Update on the demise of the Texas Residential Construction Commission (TRCC)

Article cites small complaints rather than for whole houses being done wrong and that were never resolved through the builder-friendly TRCC; reader comments tell more of the real story on why the TRCC failed to protect consumers, and why it was abolished.

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State construction agency to close, leaves consumers if duped fewer options

Best advice: Don’t pay in advance

By Mike Baird
Corpus Christi Caller Times
Posted July 20, 2010

CORPUS CHRISTI — After nearly seven years of problem solving, the most repeated issue yielding hundreds of calls each year are from people ripped off by builders, contractors and remodelers.

And now the risk is greater than ever, because Texas Residential Construction Commission, the only state agency that fielded construction complaints and conducted inspections, is closing in August.

Examples of local residents who were taken advantage of:

-- In March 2004, Joyce Jaqua paid $1,000 to replace the asphalt in her garage with a concrete floor. It cracked badly. She got something for her money, but her contract had no guarantee against the cracking.

-- In April 2005, a Portland retiree whose house burned down signed a more than $74,000 insurance check over to a San Antonio-based contractor he never saw again.

-- In January 2006, a couple paid $400 to have a garage torn down. It never happened.

-- In June 2007, Helga Woodruff paid $245 to have her house siding cleaned. It never was.

n In June 2008, Lola Valentine paid $2,348.25 for laminate flooring in her lake cottage. She didn’t pay until done but later found unfinished areas and 24 pieces of flooring with damaged corners hidden by the sofa, chairs and end tables.

These are only a few local people each year duped by would-be workers. The advice is always the same: Don’t pay for goods and services in advance, and make sure you are satisfied before paying.

Texas Residential Construction Commission, which helped people with problems from building or remodeling renovations of $10,000 or more, is not accepting new complaints, said Patrick Fortner, acting executive director. Put simply, legislators didn’t act to continue the service. Its website still offers helpful information at www.trcc.state.tx.us.

Fortner’s advice on protecting against fraud: “Don’t let go of your hard earned money without doing the research to know who you’re dealing with.”

His agency is referring new complaints to the Texas Attorney General’s Office. But only significant numbers of complaints about a particular business may lead to legal action. But it’s not on behalf of individual complainants, it’s to enforce state law, according to the website, www.oag.state.tx.us, which also offers consumer protection information.

Other resources for people who believe they were duped are the Better Business Bureau, Federal Trade Commission or Texas Department of Licensing and Regulation. But you’re better served to follow the idiom: An ounce of prevention is worth a pound of cure.

And one last warning from Troubleshooter: Don’t trust anyone, even if you met them at church. Business is business.

Better Business Bureau Do’s and Don’ts

To keep contractors from picking your pocket

Do:

-- Check with Better Business Bureau for a reliable contractor

-- Get bids from at least three companies

-- Ask for referrals

-- Agree to a price before work begins

-- Detail all repairs, expectations and promises in writing

-- Call your insurance company for policy procedures

-- Look at projects completed by your prospective contractor

-- Take your time deciding

Don’t:

-- Pay large sums of money upfront, even for materials. Arrange to pay upon delivery

-- Let payments get ahead of work being done

-- Give into high-pressure sales, such as “the price is only good today”

Source: Better Business Bureau

For help with a problem, contact Mike Baird at 886-3774 or bairdm@caller.com.

.Comments »

July 20, 2010
8:47 a.m.
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codewarrior78411#241503 writes:
There ya go, your Republican lead legislature and Governor (good hair) Perry hard at work for YOUR interests.

This so call 'conservative' group in Austin is so builder oriented is it any surprise they're working to shut down any recourse for you and I have against crooked contractors? The TRCC was bad enough, now that it's gone there's nothing else.

Thank you Repubs... Ya'll are doing a great job up there.
...July 20, 2010
9:03 a.m.

Rivers writes:
in response to codewarrior78411#241503:

There ya go, your Republican lead legislature and Governor (good hair) Perry hard at work for YOUR interests.

This so call 'conservative' group in Austin is so builder oriented is it any surprise they're working to shut down any recourse for you and I have against crooked contractors? The TRCC was bad enough, now that it's gone there's nothing else.

Thank you Repubs... Ya'll are doing a great job up there.

Contrary to your belief that "there's nothing else", the article states several actions that can be taken against crooked contractors. I would hope that a lot of other non-essential government programs find their way to the trash pile.
...July 20, 2010
10:37 a.m.

Daisy writes:
GOOD RIDDANCE TO THE TRCC!!! The Commission was loaded with builders, contractor's & real estate agents. I know because I turned to them after a dispute with a local builder. They didn't see a problem with my builder parking across the street from my house-rather than entering to SEE the work being done. He would stay there for a couple of minutes about 2X's a week. The workers told me that he only entered the house when I called him & demanded that he show up. Our contract stated that the house would be finished in 3 months-it took him one year to finish. I allowed the bank to pay him only after work was completed to my satisfaction. He convinced the bank to threaten to raise my interest rate on my loan if I didn't accept the house as is at the end of the year because my builder needed the money to keep from defaulting on a loan he had with the same bank.

I requested help & support from the Builder's Asso, the BBB, a lawyer & the TRCC. No one helped me. They said there was nothing they could do. The BBB sided with my builder after they were told that the construction delays were caused by too much rainy weather - in CC??? The delays were actually caused by mismanagement by my builder. He started building 3 houses at the same time and couldn't handle his contractors or his finances. The final stab in my back came from the TRCC. They sent me a questionnaire to fill out and a bill for $250 so that they could hire a LOCAL contractor to inspect my house. If I had sent the $$$, I would have agreed to arbitration and lost my ability to sue my builder for any defects found in my house. I declined their "asisstance". Instead, I spoke directly with the contractors who had worked on my house and explained what was happening. I had befriended them because I had starting going to the house every day to answer questions or concerns they had about the house. My builder went "fishing" every day & was not available.
I handled my problem but many other people weren't so lucky. So once again, GOOD RIDDANCE TRCC.
...July 20, 2010
1:36 p.m.

grendal113 writes:
LOL you really have to watch these kind of help resources. They are usually the worst when they are loaded with the good-ole boys club. I agree with the references, agree to a price in writing and most of the other suggestions. But if you think a contractor will start with out the cost to cover half or 3/4 of the project your crazy. Why would a contractor finance your project? If you decide not to pay I have to pay my guys. The cost of being a contractor is that last 25% is my profit I want it so I will make sure it is right. Also that last 25% is my pay so if i screwed up and did a job for some one that cheats me the only thing i'm out is my pay. I still have a crew and equipment to continue taking jobs. There are alot of people that use that last 25% as a way to get a discount. I'm not happy I'm not paying then want to make changes. That contract protects both parties.
...July 20, 2010
2:41 p.m.

JustLaws writes:
Daisy’s right! The TRCC was a builder-protection agency. It was put in place by Houston homebuilder Bob Perry to shield him (and other builders) from “frivolous” lawsuits – i.e. suits by homeowners with legitimate claims. Perry Homes’ general counsel John Krugh drafted the bill that established the TRCC in 2003 and was appointed by Gov. Rick Perry as the agency’s first commissioner. No consumer groups were part of that process. The TRCC was finally abolished last legislative session after a state-required Sunset review, damning reports from the Sunset Commission staff and the Texas Comptroller’s Office, and overwhelming public testimony. Learn more at www.homeownersoftexas.org/TRCC-Eulogy.html.

Our nonprofit consumer advocacy also has good advice online for people buying a home or hiring a builder or contractor, because Texas laws are still stacked against homeowners. Even fraud cases are often treated as contract disputes, and most disputes are forced into binding arbitration. We have mixed feelings about the BBB since businesses pay to be listed. A better source for consumer reviews may be Angie’s List. Although it’s a fee-based referral system, businesses don’t get listed unless there’s a complement or complaint by a consumer – not by the business themselves.

Even referrals from neighbors aren’t foolproof. Scammers often will do one good job in a neighborhood and then use that as a reference to several others. They’ll get partial payment and may even do partial work, but then you may never see them again. They rely on Texas laws and the fact that you’re unlikely to pursue them for small claims.
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