Scams & Fraud: While Dealing with Contractors

When dealing with contractors in general, have a plan. Follow these simple tips when thinking about hiring a general contractor:

• Have a definite idea about what you want or need, and what you can afford
• Get estimates
• Deal with someone you know, have used before, or is recommended by someone you trust
• Look for references
• Check to see if the Contractor licensed to do specifically what you want done
• Check on complaints by checking with,
  • Department of Professional and Occupational Regulation (DPOR)
  • Consumer Affairs
  • Better Business Bureau
  • Building Inspector, Public Works
• Prepare a list of items for your contract and time frames for completion
• Have a payment schedule with the contractor and stick to it
• Make sure you understand the contract and guarantees
• Get a signed copy of the contract in your possession before the work is started
• Verify address and phone numbers of the contractor

Beware Of

• Large down payment requests
• Request for cash only
• Pressure for you to obtain the building permit, rather than the contractor
• Door-to-door solicitations, itinerants or travelers
• Phone solicitors with free estimates
• Fast talkers
• “Now Only” discounts
• Familiarity or asking personal questions
• Hard luck stories
• Easy financing by the contractors or affiliate
• Deeding your property to the contractor while the house is under construction

Do . . .

• Plan
• Be cautious
• Call police if suspicious contractors or solicitors are in your area
• Call DPOR if you have a problem
• Research your local building code, and if you find problems, call your Building Inspector

Don’t . . .

• Let strangers into your house
• Deal with contractors you have not investigated
• Believe that the contractor happened to be in the neighborhood with a little material left over
• Let others know you have a large amounts of cash in your house
• Agree to open-ended deals
• Fall for horror stories of serious damages that must be corrected now
• Be taken advantage of by scavengers offering to do repairs after natural disasters
• Accept spur of the moment deals
• Accompany strangers to the bank to assist in cashing checks
• Believe deals that are just too good to be true

Tagged as: Fraud, Scams, Tips