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10 Red Flags When Hiring a Contractor

February 10, 20267 min readBy EZLY Team
10 Red Flags When Hiring a Contractor

10 Red Flags When Hiring a Contractor

Protect yourself from unreliable or fraudulent contractors by watching out for these warning signs.

1. No Physical Address or Phone Number

Legitimate contractors have:

  • A physical business address (not just a P.O. box)
  • A working phone number
  • A professional website or online presence
  • **Red flag:** They only communicate via cell phone or email.

    2. Requires Full Payment Upfront

    Standard practice is to pay:

  • 10-30% deposit to start
  • Progress payments as work is completed
  • Final payment upon completion and your satisfaction
  • **Red flag:** Demanding 50% or more before starting work.

    3. No Written Contract or Vague Terms

    Every job should have a detailed written contract. Avoid contractors who:

  • Offer verbal agreements only
  • Provide vague or incomplete contracts
  • Pressure you to sign without reading
  • 4. Unverifiable License or Insurance

    Be wary if they:

  • Can't provide license numbers
  • Claim they "don't need" insurance
  • Get defensive when you ask to verify credentials
  • 5. Pressure to Sign Immediately

    High-pressure tactics include:

  • "This price is only good today"
  • "I have materials left from another job"
  • "Sign now or I can't guarantee availability"
  • Take your time to make decisions.

    6. Suspiciously Low Bids

    If a quote is significantly lower than others:

  • They might be cutting corners on quality
  • Using subpar materials
  • Planning to add hidden costs later
  • Not properly insured
  • 7. Cash-Only Payments

    Legitimate contractors accept multiple payment methods:

  • Checks
  • Credit cards
  • Bank transfers
  • **Red flag:** Insisting on cash only (often to avoid taxes).

    8. No References or Bad Reviews

    Warning signs:

  • Refuses to provide references
  • Can't show examples of previous work
  • Multiple negative reviews online
  • Recent complaints with the Better Business Bureau
  • 9. Subcontracting Without Disclosure

    Issues to watch for:

  • Says they'll do the work but plans to subcontract
  • Doesn't disclose who will actually be on-site
  • Can't answer technical questions about the work
  • 10. Poor Communication from the Start

    If they're hard to reach or unprofessional before you hire them:

  • Don't return calls or emails
  • Miss scheduled appointments
  • Provide vague or evasive answers
  • It will only get worse once you've paid them.

    Protect Yourself

    Use platforms like EZLY that verify contractors' credentials, provide transparent reviews, and help you find trusted professionals for your project.

    Ready to Find Your Perfect Contractor?

    Join EZLY today and connect with verified, trusted contractors in your area.