Why being a contractor is bad?

The Bad: There are no labor protection rights for contractors and there is no vacation pay, no sick pay or paid maternity or paternity leave. This can leave you in a financial bind, especially if you get sick. Most of us have known people who suffered from renovation nightmares after hiring a bad contractor who performed poor quality work on their home. Unfortunately, this is not uncommon.

More than 50% of homeowners report having a negative experience with their remodel or complaining about a bad contractor. Many homeowners cite poor workmanship as the main reason for their dissatisfaction. You often hire a contractor and think he and his A-team are completing the work. Contractors often put too much effort into working.

This means they'll be late, maybe careless, finish quickly, or send a replacement they just picked up. You suspect you have a problem when the subcontractors listed do not reflect the quality of the contractor you hired. If the team being presented is not properly equipped or seems to be struggling with work in one way or another, then it's time to stop and hold a meeting with the contractor to get back on track. Redoing a bad job is more expensive than doing it right the first time.

While it's best to establish communication early on, if you're in a deteriorating relationship with your contractor, re-initiate communication and make sure you have everything in writing. An important red flag is when a contractor fails to obtain a permit with the local municipality for an important and specific project. If they are willing to write you some kind of simple “report”, that would also give you “ammunition” to talk to your contractor about the problem. If the contractor doesn't know how to mix and interact socially, it could be a sign that they are a difficult person to deal with.

They find that self-employment has increased by about 30 percent since 2001, and that almost all of that increase is due to a growing number of independent contractors and poorly classified workers. If a contractor submits a bid or quote and tells you they can start right away, it could be a sign that it's not the most popular program in town. In short, independent contractors will be treated as regular employees unless three conditions are met. Being too busy can also cause a contractor to overstretch their finances and get into cash flow problems.

Especially, as you get closer to the end of the job, one tip I suggest is to hire a retired contractor or home inspector to come to your house and check on the work. The ugly: If a client thinks a contractor is not up to par, or if a project ends early, the customer can simply terminate the contract without notice. If you find that a contractor is avoiding questions by being dishonest, giving unrelated answers, or beating around the bush, then it's a clear red flag that this contractor is not up to the task. And speaking of outsourcing, one of the most useful things for someone else to manage as an independent contractor is your company's taxes.

All the data available through a contractor profile shows a picture of what hiring the contractor might look like. No matter how much you dream of settling down on your own, changing the security of your PAYE job to becoming a contractor for a limited company is still a big decision, writes Bivek Sharma, director of KPMG Small Business Accounting. But, if it seems that your project is delayed by topic after issue, or if problems are pushing the project beyond the original schedule, tell the contractor that you expect professionalism and a course of action to get the project back on track. If you choose to sue a contractor for poor quality work, you will only stop your project until the lawsuit is resolved and the costs involved in a lawsuit are prohibitive.


Roberta Burgees
Roberta Burgees

Typical tv lover. Professional tv maven. Avid food advocate. Passionate music advocate. Typical beer buff. General musicaholic.