9 Tips To Avoid Getting Scammed By a Contractor

Whether you've just bought a home that needs a bit of updating or you're looking to make upgrades to your current home, you may need the help of a contractor. But before you entrust the services of a specific contractor, make sure you take some steps to protect yourself from being scammed.

Here are a few tips to consider.

1. Never Pay In Full Upfront

Contractors who ask for full payment in advance should be avoided. While it's standard practice for contractors to ask for some money upfront or a deposit, they shouldn't be asking to be fully paid before any work has started.

Ideally, installment payments should be arranged as each phase of the project is completed. That way you're only paying for the work that's been done.

2. Be Attentive During the Initial Assessment

Most contractors offer free estimates for prospective work to be done. But it's still important to take precautions when the contractor shows up for an initial assessment.

During this visit, be extra cautious and aware of the contractor’s assessment. Some fraudulent contractors will target vulnerable people, such as the elderly, and perform assessments in less accessible spaces. This provides them with a way to scam homeowners out of money.

3. Get References

Some contractors will use poor-quality materials and hire unskilled workers to keep costs low and earn a bigger profit. This can result in shoddy work or even damage to your home. To avoid this, make sure to ask for references and take the time to research reputable contractors.

4. Ensure Proper Building Permits Are Obtained

A building permit ensures that your home is safe for occupation. The process involves a professional reviewing your property and the renovation project to ensure they meet local building codes and requirements.

If a contractor does not apply for the right permit, you'll be assuming risks. Plus, if the local municipality finds out that a project was done without the proper permits, authorities could require you to take it down.

So, make sure your contractor obtains a building permit for the project.

5. Ask To See Their License

Legitimate contractors should have a proper license that meets your municipality's requirements. Otherwise, you could be liable if problems arise at any point throughout the project.

To avoid this scenario, be sure to ask to see the contractor’s license. You may even be able to look this up online.

6. Always Get a Written Contract

Every detail of your project should be written down, and both you and the contractor should sign off on it. If it's not put in writing, your contractor could skip steps and tasks that you paid for. Always request a written contract that has all details written down that you agree to.

7. Make Sure Suppliers Are Paid

If your contractor doesn’t pay suppliers for the materials, these suppliers could come after you for the costs. You'd be well-advised to make sure that your contract includes a clause that states that the contractor will pay all suppliers for all materials. Until all payments are made to the suppliers, you won't have to pay the contractor.

8. Ask About Materials Used

Ask the contractor what type of building materials and suppliers they use. You want to make sure that all materials are high quality and suppliers are reliable and top-notch.

9. Get a Second Opinion if an Issue Arises

If a contractor mentions a specific issue with the project that you were not aware of beforehand, ask questions and get a second opinion from another contractor.

If you're in the market to buy a home, we can help. Reach out to The Lotus Group today!