Avoiding Contractor Fraud

Avoiding contractor fraud is fairly simple. A few simple easy steps can save you thousands of dollars, and more than a few headaches before, during, and after the building project you have in mind.

Never use a door to door contractor; real contractors do not have the time for that. They also have no time to visit the neighbors of people they are doing work for, never fall for "We were just down the street and have some left over, whatever...."
These are signs of a scam artist, not a true contractor.

Always ask for licenses, bonding, insurance information, workman's compensation, and references. Never assume the contractor has any of the above, it may be painful in the end. Always check the information given you!

I have seen first hand the results of these frauds, having worked in the construction industry most of my adult life. I have even had them attempt them on me, but luckily I have managed to out maneuver them to date.

I had need of an electrical contractor not long ago when installing a central air system, and insisting on a permit to do the needed work uncovered an unlicensed electrician trying to bid on the job... one more way to protect you. Inspectors are there to protect you the owner, not the contractor, and in many cases a licensed contractor is required for: electrical, plumbing, framing, and HVAC contractors to get a permit and do the work.
The inspectors assure that the work is done to both national and local codes for the safety of the buildings owners and occupants.

Also look into local law on stopping an incompetent contractor before you proceed. If you did your homework before starting the project you may not need this advice, but it never hurts to be prepared. I have seen contractors that were licensed that should not have been, or that did not keep close enough watch on their employees to avoid a poor quality of workmanship. In fact I recently finished removing one contractors work and re-doing nearly all of it due largely to incompetence, in a motel of all places. The previous HVAC contractor had been fired after failing several attempts to pass inspections and we were hired to fix the problem.

The pictures that accompany this article are of that type of contractor incompetence.

Ask friends and relatives about contractors they have used in the past. A neighbor is usually willing to talk about their experiences with contractors as well. A happy customer is still the best form of advertising. Use references and personal recommendations, get multiple bids, and check all the credentials and information the contractor provides you. These are your front line of defense in avoiding contractor fraud and dishonesty!

sourses include a life spent in construction and the sites listed under supporting links.