Contractor theft can occur in various forms from deception or fraud to people who are working on your premises and taking some of your possessions. This article is going to discuss various forms of contractor theft and how to deal with them.
1. Contractor Fraud
Contractor fraud occurs as a result of illegal activities committed by firms or independent contractors. It covers a broad spectrum of actions that are detrimental to your finances and your property. Contractors often work hand in hand with construction companies to perpetrate construction fraud.
What Are The Common Tactics That Contractors Use To Execute Fraud?
Fraudulent contractors often use intimidation and threats to target homeowners. Some of the common techniques they use to execute scams include:
- failing to include all details of the agreement in a written contract.
- requiring their clients to make full payments upfront.
- misquoting project costs intentionally.
- failure to get the correct permits for a job.
- revealing unforeseen problems that need an additional budget in the course of the project—problems that don’t actually exist.
- acquiring cheap materials that have a short lifespan.
How To Avoid Contractor Fraud
If you are planning to engage a contractor for a job on your premises, there are several steps that you can take to protect yourself from fraudulent activities. Although these measures do not assure a fraud-free transaction, they help make it as clear-cut as possible. They include the following:
- Written contracts: Any verbal agreements made with the contractor should be included in a final written contract. Ensure that you read carefully to verify that everything you expect from the contractor is included in the contract before you sign it.
- Upfront payments: It is advisable to make upfront payments of up to 10% of the total job or $1000, whichever is the lesser amount.
- Extra work or unforeseen problems: Ensure that the contract includes a clause that requires both the contractor and homeowner to sign off on any project before it commences. This will help keep you secure from any unforeseen problems or extra work that requires an additional budget.
- Buying extra materials: Avoid buying materials on the spot even if your contractor offers a good deal. Instead, ensure that you conduct exhaustive research beforehand to avoid making the wrong choice.
2. Theft By Deception
Theft by deception occurs when a contractor uses an exaggeration, omission, or outright lie to acquire something from a homeowner. It occurs when contractors intentionally engage in one of the following:
- preventing a homeowner from getting additional information that would affect their decision or impression of a transaction.
- give or back up false information.
- refuse to correct a false impression which they previously gave or backed up.
A contractor must be transparent about their availability, the type of work they can or can’t do successfully, the cost of labor and materials, and the length of time the project will take.
They should complete a project in a reasonable amount of time, as stated in the contract, especially after they receive a down payment. Failure to do so is considered theft by deception.
3. Loss Of Property
In other instances, the crew working on a project in your home may steal some of your possessions or materials you had purchased for the project. If you encounter such a situation, you can sue the contractor for theft.
What To Do If You Are A Victim Of Contractor Theft
If you encounter any of the above-listed forms of contractor theft during a project on your premises, it is best to work with contractor fraud lawyers. Depending on the circumstances of your case, the attorney can help you select the most suitable solution from a variety of available legal remedies.
If you believe that the contractor theft you are dealing with involves criminal activity, it is also advisable to inform law enforcement in your local area.
Small Claims Court
If you don’t seem to be making any milestones after trying to talk through a case of theft with your contractor, it might be time to seek legal action through a lawsuit. Such cases are presented in small claims courts.
Although such courts have limited jurisdiction, they can help you receive compensation for any damages done to your property during construction. You can then use the amount acquired to hire another contractor to fix the issue or replace the lost items.
In Conclusion
Contractor theft is common in many construction projects. Hire an attorney to guide you through the litigation process if you are a victim.