02/27/2007
Each year, inquiries and complaints about construction industry related businesses are among the top ranked for the Better Business Bureau of the Southwest.
Licensing requirements vary from state to state. Licensed contractors in New Mexico are required to have Proof of Financial Responsibility: bond, cash collateral (CD) or audited financial statement. This financial requirement is not intended for consumer protection but rather to help establish the contractor's permit capacity. In Colorado, only electric and plumbing contractors are required to be licensed. However there is no financial requirement for the license other than administrative fees paid to the state.
New Mexico consumers may file a complaint with the New Mexico Construction Industries Division, www.rld.state.nm.us. They will investigate certain types of complaints. Should you file a complaint with CID, their investigation could result in a request to the contractor to correct code violations, verification of code violations and corrections by inspectors, and/or a warning to the contractor of disciplinary action that could result in suspension or revocation of the contractor's license, and may include administrative penalties assessed against a license. Criminal charges of unlicensed contracting can be filed in Magistrate or Metro Court. Penalties for unlicensed contracting are set out by law. However, any sanction taken by the agency is between the agency and the company/licensee.
Colorado residents may file a complaint with either the Colorado State Electrical Board, www.dora.state.co.us/electrical or the Colorado Examining Board of Plumbers, www.dora.state.co.us/plumbing. After you file a complaint, the case is reviewed by the appropriate Board to determine if an investigation is required. Once completed, a written report is reviewed by the Board. If probable cause is found that a violation of the licensing law has taken place, they may issue a formal letter of reprimand or recommend a hearing, which can be followed by disciplinary action against a licensed individual and may include suspension or revocation of his or her license. The agencies lack the authority to order a licensed individual to refund money or perform repairs. Any sanction taken by the agency is between the agency and the company/licensee.
The BBB of the Southwest urges consumers to check with us before deciding on which contractor to use. Company reports are available through our website, www.bbbsw.org, 24-hours per day. Staff is available to answer questions Monday - Friday from 8:00 a.m. - 5:00 p.m.
Filing a complaint with the Better Business Bureau often results in a satisfactory resolution. Many times the Bureau can assist parties in reaching a resolution either through our basic conciliation services. However, if that fails, the BBB of the Southwest offers mediation and arbitration services to consumers and businesses to assist them in reaching a resolution to their dispute. For more information about these services, contact our office.
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