Home Construction Action Plan

March 11, 2008 

A person’s home is their most valuable asset.  Home construction defects erode home value.  Unfortunately, many consumers have inadequate information and tools to best undertake home construction or remodeling.  As we move forward in this arena, many concerns need to be addressed, including housing affordability and contractor accountability. 

It is proposed that we: 

1. Strengthen contractor licensing 

2. Create the Office for Consumer Protection for Home Construction and Repair

3. Establish reasonable remedies for home construction defects

1. Reform contractor licensing

Require the Department of Licensing to strengthen the requirements and regulation of contractors involved in the construction, alteration, or repair of homes. The department will submit recommendations to the legislature by October 1, 2008.  During the interim, the department will consult with representatives of and suppliers to residential contractors, consumer protection organizations and consumers, and legal authorities; examine regulatory and licensing programs in other states; and conduct public hearings to allow industry and consumer testimony; and evaluate consumer complaints.  Enactment of the new requirements would be confirmed in the 2009 legislative session.

2. Create an Office of Consumer Protection for Home Construction and Repair 

Create an Office of Consumer Protection for Home Construction and Repair in a public agency to provide education and counsel to consumers about residential construction transactions, including identifying, selecting, and contracting with construction professionals.  The office would utilize hotlines and websites to provide consumer information.  The office staff would advise consumers on:

1. How to select a licensed contractor for a particular job

2. Whether a contractor for a particular job complies with industry best practices

3. Whether a prospective contractor is on a state registry demonstrating that the company meets high standards for a particular job

4. How to work with a contractor to avoid issues of defective work

5. What options are available to correct construction defects and other potential problems

3.   Establish reasonable remedies for home construction defects

Establish a legislative Task Force on Home Construction to review potential remedies for construction defects for consideration in the 2009 legislative session, including:

1. Warranties for construction of new homes and substantial remodels

2. Liens on contractors for defective work

3. Responsibilities for limited liability companies