Protecting Yourself from a Contractor Scam

With everyone tightening their belts these days, hiring a contractor or handyman cheaply seems like a great way to save money on home improvements. However, you want to protect yourself and your money, so be wary of any contractors or handyman with shady claims. Following these simple steps will help protect you and save you money. You want to find a good contractor who will complete the job for you in a timely fashion, not someone who is going to stick you with a bill for unfinished labor.

Never hire a person who solicits door to door for repair work or claims to be working in your neighborhood and happened to notice a job you needed done. Someone who is at your door leaves very little evidence when it comes time to track them down. Also, be wary of a contractor with a PO Box for an address or one who has an unlisted phone number. Again, these men will be harder to track down if the job goes awry or your money disappears.

Never hire someone who offers a special discount if you "act right away." If they won't give you time to look up references or seem to be hurrying you to make a decision, they may be shady. Also stay away from anyone who offers you a huge discount if you pay in large amounts of cash. Again, cash leaves no trail and anyone who won't accept a check is probably not someone you want to be doing business with.

Never pay more the 1/3 of the money upfront! If you give anyone more than 1/3 of the money upfront you are asking for trouble! This is the standard amount used by most reputable contractors and anyone who balks at this number is definitely bad news! Putting up any money up front can be scary business, so make sure if you are giving away any money (especially a large amount of it) that you feel comfortable with your business arrangement and the contractor's reputation.

Always take the time to ask for references. A great way to feel comfortable about a contractor is to check out their references. Just because someone looks trustworthy does not mean they won't take you for everything you've got. Asking for and following up with references is the best way to protect yourself. If a contractor refuses to give you references, refuse to give him any of your business.

Protecting yourself is important, especially when your money is on the line. While home repairs are sometimes a necessary event, finding the right person for the job may be a much harder task. Using these simple steps should help you stay away from a shady contractor and not end up on the wrong side of a bad deal.