were project abandonment, deposit disputes, and permit issues.

“Home improvement projects are important to families for both financial and lifestyle reasons. It is important that consumers know they are using a reliable, licensed, responsible contractor,” said Undersecretary Anthony. “Consumers need to research local contractors, make sure they are licensed and have favorable recommendations, and create a contract that protects their interests throughout the project.”

The top government official handling these complaints believes that a poor economy is creating more cheating -- and also more resistance to it. As the Boston Globe reported:

“People are much more aware of how they spend their money,’’ said Barbara Anthony, the state’s director for consumer affairs, who oversees five agencies that regulate businesses.

High unemployment and low wages also make consumers susceptible to offers that are too good to be true, Anthony said. At the same, some businesses might be inclined to cut corners to save money.

Fortunately, Massachusetts is not a such a bad place to be ripped off by a contractor, since the state government does a good job of providing consumers protection in this area. As explained in the Boston Globe:

Registered businesses are required to pay annually into a guaranty fund; the pooled money is then given to homeowners, like Ray and Carla Di Ciaccio, who can prove their case against unscrupulous or incompetent contractors. Since the fund started in 1992, an estimated $7.5 million has been paid out.

The scope of payouts by the guaranty fund gives a sense of how big the crooked contractor problem is in Massachusetts. Especially since most wronged homeowners probably never seek formal redress.