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In a sting last month, state regulators cited 32 contractors in Layton and St. George for performing construction work without licenses.
Investigators collected more than $20,000 in fines from the businesses from June 15 through 26 after seeking bids from contractors advertising various services in the two towns, and by stopping at work sites to request license information.
Four of the contractors had been cited previously.
"When someone is licensed, it's not a guarantee you won't have problems, but it's much less likely you'll deal with severe problems such as theft," said Mark Steinagel, director of the Utah Division of Occupational and Professional Licensing.
The most serious complaints the division receives from civilians deal with unlicensed contractors who accept payment and then do not complete or even begin the work they were hired to do, Steinagel said.
"We'll usually get a call after somebody's been defrauded: 'A guy stopped by my house and said he could fix my driveway or fix the roof, I wrote him a check for $5,000 or $1,000 or $10,000, and I never saw him again,' " Steinagel said.
Typically the homeowner didn't know whether the contractor was licensed, and didn't demand a written contract or check references, he said.
"They've put themselves in a position where it's very difficult to help them," Steinagel said.
Property owners who hire unlicensed contractors also are ineligible for funds the state provides to cover homeowners whose contractors fail to pay subcontractors, and are at a higher risk of poor work quality, Steinagel said.
"A licensed person … is not fly by night," he said "They want their reputation, so they care. It's not a perfect guarantee, but it is a significant guarantee."
DOPL does not track the total volume of civilian complaints it receives about construction service providers, Steinagel said, but investigators field daily complaints of unlicensed contractors from civilians, building inspectors and competing businesses.
In many cases, unlicensed contractors advertise that they are licensed because they have a local business license; some of them don't know they are required to have a state license for construction work, Steinagel said.
The penalty for a first offense is typically $500, with higher fines for the second offense and possible criminal charges for the third offense.
Individual fines in last month's investigations ran as high as $2,000. Violations included "unauthorized practice" — i.e., operating without licenses, failing to supervise less qualified workers, bidding on projects without a license and hiring an unlicensed subcontractor.
Bids ran as high as $9,450 and services ranged from home framing and electrical work, to painting and landscaping, on both commercial and residential buildings.
The investigation was conducted in conjunction with similar stings in eight other states.
Contractor checks
The Utah Department of Occupational and Professional Licensing recommends homeowners do thorough background checks on contractors they may employ.
Regulators suggest that homeowners:
Verify the contractor or business is actively licensed with the state of Utah at http://www.dopl.utah.gov.
Seek estimates from three contractors to compare to each other.
Seek references from at least three former customers.
Request recommended contractors from sellers of building materials.
Demand a written contract.
Don't make a large down payment; establish a payment plan.
Reserve the final payment until work is completed.