Beginning Jan. 1, handymen and small construction contractors will be required to register with the state and secure a bond for all jobs. The change comes after the passage earlier this year of SB 193, which sets the new rules in place.
According to Chuck Homan, president of the Alaska State Homebuilding Association, the current laws governing handymen and contractors are both confusing and messy -- especially the bonding and registration exemption for handymen or smaller contractors who do not advertise for their services, or do less than $10,000 of work annually. According to the Alaska Department of Commerce, Community and Economic Development, there are 9,907 registered contractors in Alaska. Of those, the department believes there are as many as 1,441 who consider themselves handymen -- doing work like light remodeling, door replacement and installation, installing insulation, and painting.
The DCCED said there were 46 contractor complaints in 2013 and 51 so far this year -- an 11 percent increase. Homan doesn't think the state's number reflect the true number of people who have been scammed.
"Generally people don't want to talk about it when they have been taken advantage of," Homan said.
The statistics provided by the state do not show how many handymen are the subjects of complaints through DCCED, but local contractors and even some handymen say there are some bad actors still working in Alaska.
"I know a lot of handymen or ex-handymen in town who rip people off and take their money and don't do the work," said Drew Root, owner of Drew's Handyman Services.
The new regulations will require all contractor work in Alaska to be registered, insured, and bonded to a minimum of $5,000. The bond is meant to be a monetary guarantee to the consumer the work will be finished and can be accessed by customers if contractors fail to complete promised work.
"It just takes one nail in the wall to hit a pipe and create a flood," Homan said. "It may be just a $100 job, but it could create thousands of dollars of damage to a home."
Root has a current business license, but he will have to register with the state as a contractor and retain a bond if he wants to continue offering handyman services after Jan. 1. He says he is already insured.
"It's to cover your butt," Root said. "I haven't ever had to use it, but it's a good protection for the consumer."
While handymen work on smaller jobs and may not have access to large amounts of cash and collateral for bonds and licensing, the state said the new costs associated with the change in regulations will be minimal. A license good for two years will cost $235, according to DCCED. The Alaska State Homebuilding Association said, depending on a person's credit, the required $5,000 bond could be purchased from a commercial insurance and bonding firm for less than $500 per year.
Correction: This article has been updated to clarify that Drew Root has not yet registered with the state under the regulations that will take effect Jan. 1.