How To Avoid A Contractor Scam

A vacuum sucks up a pile of one dollar bills off of the floor

Image Credits: regularguy.eth / Unsplash

Unfortunately, homeowners are often left with the short end of the stick after paying a contractor to do some work on their home. We’ve heard of friends and even family members who unfortunately fell for a contractor scam and at Cruz Built it’s one of the most heartbreaking to hear. 

The saying “it’s too good to be true” rings true. Well educated homeowners tend to search out several quotes before deciding what contractor is the best fit for them. If price is the only objective, be cautious moving forward with that contractor.  Recognizing a few signs up front can save a lot of heartache and money – here are some red flags: 

  1. The contractor answered “yes” to all your questions. If you ask for specific materials and features and everything is included in the price, walk away. If it sounds like this is the best deal for the project and everyone else quoted way higher, walk away. 

  2. The contractor asks the homeowner to pull permits. The contractor should always pull their own permits. Under no circumstance should the homeowner ever be required to pull their own permits unless they are heading the project on their own home. There are online resources to verify your contractor has a license and is in good standing with the North Carolina Licensing Board for General Contractors. Verify here.  

  3. Rush to start/sign something. If the contractor is rushing or pressuring you to sign a contract, you should see a red flag waving. It doesn’t matter what they say. Any investment in your home is a big decision and shouldn’t be rushed into. 

  4. Vague specifications. If the contractor is giving you something to sign that is vague in terms of the materials, description of the project, and payment schedule, walk away. Everything should be in writing so there is no confusion about what you are paying for. An “open book” contractor that is saying he can include this or that in the price or proposal is not being forthright. 

  5. Allowances are low. One of the best ways a contractor can make their price seem just right is by presenting “allowances” for certain features of the project that are too good to be true. You wanted hardwoods but they included an allowance for vinyl flooring. When the time comes to select materials every item you choose will be higher than the allowance they allotted for the project. 


By being aware of these red flags, homeowners can avoid falling victim to contractor scams. Trust your instincts and if something feels off, re-evaluate the contractor and look for a more qualified option. Make sure the contractor earns your respect and trust before signing anything.

At Cruz Built, we provide every homeowner with a copy of our licensing certificate. It’s public information but we’re amazed at the number of homeowners who don’t ever request a copy. As a local Greensboro General Contractor, we encourage homeowners to let us be a resource for them whether they hire us or not.

Best Regards,

Samuel Cruz

President of Cruz Built

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