3 Scams Contractors use to Con Customers & How to protect yourself

[@waynemcmasters3398]

I worked for a masonry contractor in Kenmore (Seattle area) WA and as we were veneering a building with 4" blocks, I noticed that every opening (doors and windows) needed a cut. I suggested to the foreman that had he started the veneer with a 4" or 12" cut on the end of the building, then every opening would have worked out with whole and half blocks, instead of the 4" and 12" cuts. The foreman informed me that "every cut was an extra". In other words, the masonry contractor laid out the block work in order to exaggerate how many cuts were needed in order to cost the customer more $$.....POS

[@brandonaitken1180]

Call him out.

[@charlesbrazeau5923]

“The contractor should invest more in you than you in them”. I will remember this for the rest of my life. So logical but sometimes forgotten. Thank you for your videos

[@Dirtmonkey]

Appreciate that Charles, thanks !!

[@ryerob741]

or at least a fair dollar paid for a fair dollar earned....as i was taught!

[@larrye]

Yeah, this was a good quote I'll try to remember too. Good people want to believe their contractors are good people too. And they want to give everyone the benefit of the doubt that they'll do a good job. That's how people get screwed over by scammers.

[@johngoosen1962]

You are only as good as your customer....Architect told me that about a client one day. You either have a proper scope of works pulled up or you have an arrogant/inexperienced client. In such a case you are screwed either way as ignorance is going to drive you up the walls....Qoute with appropriate breakdown of costs as you are going to explain yourself into another voice tone🤣🤣🤣

[@mjrwey]

I took a guy's cabinet doors out of house two days before thanksgiving, it was a straight up barter job, i'd provide and install his cabinets, he'd do the electrical in my small 900 sq ft house. He never did the finish electrical, so I took the doors back. His wife had him at my house that night to finish it.

[@WolfeBane84]

I love it.

[@loveny0711]

Thank you for all your videos. As an older woman who just purchased a home with a leaking basement, I find it very scary hiring any company to do a major project without getting ripped off, and having bad work done. I can't even get someone to clean my gutters properly. At least watching your videos gives me some sort of an idea how the project should be done. Thanks again :)

[@Dirtmonkey]

Glad to be of help, thanks so much Colleen !

[@TheReaL35]

My wife is my contractor, she has been taking my money for years.

[@Dirtmonkey]

LOL 😅

[@leanthonydodson4474]

😂😂😂😂😂😂😂

[@Cardinalfloors]

Lmfao

[@hdasfk1716]

James Pratt lol funny 😄

[@charleneh8084]

LOL

[@neilhillman6130]

I had a contractor just like that. This is how I handled him. I first put him in bill collection, second I put leans against the property, third I started a contractors alliance. This alliance allowed us to input bad debts on a information board. Surprisingly suppliers joined and in the end because we had bill collection and leans to prove non payment no contractor or supplier would work with him. This put him out of business. He took us to court and lost. Subs and suppliers have to work together to rid our industry of these scumbags.

[@brianwheway1933]

Neil are you based in the UK or in the USA I like what you have done

[@indigowarrior7842]

Sadly, I have had a few customers over the years who claimed the lamest excuse or no excuse at all and simply never made payment. I felt at the time that pursuing them in court was a waste of my time(when less than $1,500, derailing my focus and saying my proper attitude to move ahead. I have learned to screen people with a myriad of insightful questions including asking how they would handle a project that he/she did not meet their "standards" etc.. Once you learn lots about various personalities and what people believe to be of value, you can adjust your bid accordingly and insist you be paid ahead with a "reasonable" down payment and progress steps, so nobody is wondering what will/won't happen next.

[@supermrt]

A contractors alliance is a great idea, we had one 20 years ago in my industry and one company attended just to get a list of all the bad customers and contractors so that he could exclusively take all the work and charge anything he wanted - This destroyed the alliance and encouraged more scamming customers and contractors. So beware - end of the day you are on your own.

[@darrynfrost5400]

I would think with all that experience, you would know it is "lien" not "lean".

[@wq198mnr]

Indigo Warrior a few? Try 100+ lol.

[@prepperjonpnw6482]

Over the years I’ve dealt with many many contractors and customers and I finally worked out a solution that protects both sides. In simple terms I use an escrow type account just like when you purchase a home. If I’m the customer I put an agreed upon amount into an escrow type account. I can’t touch it and neither can the contractor. When the work is done and I sign off on it the money is released to the contractor and everyone is happy. If something goes wrong by either party it’s in both of our best interest to find a way to settle it quickly and through mediation instead of attorneys. Neither side can touch the money until both sides sign off on it. I can’t keep the money and decide not to pay and the contractor can’t take the money until he’s completed the work. There’s more to it than I have time to explain here but you get the general idea. It’s not perfect and there are some drawbacks but it protects both sides and keeps everyone honest. One downside is I can’t hire people that are just getting started because they usually can’t afford to float an entire job without some money up front. Upside is I tend to only work with people that have been around for quite awhile and have a proven track record. I have to mention that since I started using this system I haven’t been scammed or screwed over. And that’s all I have to say about that lol Cheers mates

[@davidjose2193]

Prepperjon ....”Capital Idea” mate! Most small contractors would add in interim cost to the bid under those arrangements...”cost of money over time” PLUS markup for added risk due to unconventional financial escrow concept.

[@zzcoool]

It is gut wrenching to watch this especially after being screwed by a dishonest contractor in the past. Thank you for great examples and even better tips!

[@Dirtmonkey]

You're welcome, sorry to hear that you had a bad experience

[@sebastiangdad]

After hurricane ike here in Houston i started to do fencing theres was a lot of work we were backed up for weeks 1 of the customer that had been on the list decided to go with someone else to do her fence she got screwed bad they used cement on the very bottom lots of dirt and topped it off with a little cement on top. We came in and actually removed about 60 posts just on the walk around. Turns out that lady was dealing with this contractor and the death of her husband at the same time not only that but 2 weeks after the husband past her mom died aslo. We came in and did the best we could to make her happy not tearing up any more than we needed to. And just put something back together right like it should have been done the first time

[@greybruce8309]

Dump and run will always find jobs because people will always hire them for cheap. Cheap work isn't good, and good work isn't cheap.

[@eak404]

Grey Bruce You get what you paid for.

[@BeccaTheBoring]

Grey Bruce, and then they change the company name and use that one supplier who is their buddy/relative to “prove” they’re a good company. Yep.

[@pacibaco]

Yes ! Should be a Bible verse stating that brother! Cheap is a dead end

[@jreal6948]

Right

[@vs74ralph]

@@eak404 If you are lucky.

[@lucidmoondust5210]

If I ever hired a contractor it would be to build a roundhouse so they couldn't cut any corners.

[@marythomson3110]

Lucid Moondust ha ha

[@MX-127]

Maybe they build a square house and cut all the corners

[@travislang3864]

@Elon Blunt exactly lol

[@fionafiona1146]

I'd ask my dad to recommend somebody as his friends still do construction

[@bonanzatime]

They could cut pieces out of it, like a pie.

[@davidford9010]

It's the other way around for me. I've had horrible customers that I've worked hard to get away from lately. Business has become increasingly better.

[@andy-jac]

I got ripped off my a contractor. So I followed his men and trucks on his other jobs. I turned him in numerous times to OSHA, Code Enforcement, ICE, EPA, Work Comp, DOT and his Bank. He ended up going out of business and almost to jail because he jacked me around for $16K. He knew I did it. I became his worst nightmare. Vengeance was mine.

[@vitalebattilocchi9387]

Rene Gade u still didnt say why he ripped you of.

[@rickytorres4213]

I think the dude meant how..

[@bengriffith723]

You care to elaborate what happened? How did he get 16k from you?

[@Sashazur]

Nice that you had the time to be able to follow him around constantly. Most people don’t... and you probably could have been charged with stalking!

[@skylarhunsaker5057]

Nice!

[@omadduxo]

One Way to prevent Scams like this is how many Companys are doing it here in Germany. You agree to a Contract and Price and the Costumer is putting the Money into a Fund that is overlooked by a third Party. The Contractor can get the Money for the Materials after handing in the Receipts and will get the Rest of the Money after the Job is done and everything is fine. This is good for both Sides because the Contractor knows that the Costumer has the Money to pay for the Project and the Costumer knows that the Contractor cant run away with the Money without doing anything. One big House Construction Company in Germany even has the Policy that they build the entire House without demanding Money for the Materials before the entire Job is done if you agree to put the Money in a Fund. But tbh, thats just possible because it is a big Company with enough Savings to finance this. But every Company, even smaller ones, should have enough Savings to pay Workers and Machines for a while before the Company is paid and you should avoid Companys that demand huge Payments upfront. A Company that didnt have enough Savings to pay their Workers for a couple Weeks is a huge red Flag.

[@Dirtmonkey]

Really interesting ! Thanks for sharing for viewing!

[@jeffsmith6371]

@@Dirtmonkey 3 party escrow for work YAY more FEES!

[@playdg]

We do that here, too. Good way to provide security for both sides. 3rd party is generally a bank or title company, just like is done with mortgages.

[@Shamanistical1]

omadduxo 👍🏼 It’s easy to setup escrow accounts.

[@frazzleface753]

Yes, but the rest of the world is not as efficient as Germany. And the third party would be just as corrupt as the contractor lol.

[@jimjones3370]

That first contractor that is going around suing will sue the wrong person one day. Many contractors are coming out of prison or jail and won't hesitate to put someone in the ground for pulling bullshit like that.

[@Aroundthehouse.]

......excatly.....

[@vanceplace1349]

As being in this type of business I’ve seen some shady stuff, my advice would be to go on the internet and research the kind of project that you are having done, know what kind of materials are commonly used and approximate amounts for your type of project. So if the contractor says he needs money for three times the amount of material that is actually needed you can dispute it and if they tell you they’re going to use the best or exotic materials check and see if you’re getting what you paid for because a lot of times you are not

[@harveydent7147]

I always take my customer with me or meet me to buy the materials so they can pay and I don’t touch that money. Then I have them pay me 50% half way and 50% at completion. They seem to be happy with this.

[@---cr8nw]

Another good option is to make Friday your "pay day". Pay on Friday or I don't show up on Monday. That way, you've never got more than a week's worth of labor at risk.

[@joea5183]

- - good idea. But if you do the 1/3, 1/3, 1/3 method, you won't have to get paid to pay your guys.

[@harveydent7147]

Joe A very true

[@paultubbs3510]

Dave Smoke that sounds fair. I usually add receipts if mat is at cost, 12-15% fluff to cover my drive, and I profit on labor. But I'm just starting out

[@stuartsmith5146]

Your time is worth something. Do you charge for holding their hand and picking out materials?

[@DaddyBeanDaddyBean]

Two little stories of things working the way they should. While we were writing up the contract to replace my roof, I told the contractor I wanted two rows of ice guard, because I have plaster walls & ceilings and get pretty big ice dams in the winter, better safe than sorry. He frowned and said well, we usually use one row and never have a problem, but if you want two, that will add, let's see, about $800 to the project. I agreed to that and we wrote it up. I later heard him telling his crew to put up two rows. One of them asked why, when they usually use one. He said "Because it's what our customer wants, and it's what our customer is paying for, so that's what we're gonna do." "You got it, boss." And that was that. The contractor is a relative, so I trust him and he trusts me, but business is business. When the project was underway, he found that an old disused chimney (from when the house had a coal furnace) was in bad shape. He suggested knocking the top off and roofing right over it. He figured the time & materials was about the same as all the work to flash and seal and shingle around it, so there was no change to the price... but we changed the contract anyway, putting in that detail to roof over the chimney. Business is business.

[@robertholtz]

In the first scenario, your attorney should've added $20K in damages in your counterclaim. Rare that you get 100% of the damages you claim but, based on your knowledge of the other two contractors he scammed and ability to bring that into evidence, you very likely would've been able to prove his intent to defraud you and collected at least $10K in damages over and above payment of your $20K invoice.

[@michaels3972]

In many states, fraudulent practices can be awarded triple damages. His attorney should have gone after him for $60K.

[@robertholtz]

Michael Shomate - You're totally right. Even better. Point is, he very likely would've been awarded damages if he'd pursued it. I wonder why the attorney didn't press for that.

[@DiscoFang]

Yep exactly. I immediately knew there was something very fishy with the story as it was told. A counter claim for damages would be so normal that this is not a complete story.

[@SIXPACFISH]

He may live in a State where you can only sue for actual damages. I hear that there are a few States like that. Those States probably don't have very many lawyers.

[@DiscoFang]

SIXPACFISH If that were the case then the initial law suit wouldn't have been possible. And if there were actual damages of $40K (for instance, a quote or expert assessment to fix a job that was done incorrectly) then the suit would likely have succeeded at least in part. I also expect that if that last scenario was what the client did, the scam story would have included that.

[@dzl6848]

I like how you're keeping it professional and not name dropping and saying im better. You're just saying you're doing it right and not screwing the customers.

[@0TransAtlantic0]

Holy smoke Stanley, that 10 year old wall looks fantastic! I am an electrical estimator, and I used to work for an electrical contractor who lived for change orders. Had to move on because I just can't do business that way. Really enjoyed the video, thanks for posting.

[@johnwicksfoknpencil]

0TransAtlantic0 Way to stay honest

[@elijahowens8507]

Long story short, I had a witch of a lady not pay me after cutting a big tree down that took all day. After playing nice and trying to talk sence in her for half an hour i dumped a full load of chips from her tree back in her driveway, a full trailer load of wood infront of the chips and then all the raking back onto the yard. I took her to court and won what i was owed minus $200 for dumping everything in her driveway. It was worth every bit of the $200 to give her a taste of her own medicine lol. The next day after settling in court i got a packet in the mail from the court TV show "Hot Bench", they heard about what happened and offered to fly me to California and pay me to go to court on TV through their show. If only they was a day faster i would have excepted for the free trip to California lol.

[@porkopolitan]

For what it's worth, I've read a bit on how those shows actually work and I believe Judge Judy is a developer of that exact programme (I know it's what she initially wanted to title her own show). So, since you came out on top, and it was worthwhile from your perspective to take on the $200 reduction, you have actually successfully managed to keep HER from substantial benefits she could have received. Not only would you have been sent to California, she would have as well. Right off the bat, you would be promised full financial coverage for any judgement against you (this makes it easy for the show to shed the management of payback programmes between plaintiffs and defendants). Lastly, submitting to the judgement of this programme's personalities (which you could not contest as part of the court system; legally called binding arbitration), could put your defense at risk of becoming a spectacle of TV drama. Accepting would not harm your finances (though your local reputation is not immune) and give you a free trip, but it would also very seriously increase her chance to earn a de facto right to martyrdom if she won, all after being given the chance to fly across the country so that a few personalities could tell her she was right on national television. Your story speaks volumes and I have no doubt that what you say is by and large true, but I'm glad you got what you were entitled to and didn't get the chance to let a story like this be twisted by court TV. Probably better too for your business, especially if your name is part of that of the business. To be honest, I'd much rather see any camera footage of you dumping the chips in her driveway if it even existed 😂

[@davep1856]

What was the quarts problem? They were her chips, it was her wood and debris.

[@toddu7293]

@@davep1856 clean up of the wood was mostly likely part of the price for the job so they deducted some money

[@andyflorianescarate]

Mr. Stanley, your information was spot on. I had a friend that was a GC and I started working with him and had to immediately STOP because he was doing all of those things. Glad you put that information out there.

[@rodyates1]

Over the years. I thought I must have encountered every conceivable scam, or twist that could eventuate. Never really got around to keeping notes, but wish I had.. The hardest thing was to believe anyone could be trusted to appreciate a fair deal.

[@richschaff5504]

I've been a civil engineer for 25 years. I agree with every word you said, particularly in commercial contracts.

[@Dirtmonkey]

Good to know I'm not alone.

[@vicsosa5703]

Hey, what type of work do you do, or what type of commercial construction do you do?

[@itsamysticlife3500]

Years ago, as a family business, had a fancy man from the big city contract us to build a pond and dam in front of his new house. When it came time to pay, he refused because it wasn't what "he wanted". So I was polite but told him I needed the money by Friday and he laughed and said "sue me". Monday morning at about 6 AM I posted a notice on his door with a deputy and our crew dug up the culvert pipe that was in the dam/driveway. We repoed the culvert since we had paperwork showing we had bought and paid for it, and a recording of his refusal to pay for the materials and extra work on this job. Got our money that day, and made him prepay to have his driveway repaired from the repo. After that, no local contractor would do a job for him without 50% down and installments. One guy even charged for stop job/change orders if he had to stop work and pull his equipment & guys because the fancy man dragged his feet with payments. Turned out this guy wasn't as rich as he wanted everyone to believe, and lost his house in bankruptcy a few years later.

[@ObiWanShinobi1]

My brother had a customer, similar to your first one, who flat out told him "I'm not going to pay you." He went in at night and removed every fixture he supplied. - another call; my brother says "YOUR what? - You haven't bought anything." He could have gotten in 'criminal' so - probably don't, but still a great story. Another one I had no part in - another customer got C.O. took residence and said "Sue me for your money." The contractor bulldozed the entire house. (Also heard he had no legal trouble, but I doubt it.)

[@jamesmonroe2525]

BS. Owner can have you arrested for material once installed under a contract

[@garethheathcote4988]

I would be very wary removing materials or wrecking my work what with the claim culture that you have in the US. There's a video on KZbin of a sub contractor here in England who drives a dumper truck through a hotel lobby he had been working on that was almost finished, he did it because he hasn't received his wages/pay packet though the employer claimed that it was just down to a bank glitch.

[@wogfun]

The first scenario is sadly common. I got scammed by a customer the exact same way. I was the 3rd contractor renovating a large home. She told me about how bad the last 2 guys were and how happy she was that I was on the job. Stupid me, I complete part of the job and instead of getting paid, get sued for double what I'm owed. I wouldn't call it a contractor scam because it was a homeowner that did this to me. It's just garbage people in general.

[@dippst]

i'm in the process of starting a landscaping company (intending to specialize in gravel driveway construction, repair and maintenance) and the story of you getting sued made me glad i'm refusing to do any work until my llc is finalized. already have business insurance but still better to wait until it's a bonafide company.

[@dirtmoney8740]

How’s your company doing?

[@jafll141]

I got one! If you are a customer you better make sure your contractor is insured.

[@jeffmays7192]

In 30 years as a General Contractor I cant say Ive had any negative encounters worth mentioning. But yes! These kinds of things go on constantly. I feel pretty lucky.

[@joseescalante9009]

Your first story that happened to me. After I got half what I was owed. I walk the sidewalk on the homeowners block warning other contractors in this new neighborhood. With a big sign no one else would do any more work. And since the sidewalk is public the homeowner came to me and said what can I do. I said pay me what's owed. He did. Never not fight for what your owed.

[@charlesmiller5078]

As always, good stuff. Sooner or later they will have to have a go between that cuts checks on daily basis, the owner pays this person in full for the job, then that person pays when the work gets done. Its always been a nightmare. Suing for double has been around along time.The people who do this, always look for a newer/small company. Our company repaired computer systems, if we had no history with a new customer, we stopped work every hour and had them write another check for the next hour. It got that crazy, some company's would just go through the yellow pages, call a company, get stuff fixed then never pay the invoice, next time they had trouble, they just called the next yellow page ad on the page, and again not pay the invoice. We stopped working for Lawyers and Doctors early on.

[@hunterdolanch8725]

Here is a story about a customer who refused to pay for his new shingled roof. The gentleman who had installed the shingles stopped at my friend's house and asked him if he would take a ride and be a witness, he agreed unknowing what was going to happen. The gentleman drove to the house where he installed the shingles threw up a ladder and started to tear off some shingles, the home owner came running out saying "what are u doing" the roofer said u don't pay u don't keep my shingles! Home owner went into house and came out with a check for the rest.

[@jabberon1831]

Matthew Dolanch. Washington state has some of the toughest laws protecting homeowners. If you did that here, you would be arrested. Sucks when a customer screws you over.

[@BlueOriginAire]

What if that same customer had given you a deposit for all the materials ?? What would you have done differently? The same ?

[@joer8854]

roofers can be hard ill tempered guys. Best to pay and move on as some can get real nasty when you screw them. I don't agree with it but I know one roofer who cut a 8 ftsq hole in a roof because the homeowner wouldn't pay. Hard thing to come home from vacation to.

[@JohnDoe-mh8tm]

Don't pay for your pavers or wall I'm getting on the dozer.

[@jasonjohnston5373]

This is theft in all states. Once material is installed is is the property of the owner regardless of whether they paid one penny.

[@Enonymouse_]

Stuff i've seen contractors do: Contractors may over-bill on a project, like charging you for 3 jobs worth of nails for 1 job so they can use those nails on 3 other jobs where they may either over-bill that customer too or underbid the next contract because they screwed over a previous customer on material costs. Sub-contractors will come in to do excavation job. They take all the good parts of the property - top soil, rock etc and bill the customer for removal of that stuff, use it on the next job site, bill the new customer for adding that stuff in (the customer assumes they bought it somewhere). Another excavation scenario i've seen; A contractor comes in to grade and or re-gravel/add gravel to a driveway at a new construction site. They spread disperse the 'shotrock' already laid out on the driveway area, they bill the customer to add that back into the areas they worked on and for the rock they haven't added yet but were contracted to bring in. The contractor who built my house, put the septic field in but did not install it correctly (it has to be put in with a laser level at a certain grade). They did not attach the waste pipe from the house going to the septic field. They left unattached and unsealed, covered it all up with dirt then put it on the market. He also broke the water line and didn't fix it, the neighbor saw it and fixed it. The county inspector being a complete idiot, only tests the septic fields ability to drain water from the tank itself, not from inside the house so nobody ever caught that issue until the first owner bought house and moved in. 15k of work later fixing it, the contractor and the county both deny any culpability (they signed off on all of it, including the bad wiring). This guy built multiple houses with similar problems. I could say more but i'd run out of room.

[@geoffreyreeks2422]

Hello, When I compose the Scope Of Work for a contract, I include: 1. The Specific Work; 2. The Inclusions; 3. The Exclusions; and, 4. The Method of Operation. Stating the Method of Operation is helpful because: 1. It states the intended method of operation; and so, 2. it enables the client and the contractor to determine if a change in the method of operation is a significant change in the agreed method of operation; and (if it is, then), 3. it enables the value of that variation to be determined. For example, if my client wants me to bring in a bigger excavator (than that stated in the method of operation) to reduce the work time then the cost to float in and out that bigger excavator is a variation cost to the contract. Regards, Geoff. Reeks

[@slickshal]

smart man

[@maencoch80]

Wow this info is sent from god , a week late but better late than never, I do finish woodwork and almos 50% of my customers I deal with always want things weren’t included... And me trying to keep them happy I end up doing it... Jdbenchmade.com

[@maencoch80]

Thank you Geoffrey reek

[@mikethomas4570]

Had a contractor tell me, after finishing patching a hole and putting a new roof on my house, that I owed him $1,500.00 additionally because of putting in new support beams etc.. I knew he was lying so later I crawled up in the attic and looked, nothing he said was done. He calls next day demanding to be paid, I told him what I did, he said he would take me to court, I laughed and told him I took a video while up in attic and would be happy to go to court, and would counter sue! He goes silent then says he would never do work for me again. No telling how many honest hard working people get stolen from by him and other contractors.

[@dougmartin7129]

Mike Thomas , always put in your agreement that change orders are only valid if presented in writing prior to doing the work and paid for at the time that work is complete. Any change with no prior agreement is not entitled to payment, it keeps the contractor honest and no big bill at the end of the project.

[@AlienRelics]

As if you'd every hire him again!

[@p51mustang24]

@@dougmartin7129 If you agreed to allow additional minor work to be done if needed (hidden things often pop up when doing a roof), you are totally on the hook for it. Unless of course it wasn't actually done.

[@philliphenry500]

m m

[@phillipj2044]

Put their name on here and address

[@divcleaningservice9522]

I was sub contracted to clean the windows through a cleaning company who was contracted through the GC on a $70 Million project. I submitted my first few invoices to the cleaning company based on the % of work I completed. They said according to the wording of the contract that I would be paid based on the % of work they completed on their whole cleaning contract. (2 years out) The difference was thousands of dollars. I stayed on top of my invoices and reminders. I got 5%, 7%, 15% Finally I went to the General Contractor to see if I could rework the contracts because my work was signed off completed and I was out of pocket the entire project's expense. Find out that the cleaning company had already submitted my invoices and gotten paid in full. They were using that money to float their expenses. Through a bit more digging I found out that the cleaning company is a franchise and the owner declared bankruptcy, kept the money, and corporate took back the franchise. He had done this to several other businesses. In the end I was able to get the General Contract involved. The GC put pressure on the franchised cleaning company corporate office. I was paid in full and the General Contractor started playing an active role to make sure all subs were paid.

[@howardfortyfive9676]

Shoot shovel shut up.

[@nikohaidl1671]

Learn what your lean rights are

[@ModernGolfer]

Need to spend some time learning how to negotiate agreements. Or hire a lawyer to do it. Negotiating deals is an entirely separate skill set that really needs to be learned. Same thing when working 'direct hire' (for salary or hour wages) positions. Take time to learn the skill sets of negotiations. It'll make (or save) thousands of dollars.

[@jturner5227]

EVERY contractor I have ever had, as soon I write the final check, the warranty and anything needing fixed or adjusted will NEVER get done by them!!! Don't give them the final check until YOU are happy with them.

[@bloodmoongrizzlythefirst6492]

Yes. a good walk through. Outfits that claim a 10 year warranty never honor them 90% of the time. Those outfits that have pre made plans and such that don't do the work themselves but have subs do all the work and a starting out General contractor in charge off those 10-20 year Warranties well they go out of business after so many years and start up under another name half the time.

[@p51mustang24]

@@bloodmoongrizzlythefirst6492 Most companies will not warranty work beyond the first year or so (immediate problems that pop up), even if they say they do. The ones that DO honor long-term warranties generally will be very expensive because they've worked it into the price. Just something to know going into it, and it's the customers fault for not knowing that imo. If you pick one of the lower bidders don't expect long-term warranty.

[@diyautoschool]

Thats because you where "CONned! Get it -- CONtractor -- CONartist -- CONman...

[@miacities1577]

Please do not give a penny unless the contractor will is following the law, because if you have to go to court and you, not the contractor, followed the construction laws then you will win as the Court and the Judge will follow the Law!

[@miacities1577]

P.S. Note, yes CONtractor has that word in there but it also has CONTRACTor in there too, so get a legal contract as per your state laws!!!!

[@masonandlime]

Awesome, honest and informative video. We have been fortunate enough to have worked with honest contractors/landscapers, but not before meeting and getting quotes from the "crooked" ones. Its up to home owners/investors to do their due diligence. Its not enough to get a few quotes, you have to know what the job entails from start to finish and consider the "what ifs". You have one more subscriber!

[@resourcefulgentleman6792]

Would you make a video on what you should look for in a home inspection. Buying a home soon and don’t wanna be taken.

[@old_romans]

True story: In Miami (FL) there is a construction company called Downrite Engineering who's owner has a yacht called, "Change Order"

[@AnnSisuLiv]

Miami is scam central. Put that f*cker on blast and let the name be known.

[@old_romans]

@@AnnSisuLiv I couldn't remember at first, but it finally came to me. I added it above. I know this information because I used to work auto parts for 15 years and they were one of our customers. The guy who worked on the boat was one of their employees.

[@darrendanger6853]

Yep, and the small Tender that goes with the Yacht is called "Original Contract".

[@Jamie-Russell-CME]

In WA D.C. a construction company was called Straight Up Erection Co. His yacht was called "Customers Wives".

[@richardwrenn3175]

Wow how arrogant!

[@fancentral4662]

Nice to see someone exposing the frauds everyone should know about.

[@Irish-Lorenz]

Last point about contests it so critical! Everything has to be in the contract, both what you will do and what you will not. Great video! I wish more people/customers knew this things. Would make it so much better for everyone.

[@Daynaleo1]

Stan, what an awesome video. I would love to see a video on how customers screw contractors. I was a remodeling contractor for 14 years and had no problems.. just some really minor issues. I had most of my real problems working for unscrupulous framing contractors by the hour. I have retired from my federal career and may start contracting again. Thank you sir. I appreciate you sharing.

[@KevinPolin]

I always work by the hour, too me it seems so much more cost effective. IU also understand how some people can take advantage of it, by claimign to work hours that they did not work.

[@MattsGarage]

Wow thanks for sharing. Been doing construction disputes for a long time and never heard of that first one. I would’ve fought it too. Good job. His lawyer is at risk of getting disbarred but other lawyers rarely push that.

[@Mack.of.all.trades]

One time we had a huge mulch job and the customer would not pay due to us laying the mulch upside down.

[@northtexasturfpros4083]

AJ9 hahah!! Now that’s a good one!! Upside down mulch. SMH!!

[@DerekAbello]

AJ9 lol. Well don’t lay mulch upside down next time! :)

[@UnenthusiasticPerson]

Seriously???

[@ricksmash8080]

AJ9 Why didn’t you go flip it over?

[@Blox117]

how do you know which side is up?

[@austinc124]

With over 4k comments, I will assume someone has already said this but I think it bears repeating. Your practice of what is NOT included is an excellent practice indeed. As a PM for DoD contracts, we always add statements of what is NOT included in our Statement of Work packages if there is any indication that something may be misconceived as being included in part of the project. It covers you, educates the customer as to where their money is going, and provides a realistic picture of what something ACTUALLY costs instead of the SWAG estimate they came up with in their head.

[@Batsonoutdoordesigns]

SO! Last Spring, I bid a retaining wall& flagstone stepper staircase at 23,000. Some random came in and bid it at 17,000. She just messaged me and asked if I could look at it because the wall is already bulging and the stairs are sinking. They did NOT backfill, no drain, and no base for the wall or stairs

[@easymac79]

They think saved 6K but are going to end up paying 10-20k to get it repaired and done right. At least they knew who to call - the person that bid it right the first time.

[@sillililli01]

She got what she paid for.

[@chucknostaw2819]

I am not in your line of work. I do try to DIY. I was looking for ideas for a concrete driveway and came across you. Man I love what you are doing And appreciate your opinion and expertise. Like I said I'm not in your line of work, but im subscribing to your channel. Not to mention the Challenger and the Stang. Peace bro. Thanks

[@Dirtmonkey]

Thanks so much and I am glad you are here!

[@dbfcrell8300]

I never have to worry about contractors. Can't afford them in any way, shape or form.

[@jimanderson2518]

Maybe you should get a job so you can buy something worth investing in ...now get the hell out of your parents basement and stop playing video games A-hole

[@HectorDiaz-xk7iy]

Jim Anderson actually nowadays kids are living the dream playing video games all day making KZbin $$

[@dbfcrell8300]

@@jimanderson2518 You're not serious, right? Do you know what they say about assuming things?

[@itsnetts]

@@jimanderson2518 Ok, so let's get this straight. This person is apparently and asshole that plays video games in his parents basement without a job, and you deducted all this information about him not being able to afford a contractor? It's the poor people who actually work the hardest, they have to, to be able to afford to live. Of course that's something you wouldn't understand, given your mindset.

[@whatismyusername6140]

@@jimanderson2518 you moron

[@Giggidygiggidy12]

1100 contractors can no longer scam as easily as they used to

[@howardfortyfive9676]

Make that *1,188 contractors* can no longer scam as easily as they used too.......

[@danfitzsimon9802]

@@howardfortyfive9676 OK guys, spill the beans...what do mean? New law? Mass lawsuits?

[@JimmysTractor]

It's how many thumbs down the video has.

[@danfitzsimon9802]

@@JimmysTractor Thanks for letting me know...

[@diyautoschool]

Im not a "CON"tractor and I thumbs it down -- because the guy in the video is justifying himself for silly nonsense! Anytime someone tells you a story like this is because something went wrong on his behalf.. Im sure this isn't the first time he's been sued!

[@thelegacyteam16]

I agree with most of what you said Stanley but i do like to collect half down on privet jobs to protect me if the customer doesn't pay in the end. I can eat my cost on labor but i never want to be stuck paying for material and get nothing from the customer in the end. We collect half once material is on site and machinery is dropped to start the project. Thankfully i have never had an issue and we have a great relationship with our customers.

[@web3036]

a $20,000 job goes into a down payment and four progress payments, the owner misses a payment you walk off the job untill the next payment is recived, make sure it's worded correct in your proposal, if the owner doesnt agree to the terms WALK away from the job, you're not in the business to finance other people's projects.

[@Stars333Bright]

I've built 2 houses and had good labour for all jobs but one. On our first house we parted company with the framers part way through because they didn't have the skills to complete the job. We settled on a partial completion payment and found new labour. After that I was more careful in hiring contractors that came with proven references. BTW, once I hire, I'm going to pay so I am careful on who I hire. Also, having a contingency line in the budget (possibly as high as 10%) allows for most problems to be properly looked after. Bottom line: Negotiation is better than litigation and everybody gets paid once hired.

[@bigcartoonyIIV]

Great tip. thanks man.

[@modyceech]

@kbamm69 its how business works I always have money down before a project starts

[@PrinceAlberts]

I had a water leak that had destroyed the back wall of my house because the builder's contractor didn't put the flashing above my back door and rain water was running into the top of the door and into the wall. The catch was that I was stationed in Japan and my wife was here, so I had an agreement with him that he would come back and make repairs that she would pay him for. He never came back and when I returned from Japan the wall around that area had deteriorated. I ended up hiring another contractor to come in, tear down the 2nd floor balcony, repair the wall, and replace two back doors for about ten grand. The first contractor is no longer in business, but the second was awesome. When he saw that the job was going WAY above and beyond the scope of the contract, he worked with me on a handshake and finished the job, letting me make payments to pay him off. If it weren't for him, I wouldn't have been able to pay for the repair and may have even lost the house.

[@moof2]

The problem I have in my community is that it is a small town and the few contractors that live nearby are swamped with way too much work. Consequently they never answer their phone, they overcharge and cherry pick all their jobs, and they always look for changes (as you observed) where the upcharging is astronomically expensive. I have learned this only after talking with their previous customers that I learned about as they were working, them thinking that they would get a good review but not realizing that I then learned about that all of their previous work had serious upcharging. This was all residential.

[@michaelgross36]

Seen a contractor get 9 years one time taking deposits for work and not starting or finishing jobs. Idiot guy, he was ripping people off people who owned beach houses and waterfront homes. He was supposed to do retaining walls and bulwarks some boat ramps as well. Those kinds of people can afford good lawyers. He actually tried the "I'm just a bad business man" line. Judge wasn't having any of it and gave him 9 years. The people he scammed stood up and clapped as he was led away to prison.

[@ILoveAnchovies334]

like Bernie Madoff ur contractor made the mistake of stealing from rich people. If you want to get away with being a scammer then rip off the poor. Don't hate the playa hate the game.

[@kylelove927]

@@ILoveAnchovies334 ... EXACTLY! Your statement is as true as the sky is blue!

[@judyblackman4468]

@@ILoveAnchovies334 so bcuz you're poor equates to you being stupid, or unknowlegeable in this field? Yeah, right!!!

[@mikesimmons3876]

@Judy: Did he say that you dumb biotch? He said they can afford lawyers which most poor people can’t afford. Now, get back in the kitchen and finish our sandwiches...

[@judyblackman4468]

@@mikesimmons3876 yes, he did, you dumb ass!!! As far as I'm concerned, make your own sandwiches, or starve. Empty vessels make the most noise!

[@needsleep1207]

I am a starting sub contractor buisness myself soon, after working years with a large contractor. There ARE many good, honest, skilled contractors out there, but you have some truth. Their are 10 times as many bad, scam artist or unskilled, underbiding contrators out there. Its truely the customers duty to wein out the bad and find a good contractor. A "bad contractor" usually comes with a low bid. That could indicate undercuting pricing(which will increase later) or unskilled "cheap" labor. Your never paying someone for time, you pay them for knowledge and skill in a profession. A good contractor will never hesitate to show you 'where the money is going' and most of the customers money will go in the labor of the skilled, trained, and dedicated people of their craft to do your job correct.

[@caliv0608]

Never thought contractors would screw over their own. That's extra special messed up.

[@MegaStairman]

You as a sub are .ore likely to be screwed by a contractor then a customer that isn't one

[@howey935]

I’m a painter and decorator and have been screwed over a few times by contractors. Now I only work for contractors I know and trust.

[@Teporame]

Have heard of snakes eating their own. Well, there you go...

[@nickboylen6873]

They’ll steal the very tools out of the businesses they rip off, leaving them unable to work. Sadly, most contractors in the UK are common thieves.

[@moniquemonicat]

Stanley, your dad is a MAN OF HONOR for standing up to this crooked contractor. Keep following in his footsteps.

[@Dirtmonkey]

Thank you !

[@dandcarter]

Moved to Giddings, Texas about 6 years ago. Out here in the country, the 800 foot or more water line from the road to the house separated at one of the compression joints. Called a plumbing company who dug it up at the joint and, as I watched, replaced that joint by creating what I would describe as a U-shaped joint. This U-shaped joint contained 3 lengths of pvc about 6 inches long, connected in a U-shape using 2 90 degree elbows. To connect to the line, they of course added 2 more 90 degree elbows. And it seemed to work fine. At first. But then another compression fitting blew, and they replaced it using the same technique. And another. Each trip costing about $300. After each replacement, the water pressure at the house became lower and lower. As water pressure and flow tends to do when introducing additional 90 degree elbows. The water slams into an elbow which diverts it 90 degrees, over and over again, slowing it down! And after the most recent trip, our water pressure is quite low, where even one of our commodes fails to fill due to low pressure. And I've realized that this company's scam includes an expectation of our having the water company coming out here to increase the pressure at the street valve in order to provide adequate pressure and flow in the home. Which of course results in the remaining compression fittings blowing out due to the increased pressure! And more $300 charges to fix. And eventually, having the plumber replace the entire length of line for over $2500! People, please WATCH your contractors as much as possible. Something like a plumbing job that may last a couple of hours may be worth taking vacation time in order to see what they are doing. The owner of the plumbing company has not requested the late payment on that last service call. It has been at least 2 years. He knows that I now know what he is doing to the people of Lee County Texas. P.S. - With the lower pressure, we have not had any further blowouts. We can live with it like this for awhile, but I'll be replacing the 800 foot plus water line by myself. Perhaps in the Spring. Without U-shaped joints!

[@davidjose2193]

dandcarter ...I live in Seguin...I think I know who you are talking about.

[@chuckbailey6835]

I would say you have more leaks it doesn't matter how many 90-degree fittings you have in the line that will not decrease your water pressure. Water leaks do not always come to the surface right away

[@emmettbohannan1217]

Here in Texas, those that dump and run with your money, can be filed on for criminal theft of services...Depending on the amount, it can result in a felony....

[@codered5431]

Emmett Bohannan should be like that every state an province

[@actionsportster7686]

Emmett Bohannan & Jessy James: No legal protection, statutory or otherwise, matters if the contractor in question is broke. You can't squeeze blood from a turnip, as they say. A court order or judgement against the contractor is worthless if the contractor doesn't have the money to pay you.

[@Boomer8789]

I wish Michigan was that way

[@muneerjallouq3217]

The state of Texas also allows you to place a lien on the business or even the personal property of the business owner in certain cases to force them to pay up. It just depends on how much time and money you want to spend or can afford to spend.

[@mrfoofoo3011]

This can work the other way around as well. If a customer decides not to pay you the final payment, in hopes you wont sue them

[@lukearts2954]

condominium scam I know an investor who applies a very nasty strategy, and he can keep doing it because he just travels all over the country, doing multimillion dollar projects one after the other, but without seeing them through. Here's how he does it: He'll start a project with unfinished units that people can buy on plan (and after the project is finished, they can finish the units to their own needs and desires). He calculates a break-even at 25% of units sold. Once 10% of units are sold, he starts a "venture of co-owners" (don't know the proper word in English, sorry) where all owners become shareholders. Every sold unit is then translated into a certain share of the total project, and all owners become equally responsible for the completion of the project. Sounds great, but therein lies the trap. He's the one with the big project budget, so he's needed to complete all common areas, and structural work for the entire project. But once he reaches 25%, he drops in the board meeting that he is considering to drop out, and is offering the remaining shares for sale. Usually the people don't fully understand what is going on, so they refuse at first, which seems smart, but it's already too late, the trap has already sprung. When 30% is sold, he comes with a story that he's going bankrupt, and that he has to sell the remaining 70% of shares, but that the banks won't allow him to sell under the price. (which is b.s. but most home owners don't realize that). So all co-owners are suddenly forced to come up with 3 times their original budgets in order to have the budget to finish the project in its basic form. And sure, if they can, than all of them can make a profit from selling the other two units (because it basically means that every unit owner suddenly has to buy 3 units). But in most cases, they can barely gather the budget to buy all the shares, and the project fails when contractors can't be paid anymore and stop working. This scam works, because at first it seems interesting to be in charge over the project, and to determine the policy of the projec that you have invested in. And he gets away with the dumping of the shares because people don't realize that to realistically estimate the financial impact, they should not only count the purchase of the sales, but they should each individually feel 100% responsible for the complete cost of the entire basic project. Because once one owner can't keep up with payments for the work, they all fall like dominoes, and unless there's one very potent co-owner who can carry the load of the entire condominion, the project will never finish, and they won't even have a unit to sell, so everybody loses all of their investment. And the investor has already started his next project, 200 miles away, looking for new victims. I have done some engineering work on some of his projects, and if I had been the one picking the customers, I'd have kicked him out faster than he could introduce himself.

[@qualitycontrol2086]

So report him - it's the right thing to do.

[@lukearts2954]

there's nothing to report. People sign in freely, just not knowing the real consequences and risks.

[@sculturo]

do you mean president Trump? this is his tactic.

[@markhooker8520]

Where? What state? Which counties?

[@kasdfg776]

For someone whose first language isn't English, if that's the case, you're doing a damn fine job with punctuation and spelling.

[@hasanmatthew5204]

I work in Detroit. Common is half the labor cost down and then we order materials in phases and have the client sign off on it before we finalize the order with our supplier. Too many clients will stiff their contractors on labor and keep having small guys finish the work in phases.

[@johncavallaro2656]

I’m a subcontractor 1 time I had a contract with a general contractor for 50,000 after all the work was done he said he could only pay me 30,000 That is a scam general contractors use to make more money on projects. It happens a lot more than you think.

[@frankrizzo1433]

Funny story NOT! I knew of a strip mall developer who was nortorious for screwing small subs. The Developer always looked for small subs to work with.Usually this developer always looked for new subs and gave the new subs huge amount of work. These jobs could make or break a small sub. The Developer would offer a small sheetrock sub a job with a MILLION square ft. job. Nice job for a new sheet rock sub to get their business up and running. The Developer would never pay the sub and just run the subs around until the subs either gave up or closed up! Well I guess the Developer double crossed the wrong sub, one day the Developer got into his car to go to the office. Well, when the Developer turned the key, his Mercedes WENT BOOM! I guess the Developer crossed the wrong Guidos! :) Its much easier to be nice and professional and have a clear conscience!

[@AW-xg4zn]

As a subcontractor, I couldn't disagree more about the contractor needing to have more investment in the project than the customer. Talk about red flags for not getting paid. If you don't want to front the money for at least the materials for the project, I'm not interested in trying to finance your project in the faint hope that one day I'll get paid for my labor. Maybe that's a good way for the customer to handle things, but I don't run my business that way and I don't know anybody who does. Of course, I'm not financing 20k+ projects only to get paid out for half that amount after court, so what do I know.

[@moose9906]

"More than the customer is relative". At the beginning that might be true because of material purchases. Hold backs on a contract are normal and as a general contractor, I can't tell you how many subs have gone bust in the middle of jobs. If one of your subs goes bust, you better be 15-20% ahead of them because it will cost you that much to replace them.

[@AW-xg4zn]

@@moose9906 Gone bust in the middle of the job after being paid? I don't typically handle supplies/materials for large projects, (I don't make money from selling materials / I don't collect sales tax, etc, I let the customer handle that) so going "bust" in the middle of a job for me means ... what? Not being able to show up and actually do the job after being paid for it? And if your sub went bust in the middle of a job because you didn't front any of the money for the materials for the job... how did you lose out?

[@moose9906]

@@AW-xg4zn I didn't lose out because I did it right. Many do lose out because subs are famous for taking on more than they can handle and then shuffling between jobs, delivering late or doing rushed work that needs to be redone. If they are paid in advance of anything they complete you CAN be burned. For example. You hire a drywall contractor to do a job. You buy the materials (instead of him), he puts the some interior walls in the wrong place, now you tell him to rip it out and do it again, he tells you he can't afford to buy the materials to replace his mistake. Now you either eat the loss or you have a legal expense. Many are also underbid jobs, get in trouble and go bust (can't complete, file bankruptcy etc). It is very common. There are great subs and if you find one you have hit gold but there are many more who are bad. Until you know which you have, a more conservative payment schedule is advisable.

[@AW-xg4zn]

@@moose9906 Conservative payment schedule, sure. In my business I don't get paid anything until the work is done and usually on a NET30 basis. That's about as conservative as it gets. However, MY money isn't tied up in the customer's materials. If I did a job and the customer wasn't happy and asked me to completely redo it for free, I'm pretty sure I would also decline that invitation. Who can afford to do business that way? Should I charge my customers based on the assumption that at some point I'll hit a customer who isn't going to be happy no matter what the completed job looks like and I'll be able to make him happy by completely redoing it? That seems expensive. If you run your business that way, I can see why you can deal with settling after court for 10k on what was a 20k project. I don't.

[@phoenixrisin2269]

Aubrey Watters I always ask for cost of materials or home owner buys them plus 50% labor up front and I get it. My reputation has been built over years and I have no need to advertise. I usually am called to fix other contractors work. It’s a pain trying to fix someone’s horrible work but it pays well.

[@nspctor7729]

A major developer building 100's of mid priced houses. Pays his subs promptly at the BEGINNING of the project. After so many houses are completed, subs get charge back for so called 'DEFICIENCIES' the developer's service department had to correct without informing the subcontractor. Net result...developer gets a free house every 10 houses he builds. The reason I have never worked for a major developer/builder. Stay safe out there gentlemen. Cheers,

[@Graffenwehr]

I'm an architect and use AIA contracts only. For home owners reading this, I suggest you purchase the following book: Contractor's Guide to Change Orders (1987, ISBN 0-13-171588-7). It's an old book - but very illuminating to those who are not familiar with the things discussed in the video. Also, beyond the things the host said, you also want to focus on Retainage (a percentage of monies owed to the GC, paid by the owner but held in escrow until the project is complete; ensuring his motivation to finish). Also, you should ensure that the GC is both fully insured and Performance Bonded (meaning an insurance company is backing him to finish the work; if he fails you're the beneficiary), and (as mentioned) a clearly defined scope of work written into the contract. There is nothing wrong with clearly defining all aspects of a job (both in and out of scope) - it protects everyone involved. And as mentioned - take the time to do your due diligence on everyone involved in the project (customers, GC, subs - everyone). With the internet available, there is no excuse for getting into bed with dirt bags anymore. Everyone needs to eat - except the dishonorable (whoever they are) - they need to be removed from the equation.

[@JimsEquipmentShed]

A young gun I know ended up using all of his credit on one job, and when the work was done, he got paid for the labor, and stiffed on the materials. He didn’t have enough money to continue on, or to sue the a-hole and actually win. He ended up going out of business over some jerk Home owner that knew how to game the system.

[@readbetweendalines9085]

JimsEquipmentShed I'd be ripping all that material back out. Screw that.

[@Nothingtoya]

Years ago I did work for a home owner. It was the last time I ever did work for a home owner.

[@JimsEquipmentShed]

Just working for General contractors now? Thats what this guy ended up doing. His credit got better, but the sting of getting screwed over like that took the love out of having his own business.

[@ktajax]

I hear that. This is why I'm not in total agreement with what he says @11:00. I will never shell out money I'm not willing to walk away from. Customer finances their project, not I. It's too easy for customers to not pay.

[@JimsEquipmentShed]

Yea, I agree with you, I'm not in agreement with that statment at all. It might work fine if you are a large company, but for a one horse show, that can get dangerous fast. Actually, the last company my step son worked for had about five guys working for him, and one really big job took the owner down. This guy was kind of a fucking dope, and spent money on boats when he should have been creating a buffer, but everything is all roses.... until it aint...... From million dollar homes, to not paying his guys for a month. The guys were showing up to work with out pay, because they didn't really understand that this was the final nail in that coffin. (It never got better, and they all lost out when it went belly up.)

[@billiamc1969]

I've been burned by several homeowners...we tradesmen have to watch out who we get involved with and the initial meet and greet is a critical time to interrogate the job and client to try and get a feeling who these people are...one bad feeling and I'm out the door!!!

[@Dirtmonkey]

Thanks for sharing 👍

[@KevinPolin]

I always take smaller jobs and I tend to get paid every couple of days, or daily. Ive only been hit once.

[@AdeptHomeInspections]

That's the same tactic that I use when dealing with homeowners.

[@therealmichaelaguirre6722]

Meet and greet ain't enough...errors can make friends go bad.. even good friends. Get facts...credit checks and so on.

[@CPreacher40]

we had some contractors interrogate us finding out we owned a few rentals and ending up charging us more for it thinking we are rich just for owning a few rentals when we don't make much money off them since we can't charge much in one of the poorest counties in the state yet we pay some of the highest property taxes. they charged us a fair price on the first job and a crazy amount on the second job.

[@jfjerez]

This happen to me... I contracted the backyard to be done, Swimimg Pool, Gazibo, complete concrete backyard, electric, BBQ kitchen. I even created the design on cad and 3D walk modeling. I was very specific what I wanted, exact design, the 3D print looks soo realistic that almost see it in person. We were set to a price, I pull the money plus little out of my 401K. Started the job, I give him some cash to start (last that 1/2). During the construction I paid direct the sub-contractors, all appeared to go good, he dig the hole for the pool and there I noticed he had to bring more equipment to crack to stone ( I like to clear that before he gave me the price I said, if he was sure about considering that I hear other houses in my area they encounter hard rock and it was difficult to make the pool, he said no problem he will not change the cost). He installed the pipe and installed the pump he started the bbq chicken and looked soo bad done that I questioned him the plan, he kind told me not to worry but, he needed the final balance to complete and buy the rest of the job. I fail d to notice the scam and I released the balance ( only reason I did is because by that time I had all the concreate portion done, I see lot of material stored ton of bags of cement, wood, pipes etc.. so I figured I had in my possession good inventory. On day I faced him why it was taking soo long to finish, some times she only showed to work twice a week and the rest nothing, so he said he was short of people and he was finishing another job and was to get more money from there to complete my, in fact he had the nerve to ask me for a loan so he can finish my job. Of course there I said to him, sorry but that was not my problem, he needed to finish and soon, no more excuses. Very next day he came and collected his equipment and left forever. He left me with a hole in the ground, a gazibo not even started, and the bbq so bad shape that in the end we had to destroy it and start over. Lucky a friend of my in construction gave me a break, we use what inventory I had and finished the pool, the gazibo and the bbq. Is a paradise, I did the electrical (I have experience), and I had to spend about 10,000 more from the original budget. Learning from this. Investigate the Contracter ( after the fact, I was not able to sue, find anything about him nothing I was able to do), make sure the contract is exact what is and what is not included, agree to maybe 1/2 and the rest till is finished. Your information is incredible useful, I just witch I had it before. Thank you

[@Dirtmonkey]

Thank you for sharing this Jaime and thank you for watching

[@markdoumert4840]

Good story. Its those lowlifes that give us hard working tradesman a bad name and make our jobs harder.

[@ExplorationRandomDestination]

I’d let the bodies hit the floor as the song says.

[@WolfeBane84]

The real question is why the hell didn't you go to your friend in the first place....

[@roflstomps324]

We had a dump and run on the property that we bought last year. The dump and run happened two years before we bought it but this does explain the massive load of materials just randomly on my neighbor's and my property line. All of it was still on pallets but it wasn't covered and was, at this point, junk. So, I was left with about three tons of shingles, rotted wood, caulk, nails, and solid buckets of breached cement and cement bags. Luckily, I have a loader. It took me a couple of hours to move it all to the back and use it as the start of my back stop. Thanks for clearing up what actually happened. To me and the neighbor it was the most curious thing...Now it makes sense.

[@Dirtmonkey]

No problem, thanks for watching !

[@freddiedename9923]

This is spot on video, good job. I am currently a union tradesman. I am in the process of structuring my business and obtaining equipment and vehicles. The rest of the year is dedicated to making this happen, meeting with accountants, attorneys, equipment reps. I am extremely nervous and safe to say a little scared, I have a nice cushy career, just show up and make the company money. People are saying I’m crazy, but I want more from life and want to contribute more to my community, I want to operate a business with integrity, we want to bring our customers vision to life. These videos from all the owners that share how the business they operate runs on KZbin is free education and motivation, Thank you for investing the time to create enlightening content and congratulations and continued success. Diamond Landscape contractors INC. will be fully operational spring of 2020 🙏🏼 “ A cut above the rest “

[@Dirtmonkey]

Thank you and thanks for the comments!

[@chrischapman276]

You mentioned about the change orders and our contracts between us and the gc. MECHANICS LIEN is always an important safe guard at the beginning of any large job for us subs. Sure wish I had the time to let people know the things I've seen as an electrical contractor and the scams I've heard of and seen. One is a service call of power is out in a certain area of a residence. Something like 2-3 plugs in one room and maybe one in a room next to it. IT'S ALWAYS A LOOSE NEUTRAL...OK, maybe more like 90% of the time but....a local contractor in my area will not find the simple solution. He goes to the main panel, finds the wiring going into the wall above the meter panel, locates its neutral wire and maks a very slight, but enough to not carry current cut with his wire cutters. Tells "Mrs. Smith" and shows her the little unexplainable cut in the w"worn-out wire" that's unrepairable and will charge an outrages price to rewire the circuitry. That's just one example of this thief making us HONEST contractors look bad. and I've got more about this guy here in so cal.

[@godbluffvdgg]

I've been a contractor for 30+ years...I learned long ago to stay ahead of the customer, Once you lose your leverage, you can really get hurt...I've been to court 4 times...Won two, lost two...The two I won; I went pro se...I will NEVER hire a lawyer again... Always get your money before you work...Commercial always wants to pay afterward...I've had them write me checks from corporate..."Oh, we never do this" ...LOL...Too bad...Write the check...

[@joecotnoir9870]

As a customer, I'm never giving 100% of my money up front. That is how I lose leverage. I pay for materials and part of the labor. I want to see the materials and you starting the work. Then I'll give you more of the money. Once the job is more complete, you will get the rest. This is best for both parties. You don't pay out of pocket for the material and the customer has materials if you run. Then it is just paying for the labor in chunks as it is completed. This is for big projects. Little projects like a deck I'd do 50% upfront and 50% as it is close to being done.

[@godbluffvdgg]

:)...You misunderstood me...My fault. My statement of "always get your money before you work" only refers to how the draws are set up...On projects above 50K I do 20% draws, Below that I usually go 30%, 30% after rough in and inspections, half balance after drywall, Half that balance when millwork installed, balance on completion...I live in and work in the philly area NOBODY is giving you all the money up front...:)...

[@godbluffvdgg]

Just the contract with the draws laid out...If they default on a draw, the job stops, and I'll not lose anything...Never ran into a renter paying a contractor to do work...Fake checks are a serious offense and a felony...The law takes care of that stuff...~knock on wood~only had one bounced check...I like cash now...

[@godbluffvdgg]

If you are the homeowner, You might get it right after you apply...They change so often down there...I'm in DELCO now...I never pulled a permit for concrete in my life...Only for additions and major alterations interior or exterior...If it only takes one or two days...FAI...Fly As is...

[@godbluffvdgg]

Moskalenko eh? ...Sounds like the Great Northeast...:)...Like Grant and Academy...:)

[@highster]

This guy is great. This is exactly what I have been telling clients for decades. As a Building Designer it constantly amazes me to see clueless homeowner run their own construction projects. You know..........to save money.

[@Dirtmonkey]

Appreciate that, thanks for watching!

[@thill2570]

I do heavy construction and if I need to do something to my property I will always do it myself so I don't have to deal with contractors and issues with the job not getting done

[@Dirtmonkey]

Then your one of the skilled ones that don't need outsiders. Thats awesome and lucky.

[@zogmandowsky]

As a somewhat ‘regular’ hiring ‘trades’ an contractors, as a homeowner, I’ve determined there is no quote good enough to cover all of what is discussed. I make my own contracts, require a signature, and a copy of their drivers license. If they don’t sign and provide me their drivers license they don’t get the work. I’m tired of all of the ‘talk’ about what they are going to do-but do not put it in writing...I have to put in in writing for the both of us! Thanks for your insight!

[@wb5mgr]

Another scam that happens all the time, happened to a friend of mine when he built a house. Contractors will take excess materials from other jobs (like fill dirt, landscaping materials, etc) and use them on your job when you did not really require them. His contractors brought in $25k in excess material that was not needed for foundation preparation, and after the foundation was poured they told him, " we got a good deal on it for you because we bought it off another job. But we can't return it. " so they just spread it around and charged him for it. Sometimes they also might take maternal from one job "where it's already paid for" and carry it to another "where they also charge the second customer... then have the first customer buy more because he ran out... Rent jobsite cameras to protect your property from theft and your contractors equipment from vandals...

[@Dirtmonkey]

Good input and thank you for watching !

[@Peterbilt359]

Great video, good advice. I'm an excavator in Utah. 90 percent of my work is with 3 generals who I know and trust. If I get a bad feeling I walk away. I've been burned years ago. Developers are the worst they are smart enough to know how to get you. Most homeowners are ok. Old general told me 25 years ago, we like to work for people who spend other people's money. Schools, cities, churches. I've spent years developing good relationships with owner reps, architects, civil engineer and generals. I do over a million and half a year with one owner through 3 generals. When they say jump I say how high.

[@Dirtmonkey]

Thank you and thanks for the comments!

[@Handyman247llc]

While I agree with most of what you say and I rely on your years for exspecance to educate me in areas I know nothing about. I fine the Statement saying "Contractors that need 50% money up front are not a wise choice/are not trustworthy or are not a good business to be dealing with" (Something along those lines) . I am a "small business" that does the small projects under 5k. I do not have a line of credit with suppliers or the bank, or anyplace. I have bankrolled three projects and got burned each and every time by doing so (lost 4K time, materials and hardship). My business requires 50% down and remainder upon completion. My work is solid, I back my work with a !00% Guarantee I am with the BBB.org, my business is a legitimate business. Statements like that kill good honest contractors/handyman services. Stan I understand the point your trying to make and to some extent it needs to be told....

[@Dadnatron]

As a customer, I would have no issue paying for materials laying on my lawn. But I would have an issue paying for the hope that you would bring them and finish the job. I'm not saying you are dishonest. But I am also unwilling to watch a contractor delay then disappear. I would stand on my lawn and when the materials are laying on the ground, I'd pay for them. But why should I pay for work 'yet to be completed'? The big issue, for both you and I, is that there are both scamming contractors and customers. And I think there should be a way to insure we are both protected. How am I, as a customer, protected, if I write you a 50% check up front? I'm not 'bitching' at you, I am asking you for your opinion, so I can deal with contractors better.

[@2drsdan]

History. List of pleased clients with phone #s. Site visit of the last job. At that point, you the customer have a reassurance of job quality and character of the contractor. 50% down is standard and depending on job scope is not just for materials but will cover payroll as well. There could easily be videos of contractors who front their employee labor to a non-paying client and guess who gets the burned out of that mess. The poor guy who lives in a trailer house and trusted his boss to make solid contracts. If you are just starting out on your own as a contractor and you don't have the list yet then your price and honesty have to show the client that you are eager to please and also do quality work (most likely having worked for other general contractors as an employee and now stepping out on your own. If you have no such experience then you are not ready to be out on your own.) and that takes COMMUNICATION, because the client at that point is gambling on you and your word and your ability. There is no substitute for good communication to build your relations and client list. After all, this is really a referral business. 41 years in construction.

[@ktajax]

Dadnatron Your protected by a contract. But, if you feel like your going to get screwed, you probably will and that's not a good way to start any relationship.

[@Dadnatron]

Those are both fair assessments. I have no problem paying for the job. I would have no problem paying in full, up front, if there was a 100% guarantee my job would be satisfactorily completed. I guess, as you say, the best prevention of problems is history and referrals. I will be building a barn this summer and it is on top of my mind. I hear horror stories all the time.

[@2drsdan]

Never pay 100% up front, it removes the incentive to complete the job. It also removes your leverage if something is not up to your agreed quality. The larger the project the less up front. Let's say it's for 120,000.00 the deposit would probably be around 25,000 to start with progress draws, % of completion, every 2 weeks along the way with the remainder due upon completion. You should expect some wording about weather delay's and or other possible problems as well. The contract is there to protect you both. Your bank could also be involved if the project is large enough and distribute funds but that will cost you. Good relationships take good communication and showing up regularly and randomly helps keep things smooth as long as the visits don't stop the work. It is YOUR barn being contracted but it is the contractor's project and he owns the production of it. You both OWN your portion and the contractor is liable for his work if there is a problem with plumbing or electrical or water coming through the roof, he has to fix it.

[@jasonferge3686]

I used to build pools we were pushed by a homeowner to be done by the 4th of july. Pool ended up 1 inch out of level and wouldn't let us fix it and was just all around a prick. He took the company we worked for to court and judge told him contract didn't say it would be level when we were done and awarded he had to pay. Lesson learned is pay attention to the writing in a contract

[@Dirtmonkey]

Good advice Jason, thanks for viewing !

[@richardwrenn3175]

Yes I would love to hear the other side of this "How Customers Screw Over Contractors" By the way I am A Flooring Subcontractor so thank you for your insight.

[@residentialconstructionsol5964]

Been there, dealt with that my friend. I really get tired of hearing the old line of "contractors are all criminals". 1st, it's complete bullshit and 2nd....in my 35+ years in construction I've yet to meet a GC or sub that went to jail or was sued by a client. Maybe I'm lucky in that way but the 4-3% of shitty contractors don't represent the other 96% of us that do great work and have satisfied clients every time.

[@wildrootsfarm1975]

Change orders with GC's are becoming more complex as the years pass on. Mark ups are being pre-stipulated, Change Order rates are being pre-established, plus they are making mandatory to see your invoices from your supplies w/ pre-determined markups applied. Read your contracts before you sign. red line them and negotiate terms. Protect yourself. - Great video by the way...Thanks for putting it out there and showing that Contractors can be honest and hard working!

[@johnlavezzorio8011]

This scam works until you run into a Mafia guy. Then you have an unfortunate accident!

[@legendaryexplorer8119]

ha yah comrade that is very unfortunate

[@howardfortyfive9676]

Sounds like Mister Unfortunate Accident got *Jimmy Hoffa'd.*

[@richarddherewini50]

No Accident. Guy just pays ?? Thousand a week for the rest of his life 😉

[@Trad-Am]

Dude did fine for first time on the skid steer.

[@jakefromstatefarm635]

@@Trad-Am not the first time with the skid steer, first time with the beak.

[@eduardogorrochotegui5181]

Stanley, thank for sharing all your work experiences! As a Home and Building Inspector it is very helpful to see the real world behind the scenes! Good Job! Keep on going!

[@daolong51279]

How you deal with the first situation is not in civil court, it's in criminal court. The builder is committing fraud and needs to be reported to the state AG and possibly the FBI. The only possible way I can think of to fight it in civil court is to wait until the contractor drops his case and then file a mechanics lien against the property, but I am not sure how viable that would be.

[@texgem]

Yes please make a video about how shitty and shady customers can be . I know some people that screw small time contractors or handymen.

[@Dirtmonkey]

Will do- I know plenty of them.

[@brianjones4245]

Would love this too! Customer's always right my ass.

[@gabemalcolm4429]

I agree

[@TruckerPhilosophy]

Plus one on this.

[@covenantcontracting3815]

Yes please!

[@TairnKA]

I was getting my house painted and in emails I listed what needed to be done (including soffits). Before the job started I had him sign the list (2 copies, mine & his). Towards the jobs end I pointed out the soffits and when he said they don't do soffits, I pointed out the list included soffits. I reminded him I'd given him plenty of time to change his bid, but didn't so he painted the soffits.

[@ivory8581]

The air quotes are legit, and your commentary about them is even funnier. It's a little Chris Farley from old SNL... He air quotes "Maybe I eat my own dandruff". hahaha. The info is great as well!

[@Dirtmonkey]

Thanks Ivory 😀👍

[@davidjose2193]

Ivory ....Chris Farley: Or maybe he’s not “hygienic”!

[@woodmanoutdoors5410]

The guy in the first story would wind up on the missing persons List !

[@MINIDISK111111]

Tell me about it 3 of them should of kicked his head in

[@carlscarbrough5593]

That guy in the first video probably ran fo president

[@danovido8946]

Sorry, I am new at this but shouldn’t there be a system like a mini escrow where a company holds onto the money and only gives it to the contractor when verified from the supply folks. Social security numbers, contractor numbers, histories, credit would all be part of the process to ensure all terms are met faithfully.

[@thebrushhawg]

In some states you don’t have a legal contract without three things, a down payment, a signed contract and a three day wait. No smart contractor should order materials without those legalities handled. 50% down is too much but 10%-20% common and reasonable. A thorough scope of work with inclusions and exclusions is priceless.

[@shawn852]

Stanley, don’t chase the CONtractors off your channel. Let them spew their nonsense so your honest viewers know who they are.

[@Dirtmonkey]

I like how you phrased that but the CONtractors that are on my channel could be learning new tricks- so they need to go away.

[@wb5mgr]

The guy in the first scenario... one of these days, he's gonna mess around with "Slim"...

[@daveray6335]

...or Leroy Brown. :-)

[@premiercconstruction]

Thank you brother.. please yes more vids like this and yes how customers pull fast ones.. this was great, years ago I went bankrupt because a GC ran a system on me and I was powerless.... me and my family suffered while this guy took the cash and lived good. This stuff is nothing more than organized crime and pure evil

[@gzubeck3]

It's called breaking the subs...If the GC has a bad reputation for doing this stay the hell away from them.

[@flapjackson6077]

Lmao! I don’t know where to begin! Brother, you are an extremely astute businessman! And you’re damn good at describing reality! If I lived near you, I’d ask you for a job. Regarding your question about customer scams: YES! That would be great! I worked for a small time renovation guy. It was basically him and me, but he was the owner. We got screwed by a customer. It was about a $15,000 job. The usual payment was in thirds. We got to the final third of work, but the customer was nitpicking everything, and hovering over us the whole time, and finally haranguing my boss over a procedure the customer knew nothing about, to the point that my boss finally walked away, having completed 99% of the job, but forfeiting the final $5,000 he should’ve been payed. So, again, YES, a video on that subject would be very interesting! 👍

[@rickgonzalez1218]

My wife says thank you for not killing the snake that works hard at exterminating the rodents for you.

[@Brady.John87]

Happens all too often man. It pisses me off. The Golden rule is to control the money!!! IAM a small residential paint & drywall company and my common order of operation is a 1/3 deposit 1/3 at 50% and 1/3 upon completion after final walk-through with customer. It is subject to change though especially if I'm stepping in to help after a scam I will have them purchase materials and pay me in full upon completion.

[@Dirtmonkey]

Sounds like a safe way.

[@brianjones4245]

Thanks for the video Stan! Your channel has helped me so much. Plus, our personalities are similar and that makes it really easy for me to learn from you.

[@joegosselin2888]

brian jones I watch for same reason..

[@honeniheixiu8119]

I wonder why this construction business is so full of dishonest people, I just hired someone for my rental house remodeling project, I gave him $4000 to order windows and pay for labor on demolition work, he took the money but won’t start the work and kept lying to me, it turned out that he never ordered windows and spent the money somewhere else, I heard this is so common in this business, you almost can’t trust anyone, because once he got a chance he would screw you over as if it’s your fault to give them this opportunity.

[@matprather5833]

Yes you controlling the money is the way to go. It can be a balance to make the customer feel like they have it and you as well. I do the 1/3 down as well but get the rest at completion. Our jobs usually aren't more than week or so. I don't want to think I am going to run with their money and I don't want them to cancel after I have ordered all the materials and am getting ready to start.

[@WreckDiver99]

I have NEVER met a contractor outside of a builder that didn't request a 25% down at contract signing. I've dealt with dozens, and not a single one would agree to start the project without 25% down. Why? Because many have been screwed by customers who have the material delivered, then say "That's not what I wanted, and you're fired"...then try and take the material. Worked for a landscaping company that had that happen 2 or 3 times...after that, 25% down to cover the materials if something went sideways.

[@WreckDiver99]

as they say....plenty of customers...plenty of contractors. Rule of thumb I have always followed...never had one ask for half...if one did I'd put them in the discard pile.

[@javynlandscaping2677]

You're right on. Anyone who doesn't get a deposit is a newbie and hasn't been taken advantage of by a customer. Always stay ahead of the money so if you are ever fired.... you have made some kind of a profit. Even at the end of my projects where they owe the remaining 25% payment... if they don't pay me I have still made a profit and then I put a lien on their home. Even threatening it usually gets you paid. :-)

[@paulkohler4508]

Fell for 50 % Down at signing from contractor in recovery, but he went on a alcohol & coke binge and I threatened to go to the police and court. I got my money. In process I ran into an X Partner who never got the money he was screwed out of; he was the police officer in the local town, that I went to in my complaint. Yup, he went on a binge with his police partner - childhood townie friends. Shame.

[@tadams1969]

1/3 down at contract signing- covers materials; 1/3 the day you start - covers labor; 1/3 upon completion - profit and overhead.

[@sive1231]

Thats why as the customer, I set up an account for the materials. No one can steal either way.

[@flutist218]

Hi Stanley. This is not a scam story but a scary story. I am retired now but our company which specialized in commercial elevator work bid on a job where we were responsible for EVERYTHING related to the work. The details of this gov't job mentioned asbestos removal. We did not completely understand the extend of the work and ended up loosing money. I did not get fired but people were not happy. Be careful what you bid on. Sometimes you have to bid so high and "cover yourself" that you don't get the work.

[@Dirtmonkey]

Thanks for sharing !