Top 20 Warning Signs When Selecting a Contractor

Finding a quality contractor that you can trust can often be a difficult task, but being aware of the following warning signs can help you make a more cost effective decision:

1.    The name, address, phone number and email address cannot be verified.

2.    The business is not registered with the state. Business registration is public record in Colorado and can be verified online at the Colorado Secretary of State Records Search.

3.    The sales representative pressures you into signing a vague contract with no legal verbiage.

4.    The sales representative offers you a discount or low rate if you sign the contract on the day of your meeting.

5.    The sales representative will offer you a “low rate” or “money off” to use your home for advertising.

6.    There are not multiple references offered and they are not legitimate referrals. Any competent contractor would not mind if you were trying to verify their credentials.

7.    Their license(s) are not current or in good standing.

8.    You are unable to obtain insurance information or their insurance is not current.

9.    If you are asked to pay for the job in advance or payment plans are not broken down for completion milestones.

10.  If you are asked to pay cash instead of check, credit card, money order or cashiers check.

11.  If you are asked to make checks out to a person instead of a business or DBA (Doing Business As).

12.  If the business cannot be found in the phone book or has no membership with associations such as The Denver Better Business Bureau or any trade associations.

13.  The contractor does not inform you in writing of your three day Right of Rescission, required by law.

14.  Information is not to your understanding and is vague.

15.  Contractor does not listen to what you want.

16.  The contractor is too “busy” to talk and cannot return phone calls in a timely manner.

17.  The contractor is impatient and cannot listen to your specific needs.

18.  The contractor does not have a portfolio or cannot visually show you homes they have worked on.

19.  The contractor knows how much your budget is and intently tries to get you outside of it.

20.  The contractor cannot get proper permitting from the city where you live.