Tips to Spotting a Rip-Off Contractor
No matter what size your home improvement project is, the lowest bidder is not always the best. Both the Federal Trade Commission and the Better Business Bureau have found the following to be indications that a contractor may not have the best intentions for their potential customers:
They solicit door-to-door. Be suspicious of contractors who attempt to gain business by visiting door-to-door. This can sometimes mean that the contractor is not from a local, established business but is instead just passing through and trying to make a quick buck.
They have materials left over from a previous job. If a contractor offers a cut-rate price on a project because they have materials left over from a recent job at your neighbors house or the house “down the street”, it is a common ploy of fly-by-night operators or handymen who are based out-of-state and use their pick-up trucks as their place of business.
They ask the customer to get the required building permits. This could be a sign that the contractor is hoping to avoid contact with the local agency that issues such permits. Perhaps they are not licensed or registered as required by the state or locality. A competent contractor will get all the necessary permits before starting work on a project.
They do not list a business phone number in the local directory. This can be a red flag indicating that the contractor does not have an established business presence in-state, or that they perhaps rely on a home answering machine to “screen” customer calls.
They pressure the customer for an immediate decision. A reputable professional will recognize the customers need for time to consider many factors when deciding which contractor to hire. The customer should expect and ask for time to check references; look into the contractors standard of work and their professional designations and affiliations; verify their insurance; check to see if they need a license (and if so, that it is valid); get written estimates from several firms based on identical project specifications, and contact the Better Business Bureau and local consumer protection agency to see if they have information on the contractor.
They ask you to pay for the entire job up-front or demand cash only. Whatever the reason, a customer should never pay for the entire project upfront. Payments should be by credit card or check so that your credit card statement or cancelled check can provide proof of payment, if needed.
