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Worried homeowners can be easy prey for dishonest contractors.
Photo: FEMA
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By Richard Wall
As soon as Hurricane Katrina blew away, a flock of unscrupulous contractors descended on the dazed residents of ravaged Louisiana, Mississippi, and Alabama. Offering quick-fix repairs for exorbitant prices and providing the shoddiest of work, these scammers are the bane of Gulf Coast homeowners and contractors alike these days—and will be for months to come, most likely.
"Jacklegs" is what David Taylor, owner of All-In-One Remodeling in Biloxi, Miss., calls them. He recounts the story of one elderly client whose roof needed repairs, but she couldn't contact David because the phones were down. "One of these guys showed up, said he was with FEMA and had come to fix her roof. He put up a cheap tarp and demanded $1,000—in cash. The lady was confused but paid it, and that jackleg was gone."
Scam artists prey on people's emotional instability in devastating circumstances and on their desire to have homes repaired ASAP. These defrauders routinely target the poor, but they don't overlook the affluent.
"The vultures came in fast," says William Wainwright, president of Wainwright Construction in Hammond, La., 50 miles north of New Orleans. He says the scam artists are hitting up nearby St. Tammany Parish, where the people have more money but know less about fair construction costs. "I know a man who paid someone $15,000 to have three trees removed from his house," says Wainwright. "I've been doing it for $100 per tree."
Pros fight back
Immediately after Hurricane Katrina, William, David, and other reputable contractors cut prices or, in many cases, worked for nothing to help people out. Unfortunately, the misdeeds of swindlers can give the entire building-trades community a black eye.
But contractors can fight back. For example, professional associations in the Gulf region are working with local governments to launch public-awareness campaigns about unscrupulous contractors.
Here are some tips contractors can use to protect themselves and their clients and to help their communities fend off scams in times of emergency:
- Call your list of clients and tell them to deal only with a licensed contractor, even if it's not you. A contractor may come from out of state to get some work, but he or she should still have a license, references, a bond, and carry worker's comp. Warn other people you know, too.
- Tell people to avoid contractors who offer unusually good deals. They'll get what they pay for—and often far less.
- Warn people to beware of contractors who say they can help homeowners make money off insurance claims.
- Tell clients that material costs are going up unpredictably as a result of the hurricane. Explain that cost-plus contracts and inflationary clauses protect everyone, including them.
- Material and labor shortages will disrupt schedules. Alert your clients to expect such shortages and disruptions.
- Yes, be prepared to be called a price-gouger. Longtime clients are stressed and may not react fairly when the bill comes.
- Monitor unfamiliar contractors and report them to authorities if necessary. "I'll stop and talk to guys who seem suspicious," says David in Biloxi. "I give them the benefit of the doubt, but I tell them I've taken down their tag number, and will be watching them."
Richard Wall is a freelance writer and an experienced hurricane evacuee living in St. Augustine, Fla.
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