Avoid Dishonest Contractors—Follow This Advice

Hiring a bad contractor can cost you thousands in repairs and legal fees. Homeowners find themselves in that situation all too frequently. Here’s how you can save yourself the trouble.

Photo credit: Konstantin Pelykh

Avoid These Red Flags

1. Large down payments. No one expects contractors to cover material costs, but be warned if the contractor is asking for a significant down payment. Expect to pay no more than 30-40% up front.

2. A vague contract. A contract should include details about the scope of work including responsibilities, payment schedules, and materials used.

3. Bad reviews. The adage “you can’t please everyone” is true, but multiple bad reviews is a red flag.

4. No proof of experience. If a contractor is offering to do work, but doesn’t have references from past work, you can’t be sure they can handle the job professionally. Check reviews, see photos, and speak to previous customers.

5. The bid is extremely low. No one wants to overpay for work, but be wary of extremely low bids. If the price seems to good to be true, it probably is.

6. No proof of insurance. Don’t just ask if they have it, ask to see it. Good coverage includes workman’s compensation, general liability, and with larger projects, see that they are bonded.

7. Poor communication. If they fail to return calls or address your concerns, it may be a preview of their work ethics. Unprofessional contractors frequently “disappear”.

8. Working without a paper trail. Be wary if they hesitate to put anything on paper—they might be hiding illegal activity. Expect a running paper trail with real professionals.

9. Cash payment without receipt. If a contractor is having you pay cash, it may be that they’re trying to avoid paying tax on the business. It’s important to get receipts so the contractor can’t claim they weren’t paid.

10. Under the influence. What they do in their time is their business, but what they do on your time is your business. It’s a major red flag if they show up to a job under the influence.

Photo Credit: Peter Ammann

Watch Out for Scams

1. Stealing. A contractor bids very low and asks for a large down payment. Then never show up to do the job. Your only option is to take legal action.

2. Deception. A contractor advertises a specific product and installs a product of lesser quality. Their photos may be blurry or grainy because they are trying to hide cut corners. They talk a big game, but fail to deliver.

3. Manipulation. A contractor purposefully underbids the job only to add change orders later. They know they're doing it and you'll end up paying more than the highest bid. The contractor puts a lien on the house and if you want to sell your house, you’re forced to pay them first.

Extra Measures You Can Take

The best ways to investigate a contractor is to examine photos of their past work, talk to previous customers, and read customer reviews.

1. Get recommendations

2. Check license and insurance

3. Look at their previous work

4. Interview them personally

5. Be willing to pay for a good contractor

6. Read the bid agreement carefully
   

We hope this information saves you grief when it comes to hiring a contractor. Remember to vet your potential contractors thoroughly and carefully to avoid losing thousands of dollars.

Brought to you by Dr. Odd Jobs, LLC.

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