Top 5 Contractor Scams
Identifying and Avoiding the
Top 5 Contractor Scams
Identifying Red Flags Before the Job Starts
Remember that scam rhymes with scram, and that's what bad contractors do. They don't stick around to finish the job because they are unwilling to make the investment of time and money required to run a legitimate contracting business.
#1 Shabby Equipment
The first signs that a company is a fly-by-night outfit are poor personall appearance, shoddy tools, filthy or broken equipment and vehicles in poor repair. Not every good construction company will have uniforms, new trucks, cell phones or even laptops. How a contractor presents themself and takes care of their truck, tools and equipment is a good indication of how well they'll take care of you and your job.
#2 In-Full, Up-Front In-Full Payment
"That's gonna involve a lot of materials. I'll have to ask you to pay me now." Requests for in-full, up-front payments before work begins should trigger a warning bell. Many people pay in-full up front for work and then never see the contractor again. You should pay in advance of work only when it is a large job, you have already properly screened the contractor (checked references, etc.), and you have a proper contract. Upon signing the contract you might pay a percentage of the total amount - usually around 30%.
#3 Refusal To Provide A Written Guarantee
"If anything goes wrong, just call me. You have my word."
No matter how sincere the assurance might sound, never accept a verbal guarantee. If anything really goes wrong, you'll quickly find out how worthless words can be. Legitimate contractors provide written guarantees that specify what is covered and for how long.
#4 Refusal To Provide Referrals
"We don't give out customer names. We respect their privacy. You understand, don't you? I'm sure you wouldn't want me to give out your name to stangers."
Avoid contractors who refuse to provide referrals. Legitimate contractors are happy to name satisfied customers. Typically, it is with the customer's permission that their name can be used to recommend work to others.
#5 No Identification
"Sorry. I forgot my business cards. You can always look us up at our post office box address."
Legitimate contractors present themselves in a professional manner. They have business cards and an established street address - not a post office box- where they conduct their business. In an industry of many small independents, that street addres might also be their home. That's oka y. Self-employed people often work from a home office. What's important is that you know where to locate them if anything goes wrong. Be cautious of anyone who cannot produce identification. They could be transient operators - people who work over an area, then disappear.
