SIERRA MADRE–
Frustrating experiences with trade contractors motivated Sierra Madre resident Penny Spark 15 months ago to start her own free referral service for homeowners looking for reputable contractors.

Homeowner and founder of home-based Southern California Home Improvement Referral Service, Spark, 45, said she was disappointed with contractors hired to build a fence, clean her pool and remodel bathrooms and kitchens.

“I’ve been a homeowner nearly 20 years, and I have made the same mistakes that most people make,” she said. “That’s why this business got started –because to do it right takes a lot of time that most people don’t have.”

Most homeowners do not do a thorough job in prequalifying hired contractors, Spark said.

“There are a lot of contractors out there who are working illegally,” she said. “It is California law that jobs that are $500 or more must be performed by a licensed contractor, and unfortunately many homeowners do not know this.”

The company’s service area covers the San Gabriel Valley, the western half of the Pomona Valley and a few contractors will travel into the Whittier area.

“We will be serving the San Fernando Valley, too, beginning this fall,” said Spark, adding that after the first couple months of setting up her business, she has qualified about 400 work orders for the close to 60 qualified contractors in her network.

“Our business has absolutely taken off because there is no down side for the contractor or the home owner,” she said. “The biggest single benefit to the homeowner is we have saved them an enormous amount of time through expertise and because we minimize the risk of them having a bad experience.”

Although the service is free to homeowners, Spark asks them to do two things in return: complete a satisfaction survey to help track contractor performance and refer the service if they are happy with it.

The way Spark’s business generates income is through negotiated contractor project fees that range from 6 percent to 15 percent, depending on the size and scope of the job, type of trade and contractor classifications, she said.

“It’s one thing to get in, and it’s another thing to stay in, and we have excused contractors if they don’t live up to our standards,” Spark said. “Contractors cannot pay to be in the network, as that would defeat the whole purpose of the referral.”

Spark said contractors must meet state regulations, insurance requirements, have good trade and customer references, guarantee their work and also are screened by length of time in their respective trades.

General contractor Bill Hinojosa said he has made about $20,000 this year and last from nearly 14 jobs he has received through Spark.

“A lot of nice little projects have come in – nothing major yet, but it is a nice service, and I like working with Penny,” he said. She is a good, ethical person to work with, and she always keeps me well informed about the projects.”

Spark started the referral business with proceeds from her former medical supply distribution service.

“I sold it to a chain of hospitals for almost $2 million four years ago after owning it for 10,” she said.

The similarity between Spark’s new and old businesses is that her success has been based on serving customers well, she said. “It was a very different business serving elderly patients and caregivers, but I built it from a $3,000 to a $2 million company because I take care of people the way I would want to be taken care of, and I’m just as picky as the next person.”

One satisfied customer said she does not hesitate to refer people to Spark and would use her service as the needs arise.

“She really does a wonderful job in matching the clients’ needs with the contractors she sends out,” said Realtor Esther Gross, a 29-year Arcadia resident. “My referral did a bathroom remodel this spring, and he did a great job. He really went out of his way to accommodate me.”