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7 Signs of a Shady Contractor
Don't get ensnared by a home improvement scam
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If it ain’t broke, don’t fix it. If it is, fix it … carefully. That’s easier said than done when a contractor promises fast repairs at an unbeatable price. Here are seven warning signs for Alaska homeowners to look for before a shady contractor leaves you with partial, poor, or overpriced work.
1. The “storm chaser” contractor
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Watch out for a contractor who, after a storm hits, immediately knocks on your door — or what’s left of it. The contractor says they can fix the damage on the spot. It might look like a silver lining, but reputable contractors usually book jobs in advance. And if they want you to sign your insurance check over to them, that “easy solution” only makes it easier for you to lack control if things go wrong.
2. The “free” inspection that costs a fortune
A deceitful contractor may offer a free inspection. It’s free, so why not? Ten minutes later, your house is supposedly falling apart. Apparently, it’s so serious that if you look at it, everything will crumble. And if you ask questions, good luck following their “explanation.” The pitch is simple: let them fix it now or regret it later, even if the problem is minor … or non-existent.
3. Discounts for working with “leftover materials”
A deceptive contractor may claim they have extra materials from another job and offer a steep discount. Convenient, right? It’s a great deal, and your house may need some work, but you feel pressured to decide quickly. This is exactly what the scammer wants — to rush you into deciding before you do your research.
4. Unlicensed or uninsured contractors
It may seem obvious, but you should always verify a contractor’s license and insurance before hiring them. Some contractors rely on our good faith; some might say it’s not a big deal. It is. Don’t settle for excuses. Hiring a contractor who isn’t licensed or insured can leave you unable to make a claim against substandard work and liable for their injuries.
5. Large upfront deposits
Before signing a contract, a dishonest contractor may ask for cash up front. A lot. Maybe all of it. You may have had a smooth experience so far, but don’t let the scammer deceive you. Yes, deposits are normal, but never pay more than one-third of the total estimate, and never before you sign a contract.
6. Contracts with vague or missing terms
Some contractors scam homeowners with vague or incomplete contracts. Timelines? Unclear. Costs? Open-ended. This is standard, they say. Don’t stress, they stress. But without clear terms, it’s hard to know what you’re agreeing to, and even harder to sort things out later.
7. Demanding specific payment methods
An immediate red flag is when a contractor insists on payment via cash, gift cards, or cryptocurrency. Not only are these harder to track, but they’re also harder to recover. A preferred payment method isn’t always alarming, but only accepting payment in a particular way is.
How to protect yourself from home improvement scams
To protect yourself from home improvement scams, get multiple written estimates before agreeing to any work and verify a contractor’s licenses and insurance independently. Avoid rushing into signing a contract, and keep copies of all documents, receipts, and any changes made along the way, in case problems arise.
Resources for victims of home improvement scams
Restoring Trust is a program from the Better Business Bureau Foundation that connects victims of home improvement scams with trusted, vetted businesses to repair and rebuild. You can apply here.
You can also report a scam to the AARP Fraud Watch Network at 877-908-3360 or file a report on the AARP Scam-Tracking Map. Remember, if you can spot a scam, you can stop a scam!
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