Uncovering the Dark Side of the Home Improvement Industry
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. The home improvement industry is a massive market, with countless companies and contractors offering their services to homeowners. However, the lack of regulation and oversight has led to a plethora of problems, including scams, fraud, and shoddy workmanship.
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 lack of accountability has created an environment where unscrupulous contractors can thrive, leaving homeowners with subpar work and significant financial losses.
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. The salesman, Courtney Lowrie, was refreshingly honest about the industry’s shortcomings, and his company’s efforts to differentiate themselves from the competition.
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. His candor was a breath of fresh air, and it highlighted the need for greater transparency and accountability in the industry.
Watchdog Alert
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. This disparity in service is a common complaint among homeowners, who often feel abandoned after the initial sale.
“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. His company’s commitment to accountability and responsibility is a rare exception in an industry plagued by dishonesty and poor workmanship.
The 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, and he’s seen firsthand the devastating impact it can have on homeowners.
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. This creates a situation where homeowners are left with limited recourse, and contractors are able to operate with impunity.
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.” This lack of accountability allows small companies to avoid consequences, while homeowners are left to bear the brunt of the financial losses.
He recommends hiring companies that are regional, have been around 15-20 years and have a large number of employees. This approach can help homeowners avoid the pitfalls of working with unscrupulous contractors and ensure that they receive quality workmanship.
A Glimmer of Hope
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. Expo Home’s commitment to transparency and accountability is a rare exception in an industry plagued by dishonesty and poor workmanship.
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. This is a testament to Expo Home’s reputation and commitment to doing business the right way.
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.” This commitment to customer satisfaction is a rare exception in an industry where homeowners are often left feeling abandoned and frustrated.
An Industry Known for 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. The home improvement industry has a reputation for letting people down, and it’s a stain on the entire industry.
As Flores put it, his is “an industry known for letting people down.” This lack of trust and accountability has created an environment where homeowners are wary of hiring contractors, and rightfully so.
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. This creates a situation where companies are more focused on making a profit than providing quality workmanship.
“And the reason that’s important is because they’ve been trained to price gouge,” he said. This price gouging can lead to homeowners paying exorbitant prices for subpar work, further exacerbating the problem.
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. This lack of enforcement allows contractors to operate with impunity, leaving homeowners to bear the brunt of the financial losses.
“We need to criminalize this type of behavior,” the lawyer said. This would help to create a more level playing field, where contractors are held accountable for their actions and homeowners are protected from fraud and scams.
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.” However, he advises homeowners to be cautious and do their research before hiring a contractor.
Still, he said, “always assume the work is going to go bad. I see it all the time.” This pessimistic outlook is a testament to the industry’s reputation and the need for greater accountability and transparency.
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. These stories are a stark reminder of the need for greater accountability and transparency in the industry.
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
When hiring a contractor, it’s essential to do your research and be cautious. Here are some tips to help you make an informed decision:
- 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
