Contractor fraud costs U.S. homeowners billions every year, and the schemes are surprisingly repetitive. Learn the eight most common plays and the counters that shut each one down.
After hail or wind, out-of-state crews canvass neighborhoods offering "free inspections" and finding damage that may not exist. Counter: never sign anything day one, photograph your own roof (or have a local pro do it), and check that any roofer has a local address and state license — not just a magnetic truck sign.
The oldest scam: collect 50% upfront, do a day of demolition, disappear. Counter: small deposits only (10–15%), and better yet use escrow — ConstructHelp holds funds and releases them per approved milestone, which makes this scam structurally impossible.
Skipping permits saves the scammer time and hides substandard work from inspectors — but unpermitted work surfaces at resale, and insurers can deny claims tied to it. Counter: for structural, electrical, plumbing, and most roofing work, the contractor pulls the permit under their license. Non-negotiable.
"We just finished a job nearby and have extra asphalt/sealcoat — half price if you decide now." Materials are always cheap; the pressure is the product. Counter: any legitimate discount survives a 24-hour think-it-over.
A general contractor collects your final payment but never pays subcontractors — who then file liens against YOUR home. Counter: require signed lien waivers from the GC and major subs before releasing final payment.
A rock-bottom bid wins the job, then "unforeseen conditions" inflate the price 40%. Counter: itemized scope upfront, written change-order process in the contract, and unit prices for likely surprises (per-sheet plywood replacement, per-foot rot repair) agreed before work starts.
Some scammers quote under a real company’s license number. Counter: verify the license on the state board site AND confirm the name/phone matches; call the company’s listed office number if anything feels off.
Cash discounts often mean no contract, no taxes, no trail — and no recourse. Counter: pay traceably (card, check, escrow) and insist on a written contract regardless of the payment method.
Post your project once — verified, insured local pros send you free competing quotes, and escrow protects every payment.
Get 3 Free QuotesDeposit theft — taking a large upfront payment and abandoning the job. Milestone escrow payments make it structurally impossible.