Renovation is big business nowadays. And with big business comes a greater potential for fraud. According to the Canadian Home Builders' Association some of the steps you can take to prevent fraud include the following:
- Get everything in writing – a written contact gives you peace of mind.
- Hire professional contractors. Check their references, their past work and if they haveWorkers' Compensation coverage.
- Do your homework – take control and understand the key steps in reconstruction.
- Don't make an underground deal – a cash payment may seem easier, but it can also put you at risk.1
On the Job: What to Watch For
Once you have confirmed a contractor and work is about to start, be an active project manager. Things you should be on alert for before, during and after your renovation project include:
- A request from the contractor to pay the full value of the quote up front
- Extra work at any point in the project that was not included in the original price
- Necessary building permits not being issued or not being posted for significant construction projects
- Any "unforeseen problems" that arise (could these have been anticipated?).
Page Sources
Coalition Against Insurance Fraud – Agent and Insurer ScamsHouselogic.com – 5 Top Contracting Scams
Sources
1Canadian Home Builders' Association – Advice from Homeowners