Consumer Guide · 6 min read
Red Flags When Hiring a Home-Service Company
Most contractors are honest professionals. But knowing the warning signs of a problematic contractor can save you thousands of dollars and a great deal of stress.
1.Unusually large deposit requests
A request for 50% or more upfront — especially before any materials have been ordered — is a significant warning sign. Legitimate contractors typically ask for 10–25% to start.
2.No written estimate or contract
Any contractor who refuses to provide a written estimate or wants to work on a handshake deal is putting you at serious risk. Everything should be in writing before work begins.
3.Cash only
Insisting on cash with no receipt makes it very difficult to dispute charges or prove payment. Reputable contractors accept cheques, e-transfers, or credit cards and provide receipts.
4.High-pressure sales tactics
"This price is only good today" or "I have another job lined up and can't hold your spot" are pressure tactics designed to prevent you from doing your due diligence. Take the time you need.
5.Reluctance to provide references
A contractor with a solid track record will readily provide references. Hesitation, vague answers, or references who can't be reached are red flags.
6.No proof of insurance or WCB
If a contractor cannot provide a Certificate of Insurance and a current WCB Clearance Letter, you are exposed to significant liability if something goes wrong.
7.Suggesting you skip permits
Permits exist to protect you. A contractor who suggests skipping them to "save money" or "speed things up" is either cutting corners or trying to avoid accountability.
8.Unclear or vague warranty terms
A warranty that says "we stand behind our work" with no specifics is not a warranty. Ask for the warranty in writing, including what it covers, for how long, and how to make a claim.
9.Door-to-door solicitation after a storm
After hailstorms or heavy weather, door-to-door contractors sometimes target Calgary neighbourhoods. While not all are fraudulent, this approach warrants extra scrutiny — verify credentials carefully before agreeing to anything.
10.No physical address or online presence
A legitimate business has a verifiable address, a business licence, and some form of online presence. A contractor who operates only through a mobile number with no traceable business identity is a risk.
What to do if you spot a red flag
Trust your instincts. If something feels wrong, it probably is. You are never obligated to hire a contractor who makes you uncomfortable. Take your time, get multiple quotes, and verify credentials before committing. See our full guide on how to hire a contractor in Calgary. These red flags apply equally whether you're hiring a roofer, painter, HVAC company, or any other home-service contractor.
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