Hiring the wrong contractor can cost you thousands; or worse, leave your home half-demolished and your savings gone. Whether you’re planning a remodel or recovering from storm damage, knowing the red flags can help you avoid major problems before they start.
These are seven of the most common warning signs that a contractor might be untrustworthy, and what you can do instead.
1. They’re Not Licensed or Insured
If a contractor can’t provide proof of license or insurance, that’s a serious red flag. No license means no oversight, and no insurance means you could be held liable if anything goes wrong on the job.
Tip: Always check their license status with your state’s contractor licensing board or database.
2. They Demand a Large Upfront Payment
While some contractors may require a small deposit, demanding 50% or more upfront—especially in cash; is a major warning sign. Scammers often disappear after getting the initial payment.
Tip: Avoid paying large amounts upfront. Use a credit card if possible to protect yourself with chargeback options.
3. They Use High-Pressure Sales Tactics
If a contractor pressures you to “sign today” or uses urgency to push you into a deal, they may be trying to prevent you from doing proper research.
Tip: Get multiple bids. A reputable contractor won’t pressure you or punish you for taking your time.
4. They Don’t Provide a Written Contract
Without a written contract, there’s no protection if something goes wrong. A shady contractor might avoid putting anything in writing so there’s no trail of accountability.
Tip: Insist on a detailed, signed contract outlining scope of work, payment terms, and timelines.
5. Their Reviews Are Missing or Suspicious
If reviews are missing, look fake, or appear duplicated across different names, that’s a red flag. Many scam contractors frequently change business names to escape bad reviews.
Tip: Check multiple platforms, verify business history, and be wary of any contractor who avoids review sites altogether.
6. They Show Up Without Any Business Branding
Legit contractors usually have branded business cards, websites, or marked vehicles. A contractor with no traceable identity may be difficult to track down if problems arise.
Tip: Ask for proof of prior work, business licenses, and a physical business address.
7. They Start the Job… Then Disappear
A classic scam: they do the demo, take your money, and vanish. The project sits unfinished while you chase them down. Legitimate contractors communicate delays—scammers vanish.
Tip: Structure payments around completed milestones, not fixed dates.
Stay Vigilant
Scammers rely on confusion, urgency, and your trust. Don’t give them the opportunity. Do your homework, ask the right questions, and trust your instincts.
Have You Been Scammed?
Report your experience in our Bad Contractor Reports Forum. Browse by region to find out if others have had similar issues. Your story could help someone else avoid the same mistake.