Three Tips for Avoiding Unscrupulous Contractors
It’s sad but true-unscrupulous contractors are what make my job so hard. Fly-by-night builders who take advantage of homeowners not only make my profession look bad, they also hurt the industry by causing untold amounts of trouble (and costs) for people who are just trying to get their home built, repaired, or renovated. And to make matters worse, it can be difficult at best to find a contractor who’s going to treat you right if you don’t know what to look for. Use these five tips for avoiding unscrupulous contractors and you’ll be sure to find a builder who isn’t going to take advantage of your home improvement needs.
Contracts
Bad contractors can easily be spotted during the contract phase of the project. Look for these warning signals that you may be hiring a shady contractor:
- · Signing the contract today will allow you to get the quoted price; otherwise the costs will go up the longer you wait. Always get at least three bids before hiring a contractor.
- · You’re asked to pay more than half of the overall costs up front. Real contractors never ask for more than a 20-30 percent deposit upfront.
- · Be careful of cash only jobs. Checks, credit cards and money orders are the norm when it comes to making a payment to your contractor.
- · Never sign over an insurance check directly to your contractor. Pay them directly from your account.
References
Never hire a contractor without a good set of references. Be sure to look out for the following problems to avoid being taken advantage of by an unscrupulous contractor:
- · Be sure your builder has a verifiable mailing address.
- · Check for complaints at the Better Business Bureau.
- · Contact all references personally and verify that the contractor did the job up to the homeowner’s standards and specifications. Visit their last job when possible.
- · Licensing and insurance information can be double checked at your state/local licensing department’s website or office.
Scheduling
Besides doing a good job, you’ll want to make sure that your contractor will get the job done according to a specified schedule. If your contractor won’t perform the following tasks before you sign a contract; then find another builder!
- · Be sure the work contract stipulates a timeframe for completion, as well as what happens if they don’t follow their schedule.
- · Payment scheduling is important also and should be included in any contract. Make sure that payments aren’t paid to the contractor until each phase of the job is completed.
- · Always make sure that the correct county/city/state inspections have been performed before moving onto (or paying for) the next phase of construction.
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