Sleeping Dog Properties, Inc. is an award-winning general contracting, design build, and real estate development firm specializing in luxury residential, boutique commercial, and unique hospitality projects. The firm has developed a reputation for its commitment to providing high-quality construction projects. The business of construction involves high dollar volume, intricate details, and a chaotic environment. Homeowners are typically newer to the construction game, making this business environment a fine target for scammers.
The impact of unchecked fraudulent scams can have on construction companies, homeowners and the trades can be devastating. However, understanding some of the hazards that lie ahead can help prepare you and protect your project from falling prey to a rocky road of schemes.
Avoid Working with Unlicensed or Uninsured Builders and Tradesmen
One effective strategy for protecting against fraud in the construction space is to properly vet builders and tradesmen before working with them. It is always important to verify that your contractor is a legitimate business to avoid potential issues in the future. Sleeping Dog Properties, Inc. recognizes that protection against fraud can be streamlined by first ensuring that contractors are registered with the state to do business. You will also want to be able to find proof that the contractors hold state provided tradesman licenses and have safety programs in place along with a clear track record of safe practices. Each state has a website where you can search for a business license and tradesman status.
There are a host of risks associated with working with unlicensed builders and tradesmen. One of the most cited risks is the issue of uninsured liability. While licensed contractors have insurance for their teams that can cover unfortunate accidents and damage to your home, this may not be the case when you hire an unlicensed/uninsured team. Sleeping Dog advises that you speak with your home owner’s insurance agent to insure the proper coverages are in place. Being well insured for risk exposure can protect you from what otherwise would end up in a lawsuit.
Ensure Payment Processes are Protected Against Fraud
Payment process fraud is one of the most common types of scams across many industries, with up to 18% of consumers experiencing it at some point in their lives. When dealing with construction companies, Sleeping Dog Properties, Inc. encourages potential clients to consider whether their contractors have proper protections in place against cyber-attacks. There are multiple factors to look for to ensure that a contractor has banking fraud secure processes. For example, choosing a contractor with cyber insurance is a surefire way to protect against data leaks that could put your financial information at risk.
Sleeping Dog Properties, Inc. notes that there are other ways to vet your contractors’ payment process security as well. A tech savvy contractor will have EFT or ACH capabilities to protect against fraud as being able to process electronically can prevent a variety of common scams. Some of the protection against payment fraud can be facilitated on the side of the customer. It is important to use secure email for accounts to ensure that there is no hacking that can reveal sensitive information. Also, Sleeping Dog Properties, Inc. recommends that consumers remain wary of common fraud types such as phishing as they conduct business with contractors. Do not share info such as bank account numbers, card numbers, or other sensitive pieces of information that can be used to access the rest of your data, especially if you are not able to verify the sender.
Examine Fiscal Responsibility of Contractor
A great reputation precedes the best contractors in the business and, typically, one does not need to turn many rocks over to discover issues such as unethical handling of fiscal responsibilities and the like. Sleeping Dog Properties, Inc. advises those seeking assistance from contractors to look for signs that may point to fraud within business practices. For example, if there are common complaints of issues such as not paying material men or material being delivered to the site not remaining on site, it should be recognized that a contractor may have a strong likelihood of fraudulent practices. It may also be worthwhile to investigate their relationship with subcontractors. If contractors are being paid but subcontractors are not, it is often a sign that a contractor is not exhibiting sound, ethical business practices throughout their projects.
A reason why Sleeping Dog Properties, Inc. encourages individuals to investigate the fiscal responsibilities of a contractor is because this knowledge can be valuable for determining how your experience doing business with them may turn out. If a contractor has no qualms about not properly paying their employees, subcontractors, etc. it stands to reason that they may also not have an issue with taking advantage of you during a project. The most successful, reputable contractors simply do not need to resort to such underhanded tactics.
Protecting Against Construction Fraud Can Be Easy
Because many members of the community do not have much experience with construction and working with contractors, it stands to reason that they may not be able to spot fraud and scams as easily as veterans of the space. Still, Sleeping Dog Properties, Inc. recognizes that many of the most common forms of fraud can be protected against with just a bit of due diligence on the end of the customer. By checking for proof of proper licensing, accreditations, previous customer feedback, payment security, and proper handling of fiscal responsibility, customers can work to ensure that the contractors they are collaborating with are sure to produce a project with a solid understanding of what they are getting into.
