5 Red Flags to be Aware of Before Signing a Contract

  1. If a contractor pushes you to sign a contract right there on the spot. Before signing anything it is important to make sure you have read the document in its entirety. It is also important that you ask questions about anything written that seems confusing or strange. If you are uncomfortable about anything written in the document or have a bad feeling, it is probably best you look it over with a lawyer or someone who has a better legal understanding. A contractor pressuring a homeowner to sign a contract quickly, and on the spot is a red flag that there is something in there he/she does not want you to thoroughly read or see at all. Most proper contracts state “you have read and understand the terms and conditions of this contract,” so make sure that this is in fact true before you seal it with a signature.
  2. If a contractor promises some sort of discount for signing the contract now. Similar to number one, enticing you to sign a contract with potential legal issues and liabilities without giving you a chance to properly read the document is a red flag, again indicating that there is a good chance this contractor is hiding something.
    • Here are some examples:
      1. “We are currently running a special offer for those that sign a contract within the first ten minutes. They will receive 20% off the final cost of the project.”
      2. Another tactic often used is pricing an estimate higher than the price wanted and being quick to drop the price when the client says they do not want to go with this contractor.
  3. If your questions in relation to the job and/or contract are answered unclearly or indirectly. It is only natural to have questions in relation to a job that is being performed on your home, or in reference to wording on a contract etc. If you have questions for your contractor and they are not actually answering the question presented, that is a big red flag. If their answers are vague, reluctant or the contractor tries the old “change the subject” trick, this probably means your concern should in fact remain a concern. See our video on the importance of interviewing your contractor for more on this.
    • Here is an example:
      1. If you ask if the contractor is licensed and/or to see the license and they say something along the lines of “Yea I can send that to you later on after you sign the contract as our next step,” this is an example of an indirect and vague answer. Why can the contractor not present a license or license number to you now, prior to signing?
  1. If this “contract” is not actually a formal and written document. The purpose of a written contract is not only to protect the contractor, but also to protect you, the client. A contract that is sloppy, lacking detail, hand written, not thought out, and clearly not approved by a lawyer, is a huge red flag. It is important you make sure this document states how the contractor will protect you, your home, and the work being done. Warranties, disclaimers, contractor terms, and the customer terms should all be written out in detail within this document.
  2. If the contract requires you to pay the full amount up front and in cash. This is similar to number one and two where you as the client are feeling pressured to act fast. Receiving a contract, agreeing to terms, paying for the entire project and requiring cash all in a half hour time slot can be a bit overwhelming and cause a client to agree to something they didn’t realize, or want to. Some sort of deposit or money down which is a portion of the final cost serves as a way to again protect the contractor and the client. Requiring that you pay cash is the biggest red flag of number five simply because cash is untraceable and allows for no way to prove you have paid. This could lead to you loosing money and/or more pressing legal issues later on.

Chances are if a contractor has demonstrated one or more of these warning signs, you as the homeowner should probably avoid them. The Brothers that just do Gutters provide our clients with a professionally written document that clearly indicates disclaimers (including gutter installation, and delinquent account disclaimer), Brothers Gutters warranties (including extended options), the contractor’s terms and the customer’s terms. Our Solutionists© are very well educated and will not pressure you to sign on the spot. It is important to take these red flags into account when choosing a contractor to do work on your home. Remember that the purpose of a written, signed contract is to spell out all expectations and to protect all parties involved.