Top Tips for Avoiding Fraudulent Contractors

It is a beautiful day today. The sun is shining, the sky is blue, the snow is gone and spring is just hours away. With the advent of spring, comes the sound of hammers, drills and saws, as anxious contractors are ready to get back to work. Unfortunately, not all of these contractors are legitimate and some are downright thieves, with only one goal in mind. Separating you from your money!

Below are 5 common scams that we wanted to share, as reported by www.houselogic.com

Scam #1: You need to pay the money upfront. This is the most common problem reported to the BBB. The contractor will tell you that he has to order materials and equipment in order to get the job started. The problem with handing over large sums up front is that he can either disappear, along with your money; or, he can get started and do a lousy job. You won’t be able to do anything about it, because you have invested thousands of dollars into him and the project.

The solution to this scam can be a bit tricky, because some legitimate contractors do require you to pay a portion of the job upfront. However, if you are not familiar with the contractor, never prepay more than $1,000 or 10% of the job total, whichever is less. If you have vetted the contractor and know them and their business well, you can put down a larger payment.

Scam #2: You don’t get everything in writing. A basic contract is written and the contractor appears to understand the scope of the work, along with your specifications. He even promises some additional bells and whistles. The problem is, these items don’t make it into the contract, and as the work is being done, you notice that the extras, along with your specifications that were discussed are not being done. You mention this to the contractor and he tells you he didn’t include these items in his pricing and if you want them done, you will have to pony up more money for him to complete the additional work.

The solution to this scam is to make sure is to get EVERYTHING in writing that relates to the project; otherwise it becomes a “he said- she said” if you go to court. The court will abide by what is in contract, not what the contractor promised to do. If the contract doesn’t include the items promised, make sure they are written in, and then initialed by the you and the contractor.

Scam #3: The contractor says he doesn’t need to pull a permit for the project, or may ask you to skirt the law by asking you to apply for a homeowner’s permit, an option available to ”do it yourselfers”. If you do this, you then are lying to the authorities and this makes YOU liable and responsible for monitoring all the inspections, since you pulled the permit, not the contractor.

The solution to this problem is to always insist that the contractor get a building permit. Yes it lets your local tax assessor know about any upgrades you are doing; however it will also weed out the unlicensed contractors and gives you the protection of having the work inspected to make sure it is compliant with safety codes. A good contractor will do all the work the work of obtaining the permits themselves. After all, it is part of what you are paying them.

Scam #4: Unforeseen problems that will add to the cost of the project. The contractor didn’t know he would find structural problems or that you would have so many change orders, and as a result he is going to have to increase the costs. Now bear in mind, that sometimes these are legitimate issues and must be addressed; other times, a contractor will come in with the lowest bid and then start to find excuses and reasons why the price needs to be jacked up. If you are not sure if these charges are legitimate, you can contact a local home inspector, your local building department or even your local branch of the National Association of Home Builders.

The solution to preventing some unforeseen costs or problems is to make sure your contract has a procedure for change orders, mini contracts containing a work description along with a fixed price for anything that gets added to the job in progress. The extra work, (unforeseen or not) can only proceed after the change order is signed by both you and contractor.

Scam #5: Beware of The Travelers…..these are the folks that have “left-over” materials, that can’t be returned to the supplier and offer you a great deal on a home repair project. They travel from town to town trying to find homeowners to sell to. Even if you were planning on doing the project, taking these contractors up on their offer could result in larger amounts of money spent down the line, especially if the driveway repair they did, starts cracking next year.

The solution to this scam is easy! Never hire a contractor who shows up with extra product without checking their references. Take your time to check contractors to make sure they are local, they are legitimate and they have a good reputation in the community.

A few more safety tips when dealing with Travelers:

• Don’t give into high pressure tactics
• Don’t let them into your home. They are experts at finding and taking valuables.
• Determine the make and model of their vehicles, get license plate numbers and alert local law enforcement.
• Call the police immediately if they begin to do a job without your authorization.

And lastly, if something doesn’t “feel” right, listen to that feeling and do further research on the contractor. It may mean holding off on a project but the way we see it, “better safe than sorry” could certainly apply in this case. For more information on hiring a contractor in Wisconsin, the Wisconsin Department of Agriculture, Trade and Consumer Protection, by clicking here.

With the information above, when a contractor shows up unexpectedly on your doorstep offering you a low, low, low price to do some home repair projects, you will be now be armed with the knowledge you need to keep your home, your family and your bank account safe.

From beginning to end, we can handle 100% of the restoration process so you don’t have to. This can include content pack-outs, cleaning & storage of personal property, structural drying & mitigation, mold remediation, lead & asbestos abatement, and full re-construction services. We are licensed, bonded, and fully insured. We abide by all state and federal laws, and are certified as a “Lead Safe Renovator” with the Environmental Protection Agency (EPA), and accredited with the IICRC.

For more information on Emergency Fire & Water Restoration, or the services we provide, give us a call at 414-810-3522, or visit our website