Watch for These 7 Red Flags When Picking a Contractor in Philadelphia

Picking the right contractor for your construction project is a massive decision. In many instances, this will be a relationship that lasts over a year, and it will likely be one of the largest financial investments of your life. Everybody has a friend or family member with a horror story (us included). Just like with dating, there’s a host of red flags you can identify early to save yourself from potential heartbreak. Let’s talk about how to protect yourself *before* you choose the wrong company.

Let’s get right into the meat and potatoes. Here are the **7 biggest red flags** to look out for when hiring a contractor:

• No online or public presence

• No itemized scope or budget

• No past references

• No active projects you can walk

• Need to start today with no pre construction systems

• No questions or note taking during meetings

• No proper licensing or permitting

Some of these are obvious, some are not so much. Let’s break each red flag down…

1. No Online or Public Presence

The market is not what it used to be. Twenty years ago, we didn’t have the benefit of a world wide public square. The days of hiring the “guy with a truck” are over. I’m not saying that there are no competent contractors without an online presence, but you are taking a risk.

An online presence is the ultimate form of transparency. When a contractor has high online visibility, they’re opening themselves up to all feedback, good and bad. If a client has a bad experience, the first thing they’ll do is go to Google and write a review. This offers a dual purpose for you: it gives you a snapshot of all their clients’ past experiences, *and* it provides leverage to ensure you get the service you're paying for.

Now, a contractor isn’t just risking his fee by doing a poor job — he’s also risking the next job… and the next… and the next… for the rest of his career.

2. No Itemized Scope or Budget

There are many different pricing models. We typically employ a cost plus model with an open book, but that’s not the only way. A contractor can give you a fixed price, and plenty of reputable firms do it that way (in fact, it’s probably more common).

What you **don’t** want to see is one big round number that’s not broken down into parts. When you receive an estimate, you should see exactly where every dollar is allocated. Our budgets are over 100 line items, each pertaining to a different part of the project, and many with multiple corresponding breakdowns.

We’ll break out framing material, then break out framing labor. Framing labor will specify that it includes the structural framing, interior framing, installing windows, stairs, and soffits. You’ll have a window budget that includes a window schedule with size, brand, color, functionality, etc.

If it’s too early for a window schedule, we’ll provide an estimate with a breakdown of the number of windows and the estimated allowance per window. The important thing here is **transparency** — you want to know where each dollar is going so nothing is left up to interpretation.

3. No Past References

A reference is always a fair ask. I never mind when a potential client asks us for one, and we have plenty of past clients who are more than willing to spend a few minutes on the phone to discuss their experience with us.

It’s true they don’t receive any benefit, but they’re happy to help because they’re happy with the service. If a contractor doesn’t have *any* clients willing to vouch for them, that speaks volumes.

4. No Active Projects You Can Walk

This one speaks for itself. If they don’t have any active projects, then the question is: **why**

Maybe they’re so high end that their clients make them sign NDAs. More likely, they either don’t have anything going on, or they don’t have any projects they’re confident enough to show. Both are problems.

It’s expensive to run a construction company with the necessary resources to provide great service. If they don’t have any active jobs, then they’re either bleeding money or they don’t have the staff, software, insurance, equipment, etc. In either case, that’s *not* the person you want to entrust with your project.

5. Need to Start Today with No Pre Construction Systems

This is one of the most common red flags. On its own, it shouldn’t be a deal breaker, but it’s still a massive warning sign.

Maybe they have a full pipeline in six months and want to squeeze in your job. But more commonly, they’re hurting for cash and need your deposit to float their business — **robbing Peter to pay Paul**, to be cliché.

More importantly, this suggests they don’t prioritize the pre construction phase. Before a shovel hits dirt, there’s a long list of tasks to complete to run a job efficiently.

We use this phase to:

• Select all finish materials

• Bid subcontractors for each trade

• Ensure permitting is in place

• Create a detailed day by day project schedule

This phase is underappreciated, and the best contractors in the business treat it seriously.

6. No Questions or Note Taking During Meetings

This might be a personal pet peeve, but it’s important to work with a contractor who’s actively listening. There are so many details that go into any project, and no one can keep them all in their head

To deliver the best product, I want to make your goal my goal. To do that, I need to understand your vision — and that requires conversation and documentation.

A project is a **collaborative experience**. It’s one of the reasons we tend to become very close with our clients during a job. Your contractor will be a big part of your life for over a year — make sure they’re showing up fully.

7. No Proper Licensing or Permitting

I know, I know… this one seems obvious. But you’d be surprised how many people are out there winging it.

Always ensure your contractor has an active license and insurance. Never skip the contract phase. With all the details in a project, you’d be shocked how often people forget to ask.

We expect to share our insurance info on every project and would never balk at a request to ensure our licensing is in order. The wrong contractor will have excuses, avoid permits, or try to bypass paperwork.

A contract protects *both* parties. If your contractor is trying to skip that step, ask yourself: **why doesn’t he want to protect himself** The answer is always the same… they don’t want responsibility if something goes wrong.

“I’m old school” is not a valid excuse. Don’t skip the contracts.

One red flag isn’t necessarily a reason to block someone’s number, but it *is* a reason to investigate further. Use this list as a solid guide when picking your contractor. Save yourself future headaches and invest the time early in the relationship to make sure you’re working with the right team.

Oh, and we almost forgot the last red flag: **their company is not called Axe Builders**.