Alternative Dispute Resolution:
Homeowner Mediation Reimbursement
The money collected through any reimbursement stems from the mediation process that occurs between a homeowner that has filed a formal complaint and the unlicensed contractor and/or licensed contractor in which the complaint has been filed against.
As a dispute resolution alternative, a mediation reimbursement process was initiated in 2005 by the Contractor Licensing and Enforcement Section of the Broward County Building Code Services Division. In cases involving unlicensed contractors, if both parties can mutually agree during the homeowner mediation reimbursement process often the best resolution is to have the unlicensed contractor reimburse the total amount of construction money originally received from the homeowner. This assists the homeowner recover from any financial harm caused by the illegal construction and enables the homeowner to properly hire a licensed contractor to complete the work in accordance with the Florida Building Code.
In the end, many of those same unlicensed contractors continue learning valuable lessons of how important obtaining the required trade license is before soliciting work. Even though they may have completed the work, they soon find out their unpaid sales contracts that they negotiated as unlicensed contractors are also unenforceable in a court of law. And for the ones that participated in the mediation, they are advised up front that after making the reimbursements to the homeowners they will still receive citations for breaking the law. Ouch, very expensive lessons!!!
In the inaugural fiscal year of 2005, approximately $300,000 in reimbursements went back to Broward County residents. In fiscal year 2006, the Contractor Licensing and Enforcement Section assisted homeowners receiving mediation reimbursements that exceeded $600,000. If you have knowledge of any Broward County resident that may have been deceived by an unlicensed contractor or a licensed contractor that did not perform work per the terms of a contract or failed to obtain the required permits or inspections as required, please click here to visit the website
to access the complaint form and instructions.
An update - several of the unlicensed contractors that were originally fined have gradually been able to meet the insurance and business requirements to qualify through the testing and certification process and are now legitimate licensed contractors! A great outcome that is a true Win-Win situation for everyone!
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