Beware of illegitimate contractor scams in the aftermath of Hurricane Helene

Press release from N.C. Licensing Board for General Contractors:

RALEIGH, N.C., Oct. 2, 2024 – Hurricane Helene, which has caused significant damage across western North Carolina to homes, businesses, and infrastructure, has left many in need of urgent repairs and assistance. The North Carolina Licensing Board for General Contractors (NCLBGC) advises citizens to be vigilant and take necessary precautions when hiring contractors for repair and reconstruction work to avoid becoming further victimized by scam artists posing as legitimate contractors.

“As the recovery process begins across our state, we extend our thoughts and prayers to all affected families and individuals this hurricane has impacted,” said Ryan Cody, Executive Director at the NCLBGC.  “Unfortunately, times of crisis can attract dishonest individuals posing as legitimate contractors, and it is extremely important for everyone to be cautious of potential scams. These scams can lead to severe financial loss and further complications during an already challenging time.”

The NCLBGC reminds citizens that licensed general contractors have passed an examination, met the financial requirements, and completed continuing education courses required for being a licensed general contractor in the State of North Carolina.

The NCLBCG reminds North Carolinians of the following:

• Any project quoted at $40,000 or more requires a valid NC general contractors license.
• Projects less than $40,000 do not require a license. However, hiring a NC licensed general contractor may offer security in knowing that you have contracted with a general contractor who is authorized to perform work in NC. Ask for proof that the contractor is licensed. The NCLBGC does not recognize licenses issued by other states or countries. Citizens can verify if the contractor is properly licensed in North Carolina by 1) searching on the NCLBGC’s website at www.nclbgc.org;  2) calling the NCLBGC at (919)-571-4183.
• Be wary of door-to-door repair solicitations or people who demand deposits or payments in cash.
• Contact your insurance company for guidance before beginning any work. Do not make a large deposit or upfront payment in full. Require a written contract that details the work to be done, materials to be used, a payment schedule that is based on completion of work and a timeline for work to be completed. A licensed general contractor is required to list their license number on all contracts.
• Do not make payments before work specified on the payment schedule is completed.
• Do not make payments for any work not specified in the contract unless it has been submitted and approved in writing by you before the additional work begins.
• Request a Certificate of Insurance from the contractor and verify it is valid by contacting the party who issued it.
• Contact the local building inspections and permitting office to determine if permits are required to assure building code compliance. If permits are required, confirm with the permit office that the contractor has acquired them before construction begins.
• Before making final payment, evaluate the completed work and require the contractor to confirm that all subcontractors and suppliers have been paid to eliminate potential liens on your property.
• Contact local law enforcement if you suspect you are being scammed by a contractor.
• Contact the NC Attorney General’s office if you suspect you are being price gouged by the contractor at ncdoj.gov or call toll free within North Carolina at (877)-5-NO-SCAM or (877)-566-7226.

For additional information on disaster recovery programs, individual assistance resources, or hurricane recovery donations, please visit the North Carolina Department of Public Safety website: ncdps.gov