Red Flags When Hiring a Contractor

Most contractors are legitimate professionals. But home improvement scams cost Americans billions of dollars every year. These are the warning signs that should make you pause before signing anything.

Before you hire

• No license or insurance on request: Legitimate contractors have this information ready. Delays or excuses are a red flag.
• No written estimate: Any contractor who won't provide a detailed written estimate before work starts is setting up a dispute.
• Unusually low bid: Bids that are 30-50% lower than others often mean cut corners, unlicensed workers, or a bait-and-switch once work begins.
• Door-to-door solicitation after a storm: "Storm chasers" target neighborhoods after hail or wind events, often take deposits and disappear.
• Cash-only demands: Legitimate contractors accept checks or cards. Cash-only often means the contractor can't be traced.
• Pressure to decide immediately: "This price is only good today." Legitimate contractors don't need to pressure you.
• No physical address: PO boxes and out-of-state addresses make it hard to track a contractor if things go wrong.

During the project

• Demands for large upfront payment: Industry standard is 10-30% down. Requests for 50%+ upfront are a risk.
• Constant change orders: Some change orders are legitimate. A pattern of them inflating the original price is not.
• Work stops without explanation: Workers disappear for days. This often means your contractor is underfunded or working multiple jobs.
• Subcontractors you weren't told about: If the contractor said they'd do the work themselves but sends unknown subs, ask who they are and if they're licensed.