Construction Contractors Board700 Summer St NESuite 300PO Box 14140Salem OR 97309-5052www.ccb.state.or.us

CONSTRUCTIONFRAUD & SCAMS

and how to see one coming

f/fraud booklet/7-08

when something doesn't seem quite right...about the CCB

The Construction Contractors Board (CCB) protects thepublic’s interest by helping to prevent and resolve con-struction contracting disputes, and by regulating contrac-tors to ensure that they comply with the law. The CCBinvestigates allegations of unlicensed and illegal con-struction activity and fraud.

Oregon law requires anyone who works for compensationin any construction activity involving improvements to realproperty, to be licensed with the CCB. This includesroofing, siding, painting, carpentry, concrete, on-site ap-pliance repair, heating and air conditioning, home inspec-tions, tree service, plumbing, electrical, floor covering,manufactured dwelling installation, land development,and most other construction and repair services. Thereare exceptions, including employees of an owner orcontractor.

The CCB also provides helpful consumer educationinformation on how to successfully navigate home con-struction and repair projects.

To avoid being a victim of construction fraud, the CCBrecommends that consumers become knowledgeableabout how to hire a contractor. Consumers who are plan-ning construction or repairs on their homes can find usefulinformation on the CCB website at www.oregon.gov/ccb,or may request publications by calling our offices at 503-378-4621.

UNSOLICITED DOOR-TO-DOOR OFFERS

door-to-door solicitors

Be cautious if you get an unsolicited door-to-dooroffer. Many states report seeing organized groupsoften called “Travelers,” who travel from state tostate posing as contractors. They often distributeflyers and solicit door-to-door. If a homeownerhires them, they may demand cash up front or maytake a check and cash it right away, never returningto do the work. If they do perform any work, it isusually substandard. Their scams include:

Roof Repair scams - They may slide a few newshingles under old ones, then spray the roof witha useless oilSealant scams - They use a watery liquid or oil asa fake sealant on driveways, fencing, or roofingPaving scams - Their workmanship is substan-dard, usually only laying down a thin layer of pavingthat soon breaks apart“Leftover Materials” scams - They say they willsave you money by using leftover materials fromanother jobDiversion scams - One solicitor distracts thevictim by taking them away from the door, while theother slips into the house to steal valuables

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to be made immediately oryour home will be unsafe.

A common scam is to offer a“deal” using left-over materi-als from “working on anotherhouse in the area.”

They offer to use your homeas a “display home” for adiscount price.

They offer a discount for find-ing them more customers inthe area.

They don't want to provide awritten estimate and contract,or they may say you only needa verbal agreement (alwaysget a written contract, evenfor small repairs).

Be cautious of a very lowestimate. A price that is toogood to be true could betempting, but often turns intoa construction nightmare withshoddy work and poor mate-rials.

If there are two solicitors, onemay try to lead you away fromthe door by “showing you”some damage on your house(giving the other solicitor achance to slip into your houseto steal valuables).

to see a door-to-door scam coming,

watch for these red flags:

If you suspect that a door-to-door solicitor is trying to scamyou, get as much informationas you can including: name,phone, and a license platenumber from the vehicle theyare driving, and call your lo-cal law enforcement agencybefore they leave the area.Also call:

Oregon ConstructionContractors Board (CCB):503-378-4621

Oregon Dept of Justice (DOJ),Attorney General’s ConsumerHotline - In Oregon (toll free):1-877-877-9392

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Solicitors who drive unmarkedvehicles with out of stateplates.

Their business card doesn’tlist a CCB license number (orlists a fake one) It may alsogive an “800 phone number”and a PO box as an address.

They seem friendly, but talkfast (to confuse you) and try topressure you using scare tac-tics, saying the repair needs

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scams that target seniors

SCAMMERS MAY PRETEND TO “HELP” SENIORS

Construction scam artists target seniors because:

Seniors are more likely to be home to answerdoor-to-door and telephone solicitors

Seniors are from an era when people trustedtheir neighbors and local businesses, makingthem more vulnerable to modern-day scams

Seniors may unwittingly agree to a scam be-cause it appears to save them money

Seniors may have physical limitations, whichmakes it difficult to check the roof or chimney fordamage

Seniors may live alone, making them vulnerableto intimidation, bullying, or even home invasionand assault

Scammers knock on your door and play the “goodsamaritan” saying they “just happened to be pass-ing by” and noticed some problem with your house(roofing, siding, electrical, driveway, fencing), andthen offer to fix it at a reduced price. They may use“scare tactics” such as saying the damage posesa danger, to pressure you into getting a repair rightaway, when it really doesn't need repair. 4

to see a scam targeting seniors coming,

watch for these red flags:

Door-to-door solicitors andtelemarketing calls offeringhome repair services shouldbe viewed as highly suspect.

Consumers should decide forthemselves if their homeneeds repairs. Enlist the helpof a relative, trusted neigh-bor, or friend to take a look atyour house for any neededrepairs.

See page 9 on ways to protectyourself from home repair orconstruction scams.

A roof repai r scammercomes to your home unso-licited and says they seeloose shingles or other dam-age on your roof. (Thescammer does some minorhammering on the roof, ap-plies a liquid to make thearea appear new, andcharges you several thou-sand dollars.)

A scammer knocks on thedoor and tells you that heinstalled the roof on thehouse many years ago andis returning on schedule to

do necessary upkeep orrepairs. (He may convinceyou to give him a check,then never returns to do thework.)

Some scam art ists wi l lquote a low price at first,and when you agree, theyraise the price after startingthe work (and intimidate vic-tims into paying).

Scammers often convincesenior homeowners to payin cash. They offer to drivethe senior to the bank towithdraw funds, and thentake the money and run, with-out ever doing the repairs.

Paving scams are a spe-cialty of the “Travelers,” agroup that travels around thecountry. They usually de-mand full payment up frontand appear to start the work,but will often lay down onlya small amount of pavementbefore leaving with themoney. The thin pavementsoon cracks, leaving the vic-tim with a crumbled drive-way and an expensive messto have repaired by a legiti-mate paving company.

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disaster victim scams

Natural disasters causing property damage attractconstruction scam artists who prey upon victimsof s torms, f loods, w i ld f i res , and o thercatastrophies. Construction scammers convergeupon damaged neighborhoods to profit from in-surance and government funds coming into thearea.

Where there is widespread damage, local con-tractors may be overwhelmed with calls from cus-tomers, and are forced to put them on waiting lists.Distraught disaster victims may be tempted to hireanyone to make immediate repairs rather thanwait.

It’s understandable that homeowners would wantto start repairs right away to get their lives back ontrack, to secure their property, or because morestorms or floods are on the way. But to avoid costlymistakes, homeowners should take time to con-tact their insurance agent to find out what will becovered by their home insurance policy BEFOREhiring a contractor. Then, the contractor’s licenseand complaint history should be checked by con-tacting the CCB before signing any contract.

OFFERS TO START REPAIRS “ON THE SPOT”

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to see a disaster vicitim scam coming,

watch for these red flags:

Before hiring any contractor,DO YOUR HOMEWORK!Go to the CCB website at:www.oregon.gov/ccbto check a contractor’s licenseand to read helpful informationon our Consumer Help pageabout how to have a successfulconstruction project.

If you suspect a scam artist iscanvassing the area, contact theConstruction ContractorsBoard at 503-378-4621.

Be wary of flyers and busi-ness cards placed on door-steps offering repairs (legiti-mate contractors will wait forclients to contact them).

Anyone who appears in anarea offering repairs immedi-ately following a disaster, maybe a scam artist. Somescammers pose as govern-ment officials and claim that a“processing fee” must be paidto secure disaster relief pay-ments or loans. Others havepretended to be safety inspec-tors who will tell you that ex-pensive or unnecessary re-pairs must be done immedi-ately.

The scammer offers to startwork on the spot and saysyou will only be charged theamount of your insurancecompany settlement – evenbefore your insurance com-pany has begun to discuss asettlement offer. (Neveragree to start work “on thespot” – take time to deter-mine what needs to be re-paired.)

The scammer may ask forfull payment or a large de-posit up front. Often, the jobis started and never com-pleted when the scammerdisappears.

The scammer may want cash“to buy materials” (legitimatecontractors have accountswith suppliers and don’t op-erate on a cash only basis).

The scammer may encour-age spending large amountsof money on temporary re-pairs. (If you pay someone alarge sum for temporary re-pairs, you may not haveenough money from your in-surance settlement for per-manent repairs later. In mostcases, temporary repairs canbe made by the homeowner).

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to see a telemarketing scam coming,

watch for these red flags:

Oregon consumers can stop mosttelemarketing calls by register-ing their landline and cell phonenumbers on the National "Do NotCall" registry:

Call toll-free:1-888-382-1222or, go online at:www.donotcall.gov

They won't give you a CCBlicense number, a local ad-dress, or telephone number(or you find out later, the infothey do give is fake).

The caller is uncooperativein answering any of yourquestions about their com-pany, or won’t send you writ-ten materials about theirbusiness.

You have caller ID, but nophone number shows up onthe d isp lay (by law,telemarketers must allowdisplay of their phone num-ber).

They may try to pressureyou into making an immedi-ate decision, to “act now” or

the offer will expire (legiti-mate companies under-stand that consumers mayneed time to compare pric-ing of the same service of-fered by other companies).

They may ask for a creditcard or checking accountnumber, or even a socialsecurity number “to verifyyour identity,” or for pay-ment (never give personalinformation to unknown per-sons or businesses).

They may tell you "we'll bein your neighborhood" (aclassic scam line).

They state that they are of-fering you a "free" service,and if you accept the offer,it is followed by a require-ment that you pay for some-thing else in order to get the“free” service.

Telemarketing home repairscams often demand pay-ment in advance.

They make of fers thatsound “too good to be true.”

They won’t take “No” for ananswer.

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Some legitimate businesses and well-known or-ganizations may use telemarketing to contact newclients, but if a telephone solicitor offers you a“free inspection,” be wary. Legitimate businessesdon't survive by giving away their services for free.Typical “free inspection” scams include:

Testing - Furnace, electrical, water-lead or paint-lead, pest damage, heat loss, or radon testing

“We’ll Be In Your Area...” - They may say theyare also inspecting other homes in your neighbor-hood

Estimate for Repairs - After the inspection, theymay present you with a bill charging you for anestimate, or they may say you need repairs whenyou really don't

Casing Your Home - The “inspector” may evenbe a professional burglar, casing your home for afuture burglary

If you get a “free inspection” call, never make anappointment without taking a few days to find outif the business is legitimate (see page 9 for waysto checkout a business).

telemarketing solicitors

UNSOLICITED “FREE INSPECTION” OFFERS

protecting yourself

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4. Always get a written contract that includes a detaileddescription of the work, materials, costs, start and enddates. Go to the CCB website at www.oregon.gov/ccbfor full details of what should be included in a writtencontract.

5. Never pay the full amount up front and don’t pay incash. Make sure to write your check out to the businessname that you have contracted with to do your repair,installation, or construction project.

6. Laws are designed to protect consumers, but agen-cies also need the help of those consumers. If yoususpect a construction or repair scam, it is important toreport it immediately to the local police and the CCB. Itis with the assistance of the public that our agenciescan prosecute more of these scam artists to stop themfrom victimizing others.

Agencies to Contact for Consumer Protection Information

• Construction 503-378-4621Contractors Board www.oregon.gov/ccb

• Department of Justice 1-877-877-9392Consumer Hotline www.doj.state.or.us

• Better Business Bureau 503-226-3981www.bbb.org

• AARPwww.aarp.org/money/wise_consumer/fixinghome/

protecting yourself

1. A consumer's first line of defense to avoid beingvictimized, is to be aware of typical scams and howthey work. Most contractors are honest people withlegitimate businesses, but professional scam artistsknow that many consumers may not know the differ-ence. Keep your eyes open for scams and the red flagsthat will help you notice when “something isn’t quiteright.”

2. Always check with the Construction ContractorsBoard (CCB) to see if the construction, repair, orinstallation business that you are considering isproperly licensed BEFORE you hire them:

a. Get the contractor’s full name, physical businessaddress, phone number, and CCB License Num-ber.

b. Go to the CCB website at www.oregon.gov/ccb orcall customer service at 503-378-4621 to verify thecontractor’s license number, address, andphone number. Also check the contractor’s com-plaint history.

c. Call the business’s phone number listed with theCCB, and verify the contractor’s identity at the placeof business.

Unlicensed contractors are working illegally and arenot insured and bonded. If you hire an unlicensedcontractor, and something goes wrong with your projector repair, you will lose access to the CCB’s complaintprocess and any awarded payment from the contractor’sbond for poor work or breach of contract.

3. Never agree to buy services on the spot - alwaysget a few more bids from other contractors beforemaking a decision. Legitimate businesses will waitfor a customer to compare pricing before choosing acontractor.

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