- Contractor provides a credential or reference that can't be verified.
- Contractor offers a special price only if you sign today, or use other high-pressure sales techniques.
- Contractor only accepts cash, require large deposits or the entire costs up front, or asks you to make the payment in their name.
- Contractor does not provide a written contract or complete bid.
- Contractor asks you to get the building permit. In most instances, if you have hired a contractor, the contractor is required to take out the permits. Permits are your protection and help ensure that work will meet local building codes.
- Contractor offers exceptionally long warrantees.
- Contractor wants to do most or all the work on weekends and after hours.
- Contractor gives you an offer that sounds "too good to be true."
At the NCHBA, we frequently receive inquiries from homeowners who have run into problems with their contractors. More often than not, these homeowners have hired an unregistered, uninsured ‘contractor’ who isn’t properly bonded, and the homeowner finds themselves in impossible situations as a result of the temptation to choose a contractor based solely on price rather than completing their due diligence—much less recognizing the warning signs.
As referenced above, an offer that sounds “too good to be true” is more than likely your warning sign that you’re dealing with an illegitimate contractor, and to steer well clear! If you select an unregistered contractor for your construction or home-improvement project, you risk having absolutely NO recourse if things go bad. For those who have ever found themselves in this predicament, know what a very, very painful and costly experience this can prove to be.
In addition to heeding the warning signs above, remember to:
- Utilize the NCHBA’s website as a resource for completing your due diligence
- Ask contractors for references
- Ask what inconveniences might arise
- Obtain a written contract
- Make sure you understand the terms before you sign anything
- Be cautious about paying for work not yet completed
- Put all change orders in writing
- Avoid making final payment until you have received a lien release from suppliers and subcontractor
