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How do contractors scam developers?

When you begin a new construction build, you have to make an agreement with the contractors. While many contractors are honest and only want to make a living in the construction industry, some contractors may attempt to scam you. Washington Post has some advice on how to avoid a contractor scam.

Demanding payment upfront

In the construction business, you will eventually meet contractors who demand payment upfront. They may ask for the whole cost of the project or a substantial amount of money before the work begins. When a contractor demands the money upfront, he or she does not have to follow through with the job. If you pay your contractor a substantial amount of money, you can only hope that he or she does not take off with your money. Then, you would have to restart your project with less money. If you control the money, then you also control the work. Contractors work harder for their paycheck if they receive it at the end.

Being unclear about expenses

The only time that you should offer any form of payment to a contractor upfront is when the contractor requires a deposit to purchase custom-ordered products. A supplier may require a 50% deposit from the contractor and so you may need to pay the contractor or the supplier. The contractor will clearly state what the money is for and odds are you can pay the supplier if necessary. If a contractor is not clear about where the money goes, you should hesitate. He or she may use your money to pay off an earlier job.