6 Common Contractor Scams - ContractorPosse.com

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Unlike things that go bump in the night, contractor scams are living, breathing nightmares that rob your bank account and leave your house in worse shape than before. There is good news though. When you educate yourself how to recognize a scam from a legitimate repair and a good contractor from a con artist you'll send those fly-by-nighters fleeing. Here are the most common scams:

1. "WE WERE IN THE NEIGHBORHOOD AND NOTICED YOUR ROOF"

This common scam is perpetrated by a so-called contractor who knocks at your door claiming to have noticed a problem with your roof or chimney and offers to give you a free inspection. If you let him, he'll climb up to your roof and when he's out of sight, create some damage that he then solemnly reports back to you. Of course there's a work crew nearby ready to make repairs right away for a "special price" if you agree to go to the bank and withdraw cash to give him. If any repairs are made it isn't enough to fix the damage. The elderly are particularly vulnerable to this scam since they are protective of homes they spent their lives paying for. Here's the lowdown: legitimate contractors are too busy to go door-to-door looking for business. They just don't do it. So next time a "contractor" comes a knocking don't answer.

2. "I'VE GOT LEFTOVER MATERIALS AND CAN GIVE YOU A GREAT DEAL"

If a contractor gives you a low ball estimate with the explanation of already having building materials simply ask him why he has leftovers, not that you'll get an honest answer but the lie will be revealing. A competent contractor who has carefully estimated the materials he needs at a job site will rarely have anything remaining but scraps. Its likely the "leftover" materials are ungraded or below-grade minimums for passing code, or they "fell off" a truck.

3. "I CAN OFFER YOU A SPECIAL DISCOUNT PAVING YOUR DRIVEWAY"

Your neighbors just got their driveway repaved and it looks great. You've been meaning to do the same when a friendly fellow shows up at your door claiming to have done some paving down the street. He makes an enticing offer to you by saying he has leftover asphalt and a crew on hand to start right away. You agree and work begins. Then the contractor informs you there wasn't enough asphalt and demands more money to finish the job. Blind-sided, you nonetheless agree. Only later does it become apparent that the asphalt laid was a rolling, crooked, thinning layer that looked nothing like the professional job the neighbors got from a local company.

4. "I'LL GIVE YOU A DISCOUNT IF YOU PAY CASH"

A contractor who insists on cash is likely working under the law, not paying taxes and not licensed. It is also an indicator that he cannot obtain the necessary building permits for your home. That means you'll have to hire another contractor and pay even more to bring the work up to code. A little investigation might further reveal he has no business address and out-of-state license plates on his vehicle. He will also likely demand payment in full up front and even offer to accompany you to the bank to withdraw the funds. If any work is performed on your home it will likely be brief before he leaves, never to return.

5. "I'M AN INSPECTOR AND NEED TO LOOK AT YOUR FURNACE"

This scammer says he is representing your local municipality and declares that he is looking for the source of a gas leak or has some other excuse to come in your home and do an inspection. He then finds and "repairs" the leak and demands payment for making "required repairs". Insist on seeing photo identification that shows this person works for the government entity he claims to represent.

6. "WE CAN GET YOUR INSURANCE TO COVER EXTRA REPAIRS"

This scam involves pulling the homeowner in on illegal activity so that other neglected repairs can be added to an insurance claim. Extra damage is created, staged and the claim filed. The contractor gets away with this because all he has done is provide an estimate for repairs. The homeowner, on the other hand, could be in for serious trouble if it is determined that he or she was part of the fraud. Insurance companies are always on the lookout for fraudulent claims and take them seriously. A homeowner can face expensive legal trouble.

WORK WITH THE BEST

The great majority of contractors are honest, hardworking service professionals who work hard to make sure they deliver quality work and solid value. They are dedicated to your satisfaction and want to earn your recommendation. They belong to trade groups and online prescreening web services such as BestContractors.com that actively work to raise the standards of all building professions.

SEEKING HELP

If you feel you have been the victim of one of these scams you have options for help:

Contact your state Attorney General's office. They maintain consumer complaints regarding companies operating in your state and function as a central clearing house for fraud and scams.
The Better Business Bureau has an online complaint system you can use to notify them of your grievance. They work to help both sides come to a satisfactory conclusion. This is only effective if your contractor is operating as a registered business.
Notify your state's licensing board which handle complaints about fraud, misrepresentation, failing to maintain required records, etc. Your complaint should be in writing. While they cannot help you seek restitution they can investigate the contractor and work with local law enforcement to force him to stop operations.
Finally, post your complaint at this site, ContractorPosse.com. Your information can be used to inform other homeowners. ContractorPosse.com can also assist you in locating prescreened contractors who will get your project back on track. Click on the "Alert The Posse!" link at any page to submit your information.

As a homeowner the ultimate responsibility in dealing with scam artists and unscrupulous contractors lies with you. Understand the warning signs that indicate you are dealing with a dishonest person. If you are seeking restitution you may ultimately need to hire an attorney.

NOTE: ContractorPosse.com is intended for informational use only. None of the content of this site including this page are intended to render legal advice. You should always seek the advice of your legal counsel before taking any action based upon information found at this site.