If you’ve refinanced your home in order to have some renovations made, then you are likely to be in the process of hiring a contractor soon. While you may want to begin your renovations as soon as possible, not taking your time to hire not only the right company, but a reputable one, can end up costing you in many more ways than you may have anticipated.
Just like anything you purchase, it’s very true that there are more good companies out there than bad. But some of those companies who aren’t so reputable are very good at fooling even the savviest homeowner into thinking they are legitimate.
What makes it even worse is that once a company has managed to bilk trusting homeowners, it can simply go out of business under one name and reopen under another, making tracking the offenders down much like trying to find the proverbial needle in a haystack.
Fortunately, there are common signs that every homeowner can watch out for when evaluating and hiring contractors for their home renovations.
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What Bad Contractors Won’t Do
A bad contractor won’t take well to the funding of milestones. Usually, this type of individual will press for a large or full payment either up front, or a short time after having begun the job. When this is coupled with another huge red flag – the lack of a physical address for the contracting company – it makes sense to not hire them.
Bad contractors also don’t like written contracts, and may suggest that one isn’t needed due to the details of the job being clear to both involved parties. A contractor who doesn’t want to talk about a written contract is also likely to not get the proper inspections completed or obtain permits for the job they’re doing.
A bad contractor will also not quote you a reasonable price for your renovation project, often coming in way under the average costs for the same amount of work. While the low price may be tempting, consider that many contractors who offer such prices also end up using substandard materials and don’t have the experience to complete the renovation job that they say they do.
What Bad Contractors Will Do
A bad contractor is likely to use illegal labor so that they don’t have to divulge anything on their books, including worker’s compensation. Among the many issues with hiring illegal labor is the safety factor where the homeowner is concerned. Most often, a bad contractor will not have the information about their workers that legitimate contractors do. This can mean that illegal laborers could have criminal records unbeknownst to the contractor. A job on a renovation crew is the perfect cover for an illegal worker who wants easy access to the valuables in a home.
Due to the lack of compensation that often accompanies the hiring of illegal labor, should an accident occur at your home, the person liable will be you. This can add thousands of dollars in court costs to all of the other money lost due to contractor incompetence.
A bad contractor will almost always be difficult or impossible to find on the job site. Unlike legitimate contractors, a boss who isn’t there to supervise his crew will also not be there when chaos inevitably erupts. How a contractor treats their employees and you, the customer, is also a reliable indication of the kind of person they are.
While knowing all of the traits of bad contractors may make you want to put off your renovation indefinitely, there are ways to find the contractor that will work well with you and your family. But the first and most important thing to do is not rush into hiring anyone who isn’t able or doesn’t want to supply the information you ask them for.
Author Bio Box:
Guest author Tony Caro writes on a variety of topics, particularly in the mortgage industry. He recommends The Refi Guide to consumers looking for advice on refinancing.
Shared by Don Zilleri
