How To Spot An Unethical Contractor

When you build your home, you have enough to worry about: planning construction, getting a home construction loan, securing land. You don’t need to trouble yourself further by dealing with a wily contractor. Although we’d like to believe that all contractors are good and honest people, it’s not always true. Your best bet is to keep an eye on behaviors and be aware of common schemes. Here are some very clear warning signs that the person you are about to hire may not be trustworthy.

1. Asks for cash only, or money up front. There are no ethical reasons to be asking for cash payments only. And if someone wants to be paid in full before even starting a job, they are basically asking for license to be sloppy or permission to split with your money. Paying for an entire job up front is probably the biggest mistake you could make
when dealing with a contractor.

2. Overly pushy about a contract. A shifty contractor is going to try to get you to sign before you realize he is no good. He’ll offer you special discounts if you sign quickly, or simply pressure you, or fail to inform you of the fact that you have a three day grace period to back out of a contract. Notification in writing of your "Right of Rescission" is required by law.

3. No references. No address or telephone number. Can’t find the guy in the phone book? Can’t verify his license or insurance information? Does he operate business out of a “company truck?” Probably not the most reliable person to be handing your money over to.

4. Over-advertising. On the flipside, the company that has their name plastered all over town might not be the best bet. A lot of construction companies like this run on a “quantity not quality” model of profit. Better to get a word-of-mouth referral from a friend.

5. Odd business relationships. Don’t sign anything with a contractor you have not met (is referred by a salesperson) or is insistent on you borrowing money from a certain lender. Chances are they are in cahoots, not just friendly business partners.

6. Hard to contact. A contractor that can’t manage his answering machine might have trouble managing your building project too. Even if he doesn’t have some malicious reason for stalling, procrastinating, and not returning your calls, he’s probably too disorganized to do a good job.

7. Too good to be true? Don’t be so thrifty that you’ll believe you’re getting the deal of a lifetime. Outrageous savings or incentives offered for playing by their rules will probably land you in a raw deal. Take some time to background check a contractor if he is offering juicy deals you can’t refuse.