2025 is seeing a sharp rise in contractor-related issues — from unfinished projects to shady pricing.
Why?
Labor shortages, increased renovation demand, and a wave of unqualified “contractors” entering the market.
Whether you’re a homeowner or an investor, here’s how to protect your money and your property.
🚩 Top Contractor Red Flags
Avoid contractors who:
- Say they can start immediately — good contractors are booked.
- Offer extremely low bids — if it sounds too good to be true, it is.
- Ask for cash only — and provide no receipts.
- Refuse to pull permits — or suggest you don’t need them.
- Can’t show recent references — or avoid giving contact details.
If you spot more than one of these… run.
✔️ The 2025 Rule of Three
To stay safe, follow this simple process:
1. Get 3 Bids
It forces transparency and exposes any outliers.
2. Call 3 References
Not just names on a paper — real conversations with recent clients.
3. Verify 3 Essentials:
- Active license
- Valid insurance
- Recent portfolio
This alone eliminates 80% of scams.
📝 Your Contractor Agreement Must Include
A strong contract is your best protection. Make sure it lists:
- Start date
- Completion date
- Clear payment schedule
- Detailed materials list
- Change order rules
- Warranty and repair terms
No contract = no project.
🎧 Coming soon on the podcast:
“Show Me How to Not Get Screwed by a Contractor.”
Originally published on the Show Me How Podcast blog. General education, not individualized advice.