De la AAC.ASE.Wiki
General contractors are usually paid a lot of money depending on the project they are focusing on. It can be quite tempting to work like a contractor but it takes years of education and training to be one of the best contractors in your area. Some people might even believe that they can pretend to be considered a general contractor and go around taking other's money. It pays to be careful these days. Here are some ways regarding how to protect yourself from fake contractors.
Paying Upfront Only scammers or fake contractors ask for an upfront payment because they do not plan on really completing the work for you personally. These people will ask for an upfront payment claiming that they'll buy materials that will be needed in your project while in fact they will just run off with your money without even starting on your project. Never pay your contractor any upfront payment.
Written Contracts General contractors often offer written contracts containing everything about the project. It also includes agreements made by the customer and contractor when it comes to payment, duration of completion, consequences for delayed completion and a lot more. Fake contractors will often agree with all of your terms to get the task. You have to ask them to have everything you've decided designed in an agreement so that you can be protected. When they refuse to provide you with a written contract then it might be best that you should find another contractor. No written contract automatically means they are not real contractors.
Insurances and Bonds If the general contractor is legit, you need to ask for proofs that the business or he as the company is insured and bonded. Insurance coverage is required to prevent the client from shouldering any extra expense outside the agreed quantity of the project. This insurance covers those anybody else that'll be utilized by the contractor.
Bonds usually protect the client in case an over-all contractor withdraws within the project for any special reasons. When the contractor continues to be bonded, then the company who issued the bond pays the client should the contractor decides to not finish the project. Insurance and proof of bonds are simple to fabricate so be sure to check if the company that issued the insurances and bonds really exist and are legit. Make sure also that the contractor comes with an updated payment with those companies in order to be completely protected.