Numerous individuals have become victims of fraudulent construction practices. But how can you avoid this issue? Look at these eight techniques to protect your building project against fraud.
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1. Document Everything
When dealing with unreliable contractors, the first thing you should do is collect and record all of the pertinent information that pertains to the project and your dealings with the contractor. These documents will be essential when pursuing any legal or contractual remedies that may be available.
Gather all of the information, including records of communication and payments, as well as status updates on the project. Retrieving and examining written estimates, contracts, or agreements made with the contractor is essential. Additionally, when reading these documents, pay particular attention to the indicated timelines, payment plan, and scope of work.
2. Beware of Misleading Language
Contracts that state that the homeowner accepts the specified improvements for a percentage of the insurance proceeds should not be signed. Doing so will result in the contractor receiving the entirety of your insurance payment. Check to see that the supplies they want to utilize are included in the contract. As the process develops, it is vital to keep an eye out for materials that are of poor quality or defective.
3. Don't Pay Upfront
Take caution if a contractor requests a substantial or complete down payment from you. The law reportedly prohibits out-of-town contractors from requesting a down payment before beginning their work after a calamity.
4. Avoid Obtaining a Permit Yourself
If your contractor requests that you obtain a permit, this may be an indication that they do not possess a valid license. Moreover, utilize caution when informed that authorization is not required. The Loudoun County Building and Development office can be reached at 703-777-0220 to check whether or not a permit is necessary for the particular project.
Also Read: 7 Strategies to Unlock Success in Your Construction Business
5. Be Very Cautious Regarding Door-to-door Sales
There are a lot of con artists who will offer 'special deals' utilizing 'leftover materials.' Frequently, they drive unmarked automobiles with little or nonexistent company branding. They may have license plates from another state. As mentioned, those engaging in fraudulent activities typically use temporary or 'P.O. Box' addresses. Thus, these conditions should be regarded as possible fraudulent activity indicators.
6. Avoid Cash Payments
Scammers will frequently employ pressure techniques, such as asking you to pay a significant portion of the total amount in cash and for the entire amount upfront. The use of any sales tactics that involve excessive pressure, scare tactics, or threats should instantly raise concerns.
7. Check the Legitimacy of Your Home Repair Contractor.
Do some research on the company on the internet and read some reviews. Inquire with the Better Business Bureau and the attorney general's office in your state to determine whether or not any complaints are lodged against the contractor. Request a list of references.
8. Learn the Difference Between Licensed and Registered.
To prove their expertise, a licensed contractor must demonstrate that they have passed tests and fulfilled other requirements. A registered contractor made an informational contact available to a government agency. Get in touch with the Department of Insurance (DOI) in your state to acquire additional information regarding the licensing and registration of contractors.
Related Article: 6 Steps to Verify Your Contractor's License From Screening Process to Checking References
