Want to renovate or remodel but fear getting ripped off? Orange County homeowners need not worry about being scammed by general contractors if they take a few simple steps to protect themselves. Remember, good general contractors book months in advance. Often, handmen scramble for jobs and tell you they can start immediately.
Immediate availability and high-pressure sales tactics serve as two huge screaming red flags. Here are other ways to avoid being scammed by a contractor.
Let your fingers do the walking to check credentials online
Credentials Matter
Do you trust a dentist to perform brain surgery? Both went to medical school and sport the name doctor. That doesn’t make their credentials to do the job equal.
Never hire a plumber to wire your new bathroom. Avoid contracting with an electrician to make structural changes (remove walls, etc.) to create an open kitchen.
Instead, hire Orange County-based general contractors who hold a State of California license. Make sure the license is in good standing. These credentials assure you that the contractor passed skills and knowledge tests to prove their knowledge of safe construction practices.
Insurance Protects You
Ask for proof of insurance and bond. For large jobs, ask for a certificate of insurance, naming you as a temporary additional insured.
Alternatively, check the contractor’s bond and worker’s compensation insurance status when you check the license status online. Simply click on the license number and bond and insurance details appear.
Why is this important? General contractors without liability and worker’s compensation insurance transfer their risk of loss to you.
If an employee of an unlicensed general contractor gets injured while working at your home, you are responsible for their medical care. Did you know that?
If a contractor fails to complete the job, their bond makes you whole.
To avoid general contractor scams, always verify licenses and insurance.
Get it in writing and read the contract
Get It in Writing
When talking to a potential contractor, request a written contract outlining all details of the work, payment schedule, and estimated completion schedule.
Avoid the general contractor who asks you to pull the permits. That’s a big red flag.
Compare your estimates and ensure you compare apples to apples. Estimates should include the same features and finishes. Beware of the low-ball contractor.
When you agree to the terms, insist on a written contract. Include all project details, materials, payment schedule, start and end dates, and the dispute resolution procedures.
General Contractor Scams Red Flags
Beware of:
- High-pressure sales tactics. Run away when told you must sign immediately to “get on the schedule”.
- Extremely low price. This contractor plans to add extra charges as the work proceeds.
- Requests for large sums in advance. No reliable contractor asks for more than one-third of the amount before work begins. Only pay in full once the work is completed.
- Inability to offer references. This contractor burned too many bridges to provide good references.
Trust your instincts. If something sounds too good to be true, it is probably a scam. Only deal with established and trusted Orange County general contractors like Inspired Remodels.
