TDLR undercover sting busts unlicensed contractors

HOUSTON - The Texas Department of Licensing and Regulation says it just busted many unlicensed contractors in a sting.

TDLR officials say they found 102 violations of unlicensed electricians and air conditioning contractors in a recent bust in the Austin area.

Investigators say they conduct these stings along with multiple other states, working with the National Association of State Contractors Licensing Agencies, as the problem can happen anywhere.

TDLR says it contacted people advertising electrical and air conditioning services in newspapers and on social media without including the required licensing information.

Investigators then invited them to a location to bid on a job, where they slapped them with 102 violations, mostly for being unlicensed.

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They say one of them bid $5,400 on behalf of his unlicensed company, then said he could do the work himself for half the price.  But he wasn't licensed either.

"Almost everybody that we came into contact with was someone who was not licensed, or they were offering to do things that they weren't supposed to," said Tela Mange with TDLR.  

"The problem with hiring people who aren't licensed, is not only that they may not know what they're doing, the insurance company may not like what they're doing.  Folks who are licensed by TDLR, we check their criminal history," explained Mange.

TDLR says the busted workers will face penalties.

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The Department suggests steps to check out a contractor before you hire one.

Check that they are licensed and in good standing through the TDLR License Search on its website.  A license means that they have completed training, passed examinations and a criminal background check, and have liability insurance.

"We are making sure that those folks who are coming to your house, and you know, may be in certain parts of your home unsupervised, that they don't have a criminal history that you would find problematic," said Mange.

They say get estimates from three different contractors, plus three references from them before you hire one.

And get a written contract.

It's important to note that in Texas, general contractors are not required to be licensed by the state.  But contractors who specialize, such as electricians and HVAC, must have a license.

As for payment, TDLR says the best rule of thumb is to pay no more than one-third of the contracted amount up front, one-third midway through, and the last third when the job is completed to your satisfaction.