‘Rico to the Rescue’ Reveals Some Sneaky Yet Legit Ways To Spot (and Deal With) Shady Contractors
HGTV
Disreputable contractors who botch renovations or, worse yet, take a homeowner’s money and run are all too common—and a new HGTV show highlights the drama and some much-needed solutions.
On “Rico to the Rescue,” Denver-based real estate agent and construction restoration consultant Rico León helps homeowners rectify half-done renovation jobs, while also chasing down the contractors who’ve done the shoddy work.
“I resolve conflicts between homeowners and homebuilders,” says León. “Years ago, my parents got taken advantage of by a contractor. That’s why I’m such an advocate for homeowners.”
In the episode “Ranch House Redo,” León works with Chris and Katie, who bought a ’70s ranch house with four bedrooms and a large basement that needed a complete renovation from top to bottom.
They interviewed at least 10 contractors and picked the one they thought would do the best job. However, six months later, very little had been done, and what was done was done poorly—so poorly, in fact, that León and his crew have to rip a lot of it out and start over again.
Katie and Chris had already paid the contractor $230,000, and the job wasn’t even close to being complete. León and his crew attempt to finish the house quickly and economically, and they also reach out to the contractor to see if he will make things right. In the process, we get invaluable tips for dealing with contractors on our own projects. Read on to find out what we learned this week.
The lowest bid might not be the best
Rico León and his team of professionals discuss what the renovation will really cost.HGTV
The contractor originally hired had given a very low bid for the couple’s project. While this is certainly tempting to cash-strapped homeowners, it’s also a red flag that the contractor might not know what he’s doing.
“The biggest mistake the contractor did was not bidding it correctly,” León says after inspecting the unprofessional workmanship and seeing that virtually nothing was finished. “He had it at around $200,000. This should have been at least a $350,000 renovation.”
Homeowners should always be suspicious of a very low bid.
Home improvement loans have their advantages
León and the homeowners in the house the way the contractor left it.HGTV
While most have long heard that it’s best and safest to pay with cash, León comes up with a decent reason for taking out a home improvement loan.
“Did you guys take out a loan, or was this money that you saved?” asks León.
“We had been saving for a long time,” says Chris.
“It was cash,” confirms Katie.
“That’s good and bad,” responds León. “Because when you do a loan, the mortgage company will be on top of the contractor as well.” Now that’s something to think about.
Make sure your contractor is licensed and insured
León’s dog observes the renovation work.HGTV
Another prerequisite for any contractor is to make sure he (or she) is licensed and insured—that way, if anything goes wrong, the contractor’s insurance company will handle many of the costs.
In this case, “The couple has made claims against the contractor with his insurance company,” explains León. “Now it’s in their hands.”
While dealing with an insurance company is seldom pleasant, it’s better than trying to deal with a disappearing contractor who will no longer take your calls.
Find out if there are additional materials waiting to be delivered
Empty basement left without finishesHGTV
When León and his crew first walk into the home, they see only partial construction work. There are no materials in boxes waiting to be used or installed. They don’t know if the former contractor ordered any cabinets, flooring, appliances, fixtures, countertops, etc. And if they have, where are they? Is there any way they can get and use them?
“The biggest concern that I have is, out of the $230,000 that they gave him, how much of that was spent on materials and where they are,” says León.
If the original contractor didn’t spend the couple’s money on materials, the finished renovation project would be far more expensive.
When they find out that nothing more has been ordered, León’s designer, Poonam, comes to the rescue. She informs Katie and Chris that the vendors she works with will donate flooring materials, cabinetry for kitchens and bathrooms, countertops, some of the lighting, and all of the tiles. What a generous windfall!
Finished basement with generously donated materialsHGTV
Ask to hear the contractor’s side
León speaks with the contractor.HGTV
León gets the opportunity to speak with Mike, the original contractor, both in person and on the phone.
“Mike and I had a pretty long conversation,” he reports. “I always want to hear the contractor’s side of things.”
The contractor admits he has about $30,000 that he had planned to use on labor and that he would be willing to return that.
But later, when León speaks to Mike on the phone and reminds him of the $30,000, Mike accuses León of bullying him and says he’ll have to talk to his lawyer. Then he hangs up.
The conversations were legally recorded and can later serve as evidence.
How does this renovation turn out?
Newly renovated kitchenHGTV
While León is trying to sort things out with the contractor, his crew is working on a quality remodel. With their donated materials and superior skills, they turn these raw, ruined rooms into gorgeous living spaces.
Katie and Chris are amazed.
“Rico, this is so gangster!” Chris exclaims. His beautiful new home is far more stylish than he ever dreamed it could be.
“We weren’t sure if we were going to be happy in the space after the trauma that we went through,” adds Katie.
And as for the sketchy contractor? “Unfortunately, we’re not done with our old contractor,” explains Katie. “We have construction defect claims, we have breach of contract and overpayment issues that we’re going to try and get back. It’s going to be a journey from here, but at least we can do it from home, from a much better place.”
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