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What are the red flags of contractor scams?

Scammers unfortunately exist in just about every field imaginable. Though most people want to make an honest living, that does not stop the few who would rather trick their way into making more money at someone else’s expense.

This can extend to contract workers, too. It is important to go into any potential contract agreement knowing what red flags to look for.

Requests for full upfront payment

Forbes discusses potential signs of a scamming contractor. The first big warning sign is if a contractor wants full payment upfront. Controlling the money in this situation controls the work. If someone hands over the full payment at the start of the contract, they then spend the rest of the time wondering if the contracted employee will actually uphold their end of the bargain.

Splitting payment up throughout the process of the project ensures that everyone gets their fair pay and their fair work. Some people like to set up checkpoints in the project at which point a certain amount of money will get doled out. Others do a half-half system, where the worker gets half of the payment upfront and half of it upon completing the project.

A lack of transparency

Another big red flag involves the transparency of expenses. Good contractors will keep an open path for clear communication. They will explain what every expense is for and provide paperwork or receipts to prove themselves if asked.

If a contract worker does not provide this information readily or even refuses to give it at all, this is a major warning sign that something is amiss.