It’s exciting to start a new home improvement project, but there’s no denying just how gigantic of an undertaking these projects tend to be.
The tough truth is that your general contractor can rather easily make or break your entire renovation, because hiring the wrong team could lead you to living in a construction zone for a lot longer than you originally planned—and your budget could double or triple by the time they’ve finished everything.
Another huge disaster is when you have to hire a second contractor to fix what the first one botched! This is why homeowners need to walk away when a contractor is showing red flag warning signs during consultation appointments before they turn your property into a money pit.
We’ve teamed up with the general contractor Springfield experts at Dream Big Contracting to provide this list of red flag warning signs to avoid when hiring general contractors, so check out the below sections to see what you should be on the lookout for!
Red Flag #1: The General Contractor Wants A Huge Down Payment
Although no one expects general contractors to work for free, it can be shady when a contracting team asks for gigantic down payments before any work is even started.
Advanced payments are common for expensive products, but there are also regulations in many states in terms of what contractors can charge on down payments.
Expect to pay anywhere between 10-25% of your total project cost as an initial down payment, and be skeptical when a contractor asks you for more upfront!
Red Flag #2: The Project’s Contract Is Vague
Your project’s agreement should be as detailed as possible, and vague contracts are always a huge red flag that homeowners should be wary of.
Be sure to get concrete details about things like payment schedules, a contractor’s responsibilities, the overall scope of the project’s work, work schedules, and when your crew will start and stop working each day. You really want every single detail written out in your agreements, including:
- Equipment
- Supplies
- Materials
- Vendors
- Subcontractors
- And much more!
These details are important because they can help you avoid additional costs, which ultimately keeps your project on budget and on schedule!
Red Flag #3: The General Contractor Has Bad (Or Zero) Reviews
Just like with any purchasing decision, it’s important to check out a general contractor’s online reviews prior to hiring them. And if you see bad reviews online from past customers, be cautious about what you can expect from a prospective contractor and their team.
It’s also a bad sign when a general contractor doesn’t have any reviews, because this could mean that they’ve recently reestablished themselves under a new name due to bad results or reviews with their previous business name.
Red Flag #4: The Bid/Estimate Seems Abnormally Low
Most homeowners are concerned about a contractor’s bid or estimate being higher than necessary, but you should also be on the lookout for low-ball bids as well.
General contractors understand how people are looking at bottom line costs more than anything else, and some unethical contractors will leave out the overall scope of their work’s details in order to win a project.
Be sure that you’re reviewing the intricate details of a bid, and getting more than one bid is a great way to spot troublesome, low-ball offers!
Red Flag #5: The General Contractor Doesn’t Have Proof Of Insurance
It’s important to not only ask a general contractor about their insurance, but to also obtain a physical copy of it. Be sure that a contractor’s insurance also includes things like general liability, builder’s risk, and workers’ compensation coverage as well.
It’s also a good idea to verify whether or not the contractor is bonded, and this is especially the case for large-scale projects.
Red Flag #6: The General Contractor Doesn’t Communicate Well
It’s not like your general contractor needs to be a professional spokesperson, but they should return your phone calls and fully address your concerns as they come up.
No one wants to work with people who don’t respect them enough for basic communication, but the unfortunate truth is that some general contracting teams aren’t good at keeping up with their daily responsibilities and client needs.
One reason why shady contractors are hesitant to communicate or put things in writing is because they don’t want a paper trail of evidence, or because they’re not licensed.
Red Flag #7: The General Contractor Doesn’t Mention Permits, Or They Ask You To Obtain Them
Every city has different regulations and ordinances regarding home renovations, and it’s important for homeowners to work with general contractors that understand when permits are necessary—and how to properly obtain them.
It’s never a good sign when your contractor neglects permits, or asks you to obtain them on your own. This type of service is standard throughout the home renovation industry, and asking you to get a permit on your own is a sign that your contractor is unlicensed or has a revoked license.
Reach Out To Dream Big Contracting When You’re Remodeling Your Home In Springfield OH!
There are a lot of red flag warning signs that homeowners need to be on the lookout for while they’re hiring a general contractor for their next renovation project, and the above red flags are just a mere glimpse into the many issues that might come up during this complex hiring process.
But the good news is that there are countless great contractors out there, and one of the top-rated general contracting teams in the Springfield OH area is at Dream Big Contracting.
You can speak directly with the Dream Big team when you go to their website by clicking on the hyperlink located at the top of this page!
