5 Tips for Avoiding Contractor Fraud

It’s believed that contractor fraud is a problem that results in $13 billion lost every year. This is something that most homeowners fear if they want to have renovations or repairs.

When you hire a contractor, this is something that may be at the back of your mind. This is because contractor fraud is something that is very well known and quite common.

This can make it difficult to hire a contractor for a home renovation. You will need to know what signs to look for in a contractor that is not trustworthy.

Keep reading to find out how to avoid contractor fraud with these tips.

1. Don’t Pay a Full Advance Payment

A huge red flag to stay away from is contractors that want an advance for payment. Most contractors require a percentage of the payment upfront before the project begins.

This is a safety net that protects them from homeowners that may not pay them for their work. Most of the time this is 50% or a little less of the full payment.

A contractor that asks for everything upfront may not be dedicated to the work. You may pay all that money only to never hear from them again.

2. Avoid Contractors With Bad Reviews

You also want to look for established contractors. It should be easy to find them online, and they should ideally have a website available.

Before hiring a contractor for a renovation, you need to look at their reviews. It is very common to find a variety of positive and negative reviews from past clients.

But you want to keep an eye out for repeated issues that multiple clients have had.

3. Bad Communication Skills

A contractor should know how to communicate clearly with potential clients. After all, communication is very important when it comes to renovations for your home.

If you feel like they aren’t listening or understanding what you are saying, you may want to back away. This could show a lack of professionalism that could lead to fraud.

4. Look for Red Flags

When hiring a contractor, you need to keep an eye out for red flags. These could be things that indicate that this contractor is shady or trying to trick you.

One red flag could be when unexplained issues come up. This can happen, but sometimes the claims could be made up to get more money out of you.

5. Get Different Estimates 

You will want to get several different estimates during this process. The best number to go for is between 3 to 5 estimates from different contractors.

If a contractor is offering rock-bottom prices, this could indicate low-quality work.

Avoiding Contractor Fraud

If you need a home remodeling done, you need a contractor’s help. You will want to avoid contractor fraud by knowing what signs indicate an untrustworthy contractor.

Are you looking for legitimate and trustworthy contractors? Contact us today at Tru Builders for residential remodeling services.