10 Signs that your Contractor is Scamming You
When I brought my first house in Detroit I had no what I was getting into, all I knew was that I would find a way to make profit with the house and open the doors to becoming my own boss. I purchased a two family flat from the Detroit Land Bank that required a full remodeling. At the time I had no handyman skills so I sought help from local "contractors".
These interactions would often start off good with minor repairs getting done throughout the house but would soon end up sour due to excessive delays or janky work. Crossing paths with bad contractors was a blessing in disguise for me because it motivated me to educate myself on basic home renovation techniques so I could make the repairs myself. In addition it also made me better at detecting any red flags in a contractor's mannerisms.
I realize that most people simply do not have the time nor patience for acquiring handyman skills so I compiled a list of 10 warning signs to be on the look out for when dealing with contractors.
Unrealistically low bid: If the contractor offers a bid that seems significantly lower than other quotes you've received, it could be a red flag. This is often an indicator that they do not possess sufficient knowledge, which will most likely result in sloppy work. They might also use this tactic to entice you into hiring them and then surprise you with hidden costs later.
Lack of proper credentials: A reputable contractor should have the necessary licenses, permits, and insurance to perform the work legally. If they cannot provide proof of these credentials or are evasive when asked about them, it could indicate a scam. If you want to verify this information you must go to the licensing and regulatory affairs website for your state. Once you are on the website you can search and see if the person you are working with is licensed and insured. The provided link is for Michigan residents - https://aca-prod.accela.com/LARA/Default.aspx.
No written contract: A legitimate contractor will always provide a detailed written contract outlining the scope of work, materials to be used, timeline, and payment terms. This is why they are called contractors. If they avoid providing a written agreement, they are unprofessional and will likely not fulfill their promises.
Request for large upfront payment: Be cautious if the contractor asks for more than 25% of the project cost. This could indicate they plan to take the money and disappear without completing the job. One of the ways that a scammer will do this is by building up trust with you. They will come in and do satisfactory work on some small projects you have and you will begin to feel comfortable working with them. Then when you call them back to work on a larger project they will request a large sum of money to get started on it, often claiming that it is necessary to secure enough material and man power. Once you pay them they will stop answering your calls and disappear.
Constant delays and excuses: If the contractor frequently delays the project and makes excuses for not showing up or completing milestones, it may be a sign of their lack of commitment or competence. One of the best ways to protect yourself against this is to have a written contract with a reasonable deadline for the project. Ambiguous contracts are one of the most common reasons for lawsuits against contracts.
Poor communication: Communication is essential in any construction project. If the contractor is difficult to reach, ignores your questions, or avoids discussing project details, it’s a red flag. A quality contractor will stay in contact with you through email and text, often sending pictures of the work they completed for both their records and to provide transparency to their clients.
Lack of focus on details: The difference between a professional and someone off the street with basic knowledge of the trade is in the details. What happens is you get someone who worked alongside a real contractor and picked up some basic skills from the trade, yet they lack an understanding of the fine details, which will result in the work being unsatisfactory. A perfect example of this is with painters. A professional painter will focus on the details, they will run a bead of caulk over every crack, mud over and sand holes in the wall. They will know the best paint to use for every aspect of the project. An imitator off the street will only just paint your room and offer nothing more.
Constantly asking for more money: A contractor who consistently asks for additional funds beyond the agreed-upon terms might be trying to take advantage of you and increase their profits unfairly. The quickest way to prevent this is by asking for a price breakdown detailing how much each aspect of the project is going to cost. If the contractor refuses it could be an indicator that they plan on taking advantage of you.
Substituting materials without approval: Some dishonest contractors may replace specified materials with cheaper alternatives without informing you, compromising the quality of the project. For example a contractor might use 3/8-inch plywood where the contract calls for 5/8-inch, or a 2-inch layer of gravel instead of the specified 5-inch layer. The “saved” money goes right into their pockets and is basically theft from the project.
No references or reviews: A reputable contractor should be able to provide references from previous clients or positive reviews on platforms like Google, Yelp, or the Better Business Bureau. If you can't find any evidence of their past work or satisfied customers, it's a warning sign.
Leave a comment if you have had any interactions with crooked contractors.