In this modern society, it is hard to trust someone since scammers are everywhere. Building a house is requires big amount of money so better to know who can entrust your money. Contractor’s fraud is an illegal acts committed by a single contractors or firms. These acts includes using substandard repairs or offering services that scam the other party. For homeowner, the contractor’s fraud is very costly because fraudulent acts can lead to more bills or cause damage to property.
Here are some tips to avoid contractor fraud:
- Ask for contractor’s license. Make sure that the contractors has license to perform the job.
- Make sure that your contractor will be in charge of securing permits such as building permits, electrical permits, and among others to prevent problems in the future.
- Watch out for contractors that requiring upfront payments. It is not all unusual for a contractor to request some up front payment before beginning a job. The up front payment should only be a very small percentage of the total cost, ten percent (10%) at the very most. If a contractor request for a larger percentage before the job starts, it might be a sign of contractor’s fraud.
- Review final contract. Make sure that verbal agreement also includes in the contract. Some contractors do not include verbal agreement and at the end, they will required you for the extra fees.
- Make sure that your contractor has a good reputation. You can get referral from your friends, family, suppliers, and colleagues. Take time to visit their previous work and talk to their former clients.