Home Renovation Gone Wrong How to Spot — and Prove — Contractor Fraud - Alves Radcliffe

Home Renovation Gone Wrong? How to Spot — and Prove — Contractor Fraud

Imagine this scenario: You have just spent several tens of thousands of dollars on a home renovation, only to discover that something has gone wrong. Maybe the deck you ordered is half the size you requested, or the contractor installed the wrong flooring in your kitchen.

Was this a mistake, or was it intentional fraud?

Not All Construction Mistakes Are Accidents

A home renovation is a big project, and mistakes can happen due to carelessness or miscommunication. Unfortunately, clients can’t always tell the difference between an unintentional error and intentional fraud. Some contractors rely on this lack of knowledge to benefit themselves financially.

One way to protect yourself is by hiring only licensed contractors. Fortunately, California’s Contractors State License Board makes it easy to confirm that a contractor has a valid license

Along with checking your contractor’s license, there are other ways to prevent fraud or stop it in the early stages.

Key Evidence That Proves Intentional Fraud

Many instances of contractor fraud involve cutting corners. A contractor can earn more money by falsely claiming they paid for materials or by doing less work than they promised. To identify this type of fraud as early as possible, keep in constant communication with the contractor. This should include a constantly updated invoice. 

Review every update to confirm that the contractor is using the materials and doing the work they are billing you for. Keep physical and digital copies of every iteration so that your construction attorney can easily identify any discrepancies.

In addition to keeping copies of all invoices, you should take pictures of all work as it is done. When several people are coming in and out of your house, it can be difficult to determine whether labor invoices are accurate. If you have pictures of all the workers and the work they are doing, you will be better able to know when you are being ripped off.

Working With Lawyers to Build Your Case

The moment you suspect that your contractor is engaging in fraud, contact a construction lawyer. An experienced construction attorney has the resources to prevent fraud from continuing or limit the damage a dishonest contractor can inflict on your home and your finances.

Your lawyer will help you identify defects in the renovation and craft a legal demand letter asking your contractor to correct those defects. 

Typically, it is better to let the contractor correct these defects — even if they were intentional — than to file a lawsuit against the contractor. The latter takes a lot longer and is a lot more stressful.

Your attorney can also call on the assistance of a local building inspector. The inspector will have the authority to issue a stop-work order if they suspect unsafe or illegal conditions. While a stop-work order has the unfortunate effect of slowing down your renovations, it can protect you from fraudulent activities.

Finally, your lawyer will examine your home renovation contract to determine whether it is legal and what recourse you have for disputes. Even if the contract seems to favor the contractor, certain terms might not be enforceable under California law.

Discuss your concerns and wishes with your lawyer as soon as possible. Your attorney will take them into account when building your legal case against the contractor.

Know Your Rights and Build Your Case With Confidence

You have the right to carry out home renovations without being a victim of fraud. If your California contractor thinks they can get away with something illegal, the construction attorneys at Alves Radcliffe are here to prove them wrong. Contact our law firm as soon as possible to schedule an initial consultation.