As residents recuperate from another round of winter storms, local officials are urging caution about accepting help from contractors going door-to-door.
Contractor scams come in many forms, but the most common features include asking for cash upfront, not doing thorough work, faking complications, and falsifying permits.
Such scams are not very common, and most workers from reputable companies are trustworthy. However, contractor scams tick up after storms and natural disasters due to the abundant opportunities for fresh roofing, carpentry, and electrical work.
These scammers often flock to uprooted neighborhoods, earning them the nickname “storm chasers,” according to the Better Business Bureau of North Central Texas.
Following the tornado that blew through Grapevine last week, reported on by The Dallas Express, police tweeted:
“We are starting to see lots of roofing companies in neighborhoods and want to prevent anyone from becoming a victim of fraud. Make sure you get estimates in writing, get more than one bid, and don’t pay in full upfront.”
Below are some tips on how to avoid contractor scams:
Use your Gut Feeling
First impressions are incredibly important, and the best contractors will try to present themselves in the best light. If a contractor is well put together and has a clean uniform, equipment, and company vehicle, these are good indicators of this person’s work.
If a contractor looks like he has just hastily driven into town looking for work, this person may be less trustworthy. Check online to see the reputation that the company has built up over time and customer reviews.
There is no “Special Price”
A very common tactic for scammers is to lowball or promise a “special price” for one reason or another. The scammer will often encourage you to keep this price a secret from neighbors. If the price is unreasonably high, the contractor might do a shabby job and walk away with your money. Too low of a price could indicate the contractor might do a small amount of work before skipping town.
Either way, if a price seems too high or too low, it is best to steer clear. Special offers on materials could also mean that the materials are “second-hand” or otherwise untrustworthy. Contractors rarely carry large amounts of building materials on hand.
Keep Tabs on the Work
Sometimes, a contractor might seem like a safe bet until the work begins. First, do not give in to any price hikes after work has already started. In almost every instance, a contractor’s price includes materials and labor, and professional contractors will eat any difference caused on their end by underbidding or other issues. Double-check that the work done is according to whatever contract you agreed to. For example, a contractor should use the thickness and quality of wood you specified.
Cash Discount
Offering to do the job in exchange for cash is another red flag. Businesses that deal in cash often avoid paying taxes, and the concern when it comes to a contractor who does so is whether he is paying for insurance.
It is a good idea to check references and visit local jobs that the contractor has completed. Be wary of any contract changes of any kind, and be sure to document every step of the way in case legal action is needed.