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Are you dealing with a contractor scam?

On Behalf of | Jan 12, 2022 | Construction Contracts

Unfortunately, in any sort of industry or field, you will always face the possibility of running into scammers. Though most individuals want nothing more than to make an honest living, some will take any chance they can get to trick, swindle and defraud anyone they can get their hands on.

Of course, this can even include contract workers with whom you might plan on working together on a project. Thus, you want to keep your wits about you when going into any potential contractual agreement.

Lacking transparency with expenses

Washington Post discusses the potential red flags that might indicate you have walked into some scamming contractors. Two stand out above all else: a lack of transparency with expenses, and demanding full payment upfront.

In terms of expenses, a good contractor should always keep a clear and open path of communication, explaining what every expense goes toward. For example, custom-order products often come with a hefty price tag, and a supplier may want 50 percent of the payment upfront. To meet that end, the contractor may ask you to pay that 50 percent so they can get the order made. But they should explain in detail what the money is for, what it goes toward and why they need it when they ask for it.

Asking for upfront full payment

Related, except in such instances, a contractor should never ask for full payment upfront. If they get the money in advance, then you have to spend the rest of the time worrying about whether they will finish the job or simply pocket the check and leave. Controlling the money will control the work, so it is best to save the majority – or at least half – of the payment until the end.

Of course, if you end up dealing with a scammy contractor, you could peruse your legal options. You may have the ability to seek damage compensation for losses you suffered.