Anyone do Background check to approve licensed contractors?

Started by DawnL • 9 replies • 1438 views

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DawnL (California)
Posts: 37

Posted:

Our CCR's require that homeowners get approval for certain projects. In this case the homeowner is replacing windows which will affect a common area component (the siding, wood trim, wall integrity/potential leaks)

Rather than have to sue a licensed contractor if the walls start leaking after he replaces their windows, we want to be diligent to approve a high quality contractor.

Besides checking for current status of his license, verifying his insurance certificate, and calling his references, would it be OK to do a general background check?

Thanks for any suggestions you might have!

Dawn in California

MaryA1 (Arizona)
Posts: 7,043

Posted:

Dawn,

IMO a background check is a bit much to consider. Requiring a licensed contractor is all that is needed. The H/O should be checking with the BBB and the Registrar of Contractors regarding his contractors license (or whatever state depart. regulates contractors licenses) and perhaps checking references. This is a good practice to adopt anytime a h/o contracts to have work performed on their home. My BOD's attorney has advised them to not require property owners to have background checks on renters because in so doing they are placing a liability on the BOD. In other words if you require a background check and that person turns out to be a felon and commits a crime on the premises, you can be held liable.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Excellent points, Mary.

Ask the company if they do background checks on their employees. They'll get the hint when they are passed over being hired.

KirkW1 (Texas)
Posts: 1,665

Posted:

Be sure to check with the BBB before the work starts.

EllenS1 (Florida)
Posts: 1,148

Posted:

Dawn,

We have several young children in our hoa and did a background check on our landscaping company. Turns out one employee was a sexual offender and they were not kept on the job.

DawnL (California)
Posts: 37

Posted:

Thanks so much for your responses. Megan's Law website is a great idea.

Our main concern is not the "window stores" who are licensed contractors because they often have a long history of doing business in our town and are also reviewed by the Better Business Bureau. We are more concerned with making an informed decision on the "individual contractors" whose businesses consists of a cell phone and a pick up truck. They are never listed in the BBB. Of course we can check on their license, but they are more difficult to pursue if there should be any issues. Since the replacement of windows also affects common area components, there's a lot at stake for the HOA.

The background check was just to check for work-related judgments or liens. . . also if their address changes every 6 months since they got their license, it might be suspect.

Anyway, I'm going to poke around and see what other options we might have to find out about individual contractors.

Thanks again, everyone!

Dawn

KirkW1 (Texas)
Posts: 1,665

Posted:

A background check won't tell you what you are wanting to know. But the best advice I can give you is to discuss the concerns with the owner and hope that they understand that the lowest bidder is not always the best for the job.

As for the BBB, there are basically three types of business:
Those who join and agree to certain rules.
Those who have had reports (good or bad).
Those who have not had reports.

The last category simply means they haven't had a report. The BBB doesn't actively review organizations.

But you can (and should) require that all contractors working with any common element provide an insurance certificate for worker's comp coverage. This will drop out half or more of the ones you are concerned about. If it doesn't relate to the common areas (or walls) then you should only advise and let the owner take care of themselves.

AnneH2 (Florida)
Posts: 82

Posted:

Quote:

Posted By DawnL on 04/29/2009 8:14 AM
Our CCR's require that homeowners get approval for certain projects. In this case the homeowner is replacing windows which will affect a common area component (the siding, wood trim, wall integrity/potential leaks)

Rather than have to sue a licensed contractor if the walls start leaking after he replaces their windows, we want to be diligent to approve a high quality contractor.

Besides checking for current status of his license, verifying his insurance certificate, and calling his references, would it be OK to do a general background check?

Thanks for any suggestions you might have!

Dawn in California

Yes, it's not just okay, it's prudent. In FL you can check complaints to the state and the county. Better to know on the front end than to find out the hard way on the back end.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Please be aware that even the "window stores" subcontract out to smaller companies or licensed individuals. So contracting with a "window store" is still no guarantee of good work or trustworthy workers.

On the other hand, they are a much easier target if some goes south.

LashawnA (Nevada)
Posts: 1

Posted:

One option would be to do a reference check and BBB check on the company and then have the company provide you background checks of any employees that will be working at your property. Criminal records are public record so make the contractor do the work. If they want your business, they can provide this information to you, and should have it already if they are a reputable business.

My company provides security services to upscale gated communities and high-rises. We do criminal background checks on all employees we hire and will not hire anyone with a felony background. This protects us (the company) and the client.

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