5 Red Flags of Construction Fraud: 100% upfront payment, no contract, 'cheaper without an invoice'

Most construction companies work honestly—but the few percent that don't can destroy your investment and your savings. Here are the red flags that should make you end the conversation immediately.

5 Red Flags

1. 100% upfront payment "for materials" — an honest company asks for 10–30% and bills by milestones.
2. No contract — "a contract? we know each other, don't we?" is the most expensive sentence in the construction industry.
3. "Cheaper without an invoice" — you pay less, but you lose your warranty, official acceptance, and proof of payment.
4. Time pressure — "decide today, the price goes up tomorrow" is a sales tactic, not a market condition.
5. No address or company details — only a phone number and cash payment.

Rules for Safe Cooperation

• Always have a contract, provide a minimum deposit, and pay after milestones are completed.
• Verify liability insurance (OC), tax ID (NIP), and reviews — 15 minutes of research protects 15 years of work.
• Never pay "under the table" without a receipt.

On LocalTrader, you can find company profiles with certifications, liability insurance, and reviews from verified clients — use this before you sign anything.