The Top 3 Contractor Tricks and How to Avoid Them

Finding the right contractor for your project can sometimes be a gamble. While there are plenty of incredible professionals out there who can bring your vision to life, there are unfortunately a few immoral individuals that make a decent living ripping off business and home owners. Keeping an eye out for these three common tricks will help in determining the right candidate, as well as help keep the project on time and in budget.

1. It’s Probably Too Good to Be True – If you solicit various bids and one is much lower than the others, don’t be fooled. The cost of materials and labor in the contractor world is a very fixed price. Any estimate substantially lower than the rest usually means the contractor has a dirty trick up his or her sleeve. Whether s/he is leaving out part of the required work or is quoting inferior materials that will ultimately need to be replaced, what initially seems like a bargain will ultimately cost you just as much or more than the honest bids.
2. If You Give Them an Inch, They Could Possibly Take a Mile -  If the contractor is working on multiple jobs, or if you have no agreed upon timeline, your project could potentially stretch on for eternity. Protect yourself by getting all of the fine details into a formal contract. We recommend:
   • Itemized estimates - prices for labor, materials, permits, and any other costs related to the project.
   • Permit responsibilities - specify who’s responsible for pulling permits to meet local regulations and avoid delays.
   • Subcontractors – Staff turnover can be brutal on your timeline. Make sure to get the details on what work will be subcontracted out and to whom, and don’t be afraid to check up on subcontractors and their backgrounds.
   • Any change of plans – For many projects, plan changes and unexpected issues are inevitable. Instead of relying on a verbal agreement, put the changes in writing so both sides are clear on what is being requested and the corresponding costs.
   • Late penalties – Sometimes the timeline needs to be legitimately adjusted, but every project should have a limit. Negotiate for late penalties to be written into the agreement that require the contractor to complete the work by a specified date or risk losing part of their fee.
3. Sometimes the Internet Lies – Stealing online photos is unfortunately very easy and very common. Ensure the candidate you’re considering is actually responsible for the picture you’re viewing by requesting the customer name and contact information connected to the photo. Arrange to see the customer’s finished product in person and talk to them about their experience. In addition, ask for 3 more references that you can chat with about the contractor’s ability to stay in budget and on time, as well as their working style and overall product delivery.

For more tips on working with a contractor, check out our 10 questions to ask when hiring a contractor.