Contractor red flags
Starting a new home project is an exciting time but can also bring stress and be overwhelming when doing it yourself, which is why most people choose to hire a contractor. Hiring the correct contractor can either make or break your project. Choosing the wrong contractor can lead to living in a construction site, hotel or with in-laws for longer than expected. Not only can it prolong your project time, but it can also take or add a large amount of money out of your budget. That is why it’s important to know when to run away before your home turns into a money pit or you burn a hole in your wallet. Here are 5 red flags you should look out for when choosing a contractor.
1)Contractor prefers cash only payments
If a contractor is only asking for cash payments this could mean that they are trying to avoid paying taxes for their business and employees or are not licensed and qualified. This could show that the contractor is dishonest or cannot be trusted. Having cash-only payment can also lead to not having a valid receipt for transactions between you and the contractor. This further leads to untruthful claims of not paying or not paying on time for services or material.
2)The contractor requests a large down payment on the project
Everyone expects contractors to charge for their services, but you should raise some red flags when they request a large amount for the down payment before any work has been done. Although it is normal to put a large down payment on big-ticket items like cabinets or countertops it should not exceed a certain percentage. In some states, it is illegal for contractors to exceed a down payment cap, make sure to always check the laws in your state to ensure you’re not overpaying. On Average, you should not pay more than 10% of your total project cost as a down payment.
3)The contractor provides a vague contract
A contract provided by a contractor should be very detailed and include everything that will be included in the project. Some areas where contracts must be deleted can include items regarding the scope of work, payment schedules, responsibilities, and start and stop times. Your written agreement should also include materials used, suppliers, price, quantity, subcontractor’s information, and everything else that will go into the project. This is important because it helps avoid change charges and helps avoid assumptions about what will or won’t be included in the project. For example, you might have thought that debris removal would be included in the demolition or construction, although if not clearly stated you could be faced with extra charges to add that desired service.
4)The bid or estimate is extremely low
Most of the time clients are concerned that the bid that was provided by the contractor is too high and inaccurate. Although receiving a bit too low should also bring some concern. Trick contractors often provide a low bid solely to catch the client and allow them to get a foot in the door. They will then surprise you in the future by changing you to change the project to fit the actual market price of material and the project in general. It’s recommended that you review your bid against the scope to ensure everything matches.
5)A contractor is bad at communication
Having a contractor that does not return calls, and texts, or responds accordingly, can raise red flags. Not only is it important to have a good communication line with a contractor but it’s also important to have good written and digital communication. If hesitant to provide communication in writing or through digital receipts, consider raising suspicion about their commitment to your project. Not being able to provide evidence on agreements discussed can also lead to empty promises and loss of money. Having a paper trail on the contractor should be a normal expectation that can save you money, stress, and time in the long run.
Take some of the stress away from your project by doing your due diligence and doing some research. Read reviews online. Get at least three quotes so that you can gauge the market. It is important to not overpay but equally as important to not underpay and get a contractor that does not deliver quality work. Ask friends and family if they have a contractor that they have worked with in the past and would recommend.
