FAQ

Frequently Asked Questions (FAQ) – Avoid Contractor Scams

1. How can I tell if a contractor is legitimate?

A legitimate contractor should have a valid business license, insurance, and references from past clients. Always verify their credentials through local regulatory bodies and check for any complaints filed against them.

2. What are the biggest red flags to watch for when hiring a contractor?

  • No written contract – A reputable contractor will always provide a detailed agreement.
  • Large upfront payments – Avoid contractors who demand most of the payment before work begins.
  • No references or online presence – If they can’t provide references or have no website or reviews, be cautious.
  • High-pressure sales tactics – Scammers often push for quick decisions, discouraging you from researching them.

3. Can I get my money back if a contractor scams me?

It depends on your location and the situation. If you paid by credit card, you may be able to dispute the charge. If the contractor was licensed, you might have recourse through a provincial licensing board or small claims court.

4. Should I always get multiple quotes before hiring a contractor?

Yes! Getting at least three quotes allows you to compare pricing and spot suspiciously low estimates that could indicate a scam.

5. How do I check if a contractor is licensed and insured?

Each province has a licensing board or regulatory agency. Search for your local authority online or ask the contractor for proof of licensing and insurance.

6. What should be included in a contractor agreement?

A proper contract should include:

  • A detailed scope of work
  • Total cost and payment schedule
  • Start and completion dates
  • Warranty terms
  • Cancellation policy

7. Can I sue a contractor for unfinished or poor-quality work?

Yes. If they violated the contract, you may take legal action. Document everything, including emails, payment receipts, and photos of the unfinished work, to strengthen your case.

8. What should I do if a contractor disappears after taking my deposit?

  • Try to contact them via multiple methods.
  • File a complaint with your local consumer protection agency.
  • Report them to the police if fraud is involved.
  • Leave a public review to warn others.

9. Are cash deals always a bad idea?

Not necessarily, but cash payments without a contract or receipt can make it impossible to recover money if something goes wrong.

10. Where can I report a contractor scam in Canada?

You can report scams to:

11. How can I protect myself from contractor scams?

  • Do thorough research before hiring.
  • Get everything in writing.
  • Avoid paying large sums upfront.
  • Never rush into a decision.

If you’re looking for a complete guide on avoiding contractor scams, check out Buy The Essential Canadian Guide To Contractor Scams for expert tips, real-life case studies, and essential checklists.