General contractors are usually paid a large amount of money depending on the project they are working on. It can be quite tempting to work as a contractor but it takes years of education and proper training to be one of the best contractors in your area. Some people might even think that they can pretend to be a general contractor and go around taking other people’s money. It pays to be careful these days. Here are some ways on how to protect yourself from fake contractors.Do you want to learn more? Which Country Is Best For Construction?
Only scammers or fake contractors ask for an upfront payment because they do not plan on really completing the work for you. These people will ask for an upfront payment claiming that they will buy materials that will be needed in your project while in fact they will just run off with your money without even starting on your project. Never pay your contractor any upfront payment.
General contractors often offer written contracts containing every detail about the project. It also includes agreements made by the client and contractor in terms of payment, time of completion, consequences for delayed completion and a lot more. Fake contractors will often agree with all your terms in order to get the job. You need to ask them to have everything you have agreed upon written in a contract so that you will be protected. If they refuse to provide you with a written contract then it would be best for you to find another contractor. No written contract automatically means they are not real contractors.
Insurances and Bonds
If the general contractor is legit, you need to ask for proofs that the business or he as the service provider is insured and bonded. Insurance is needed to prevent the client from shouldering any additional expense outside the agreed amount of the project. This insurance covers those other workers that will be employed by the contractor.
Bonds usually protect the client just in case a general contractor withdraws in the project for any special reasons. If the contractor has been bonded, then the company who issued the bond will pay the client in case the contractor decides not to finish the project. Insurance and proof of bonds are easy to fabricate so make sure to check if the company that issued the insurances and bonds really exist and are legit. Make sure also that the contractor has an updated payment with those companies in order to be completely protected.