Tuesday, February 25, 2020
How to protect yourself from fake general contractors
General contractors generally receive a large amount of money depending on the project they are working on. It can be very 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 take money from other people. It is worth being careful these days. Here are some ways on how to protect yourself from fake contractors.
Paying in advance
Only scammers or fake contractors request payment in advance because they do not plan to actually complete the work for you. These people will request a payment in advance claiming that they will buy the materials that will be needed in their project, while in fact they will leave with their money without even starting their project. Never pay your contractor any upfront payment.
Written contracts
General contractors often offer written contracts that contain all the details about the project. It also includes agreements made by the client and the contractor in terms of payment, completion time, consequences for the delay in completion and much more. False contractors will often agree to all of their terms to get the job. You should ask them to have everything they have agreed in writing in a contract to be protected. If they refuse to provide you with a written contract, then it would be better if you find another contractor. No written contract automatically means that they are not real contractors. General Contractor
Insurance and Bonds
If the general contractor is legitimate, he must request proof that the company or he as a service provider is insured and linked. Insurance is needed to prevent the client from assuming any additional expenses outside the agreed amount of the project. This insurance covers those other workers who will be hired by the contractor.
Bonds generally protect the customer in case a general contractor withdraws from the project for some special reason. If the contractor has been linked, then the company that 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 manufacture, so be sure to check if the company that issued the insurance and bonds really exists and is legitimate. Also ensure that the contractor has an updated payment with those companies to be fully protected.
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