Every year, thousands of homeowners fall victim to contractor fraud. Don't be one of them. Learn the warning signs and protection strategies that save families from financial devastation.
Know what you're up against. These scams have cost homeowners millions.
Contractor takes a large upfront deposit for "materials" and vanishes. Never answers calls again.
Claims they've pulled permits when they haven't. You discover it when trying to sell or during inspection.
Low bid wins the job. Then "unforeseen issues" require change order after change order. Final cost is 2-3x original.
You pay the contractor. They don't pay their subs. Subs file liens against YOUR property.
After natural disasters, unlicensed "contractors" go door-to-door offering emergency repairs. They do shoddy work or take money and run.
Shows you an insurance certificate, but it's expired, fake, or doesn't actually cover your project.
Work starts strong, then contractor keeps finding reasons to delay. Meanwhile, they're working other jobs with your deposit.
Insists on cash payment to give you a "discount" (avoid taxes). No paper trail means no legal recourse.
Follow these rules and you'll eliminate 95% of your scam risk.
License, insurance, references, permits. Don't take their word. Call the state board. Call the insurance company. Call past clients.
Detailed contract with scope, timeline, payment schedule, change order process. If it's not written, it doesn't exist legally.
Small deposit. Progress payments tied to milestones. Hold back 10% until 100% complete. Never pay in full upfront.
Photos before, during, after. Save all texts and emails. Record conversations (one-party consent states). Create a paper trail.
Something feels off? It probably is. Pressure to decide now? Walk away. Too good to be true? It is.
Platforms like Bidroom pre-vet contractors. License verified. Insurance confirmed. Reviews authentic. Less risk for you.
Don't freeze. Don't give up. These steps can help you recover.
Cancel any pending checks. Dispute charges with your credit card company. Close access to any escrow accounts.
Gather all contracts, receipts, photos, texts, emails, and any evidence of the scam. Create a timeline of events.
State contractor licensing board. State attorney general. Better Business Bureau. FTC. Local police (if criminal).
Construction law attorneys often offer free consultations. They can advise on liens, lawsuits, and recovery options.
Leave honest reviews everywhere. Report to community groups. Your warning might save someone else.
The best defense against scams is never encountering them. Bidroom's AI matching only connects you with verified, vetted contractors who have passed our rigorous screening.
Every contractor's license is verified directly with state licensing boards. No exceptions. No fakes.
Liability and workers' comp insurance verified. You're protected if anything goes wrong on your property.
Our AI flags unusually low bids that could indicate scams. If a price seems too good to be true, we'll warn you.
Your money is protected in escrow. Released only when work is verified complete. Scammers can't disappear with your deposit.
Compare multiple bids side-by-side. See exactly what's included. No hidden surprises, no bait-and-switch.
Great contractors get matched with quality jobs. They have incentive to do great work because their reputation is their livelihood.
Scammers prey on the uninformed. That's not you anymore. You know the tactics. You know the warning signs. And now you have access to a platform that does the vetting for you. Bidroom's AI matching connects you only with verified contractors - eliminating scam risk before it starts.
Get Matched with Verified ContractorsBidroom connects property owners with vetted contractors, and connects contractors with quality jobs. Both sides win. Scammers lose.