Red Flags When Hiring a Contractor

Spot the warning signs to avoid costly contractor mistakes.

I’ve been in the remodeling and construction business for over 30 years. We have helped many customers out of bad situations, sometimes costing them thousands of dollars. The truth is, choosing the wrong contractor can quickly turn your project into a disaster leaving you spending way more than you planned and even not being able to finish your project.

Buyer Beware: Unfortunately, This Happens All the Time

We received this message from someone on social media and wanted to share. This happens way too often.

"I have been billed for a major plumbing job, part of which I thought to be included in the main contractor's bill. I paid the amount that sub-contractor had estimated to me, verbally, to finish the next portion of the job. Now, the work is complete and the bill has doubled. He won't send me an itemized bill. I have paid much more than I planned, and he keeps sending the flat fee bill. Do I have any recourse but to pay the full amount (thousands)?"

Marie B. Bastrop, Texas

How to Avoid Unexpected (and Many Times Unfair) Cost Surprises?

For Marie, her biggest mistake was not having a detailed contract with the cost and work to be done specified. Don't accept verbal agreements. It could cost you a lot of money. Instead make sure you get a quote in writing and work from a contract that has been signed by both parties.

Unfortunately for Marie, she will have to pay this bill or face the contractor putting a lien on her home. This means she will have to pay it before she sells her property or pay him when she does. Not fun.

Yes, sometimes you may change your mind on materials or hardware (or even design as the project progresses) and decide to spend a little more, or some hidden damage may be uncovered that needs to be addressed.

However, this should be done in a professional way so that both you and the contractor have agreed to the changes, and it's ideal to agree to this by a "change order" to the original contract. Construction work can be stressful and things can change, but with good communication and ongoing agreements, there are no surprises.

A seasoned contractor knows how to keep the process running smoothly, on schedule, and within budget. To make sure of this, it’s essential to hire the right professional for the job.

Here are some common mistakes to avoid when choosing your contractor so you can avoid a situation like Marie's.

Red Flag Number One. A Contractor Asking for Payment or Large Deposit Before Work is Done

Many homeowners have been taken advantage of by unscrupulous contractors who demand large deposits or full payment upfront and then disappear without performing or finishing the work.

Don't be a victim - avoid contractors who ask for large or full upfront sums or cash. Insist on a contract signed by both parties with payments scheduled based on the work complete. The standard down payment in most states is 10-20 percent.

Red Flag Number 2. A Contractor Promising to Waive Your Deductible

If you are having work done to your home due to an insurance claim, you will have to pay for your deductible amount that is in your policy. It is against the law in the state of Texas for a contractor to waive an insurance deductible. Although it may be tempting to take them up on their offer, find a different contractor.

A contractor who offers to waive your deductible is most likely making up the difference by cutting corners or using lower quality products. That can lead to more claims and repairs over time.

This law was implemented in 2019, and violators could get up to a $2,000 fine and up to six months in jail. If a contractor offers to waive a deductible, you can also report it to the Texas Attorney General’s Consumer Protection Hotline at 800-621-0508.

You can also find out more information at the Texas Department of Insurance website.

Red Flag Number 3. An Extremely Low Bid

What is the ultimate goal of your project? You will want to find the best work for the best value. You want to make sure the contractor you choose provides high-quality materials and high-quality installation.

Of course you want to save money on your project, but choosing a contractor on price alone is not the way to do it. It makes sense that you “get what you pay for”, and contractors offering an extremely low price may cut corners in installation and not use good materials.

While you’ll pay a bit more for a high-quality contractor, you are more likely to end up with a great finished product.

Red Flag Number 4. They Seem "In a Hurry"

You shouldn't feel rushed or like the contractor isn't willing to answer any and all of your questions. Don't be afraid to ask a potential contractor for references. These are helpful in determining how they have handled previous projects.

Ask a lot of questions. At lease until you are feeling confident. You can find out a lot about a contractor's knowledge and your ability to communicate with them by asking questions. Here are a few questions you might ask:

How long have you used your crew?

How long have you been in business?

Have you performed work in the area?

How can I reach out during the process?

How experienced is your crew?

It may not make a lot of sense, but you should be wary in only using online review sources such as Yelp, Google, and the Better Business Bureau to make your decision. Although they can provide some useful feedback, there have been numerous complaints by small businesses about the misinformation that can be on these sites and investigations by Time, The Los Angeles Times, and ABC News about this issue. There is also a common practice of competitors leaving false reviews that can be misleading. Look for reviews that have comments and not just "stars".

Red Flag Number 5. They Want to Start With a Only Handshake Deal

The project you are going to hire a contractor to do requires careful planning, attention to detail, and a large amount of money to be invested.

The only person who is protected by a verbal deal is an unscrupulous contractor. If you fail to get everything in writing, you may end up having to do it all over again. Get a contract in writing—every time.

Red Flag Number 6. The Contract is Vague

The contract presented by your contractor should be detailed. You should be wary of a contract that lacks details regarding the scope of work for the project, responsibilities, payment schedules, and start and stop times. The scope of work and all details must be included in your written agreements.

Don’t make assumptions about what will be included in the project. These details need to be part of the initial agreement to avoid potential conflicts as your project progresses. For example, you might assume that paint would be included in the cost of painting your house, or debris removal is included in a demo, but if it’s not in the contract, you might be paying extra.

We are here to help.

Bishop Builders will not be the lowest bid you receive. What you will get is a fair price, proper documentation/photographs that are crucial for insurance claims, expert construction quality that adheres to professional practices, and peace of mind that the job is done right.

Bishop Builders is ready to help with your home or business projects. We offer expert advice and quality, professional construction services. Contact us at 1-817-221-0873 or info@bishopbuilders.com to get started on your next home improvement project!