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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.

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