Contractor scams are a short list of familiar tricks: pressure to sign today, a big payment up front and a contract that says almost nothing. Each one is easy to spot once you know it. Each is also far easier to stop before work starts than after.
The short answer
- Treat pressure to sign today as a warning sign, because a real contractor can wait while you compare.
- Pay in stages tied to finished work, and pay by check or card so there is a record.
- Make the contract name the product, the scope, the permit, the payment stages and the warranty.
- After a storm, talk to your insurer before agreeing to anything a contractor proposes.
- Check insurance, trade licenses and finished addresses before you sign, and keep notes for each company.
- If something goes wrong, stop paying, keep every document and file a complaint with the state.
Exterior work is easy to fake and hard to check. Once siding is up or a patio cover is bolted down, you cannot see what sits behind it. North Texas has also had weather that sends owners looking for fast repairs, such as the February 2021 winter storm and the December 2022 freeze. Fast repairs are where scammers do their best work. Slow down and use the checks below.
What are the warning signs of contractor scams?
Six signs show up again and again. One sign is a reason to ask questions. Two or more is a reason to stop the conversation and walk away. The table lists each sign, what it sounds like at your door, and what a careful contractor does instead.
| The sign | What you hear | What a careful contractor does |
|---|---|---|
| A pitch at your door | “We just finished a job down the street and have material left over.” | Hands you a printed estimate, a real business address and time to decide. |
| Pressure to sign today | “This price is only good until tonight.” | Lets the estimate stand for a stated period so you can compare. |
| A large payment up front | “I need most of it now to buy materials.” | Writes a deposit into the contract and ties later payments to finished stages. |
| A price far below the rest | “I can beat anybody’s number.” | Shows the same series, materials and opening count as other estimates and explains any gap. |
| Cash only | “Cash keeps it simple.” | Takes a check or card and gives you written receipts. |
| A thin or missing contract | “We’ll sort out the details when we start.” | Writes the scope, materials and payment stages down before work begins. |
Do not sign anything at the door, and do not let a crew start the day you meet them. A real contractor can wait a few days for your answer.
How should you pay a contractor?
In stages, tied to finished work, and by a method that leaves a record. A deposit is normal, but its amount and its purpose belong in the contract. Later payments should follow steps you can see, and the last payment should wait until you have walked the job and are satisfied.
- Pay by check or card so there is a paper trail. Cash leaves you with nothing to show a bank or a court.
- Match each payment to a stage, such as materials delivered or installation finished.
- Do not pay for an estimate. A free in-home estimate should cost nothing, and nobody should ask for a deposit to give you one.
- Hold the final payment until you have inspected the work and the crew has cleaned up.
- Ask whether the suppliers have been paid, and ask for a signed release from the contractor and any supplier who could claim against your home.
That last point is easy to skip. If a contractor takes your money and does not pay for the materials, an unpaid supplier may be able to file a lien against your property. A signed release lowers that risk.
What should the written contract say?
It should say who does what, with what, and for how much, in enough detail that a stranger could finish the job from the page. A contract that leaves these out is a warning sign by itself, however friendly the person who hands it to you.
- The full scope of work, opening by opening for windows and doors, or wall by wall for siding.
- The product by brand, series and color, not just “vinyl siding” or “double pane.”
- Who pulls the permit, if your city requires one, and who pays for it.
- The payment schedule, with each stage named.
- What happens to the old materials and who cleans up.
- Warranty terms for the product and for the labor, in writing.
- How a change in scope is priced and approved before the work is done.
Your city’s permit office can tell you what the work needs. Arlington and Fort Worth both post residential permit information, and the rules differ from city to city. Be wary of anyone who says you should pull the permit yourself “to save time” without a clear reason. Our permit guide explains the basics.
How do storm chasers work after hail or a freeze?
They arrive within days, knock on doors, and offer to handle everything. Some are honest local firms. Others take a deposit and are gone before the first repair. The pitch is the same either way, so treat any unrequested visit as a reason to check, not a reason to hurry.
If insurance is involved, talk to your insurer before you agree to anything. A contractor cannot decide your claim, and you should be careful with any offer to deal with the insurance company on your behalf. The Texas Department of Insurance home insurance guide explains how claims work. Our post on whether home insurance covers window replacement covers one common case.
How can you check a contractor before you sign?
Look up the business, read what past customers wrote, confirm the insurance, and ask for local addresses you can visit. Each step takes a few minutes and filters out most bad actors. Do them in that order, and keep notes so you can compare two companies fairly.
- Search the company name with the word “complaint” and read a few results with a critical eye. Our post on how to read contractor reviews shows what to look for.
- Ask for a certificate of insurance, and have it sent to you by the insurer or agent rather than handed over as a photocopy.
- Look up any trade license by name. The Texas Department of Licensing and Regulation licenses some trades, such as electricians and air conditioning contractors.
- Ask for the addresses of finished jobs and drive past. A contractor who cannot name a recent address is a poor bet.
- Get at least two other estimates and compare what each one lists, not just the total.
American Eagle Builders is a family business in Arlington that has worked across Dallas-Fort Worth since 1984. Our listed accreditations include EPA Lead-Safe Certified Firm, NARI, VSI Certified Vinyl Siding Installer and Qualified Remodeler, and you should ask any contractor to show proof of what they claim. Our free in-home estimate is a fair place to practice every check on this page.
What should you do if you think you are being scammed?
Stop paying, keep every document, and report it. Write down dates, names, phone numbers and what was promised. Photograph the work as it stands. Then contact your bank or card issuer about the payments you made, and file a complaint with the state.
The Texas Attorney General accepts consumer complaints through its consumer protection office. Acting early matters, because a paper trail and a quick report give you the most options. For a job still in progress, our post on how to hire an exterior remodeling company shows the hiring steps in order.
Questions we get asked about this
Yes. A deposit is common because materials may need to be ordered. What matters is that the amount and the reason are written into the contract, and that later payments are tied to finished stages. Be wary of a demand for most of the money before any work begins.
Avoid it. Cash leaves no record that you paid or what you paid for, which makes any dispute harder. A check or card gives you a paper trail and a way to challenge a charge. A contractor who will only take cash is a warning sign.
Not always, but it is a reason to ask why. A low total may leave out items other estimates include, such as a different window series, thinner materials, cleanup or permits. Lay the estimates side by side and confirm each lists the same product and the same scope.
Ask for a certificate of insurance and have it sent to you by the insurer or agent, not handed over as a photocopy. Check that the policy is current and covers the kind of work you are hiring for. Call the agent if anything looks off.
No one should. A free in-home estimate is free, and you should never pay anyone to receive one. Any deposit on a job belongs in a written contract that also lists the scope, the products and the payment stages.
