The Red Flags Are Usually Waving Before You Sign
How do you tell a good contractor from one who’s going to leave you with a half-finished mess? What should make you walk away before you sign a thing?
In this post, you’ll learn the warning signs that show up while you’re still shopping for a contractor, from a vague contract to a bid that looks too good to be true.
By the end, you’ll know what to watch for, so you can hire with confidence here in Broomfield and across the Front Range.
The Biggest Red Flags When Hiring a Contractor
The biggest contractor red flags are warning signs that show up before you sign a contract:
- No written scope of work.
- A bid that looks too good to be true.
- Cost-plus contracts that shift risk to you.
- High-pressure “sign today” tactics.
- A big payment demanded up front.
- No license, insurance, or permits.
- No references you can check.
- A contractor who’s hard to reach early on.
1. No Written Scope of Work
A contract that doesn’t spell out exactly what you’re paying for is the easiest way to end up in a fight later.
If someone wants to keep it loose and figure out the details as they go, that usually works out better for them than for you.
Bunn & Sons Custom Builders does it the other way around.
Before any work starts, we run a Project Development Agreement that nails down your design, engineering, selections, scope, budget, and schedule.
So by the time you sign your build contract, you already know what’s included and what it costs.
2. A Bid That Looks Too Good to Be True
Honestly, a price that comes in way under everyone else is rarely the deal it looks like.
It usually means corners are getting cut or the extras are going to pile on once you’re locked in.
Some contractors will even shade the truth about your budget just to get you to sign a planning agreement.
We’d rather hand you an honest number based on what you actually want to build than win the job with one we both know won’t hold.
3. Cost-Plus Contracts That Shift Risk to You
Some contractors only work on cost-plus or time-and-materials deals, where you pay for labor and materials plus a percentage on top.
Here’s the catch.
When every extra hour and every surprise lands on your bill, there’s not much pushing them to stay on budget or on schedule.
We build on a fixed price instead.
The more involved your project is, the more you deserve to know the real number before the work starts.
Here’s a quick look at the differences between fixed-price and cost-plus remodeling contracts:
| Comparison Point | Fixed-Price | Cost-Plus |
|---|---|---|
| Cost Structure | Total cost set upfront from real, known costs, not allowances | Actual cost unknown until the end; a list of allowances that lets everyone kick the can |
| Handling Unknowns | Decided in pre-construction; change orders only for your changes or genuinely undiscoverable conditions | Handled reactively; little incentive to find unknowns upfront when they can charge for them later |
| Risk Allocation | Greatly reduced for both sides through planning; if the builder missed something, it’s on them to cover | Client takes on significantly more risk; unclear scope is an easy “we didn’t know” for more change orders |
| Transparency | Strong; costs broken out by category, real and fixed | Looks transparent, but the numbers are often reduced allowances to sell the job, then change orders after you sign |
| Flexibility | Fully flexible; scope changes move budget and schedule, as in any contract | Feels flexible because the price was never committed, but changes still move cost and schedule |
| Design Fit | Best with detailed plans, finalized selections, known site conditions | Best for complex projects, evolving designs, uncertain conditions |
| Client Involvement | Simpler; less involvement and upfront cost certainty | Requires active involvement in decisions and cost tracking |
| Change Orders | Common when scope gaps or changes occur; raise total cost and timeline | Absorbed into ongoing cost tracking; less reliance on formal change orders |
4. High-Pressure Sales and “Sign Today” Deadlines
“This price is only good through Friday” is a sales tactic, not a real deadline.
Pressure like that is there to keep you from checking references or reading the contract.
A good contractor is busy and has real scheduling limits, but they’ll still give you room to think.
Our first conversation is a simple discovery call to figure out if we’re even the right fit for your scope, budget, and timing.
If we’re not, we’ll tell you straight and point you to someone who is.
5. A Large Payment Demanded Up Front
Watch out for anyone who wants most of the money before they’ve done a day of work.
Your payments should follow the work that actually gets done, not fill their account before they start.
We take a commencement draw of 25% to 35% to hold your spot and cover early costs, then bill on monthly progress as the job moves.
The last payment comes after the work’s done and you’ve had a chance to look it over.
If a payment schedule is tied to dates on a calendar instead of finished work, ask why.
6. No License, Insurance, or Permits
A contractor who can’t show you a current license and proof of insurance can cost you big down the road.
In Boulder and the other towns we work in, licensing and permitting run at the city and county level, so the rules shift from one place to the next.
We’re licensed in all jurisdictions in the Denver/Boulder Metro area (with the ability to license elsewhere on request).
Permitting is built into your plan from the start, so that part never falls on you.
Be careful with anyone who asks you to pull your own permits. They’re handing you a job that should be theirs. And if they can’t or won’t get a license, avoid them entirely.
7. No References or Track Record You Can Check
If a contractor can’t hand you the names of recent clients to call, that’s a problem.
Real work leaves a trail you can follow.
We keep a reference sheet of past clients you’re welcome to call any time, plus a portfolio of projects we’re proud to put our name on.
When you read reviews, look for patterns instead of single ratings, and watch whether the contractor bothers to respond to them.
8. Communication That Goes Quiet
The contractor who’s hard to reach from the beginning won’t get any more communicative once your walls are open.
Slow replies and missed meetings early on are a preview of the whole project.
Usually, it’s because they took on more jobs than they can handle.
We only keep 1-3 major projects going at once, so the homeowners we work with in Louisville and beyond aren’t stuck chasing us for an answer.
You get a dedicated point of contact, regular updates, and online access to your schedule.
Along with the dedicated point of contact, between our design partners, our superintendents, and our trade partners, there’s always someone who’s ready and willing to heed your call.
Here’s how we’ll communicate with you.
Skip the Red Flags and Build With Bunn & Sons Custom Builders
Every warning sign in this post traces back to a contractor keeping something vague or rushed, and we built our process to do the opposite.
When you work with us, we plan your whole project in writing first, hand you a fixed price, and keep you in the loop the whole way.
If you’d rather start with a real plan than a guess, fill out our contact form today or give us a call.
We’ll walk you through our pre-construction process so you know exactly what you’re getting before any work begins.
