Four Subtle Contractor Scams to Watch Out For
Hiring a contractor always comes with risks. No matter how many recommendations you get or how trustworthy they may seem to make you an offer, there is always the possibility that they will exaggerate their skills, or that their personal life will interfere, or that they will rip you off.
Most contractor scams are pretty obvious, and if you know what to look for, you can avoid the worst of them. But some contractor scams are pretty subtle—so subtle that you may not even realize they’re happening, and you’ll have an overall positive impression of the contractor—at least for a while. Here are four subtle ways your contractor may be scamming you, and how to protect yourself when you’re ready to take on your next project.
Using less expensive materials without your knowledge
This can be very difficult to detect if you are not knowledgeable about home renovation or construction. Essentially, your contractor is agreeing to use high-quality materials for your project—expensive paint, stainless steel roofing nails, or expensive natural stone shingles. But in reality they use cheap paint, galvanized nails or ceramic tiles that look very similar to the real thing. They still charge you the same rate, so they make a huge markup for the materials. You still get a finished job that looks good on the surface (and you might even be happy with it), but you still got ripped off.
There are two ways to protect yourself from this subtle scam. You can purchase the materials yourself, ensuring that you get exactly what you want and what the contractor suggested. Or you can ask to see all receipts and check all materials before using them to make sure you get what you pay for.
We raise the price little by little
Negotiations with a contractor can be stressful, and the feeling of relief once you have settled on the price, timeline and strategy for your project can be profound. Perhaps you’ve been pushing for a cheaper material or approach, or you feel like you’ve done a good job being cost-conscious.
And then things change: your contractor can’t find the materials he agreed to use, and he has to use more expensive materials. Or previously hidden problems in your home increase costs when walls and floors begin to be exposed. Before you know it, you’re somehow paying the original price that was too high to negotiate against.
This scam is very difficult to combat because it is possible that a certain type of material is not available or hidden problems make the job difficult. You can try to find the materials you’ve chosen yourself to make sure they are truly unavailable, or you can bring in another contractor to get a second opinion on the problems you find and move on from there.
Skipping important (but hard to notice) steps
When a remodeling or renovation project is completed, you expect it to look finished, but those finishes can also hide a multitude of sins, especially if it’s a small job that doesn’t require permits. Things your contractor may miss that won’t become obvious until it’s too late include:
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Primer. If your painters didn’t bother to prime the walls, they may look good right after the job is completed, but over time they will begin to dull and develop an uneven shine —or worse .
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Insulation. Once the drywall or trim around a window or door is up, it is very difficult to determine if the correct insulation was used or if it was installed at all .
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Ventilation. Your contractor installed an exhaust fan, dryer vent, or oven vent, but simply directed them into the walls, ceiling, or attic rather than into the outdoors.
The best way to protect against a contractor skipping entire parts of the job is to include inspections at the time of contract award. If you see that the walls have been properly primed before painting, you can be sure that everything is being done as agreed.
Misleading citations or charging practices
Getting a fair price from a contractor can feel like a well-deserved victory. You’ve done your research and knew what questions to ask, and now you’re getting the job done within your budget.
And then comes the revelation: there are a number of reasons why the project cost is actually higher than you thought. This can manifest itself in several forms:
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Price shown only applies to specific finish or style and not the style you thought you would get.
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The price was for a specific aspect of the job—only the labor, not the materials, or only the portion of the work that needed to be done.
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The contract states that literally any change will incur a significant additional fee.
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The price you were quoted was actually a base price, and almost every aspect of the job is actually billed separately.
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The contractor has provided you with an “estimate” of costs instead of a “quote,” which gives him more wiggle room in determining the final price.
These revelations are usually accompanied by an irritated and confused look, as if everything was very clear to you and the contractor cannot understand why you are confused. Your best defense against discovery is to review any agreement with your contractor very carefully and ask for language that outlines the overall total cost of the job.
Not all scams are clumsy attempts to rip you off; some are quite subtle and even unnoticeable. Staying vigilant and simply asking questions at every stage of the project will help keep you out of trouble.