This is a great source of information, because suppliers who’ve been cheated by a pool builder will be more than happy to tell you about it. Even more importantly, if the pool builder doesn’t pay the suppliers’ bills, the homeowner may get stuck paying it again. (See Question 13: “Vendor Liens”.)
You should be able to choose freely from a list of at least 50 names, preferably a hundred or more. A shorter list probably means that your pool builder hasn’t built very many pools, or has had trouble satisfying his customers.
You should definitely talk to at least five people randomly from the list. It’s also a good idea to arrange a meeting at one of the homes. This gives you a chance to see the finished product, while also talking directly to the homeowner who worked with the builder.
The Better Business Bureau (BBB) demands ethical business practices from all of their members. The fees to join are by no means burdensome, so there’s no reason for a bona fide, ethical-minded pool builder not to join. If a pool builder is not a member of the BBB, that should be a clear warning to look somewhere else.
When the company name and the principal’s name are the same, it can be difficult to discern between bank accounts. For example, if the pool builder’s name is Johnny Smith, and the check is made out to “Johnny Smith,” then he could go to your bank and cash the check and avoid paying any state or Federal income taxes. If the IRS discovers this, you might be held accountable.
When you write out a check to a company that is incor-porated (“Inc.”), or has the principal’s name as only part of the company name (e.g., “Johnny Smith Pool Construction Co.”), the bank is required to deposit the check in the pool builder’s checking account. This greatly reduces the likeli-hood that the builder is going to run off with your money.
The Dun & Bradstreet organization keeps track of a business’ credit rating. A long history of on-time payments and good credit should be reassuring. Conversely, a lack of history indicates they haven’t been in business very long. (Remember Question 2?) A bad payment history should be a clear warning that there’s potentially big trouble ahead. (See Question 13.)
An upstanding pool builder will have no trouble sharing his Dun & Brad-street report with you
