Common Contractor Scams and How to Avoid Them
The construction industry is generally populated with straightforward, sincerely helpful people. However, that doesn’t mean it’s immune to fraudulent activities. Dishonest contractors and fake companies exist; their goal is to take people’s money without providing the promised service.
This blog exposes fraudulent companies’ techniques and offers solutions to help homeowners protect themselves and avoid being taken in.
High-pressure sales tactics
Disreputable contractors commonly employ high-pressure sales tactics to secure a contract, often taking advantage of homeowners desperate for repairs. The contractor insists that their offer is limited-time only and pressures clients to sign a contract quickly. The haste often leaves no time for customers to think through or look for other options.
How to avoid:
Homeowners should never bend to high-pressure sales tactics. A reputable contractor will never pressure potential clients. Instead, homeowners should take their time and research; they are confident in the chosen contractor, having assured themselves that the contractor will spearhead their construction project on time and within budget allowances.
Asking for complete payment upfront
Another scam technique contractors utilize is asking for full payment upfront. While It’s reasonable for a contractor to ask for a down payment, demanding full payment before any work begins should warn the homeowner.
How to avoid:
Homeowners should never agree to pay the contracted amount upfront. Typically, the homeowner pays a percentage of the cost upfront, another portion midway through the project, and the final payment once thoroughly satisfied with the completed work.
Low bid scam
A dishonest contractor may offer bids surprisingly lower than their competition, using this technique to lure unsuspecting clients. Eventually, the costs would mount due to “unforeseen problems” during construction, and the homeowner might pay more for lower-quality work than they would have if they chose a more honest contractor.
How to avoid:
Homeowners need to do their research and ask for bids from several contractors. The saying, “If a bid seems too good to be true, it probably is,” is a cliche for a reason. Homeowners should be wary of contractors who significantly underbid their competitors. It might be a ploy to extort more money later in hidden charges.
Using inferior materials
Underhanded contractors often promise to use high-quality materials and deliver inferior ones instead and pocket the cost difference. Their clients only learn of the deception when there is a post-construction problem and the work is no longer under warranty.
How to avoid:
Get detailed breakdowns of the materials being used and do some research to ensure their quality. For a more in-depth review, hire a third-party inspector to ensure the construction site’s quality of materials and workmanship.
No written contract
Contractors who don’t offer their promises in writing should be avoided at all costs. Instead, they ask homeowners to trust their word and change the pricing later. This approach leaves ample scope for disputes and disagreements once the project is underway.
How to avoid:
Homeowners should insist on a written contract. It should include detailed information about material and labor costs, project timeline, warranty, and payment schedule. Make sure everything discussed and agreed upon is included in this written document.
It’s upsetting to think about how many people fall prey to these scams daily. With awareness of these tactics and taking appropriate precautions, homeowners can protect themselves from becoming victims of such fraudulent activities.
Shewmake Home Solutions, LLC is a residential kitchen and bathroom remodeling expert in the Camino, CA, area, offering renovation and complete remodels. Call us at (530) 444-1416.
