Types of Home Construction and Repair Scams

Consumers should be wary of scams by contractors, and their warning signs. Some examples include:

1. Falsely claiming to be licensed, insured, or bonded;
2. Attempting to perform services without a written contract, which renders it almost impossible for consumers to assert their rights;
3. Requesting payment in cash, which could be a warning sign that the contractor runs a “fly by night” operation;
4. Charging for services, products, or materials not included in the contract and not requested by the homeowner;
5. Using a lesser quality of materials than the homeowner agreed to and paid for;
6. Falsely claiming that contracted services or products meet with local code requirements;
7. Falsely claiming to have obtained all necessary permits and approvals for a project, or placing the burden solely on the homeowner to obtain such approvals;
8. Requesting full payment up front;
9. Pressuring a homeowner to make a decision on the spot;
10. Offering an unreasonably short or unreasonably long guarantee or warranty;
11. Failing to provide a lien waiver upon request for projects involving subcontractors; or
12. Filing a fraudulent or inaccurate mechanic’s lien.