From the San Diego Union Tribune

Out-of-state contractors expected here




Some want to be helpful; others take advantage

By Emmet Pierce
UNION-TRIBUNE STAFF WRITER

November 18, 2003



PEGGY PEATTIE / Union-Tribune
Edgar Cervantes waters down debris as Lakeside-based Clauss Construction cleared fire wreckage. Out-of-town contractors are expected to pursue rebuilding work,

When fires, earthquakes and other disasters strike California, out-of-state building contractors are quick to arrive on the scene.

"I have a dirt crew, a pipe crew, a concrete crew," said Ted Huffer, an Indiana contractor who recently contacted the Building Industry Association of San Diego in search of work here. "Some of them said they would like to spend the winter in San Diego. Some of them don't mind traveling. Where they can get work, they go."


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With more than 2,500 homes damaged or destroyed by last month's wildfires, an in-migration of framers, excavators, roofers and drywallers to San Diego is likely, said Lynette Blumhardt, spokeswoman for the Contractors State License Board.

"Historically, we have seen contractors coming in from out of state to take advantage of those who have had their homes destroyed," Blumhardt said. "Some legitimately want to be helpful. Others follow natural disasters around the country and come in with the idea of taking advantage of people."

The problem is that contractors who don't obtain a state license can't be counted on to complete the work they were paid to perform, she said. Some request high up-front payments and disappear.

The problem was so severe after the 1994 Northridge earthquake that the Legislature passed a law making it a felony to contract without a license in a declared disaster area, she said. Being convicted can lead to a sentence of one year in prison, she added.

The only way for any contractor to legally work within the state without a license is to confine their services to jobs of $500 or less, she said. Acquiring a state license can take months.

"What you have to do is send in an application," she said. "It has to be reviewed. Verifying past experience can take some time. A written examination has to be scheduled. One part has to do with the actual trade you want to be licensed in. The second part is business and the laws that govern contractors in California."

Despite the hurdles, Richard Arnold of Vancouver, Wash., is eager to come to San Diego.

"I know people up here who might need work, and California needs people to come down there and take care of business," he said. "I can see a need."

Arnold recently contacted the Building Industry Association of San Diego "to let them know there are some people up here who genuinely care and could come down there and build houses or provide services in any way that we can."

Robert Rivinius, chief executive of the California Building Industry Association, said the state's contractors might be hard-pressed to keep up with the demand for services after the wildfires.

"The work force is pretty tight," he said. "There will certainly be an impact on the construction trades. Folks are going to want to rebuild as soon as possible."

Many new-home builders don't rebuild houses scorched by wildfires, Rivinius said.

"Rebuilding is a different kind of construction," he said. "There may be production builders who go in and rebuild a whole subdivision. It usually doesn't happen that way. Normally, different contractors go in and rebuild. There is always a shortage of qualified skilled workers. There are going to be more jobs out there waiting to be filled."

Ken Ford of the National Association of Home Builders' disaster-assistance team recently visited the county. He said state licensing requires contractors to insure their employees and disclose whether they carry general liability insurance to pay for injuries or property damage.

"When any disaster occurs, you will find a lot of people coming from out of state, some who have good intentions, but they have not gone through the regulatory process," he said. "In your state, contractors are required to be licensed, which means you have to pay workmen's comp, you have to demonstrate you do have the skill to do what you are proposing to do."

Blumhardt said there is nothing to prevent licensed California building contractors from hiring skilled out-of-state labor as long as the contractors maintain control over the work being performed.

Fire victims who are eager to rebuild should take a deep breath and proceed slowly, said Ken Willis, president of the League of California Homeowners consumer group. There will be enough qualified contractors to go around, he said.

"Everybody wants to see their house replaced as soon as possible, but the faster you go, the more likely you are to make a mistake," he said. "What homeowners need to do is realize that they don't have to take the first contractor who comes along. There are over 200,000 licensed contractors in California."

A key part of choosing a good contractor is making certain they are who they say they are, Willis said.

There have been cases where scam artists have assumed the identities of legitimate contractors, said Bryan Weaver of Scholefield & Associates, a San Diego law firm that specializes in construction law. "It basically is temporary identity theft."

It's too early to tell how many out-of-state contractors will take part in the reconstruction effort here, said Cindy Davis, head deputy city attorney in San Diego's Consumer and Environmental Protection Unit. An assessment could be months away. Homeowners "are still scrambling and trying to understand their insurance."

Willis urged homeowners not to be afraid to ask contractors questions. His organization can assist in checking state licenses, he said.

"This is one of those situations where homeowners have got to take care of themselves," he said. "Show me your license. Give me your business card. I want to check you out. Then and only then are we going to talk."



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Emmet Pierce: (619) 293-1372; emmet.pierce@uniontrib.com