Editorial: Contractors Board needs an overhaul

And too many consumers on the receiving end of poor workmanship or uncompleted projects have not received the satisfaction they deserve from the Contractors Board, the state agency that licenses contractors. Last week, at the request of state Sen. Jon Porter, R-Boulder City, the attorney general's office opened an investigation into the Contractors Board. In addition, Porter has asked that the Legislature's staff audit the board and come up with recommendations for improvement that will be submitted to the 1999 Legislature.

Porter told Sun reporter Steve Kanigher that many constituents have informed him they weren't getting satisfactory responses and that contractors were placing unwarranted liens on their homes or leaving jobs unfinished. "I've had numerous constituents in my office in tears who lost their life's savings in their homes based on rogue and unscrupulous contractors. I'm hoping we have enough statutes in place but, if necessary, we'll find a better way to protect the homeowners," Porter said.

All too typical is the case of Richard Kersenbrock, a retired construction supplier, who discovered problems with the foundation of his $170,000 home. Kersenbrock was told the Contractors Board had limited jurisdiction and that he would have to hire a lawyer. But because he lacked the money and had health problems, he never went to court and never had his home repaired. The problems with bad construction don't end there. As the Sun's Art Nadler reported May 3, even some people who have bought million-dollar homes at the exclusive Lake Las Vegas development have complained that one builder left their homes unfinished or that they had major construction defects.

While Porter is moving aggressively to tackle the problems within the Contractors Board, he does credit the board's new executive officer, Margi Grein, with helping to steer the board's staff in a new direction. For instance, under Grein's direction, the board hired an accounting firm to perform an ongoing internal audit and is scouring the nation for competent investigators to work for the agency.

Grein said she plans on asking the 1999 Legislature to make statutory changes that would permit the board to respond more quickly to complaints from homeowners. Although all the details have yet to be worked out, Grein also is proposing that the Legislature establish a "residential contractors' recovery fund" that would allow up to $20,000 per homeowner to pay for problems caused by builders.

While these changes would be welcome, much more needs to be done to restore the public's trust. As it stands now the Contractors Board, which oversees the agency's staff, is made up of seven people, with six being licensed contractors. But that composition is no longer tolerable. At least half of the board's membership should be comprised of people removed from the construction industry.

When the Legislature convenes in 1999 it should change the existing composition of the board so that consumers believe their interests are being heard and not ignored. Since the Contractors Board, in effect, has the ultimate say on complaints, it's important that at the very least the seven-member board's membership balances the interests of both the consumer and the builder.

There will always be those who suggest that a home can't match the precision and quality of a Swiss watch, and that homeowners expect too much from builders. But that misses the point. When a person makes the largest investment of his life, he deserves to get what he is paying for. Shoddy construction and poor workmanship shouldn't be tolerated.

The 1999 Legislature must implement meaningful reforms so that the Contractors Board protects the interests of consumers.

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