In a significant initiative to address the alarming rise of construction fraud in the state, Utah has announced the formation of a new task force.
This task force will encompass officials from various sectors, including the department of commerce, the attorney general’s office, lawmakers, law enforcement, and industry representatives, all focused on tackling this pressing issue.
Experts highlight that this surge in fraud correlates with Utah’s rapid growth and extensive new construction activities.
Residential construction fraud encompasses a range of deceptive practices.
These can include contractors failing to complete work for which they have been paid, submitting fake invoices for nonexistent work, manipulating the bidding process, or providing misleading information about their qualifications or licenses.
As stated by the Utah Insurance Department, roofing companies often target neighborhoods following storms or disasters, offering free inspections before intentionally damaging homes or misrepresenting the extent of damage.
In a similar vein, plumbers may refer homeowners to mitigation companies for assessing water damage, request upfront contract signatures, and then recommend repairs that exceed the limits of the homeowner’s insurance policy.
According to the Division of Consumer Protection, such fraudulent schemes have inflicted financial losses totaling millions on Utah residents.
The division noted that during new construction projects, average losses per customer can reach approximately $302,000.
In 2024, the Utah Division of Professional Licensing reported receiving at least 2,146 complaints related to construction; already this year, they have processed 1,047 additional complaints.
In the last three years, Utah residents have faced a staggering combined loss of $32 million due to construction-related grievances, according to figures released by the division.
The newly formed task force is designed to bring together diverse stakeholders, including law enforcement officers, industry representatives, and officials from both the Utah Divisions of Professional Licensing and Consumer Protection.
Additionally, it will include members from the Utah Attorney General’s Office, state lawmakers like Sen. Cal Musselman and Rep. Thomas Peterson.
Peterson, who is also a building official, commented, “As a building official by profession, I’ve seen firsthand how construction fraud erodes the very foundation of trust essential for a stable housing market in Utah.”
He emphasized the negative impact of construction fraud on efforts to make homeownership attainable for future generations.
Musselman, who works in real estate, echoed similar sentiments, stating, “Construction fraud is a direct threat to our efforts to put homeownership back in reach for our kids and grandkids.”
The task force aims for aggressive enforcement of Utah’s fraud laws, leveraging the resources of the state’s dedicated construction fraud prosecutor.
An educational and outreach campaign is also on the agenda, intending to provide consumers with guidance and best practices as well as compliance training for industry professionals.
In addition, the task force will seek to enhance the capabilities of local prosecutors in handling construction fraud cases effectively.
Furthermore, they will look into regulatory reforms by researching laws in other states, collaborating with industry groups, and identifying potential gaps in state codes to develop new regulations.
Steve Waldrip, the governor’s senior advisor for housing, strategy, and innovation, remarked, “The Task Force’s work to root out construction fraud is an essential piece to bringing affordable housing to Utah.”
He emphasized that fostering trust in the contracting process is crucial for homeowners investing in and improving older, more affordable homes.
To aid homeowners and contractors, the Department of Commerce has introduced a new Utah Residential Construction Agreement.
This contract template is designed to clarify project expectations and protect homeowners from potential fraud.
Homeowners can utilize this agreement as a template to create new contracts or as a reference to ensure that existing contracts are secure.
For further details regarding the agreement, individuals can visit the Utah Division of Professional Licensing’s official website.
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