7 Red Flags You’re Dealing with a Fraudulent Commercial Builder

25 March 2022

“It’s not going to happen to me.”

“I’ll never fall prey to those dodgy tradies.”

“I’ll know when it’s a scam.”

We’ve heard these lines before,yet people still fall into the trap of dealing with fraudulent transactions. Don’t they know better? Can’t they tell from the get-go they’re being duped?

These people who get scammed aren’t dumb. It’s just that the scammers are better. Their scripts are better. And so are their offers. And thesefraudulentcommercial buildersare becoming rampant and worse. It’s becoming a kind of epidemic as they blatantly disregard the laws and regulations and leech on your hard-earned money.

Beware and protect yourself.

 

Discover the5 red flags you’re dealing with a fraudulent commercial builder: 

 

1. Be wary if you’re presented with anambiguous or no contract

 

Always be keen on the nitty-gritty details of the contract you have with your tradespeople. Often, the excitement will cloud your judgment, and the regrets come in later. Ask if you don’t understand anything. It’s better to appear dumb for a few minutes than regret the rest of your life. Once you’ve signed the contract, you’re legally responsible for it, along with your builder.

 

2. If you’re pressured to sign a contract

 

If a vague contract is suspicious, so does the builder who forces you to sign one. Dodgy tradies can create subtle and what appears to be convincing reasons why you need to sign the contract and enter a transaction you haven’t had the due diligence to check out. For instance, they can sweet-talk their way by giving you a big discount if you agree immediately, creating an urgency on your part to go for it.

Never sign the contract from someone who pressures you.

 

3. Unable to give you their references so you can check from past clients

 

If your commercial builder can’t give you references or a portfolio of their projects that you can check out, better consider your options. They’re either inexperienced orscammers and have some filthy modus operations. Check if they have a website and it’s updated. Ask for clients they’ve had in the past and phone them to request feedback.

 

If your builder has too many excuses why they can’t provide any, avoid hiring this tradie and stop the initial negotiations.

 

4. The commercial builder and the crew aren’t insured.

 

No matter the assurance for safety protocols your builder gives, if they or their crew don’t have insurance, you’re still at the losing end. Accidents can happen to anyone, whether experienced or amateur. Even if the accidents are minor, you may still be deceived into paying a considerable amount.

So don’t be afraid to ask for proper documents to show proof that your builder and their crew are insured.

 

5. Asking for too advance payment for a project

 

If the contractor asks for a hefty advance, run in the opposite direction. Advance payments aren’t unheard of. These payments are usually to cover labour and materials. But expect a 10% advance payment on large and multi-staged projects. 50% upfront payment for smaller jobs and a range of 25-33% for medium scale tasks. Anything more than 50% is unreasonable, no matter the type of project.