Scammers are sadly everywhere, and in the home improvement industry, they are no less prolific. Home renovation projects can be costly enough without the risk of getting scammed and losing hundreds of thousands of your hard earned dollars, so take a look at the following common scams and be on the lookout for them:
Look out for the ‘low price’ scam
It might be tempting to simply accept the lowest offer you get from a general contractor when asking for bids, but this is rarely a smart move. Get several quotes from different companies, compare them, and choose the one that gives the most detailed quote, while neither being ridiculously over or under priced. Unprofessional contractors may give very low quotes without having even looked at the project in any detail.
Unfinished projects
While this might be hard to pick up on when you initially hire a construction contractor, there are some companies out there who will start a project with gusto, then suddenly up and go while leaving you with a bill for the work that was completed.
Phony references
Providing customers with fake references is a common ploy from renovation scammers, so be sure to check all references that you’re given, and carry out as much research on the company and their previous customers and projects, as you can.
Bait and switch
This scam isn’t quite so common, but is no less frustrating. A contractor may tell you that they’re going to use the highest quality materials or labor to complete your project, as a lure, and then swap to lower quality materials or labor as soon as the job starts. Not only might you get a less than professional renovation, but you’ll also get a big bill that doesn’t represent the quality of the project.
Phantom contractor scams
Sadly, there may be little you can do to prevent this happening aside from meticulously checking the company’s credentials and references. Some scams involve a construction contractor taking your money and then disappearing without having completed any work.
Storm chasers
In the aftermath of a major weather event such as a hurricane, tornado or flood, scammers hone in on an area in which homes may have been damaged, and either carry out shoddy work, or simply run with your money.
How to avoid being the victim of construction scammers
Even the most diligentand cautious of customers can fall victim to a construction scam, but there are a few warning signs that you can look for to help protect yourself from being scammed:
- Avoid paying a bill upfront
A down payment might be asked for by a reputable contractor, but it’s rare that they’ll ask for the full amount upfront.
- Do plenty of research
The Better Business Bureau can be used to check whether your chosen contractor has all the required licenses and insurance to fulfil the project professionally. You can also use it to check reviews from previous customers.
- Get everything in writing
Never go with the lowest bid you’re given, unless after reading a full description of the work to be done, estimation of necessary materials and proposed completion date, you feel it to genuinely be the best bid. If one bid is significantly lower than the others you’ve been given, however, you should ask them for an explanation.
Scams in any industry are sometimes impossible to avoid, but you can give yourself the best chance of not being tricked out of your money in the construction industry, by following the advice given above.