Page 22 - The Long Road Home

THE STRUGGLE TO REBUILD
Photo: Ray Fisk, Down the Shore Publishing
Contractor Issues
Once the extent of Sandy damage became clear, homeowners began to hire home improvement contractors, home elevation contractors, or new home builders to repair, elevate, or rebuild their homes.
Many homeowners both in and out of the RREM program faced contractor disputes, but despite expectations of basic government oversight, participant homeowners in the RREM program struggled to handle contractor issues with little guidance and supervision. Many were under the impression that the “approval” of their contracts meant that the DCA had evaluated the substance to ensure that it matched their grant scopes of work and met the requirements under the law. However, contracts were approved as long as the contractor had a valid license; there was no substantive review
of the agreement nor was there an assessment of its legal validity. Because grant funds were provided directly to homeowners (most of whom had little or no construction experience)insteadofbeingheld in escrow, contractors were more easily able to take advantage by requesting unreasonable initial deposits, demanding payment before work had been completed, or performing repairs that differed drastically from the scope that was approved under the grant program. In addition, while each homeowner was assigned a Project Manager to assist with construction and invoice questions, the Project Managers offered little support in dealing with contractor disputes. When a contractor delayed the work, the homeowner was at risk of missing project deadlines and having to request extensions. When a contractor was paid without doing work properly, the homeowner was liable for returning that money to the program.
In September 2015, the DCA created a policy designed to address complaints and concerns regarding contractor fraud, poor workmanship, and failure to commenceandcompletework in a timely manner pursuant to contract.26 Homeowners who believed that they had been defrauded by a contractor were advised to file a complaint with the Division of Consumer Affairs as well as a police report. If the homeowner could obtain a legal document in which a government agency alleged the crime of fraud against the contractor (such as an arrest warrant, a criminal complaint, or an indictment), the DCA would schedule an inspection to verify the amount of work completed and to estimate how much work remained, and might amend the homeowner’s grant award to provide him or her with additional funds.
22
THE LONG ROAD HOME