Whether it’s your first renovation or tenth, it’s sometimes easy to miss the red flags when renovating. Here are some red flags to watch out for when selecting a contractor for your next home renovation to protect yourself from getting ripped off:
1. Deposits or Pre-Payment
Has your contractor asked you for a deposit or pre-payment? Let’s think about this one. Though not every contractor who asks for a deposit is trying to rip you off, this may nonetheless be a red flag. Paying a contractor in advance for work that has not been started or completed leaves you unprotected. Some say contractors ask for a deposit to secure their business and others say contractors need the money to buy material. The reality is that any contractor who needs money today to start a job tomorrow is probably not doing so well.
2. No Contract
Working with someone that doesn’t want to use a contract? Red flag! It’s the contractor’s responsibility to provide their clients with a contract outlining the details of the job such as the scope of work, estimate of all materials to be used, and start and end dates (if applicable). It’s up to the customer to review and add clauses to the contract as they see fit. For example, using drop-dead dates and penalties in your contract better protects you and your money.
3. High-Pressure Sales Tactic
In an article published by CTV Vancouver, the Better Business Bureau of British Columbia is warning people about a recent uptick in renovation scams involving contractors using high-pressure sales tactics. These sales tactics can include up-selling, short-term sales/deals or unrealistic warranties.
4. No References or Reviews
If a contractor cannot or is not willing to provide you with references, this may be a red flag. The same goes for whether or not the contractor has any reviews. Be mindful of referral sites and who is writing these reviews. When researching contractors from a particular referral site, make sure to research the site as well. Keep in mind good references and good reviews should not be a selling point when agreeing to work with a particular contractor. Remember, past performance does not guarantee future results.