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4 common examples of construction fraud

On Behalf of | Aug 7, 2024 | Construction Law |

Good contractors are in high demand – but poor contractors find plenty of ways to drum up business every day, even if they have to engage in a little bit of fraud to do it.

As a property owner, you have to be wary of construction scams whenever you hire an unfamiliar contractor. Some of the most common problems you may encounter include:

1. Misleading contracts

This happens more easily than people realize. A contractor may walk through the property and make affirmative comments about the project – even explaining how they intend to make the necessary repairs or changes. This lulls the property owner into assuming that the contract they’re subsequently handed is reflective of what was said, so they don’t focus on the details. They only find out later that they’ve agreed to something different.

2. Missing permits

It’s not the property’s owner job to get the right permits for the project, but the property owner is the one who will have to pay if the permits aren’t obtained. In some cases, property owners have been forced to undo the work that was already done – which can be financially devastating.

3. Inferior materials

This is one of the most common ways that bad contractors cheat their clients. Most clients have no idea how to tell high-grade construction materials from low-grade products – until a problem develops weeks or months after the job is finished.

4. Endless issues

Some contractors purposefully drag out a job, sensing that their clients still have money in the budget for “extra” repairs. When new problems with a remodel or build keep arising and the costs keep going up, that’s a troubling sign.

If you suspect that you’ve been the victim of construction fraud, it may help to explore the legal options. 

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