Hiring a bad contractor for your house remodel or new build is a recipe for disaster. A poorly trained, incompetent contractor can easily destroy a simplistic a remodeling project, costing you even more money when you have to hire an actual expert to repair mistakes.
Home Advisor suggests that the average adult in the country spends between $250 and $58,000 on contractors. A considerable amount of money to squander on poor workmanship. However, the Better Business Bureau (BBB) is now advising homeowners that poor work may be the least of their concerns when choosing someone to renovate their house.
Continue reading to discover the number one sign that says you shouldn’t deal with a contractor.
Don’t Hire Contractors From Unsolicited Offers
The Better Business Bureau issued a statement on July 14 warning homeowners against fraudulent “contractors” providing services, with many recent scams reported to the BBB Scam Tracker including driveway repair or paving services.
According to the organization, these contractor scams usually begin with someone dropping a brochure at your door or showing up at your house unexpectedly to offer their services.
“Be wary of unsolicited offers,” the BBB warns. “Most scams involving contractors begin when a random contractor makes an effort to go out of their way to offer an estimate that was never requested.”
Don’t Make Large Sum Payments Upfront
According to the BBB, a strong indication that you are dealing with a fraudster is if they want a significant portion of the project’s cost in advance.
The group says most contractors may need some sort of payment before work starts, but it should never be the entire amount or close to it. If you pay a significant amount of money in advance, a scammer contractor will most likely ghost you.
The BBB also recommends paying using a credit card since you may be able to challenge the transaction if the contractor turns out to be a fraud.
“If you use a check, write it out to a company, not an individual. Paying cash or using an electronic wallet app is risky, since there is no way to stop the payment or get cash back if anything goes wrong,” the report explains.
Tips for Contractor Success
It is critical to do research on a contractor before hiring them, particularly if you were approached through an unsolicited offer.
If you’ve been approached by a scam contractor, their phone number or email address may no longer function.
According to the BBB, there is likely to be some hesitation if there is a query about the pricing or information about the company and where it’s situated with these kinds of frauds.
You can easily avoid contractors that have received numerous bad grades and complaints by using the BBB’s website. You should also conduct online searches to see whether the business they claim to work for has a reputation of engaging in fraudulent activities or delivering poor service.
Everything you do with your chosen contractor should be documented, in writing. Before discussing money, get a written estimate.
Allow a contractor to begin work on a project only when a formal, signed contract detailing start and completion dates, a comprehensive description of the work to be performed, material prices, payment arrangements, and warranty information has been given.
What to Do if You End Up with a Deadbeat Contractor
Contractors, unfortunately, have a lot on their plates. They often juggle several tasks at once and have a lot of duties within each project they’re working on. However, there is a distinction to be made between making progress and coming to a full halt.
Here are some steps you can take if you find yourself dealing with a bad contractor.
Step One: Fire Them
If a contractor does not perform adequate work or does not work on your property on a regular basis, there is no need to continue working with them. Poor workmanship will need redoing by a professional contractor, which will more than likely incur additional costs.
Step Two: Make a Formal Complaint to Their Insurance
This is one method of forcing the contractor to enter into mediation to settle the issue.
A simple internet search for your state’s licensing and regulatory department will lead you to your state’s licensing board.
Step Three: File a Complaint with the State Licensing Board
If a contractor does not perform adequate work or does not work on your property on a regular basis, there is no need to continue working with them. Poor workmanship will need redoing by a professional contractor, which will more than likely incur additional costs.
Step Four: Request Arbitration
If the contractor is not licensed, or if your state’s licensing body refuses to hear your complaint, you may seek mediation or arbitration. They are comparable but not the same. In mediation, the parties have the option of rejecting the mediator’s proposed solution. The solution in arbitration is a binding judgment, not a suggestion.
Step Five: Take Them to Court
Small claims court has the benefit of not requiring parties to hire a counsel to represent them. What is the constraint? There is a monetary limit on how much a plaintiff may sue for.
Step Six: Get Yourself Legal Representation
If mediation is not a possibility and the damages you wish to sue for exceed the state limit, you may have to retain an attorney to file a full-fledged suit against the contractor.
In Closing
If you select the right contractors who do excellent work on time and on budget, you avoid unnecessary headaches and stress. So do your homework, ask for referrals, and do everything that you know you should do to avoid getting scammed out of your hard-earned money.
