You pay a contractor. They don’t finish the work. Now what?

Earlier this week we introduced you to Angela Costabile who lives in Oakville. She and her husband hired a contractor and paid him a hefty deposit only to be left with an unfinished kitchen and even more costs than they had budgeted.

After doing some work, they say their contractor stopped showing up and failed to provide materials they paid for.

“We are left with finding a new contractor because our original guy won’t return our phone calls,” Costabile said. “He just ghosted us.”

The couple has been patient. They hired the contractor last June, paying him two deposits amounting to nearly $55,000. Their newly renovated kitchen was supposed to be up and running this fall.

It’s now mid December and their kitchen is unusable.

“Unfortunately this is a fairly common problem.,” said Justin Sherwood with the Building Industry and Land Development association — a not-for-profit organization representing home builders and professional renovation industries.

“At best, what happened to this couple is a contract dispute arising from unclear expectations,” he said. “But at worst, this is fraud or outright theft that is occurring and these homeowners are being victimized.”

The Costabiles signed a contract only after their contractor was highly recommended.

“He had done other work for people and it was great,” Costabile said. “And when he started with us, we had no issues but then he just disappeared.”

The contract they signed did spell out the scope of the project and the costs.

But after the contractor failed to return, further investigation revealed several inconsistencies in the contract.

For one, the contractor gave a fake license number, along with addresses not associated with him. He used a company’s address he once worked for, without the knowledge of the actual business owner.

Sherwood says he’s seen several cases like this, where homeowners gain trust initially with a contractor giving them comfort to move forward. But he says homeowners should put feelings aside when interviewing contractors to ensure they meet several requirements.

“Interview the renovator quite significantly,” he said. “Ask for proof of insurance, ask for a business license, ask for workers safety insurance coverage.”

He also says do research, check the Better Business Bureau for any complaints. In the Costabile’s case, their contractor had no online reviews to check but his references did give good reviews.

Sometimes that isn’t enough.

Contractors could be good — but as costs for materials and assisted labor rise, many start a project only to get in over their heads and unable to finish the job.

It’s a widespread problem across the G.T.A., which is why BILD started the Renomark program. Contractors with the Renomark stamp are held to high standards, Sherwood says.

“These renovators have agreed to abide by their local Home Builder Association’s Code of Ethics as well as the RenoMark, renovation-specific, Code of Conduct. “

If a problem arises, there’s also recourse. BILD can get involved to mediate.

“It’s a non-legal complaint based process that you can go through,” Sherwood said.

But even if you go through Renomark to find a contractor or find another one online with glowing reviews, Sherwood says it’s still not enough.

Besides thoroughly investigating a contractor, homeowners should also get everything upfront in writing before they sign a contract or hand over a hefty deposit.

BILD has developed an online guide to help homeowners through the entire process of checks and balances to ensure they hire a contractor who isn’t only good but has the means to actually finish the job.

“It walks homeowners through the steps that they should be taking right from the inception, all the way through the project completion, including the questions that they should be asking.”

But even then, problems can arise. Whether it’s a contract dispute or outright fraud, many homeowners say getting justice in Ontario is quite difficult.

“Unfortunately, the only and best option people have for resolution is to go to small claims court,” Sherwood says.

You can file a police report but when it comes to signed contracts and unhappy customers, a criminal investigation won’t always be launched. CityNews has told you several stories in the past of homeowners with similar complaints only to be told by police that a contract dispute is a civil matter, not a police one.

“I am aware in some instances of police taking a look at the situation if the individual is known to them,” Sherwood said. “Perhaps they’ll undertake criminal proceedings. But the most common way of resolving these matters is to go to small claims court or go to court.”

Sherwood says there are laws in place in Ontario that could be used to hold contractors accountable. He says as cases involving contractor fraud allegations increase, more should be done.  

“If you take a look at consumer protection laws in Ontario, they’re very significant as it is. I think it’s a question of enforcing the statutes that are already on the books,” he said.

“It has been the case for a number of years where these types of flagrant violation of the law exist. And quite frankly, the books should be thrown at these people.”

The Costabiles have filed a police report and are waiting to hear if an investigation will be launched.

In the meantime, they’re cutting their losses and moving on.

“Our contractor has no intention on ever coming back, that is clear.”