Preventing Contractors from stealing from you

[Cal Ewing]

Hi Rehabbers and Builders.

We recently had a plumber who disappeared into thin air along with the $1000 installment we had paid him. This was a fellow who was chosen by our GC to do the work. We paid him the first installment of $2000 to do phase 1 of the plumbing  on our rehab. He completed the work in a timely fashion and did a good job. We then paid him to start the next phase when he took off. 

Besides paying in installments, I am wondering if anyone has ideas as to how to prevent this from happening again. We can't always be on site babysitting these guys. Obviously doing better due diligence on the contractors who work for us is a good plan but does anyone have any other tricks?

[Account Closed]

If you're hiring blindly (i.e., no prior relationship), I suggest hiring contractors with a brick and mortar storefront or office that has staff of employees (field and office), that has been around for awhile and are, of course, properly licensed and insured.  I hear horror stories like this all the time and without fail, the culprits are usually owner/operator types.  In short, if you don't know the person already and have built a rapport and trust factor with them hire a company of persons, not just a company of one.

You may want to contact the plumber's insurance and/or bonding company and make a claim (assuming they had coverage) and I'd also contact the licensing agency.