From the Dallas Morning News

Texas salesman’s pitch on accountability exposes deep issues in home remodeling
His pitch shows how Texas’ home improvement industry hides ‘an epidemic of fraud.’

What I witnessed recently from a home improvement company was more than just a clever sales maneuver. It was a revealing glimpse into some of the unethical practices that have come to define a deeply flawed industry.

Texas doesn’t require builders, remodelers or roofers to earn a state license. Sometimes, these jobs turn out fine. But more than it should, we’re looking at take-the-money-and-run tactics.

This was best illustrated by a salesman for Expo Home Improvement. I was impressed by the way he turned these massive flaws into points scored on behalf of his company.

There was no hiding in his remarks. Salesman Courtney Lowrie said in his presentation for window replacements that he specifically wanted to address accountability and responsibility. With that, he got my attention.

He explained, “There’s no other industry that lacks that more than my industry, right? It’s funny that when someone wants your business they do everything right. They show up on time. When you call them they pick up on that first ring. You send an email, and they respond back in three minutes, right?”

Months later, he continued, when you have a warranty problem you call, and this time they’re not in such a hurry to respond.

“Everything the company said they were going to do, they didn’t,” he said. “What’s going on?”

Lowrie was describing what homeowners often experience with disreputable contractors ― not his company, Expo Home.

‘Epidemic of fraud’

Lawyer Charles A. Moster told me that “there’s an epidemic of fraud going on across the state of Texas.”

Ninety percent of his cases involve contractor fraud. What he’s learned in 40 years of contractor litigation, he says, is it doesn’t pay to go after small companies. That’s because if they lose a legal case, they don’t have the money to pay.

He explained: “The small companies? Forget it because you can go after them but we’re not going to get anything. They can file for bankruptcy.”

He recommends hiring companies that are regional, have been around 15-20 years and have a large number of employees.

‘Not perfect’

Expo Home of Farmers Branch fits that bill. The company, which is led by CEO Paul Dietzler, has been around since 2012, is locally owned and has 275 employees.

Moster says he has sued every big home improvement company in the state. Expo Home is one of the few larger Texas companies the lawyer hasn’t gone after, saying he’s never heard of them.

Michael Flores, Expo’s Home President, takes that as a win.

He joked that because of his outspokenness “we like to think of ourselves as the ‘anti-contractor contractor.’”

“We’re not perfect,” he said. “That’s not to say we don’t have challenging situations with customers from time to time. We do. But we never leave the customer high and dry. If we mess up, we’ll go back and fix it.”

‘Letting people down’

How sad this is for an entire industry. A company speaks out on behalf of honesty, and it’s a big deal.

As Flores put it, his is “an industry known for letting people down.”

Flores said his company works to maintain high grades in online reviews and customer satisfaction surveys.

His sales staff doesn’t go door-to-door. Rather, staffers set up temporary shops in Walmart and Costco stores. Expo Home also plans a booth at the State Fair of Texas.

Assume the worst

In addition to solo con artists who scam customers, Lowrie says the industry in also plundered by private equity firms buying ownership of these companies.

“And the reason that’s important is because they’ve been trained to price gouge,” he said.

Moster said that cheating contractors have a business model that lets them get away with wrongdoing because police and district attorneys generally don’t take these cases.

“We need to criminalize this type of behavior,” the lawyer said.

He’s suspicious of companies that brag that they are honest, but adds, “I’m not saying ‘don’t use contractors.’ There’s a lot of hard-working Texans.”

Still, he said, “always assume the work is going to go bad. I see it all the time.”

‘Heartbreaking situations’

For the past 20 years, The Watchdog has investigated countless stories of contractors who took the money, but never finished the job — often leaving seniors in heartbreaking situations.

That’s why it’s refreshing to report on a company that appears to be trying to make things right. If more businesses in the home building and remodeling industry followed suit — and if Texas finally required contractors to hold a state license — we’d be a lot closer to protecting homeowners the way they deserve.

In the Know – Hiring a contractor

• Get multiple bids and compare proposals for clarity, consistency and fair pricing.
• Request reference and check past clients, completed jobs and posted reviews.
• Document everything, including communications, invoices, photos and receipts.
• Verify a company’s insurance with the Texas Department of Insurance.
• Insist on a detailed, written contract that shows scope, materials, costs, payments, schedule, timeline and warranty.
• Pay in installments tied to completed project stages and avoid paying in full with cash.

–Source: Porterfirm.com