👷 Hiring Contractors
How to avoid contractor fraud in India?
🤖 AI Answer by Biddaro⏱ 5 min read📅 Updated 1 November 2024
⚡ Quick Answer
Contractor fraud in India typically involves taking a large advance and disappearing, using inferior materials while charging for premium, or endless "extra work" scope creep to extract more money. The best protection: use escrow payments, written contracts with fixed prices, and milestone-based payment releases.
15 Red Flags — Spot a Fraudulent Contractor
- 🚩 Asks for more than 40% advance payment before starting
- 🚩 Refuses to sign a written contract — insists on verbal agreement
- 🚩 Cannot provide GST number or trade license
- 🚩 Pressure tactics: "Price only valid for 24 hours" or "I have another project offer"
- 🚩 Asks you to buy all materials yourself "to save GST" — then uses inferior materials
- 🚩 Gives quote without visiting site in person
- 🚩 Cannot provide a single verifiable past client reference
- 🚩 Changes the quoted price after starting work ("this wasn't in scope")
- 🚩 Disappears from site after receiving payment
- 🚩 Requests payment to personal bank account instead of company account
- 🚩 Uses workers who are clearly unqualified for the job
- 🚩 No fixed address or office — only mobile number
- 🚩 Too-good-to-be-true price (more than 30% below other quotes)
- 🚩 No WhatsApp profile photo, business name, or professional communication
- 🚩 Cannot explain HOW they will do the work when asked basic technical questions
Safest Solution
Post your job on Biddaro — all contractors are verified with GST, trade license, ratings, and reviews. Payments go through Biddaro's escrow and are only released when you approve the completed work.
Related topics:
contractor fraudscamadvance paymentred flags