Via Community News Service, a University of Vermont journalism internship
When Tammy Merchant, resident hired a contractor to renovate parts of her home, she expected the work to start within months. Instead, she said the contractor took over $13,000 and never even started the job.
“Basically, we just wrote him a check and he left,” Merchant told the Senate Committee on Judiciary on Jan. 14.
Merchant said she and her husband paid the contractor $13,386 for a project that totaled around $33,000. After repeated delays, the contractor stopped responding to the couple’s texts. Eventually, he told them he was no longer in business due to financial reasons.
The homeowners attempted to take legal action against the contractor, but he filed for bankruptcy before the case could proceed.
“Our hands were tied,” she said.
Merchant’s experience is just one of many that led to the introduction of S.183, a bill that aims to strengthen the state’s home and land improvement fraud law.
The bill’s sponsor, Sen. Robert Norris, R-Franklin-20, said he introduced S.183 after hearing Merchant’s story. Norris said current law only provides limited options for fraud victims.
“There seems to be no recourse other than taking someone to court civilly and expending more money after you lost a lot of money,” he said.
Under the bill, a contractor could be fined if they knowingly agree to a job they have no intention of finishing. The law would apply to construction contracts and change orders totaling at least $1,000.
Supporters of S.183 say this new legislation would give victims stronger protections, while some cautioned lawmakers about how the bill could affect legitimate contractors in Vermont.
Jason Webster, co-owner of Huntington Homes, said the construction industry is oftentimes complex and not always clearly documented.
“We’re basically an entirely unregulated industry,” he told the Senate Committee on Judiciary on Feb. 13.
Webster said construction projects frequently involve changes, informal agreements and differing expectations, which can make these problems harder to pinpoint.
“I think the majority of what’s happening when it does go south with a contractor is more of a disagreement than it is fraud,” he said.
He also raised concerns about consequences for contractors who are not acting in bad faith and are in line with their job. He also explained that defining criminal intent could be challenging because of the lack of restrictions on Vermont’s construction industry.
Webster told the committee that it is more of a gray issue than a black and white one.
Despite these concerns, Merchant said her experience with home improvement fraud left a financial and emotional toll on her, revealing a deeper issue of accountability in the industry.
“It’s very traumatic because you start to realize you can’t trust people,” she said.
Merchant compared her experience to a robbery.
“In my mind, it’s no different than him walking into our house and stealing, you know, 13,386 right from our checkbook,” Merchant said.
The bill has passed the Senate and is now under consideration in the House Committee on Judiciary. If passed, S.183 would take effect on July 1.