How to spot bad contractors

There are many honest contractors out there, but there are also quite a few that might be looking to rip you off. If youre about to undertake a big renovation project, here are a few red flags to look out for before you hire a contractor.

Asking For Too Much Money Up Front

Most contractors wont start a job without getting part of the payment upfront. After all, there are materials to buy and workers to hire. But a contractor that wants the entire sum up front should set off alarm bells. Once you fork over the cash for a project, a contractor might lose the motivation to finish the job quickly and efficiently. For most jobs, a downpayment of around 15 percent is common, and an initial payment should never exceed a third of the total cost of the project.

Asks for Cash Payments

Some contractors will ask to be paid in cash, which is a sure sign that there is something shady going on. Without a check or credit card statement to back you up, it becomes your word versus the contractors in any payment dispute. So even if a contractor offers you a cheaper rate if you pay in cash, dont take the deal.

Too Many Subcontractors

A good contractor will know how to use subcontractors wisely. For instance, if theres a particularly tricky wiring job, its a good idea to call in an expert electrician. But a contractor who is overly reliant on subcontractors should raise some red flags. If a contractor is farming most of the work out to subcontractors, then hes acting more like an unnecessary middleman rather than a essential part of the renovation process.

Wont Give You References

If a contractor refuses to give you references, its a sure sign that something is amiss. Every contractor should have a few pleased customers that can vouch for past jobs. If a contractor says hes just starting out and doesnt have references yet, take a pass and find someone with more experience.

A Truck For An Office

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How to spot bad contractors