Most people are aware of the Better Business Bureau® and have a basic concept of how it operates. However; over the years, we’ve heard many of the same questions asked repeatedly, and we’ve noticed that there are some persistent misunderstandings about how it all works. So we decided to go directly to the source, right here in our own Colorado Springs. Today, we interview Carla Dornsbach, Director of Business Development for the Better Business Bureau of Southern Colorado.
Here’s a transcript of our interview:
RemodelConnect: Hi Carla! Thanks for taking the time to meet with us! Can you tell us a little bit about yourself and what you do for the Better Business Bureau?
BBB: I’ve lived in Colorado for about five years, and I’ve been with the Better Business Bureau of Southern Colorado for almost 2 years as their Director of Business Development. What I do is help our sales team find companies that qualify for BBB Accreditation as well as work with our existing BBB Accredited Businesses, educating them on the benefits of their accreditation and maintaining their good standing.
RemodelConnect: Great! We’ve got several questions today, so we’ll jump right in. For starters, how exactly is the BBB structured? Is there just one Nationwide BBB, or do you have local offices?
BBB: The Better Business Bureau of Southern Colorado is governed by the Council of Better Business Bureaus (CBBB). The CBBB governs all the BBB’s in the US and Canada. Colorado has four locations. The Better Business Bureau of Southern Colorado (where I work) services 25 counties in southern Colorado.
RemodelConnect: Is the BBB run by the government? Or are you a non-profit?
BBB: The BBB is not affiliated with the US Government. Contrary to popular belief, the BBB is not a regulatory or legal agency. Your second guess was right–the BBB is a non-profit, neutral, third party organization whose mission is to create confidence and trust in the marketplace for both consumers and businesses.
RemodelConnect: One of the best services that the BBB offers is the ability to check in on the reputation and history of an existing business. Is there a way to check up on a contractor that is outside of the city or state that the consumer lives in?
BBB: The place to look for local BBB Accredited Businesses in Southern Colorado is www.southerncolorado.bbb.org. However, if consumers are looking for a company outside of our service area (or out of state) they can go to www.bbb.org and type in the zip code where the contractor is located.
RemodelConnect: As a general rule, homeowners know that the BBB does a “check up” on a construction company. But beyond this, most people don’t know how far that research goes. What is it exactly that the BBB is looking for when checking on a contractor?
BBB: When a business applies for BBB Accreditation, they must meet certain qualifications and commit to upholding the BBB Code of Business Practices. Our staff then verifies that the company has been in business for a specified length of time, has a physical location, maintains their industry’s required licensing, and can substantiate their advertising. The BBB team also checks the company’s references they provide. The final approval of BBB Accredited Businesses is given by our local BBB Board of Directors who actually live and work in the community.
RemodelConnect: Just about everyone knows that the BBB is a “complaints center” for consumers with bad business experiences, but our guess is that alot of consumers don’t know much about the “BBB Accreditation” you’re referring to. Can you explain?
BBB: It is true that consumers and businesses can file complaints about businesses with us. However, we’re not just looking at the fact that a company has a complaint filed against them–we’re interested in how that business handles it. One of the factors that distinguishes a BBB Accredited Business from an unaccredited business is that a BBB Accredited Business has committed to working through these issues with consumers or other businesses. If a BBB Accredited Business is concerned that someone is going to file a complaint, they can proactively contact the BBB. When that happens, we will call the consumer, as a neutral third party, and can sometimes get to the bottom of a conflict before a complaint is even filed. We are often able to re-open lines of communication between parties.
RemodelConnect: Can you tell us some of the important differences between a remodeler that is not “BBB Accredited,” and one that is?
BBB: Sure. There are obviously good businesses in our service area that are not accredited. BBB Accreditation demonstrates the trustworthiness that a business has already earned. The benefit of BBB Accreditation is that consumers recognize that Accredited Businesses have been ‘checked out first.’ Because of the high consumer recognition of the BBB brand, BBB Accredited Businesses gain marketplace exposure that they may not get otherwise. Often, a savvy consumer will check references on a contractor prior to entering into a contract in the first place, however, many consumers do not. Consumers recognize that the BBB has already done that work for them. The BBB verifies who the company says they are, verifies licensing and insurance requirements for the specific type of work that company does and has other information in a database showing how a company works with its customers. We don’t add any trustworthiness to an existing business–the key is that we are recognizing the trustworthiness the company has already earned by how they do business. BBB Accreditation gives them a greater presence in the marketplace.
RemodelConnect: If a company is BBB accredited, does that mean they do quality work? Conversely, if a company isn’t accredited, does that mean a homeowner will get ripped off?
BBB: We would like to believe that all BBB Accredited Businesses do quality work but as with any business or organization with employees, sometimes surprises happen. But as I stated earlier–it’s not as though accredited businesses never have complaints filed against them. It’s all about how they handle them. And certainly, homeowners shouldn’t assume that they’ll be ripped off simply because a contractor is not BBB Accredited. Not all good businesses are accredited–though we would like them to be, because BBB Accreditation is good for their business and the marketplace!
RemodelConnect: What are some of the biggest reasons why a good company might NOT choose to become accredited?
BBB: Most companies see the value in being accredited once they learn of the benefits we offer their business. One common objection to becoming an accredited business is that a business might think they don’t need any more business or new customers! While it’s great to have lots of volume, there are other benefits we provide above and beyond market exposure. The BBB also promotes consumer education, sponsors business networking events, holds educational seminars for businesses, and more. One major benefit of being a BBB Accredited Business is being eligible for savings with some business expenses, including a discounts on their workers compensation insurance, discounts for credit card transactions, business checks, etc.
RemodelConnect: Are there companies who aren’t eligible to become an accredited business?
BBB: Yes, there are a few things that may prevent a contractor from becoming accredited. Some include: not being in business long enough; they may have outstanding, unanswered complaints; and/or for a larger company, if their corporate headquarters has an “F” rating with the BBB. (This is the worst possible BBB rating a business can receive).
RemodelConnect: One concern we’ve heard several times from homeowners is “I’ve heard that the BBB is just a club that anyone can join by filling out an application and paying yearly fee.” Is there any truth to this?
BBB: No. Businesses have to be eligible for accreditation. Companies must complete the application process and be approved by both the BBB staff and the Board of Directors. There is no guarantee that completing an application will result in accreditation.
RemodelConnect: When a family hires a contractor to work on their home, he or she is taking a potentially vulnerable step in doing so. Generally, remodeling work is done during daytime hours, when people are at home. The construction industry is notorious for being a place where criminals seek employment. Does the BBB do a background check on a company to ensure that the remodeling company representative who shows up to a homeowner’s front door isn’t a criminal?
BBB: No. We do not do any formal criminal background checks, and cannot guarantee that a contractor doesn’t have a history of run-ins with the law. We do require that our applicants disclose any legal issues they’ve been involved in over the years. We do reference checks and check public records. You’d be surprised–through our basic checks, staff reviews, and approval process by our BBB Board of Directors, we have uncovered many issues that have prevented companies from being accredited. As a non-profit, we have limited resources, but do as much as we can to ensure that an accredited contractor’s reputation is solid. Ultimately, it’s up to the homeowner to do their due diligence and make an informed decision. As previously mentioned, we’re constantly educating the public. We provide tips on hiring reputable companies, and remind them to do their homework before doing business with a company and being cautious about who they let into their homes.
RemodelConnect: In the construction industry, there are, unfortunately, a lot of “fly by night” startup companies that stay in business for a few months, do shoddy work, stiff their customers, and then go out of business and start a “new company” with a different name. Does the BBB catch companies involved in these “serial startups”?
BBB: As much as we can, yes. However, we have two limitations on this: 1) we depend on local companies registering their company through the official channels which would make their information public, and 2) we are dependent on other businesses and consumers to file a complaint on a company when they have had a bad experience. If a consumer reports on a ‘serial startup’ or files a complaint with a contractor who happens to be a fly-by-night operation, we’ll have that information in our database. “Serial Startups” with unanswered complaints cannot be a BBB Accredited Business. We keep track of companies based on who their owners are. Consumers are then able to read reports on the companies previously owned by that person. Consumers can also visit our “Consumer Alerts” section of our website, where we alert the public to common scams in our area, and trends in suspect and fraudulent business practices that we’re seeing. Visit www.southerncolorado.bbb.org/Consumer-Alerts/ for more information.
RemodelConnect: If a homeowner has a bad experience with a contractor, can he or she still file a complaint with the BBB even if the company they’re complaining about is not accredited?
BBB: Yes, consumers can file a complaint about any business–whether they’re BBB Accredited or not. BBB Accredited Businesses commit to answering and working with their customers. Unfortunately, when a complaint is filed against an unaccredited businesses, that business has not committed to our policy of resolving conflicts, which leaves us with little recourse, which of course is why consumers prefer to do business with Accredited Businesses in the first place.
RemodelConnect: Thanks for your help, Carla! We appreciate your time.
BBB: You’re welcome. Thank you for inviting me to this interview–it is a great idea. Thank you for helping educate the community more about the BBB!
