License Search - Claims History Preface
INFORMATION ABOUT A
A contractor's claim history
should be used with caution. A large number of recent claims against a
contractor may indicate that the contractor is having problems satisfying its
customers. However one or two recent or open claims against a contractor does
not necessarily mean that the contractor should be avoided. A potential customer
should not be misled by a few claims against a contractor into selecting another
contractor who may have less experience and may be a poor choice.
Any construction business, no
matter how good, may have a claim filed against it. If a contractor does a high
volume of work for many customers, the chance that it will have claims on its
record is increased. Sometimes a claim is filed in spite of a contractor’s
good work and business practices. A contractor may encounter a customer who has
unreasonable or unrealistic expectations. Sometimes a customer is dissatisfied
with some aspect of a contractor’s work and files a claim without ever
communicating his or her dissatisfaction to the contractor. Sometimes the
contractor and its customer have a good faith dispute about the work and the
contractor suggests the customer file a claim in order to obtain the CCB’s
help to resolve the claim.
Settlement of a claim often indicates
that the contractor is willing to assume responsibility for problems on the job.
A settlement may mean the contractor paid money or agreed to do additional work
in order to resolve the claim, even though the contractor did not believe there
was any merit to the claim.
Therefore, the claim history of a contractor should be used with caution. Five claims against a contractor with an average volume of work who has been in business for ten years may not be cause for concern. Five claims against a contractor who has been in business for only a couple of years, however, might cause a person to hesitate before hiring the contractor.