The first-time homeowners meet with the contractors, there is a big chance that they think of them as a competent and civilized contractor. That is why they hired them in the first place. But there are times that people seem like a doctor Jekyll at first, and then began to act more like Mister Hyde in the long run.
It is best to spot the Mister Hyde-like behavior before they are hired. It is hard to get out of the deal when the homeowner already paid them for the job that most likely will be sub-standard or incomplete; gotten too far down the line with these contractors to make it too difficult to get out; or driven yourself with frustration and rage.
Bad contractors can do anything from pocketing homeowner’s money and purchase sub-standard materials to using alcohol and drugs while on the job, endangering not only themselves, but also people around them and, most importantly, their families. How can homeowners know when it is time to replace them with a much better model?
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Contractors asking for too much money as a down payment
The first and the most apparent reason, contractors should not ask for a significant amount of money as an upfront payment. Yes, they need the cash to get the renovation started, but asking for a ridiculous amount of money (more than 15% of the total cost) raises a red flag.
Most states in the United States allow contractors to ask their clients for a maximum of 33% of the total construction cost as an upfront payment or down payment. Contractors need to have enough credit to pay for the rest of the down payment. If they do not have enough credit, it might be because they messed up their previous project and their credit revoked by the bank.
That is not the right contractor for the job. After the down payment costs, an additional budget needs to be tied to significant milestones like the end of foundation and excavation work, plumbing, framing, roofing, sliding, electricity, and finish work. Similarly, contractors who try to tie money on dates instead of construction milestones are going to bad news. Low biddings should also raise red flags.
Be aware of the common scams in which builders assure the client that their house will be used as a sample unit for advertising purposes, and that is why they can bid lower compared to their competition. As a matter of fact, it is never worth it to lowball bids for the payoff of portfolio pieces. Instead, lowballing bids will always equal to poor quality of work. It is as simple as that.
Keeps Strange Hours
What does the site look like at 9 in the morning on a Monday or two in the afternoon on a Friday? If the answer is a quiet job site, the homeowner needs to reevaluate the builder that they are hiring. Let us put it …