Dealing with contractors is a common necessity for property agents, yet it can be fraught with red flags to watch out for.
From a reluctance to provide written documentation to suspiciously low quotes and demands for upfront payment, these indicators can signal a "cowboy contractor" who may compromise the quality of work, inflate costs, or even abandon the project altogether. Recognising these warning signs is crucial for agents to protect their clients' interests and ensure that property maintenance and improvements are carried out professionally and ethically — and reduce the risk that work will need to be re-done for extra cost.
A general rule of thumb is to get everything down in writing. This especially goes for dealing with contractors. Once they set out a scheme of work, make it impossible to proceed with payment or work unless the contractor agrees to the proposed work in writing for the agent’s records. Rogue contractors will likely be reluctant to document any of this information.
If the information is not documented, the contractor has the room to further swindle their customer by claiming they haven’t paid to cover all the materials needed, or that unexpected costs have arisen.
There’s cheap and then there’s suspicious. Agents should get at least three quotes for a proposed set of works. Three is enough to identify if one quote is ridiculously low, which will then prompt the agent to confirm why this is.
While the quote could be low because the contractor is new to the job and wants to get more work in order to establish themselves in the industry, it could be that the contractor is not trained to do the work properly or at all.
Particularly in the case of Electrical Installation Condition Reports (EICRs), cowboy contractors are likely to provide astonishingly low quotes. However, they won't have the necessary training to complete them properly. With the EICR avalanche very much upon us, this will become more prevalent across the board.
Fixflo's Network Manager, Dean Falvey, discussed this problem in our recent webinar on EICRs, noting that when the first deadline for them arose in 2020.
He said: " We saw a lot of electricians completing the work who didn't have that testing certification and getting friends or colleagues to sign off that EICR when they haven't even attended. And I think we can all imagine the risks associated with that kind of scenario. That was my experience. It was frantic. There was lots going on."
No contractor asks for the full amount to be paid upfront before work even starts. It is more likely that a reputable contractor will ask for an initial payment for the materials needed. The most common way a cowboy contractor would try to persuade an agent is to promise a discount if the full amount is paid upfront. If the agent is convinced and pays up, the contractor might not return to work.
A revolving door of subcontractors is never a good sign. It means they may not be being paid on time so are abandoning the project. It could also be that the team are working on multiple projects at once.
Tax-dodging is nothing new with cowboy contractors. They will ask for cash in hand or provide a “VAT-free price”. Equally, this is part of the reason they avoid documentation, which means the agent will have no consumer protection.
A cowboy contractor won’t know the trade anywhere near as well as a trained, reputable one. This includes an in-depth knowledge of building regulations, which are written in law. It’s likely an untrained contractor might dismiss the regulations as guidelines rather than rules.
Individual building certificates and documents, such as EICRs, GSCs and EPCs, are vital for a property to have. Without it, the property will be more difficult to sell on in the future. Not only this but safety of the building will be at risk without the appropriate precautions taken.
All businesses can be checked at the Companies House page on the Government website. Anyone who can view the company’s history will be able to see how solvent it is from the filing history.
A cowboy contractor will not be forthcoming about putting agents in touch with previous customers for references. They will usually show photos of the work they have done before, which isn’t always true, and explain that this should be enough to book them.
A tradesperson should have reviews online, too, which are worth checking. However, a real contractor could have the occasional bad review as well, so don’t rule someone out based on one review. Keep an eye out for any fake reviews—these won’t have photos accompanying them.
There’s nothing worse than thinking the work is done and then the contractor asks for more money. However, if a contractor is coming back with more and more jobs to add to the bill, it could be a sign they are trying to wring more money out of an agent. Get a second opinion if you’re not completely satisfied that the extra work needs doing.
Navigating property maintenance requires vigilance and a healthy dose of skepticism when dealing with contractors. By being aware of the red flags discussed, property agents can significantly reduce the risk of engaging with rogue or cowboy contractors. Prioritising written agreements, obtaining multiple quotes, understanding standard payment practices, and verifying a contractor's credentials are essential steps in ensuring successful and trustworthy collaborations that ultimately benefit both the agent and their clients.