Cambridge, Ont. entrepreneur helping homeowners avoid contractor scams

CTV’s Spencer Turcotte learns how a new app could help save homeowners from falling victim to contractor scams.

Canadians lose hundreds of millions of dollars every year to contractor scams, but a Cambridge, Ont. entrepreneur has created an online platform aimed at helping homeowners find pre-vetted contractors and avoid being scammed,

It all started when 21-year-old Alex Kimmich noticed a concerning trend while speaking with potential clients when he worked as a carpenter.

“They’d be so reserved and so shut off. They feared being ripped off by a contractor,” said Kimmich.

It prompted him to change his career path. He had a new goal in mind – to get people to regain faith in the system, so he created BetterBid.

“BetterBid is a platform that gives peace of mind to homeowners before they hire a contractor. A one-stop-shop for verifying a contractor before they come to your door,” said Kimmich.

The platform uses artificial intelligence to assign a score to potential contractors across Canada based on a number of factors.

“We verify proof of business, trade certificates, insurance and we do a full background check that runs every single mention of them online,” said Kimmich.

Clients can then see how trusted the contractor they’re inquiring about is.

Alternatively, you can tell the platform the job you want done and it will give you the three best quotes.

The site is beneficial for contractors too.

“Contractors can go on and get their identify verified and show the public that they’re a good contractor,” said Kimmich.

In turn, BetterBid takes a small fee from contractors for each job they get through the platform.

“Forty per cent of the people that apply do not get accepted,” said Kimmich.

It’s a platform that Anjali Arnold said could have protected her from being scammed in 2020.

“It feels like a prayer answered,” said Arnold.

Arnold operates an online group called ‘Defrauded by Builder Contractor’ for others like her who have been scammed by a contractor.

“[The contractor] said, ‘We usually take a 50 per cent down payment for materials.’ So our contract came in around $50,000 so he took a cheque for $25,000,” said Arnold.

Shortly after work began on her home in Prince Edward County, the workers stopped showing up. Arnold said the contractor admitted to using the down payment for other projects and could not pay her back.

“He still owes us everything, including taxes and interest accruing over time,” she said.

When Kimmich heard her story he reached out to Arnold and asked her to upload all the legal documents in the case to BetterBid so the platform could learn from this situation and steer others away from becoming a victim.

Paralegal Jordan Nieuwhof who is not involved with the platform in any way, called it “exceptional.”

Nieuwhof said he has used BetterBid while helping his own clients and added that one of the most difficult things with fraud is proving intent. But he said BetterBid helps do exactly that.

“It ultimately allows the individual, whether it be law enforcement, a landlord or any individual, to find the history to see how many times that has been done to others, and that is an essential element you need to prove fraud in the court system,” said Nieuwhof.

As BetterBid continues to learn with each entry and dispute, Kimmich hopes to one day see law enforcement use the platform to help put an end to these scams.