Building Contractor scams in South Africa

February 6, 2023 SAPAC Reporter

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We hope these articles help you understand your rights as a consumer. You can scroll through the titles, or scroll by heading. You can also use the search feature to locate information by keyword when you visit the front of https://sapac.co.za for a self help video watch this VIDEO

How to avoid Contractor Building Scams, the top 5 and to avoid it.

"Getting at least three (3) quotes from a SAPAC Professional or Contractor will assist you in obtaining the correct comparative quotations for a job. Standards to these professionals and contractors is important and that includes building lasting relationships with their clientele".

Find out how SAPAC can assist you correctly by dropping us an email at admin@sapac.co.za

“Well, he seemed legal” is what many prospective homeowners end up saying after realizing they’re out of their deposit. Usually above R80,000 or more. As reported to SAPAC - South African Professionals and Contractors.

While most SAPAC professionals and contractors are honest, hardworking professionals, a few bad apples can spoil it for everyone, and it is currently happening everywhere. Here are five ways to identify if a contractor could be scamming you, and how to protect yourself:

SCAM 1 Contractor building scam 1 (one), I will need the money upfront!

This is the most common excuse, you will even get a list of previous clients to call. And the most common deceiving tactic that has been reported to SAPAC

The building contractor explains that because he has to order the materials and rent earthmoving equipment to get the job started., he needs between 30% - 60% of the project price paid upfront. Once you pay out the money, one of the following happens. The building contractor disappears, or they starts doing shoddy work on their own schedule. Knowing very well you cannot let him go as he is sitting with thousands of your hard earned Rands.

"Rather use https://sapac.co.za to find the correct Professional or Contractor within your area or contact SAPAC to assist you before you even start!"

How to Protect Yourself - Never pay upfront! Agree to stagger payments at relevant intervals until the project is finished, meaning the occupation certificate is obtainable. And most of all, remember. There is two sides to every argument. Ensure when you partner that you stay with regards to the agreement between you and the building contractor.

SCAM 2 Contractor building scam 2 (two), take my word for it!

Some complaints received by SAPAC is that the building contractor was obtained either from a social media post request or by visiting the local store, where he they advertised their services.

So when you meet the building contractor, you are met with a very agreeable character. Agreeing, doing everything exactly to your specifications.

"However do note. When it comes to building plans there is a reason why your architect has designed your home in accordance with regards to your specification. With due regard to SAN Standards and different building schedules."

So some of the details you discuss with the building contractor don't make it into the contract agreement. But you figure is does not matter because you had such a clear verbal understanding. However, pretty soon, you do notice that the extras you’d discussed aren’t being built. When you confront the contractor, he tells you that he didn’t include those features in his price, so you’ll have to live without them or alternatively pay more.

It is therefore crucial that you understand that the building contractor understands that the building plans drawn up and approved by a registered .Architectural designer is required to be followed. Furthermore due consideration must be applied and you need to understand that Engineers is required to be involved depending on the scope of your project.

How to protect yourself - Because you signed a contract that did not include all the details and where applicable may require engineering approval (some instances) it is important to ensure that you include and consult beforehand and stipulate this in writing on the contract and initial it, too with the building contractor. All before you both sign.

"Use https://sapac.co.za to find the correct Professional or Contractor within your area or contact SAPAC to assist you before you even considering to start a project!"

SCAM 3 Contractor building scam 3 (three), I don't require to obtain a building permit for this type of job!

As a owner of a building i.e. dwelling you are legally responsible to understand local by laws and requirements imposed upon you're property. You are legally obliged in some instances depending on your geographic location within South Africa. To obtain permits i.e. permission to perform minor to major projects. This allows municipal officials to visit the periodically to confirm that any work undertaken meets building safety codes and the required requirements are adhered to.

How to protect yourself: Always use a competent Building Contractor found on the SAPAC PLATFORM This allows you to get through to a builder with the required experience, knowledge, aptitude and competency to handle your major build or minor build.

SCAM 4 Contractor building scam 4 (four), we ran into unforeseen problems!

The project, or the job is already under way. Perhaps even complete, when you are told this. Suddenly your contractor informs you that the agreed-upon price has skyrocketed. He blames the discovery of structural problems, like a missing beam or termite damage, or design changes that you yourself has made after the job began. These additional fees might be correct, but some unscrupulous contractors bid jobs low to get the work. Here at SAPAC we call that underquoting. The do this to get the work and may people fall for this. If you are unsure if your contractor, is telling the truth about structural problems, you can contact SAPAC that is National to arrange a competent and capable home inspection.

How to protect yourself: Before signing the contract, make sure it includes a procedure for change orders — mini-contracts containing a work description and a fixed price for anything that gets added to the job in progress. The extra work, whether it’s related to unforeseen building issues or homeowner issues, can proceed only after the change order is signed by both homeowner and contractor.

SCAM 5 Contractor building scam 5 (five), We have material from a previous job and I can provide this cheap!

The hoax is usually done by paving companies, whose material - asphalt and concrete cant be returned to the supplier. So what happens is the following, the crew pulls up to your building or home. With a load of left over product and provides you with a quote at a great price to resurface your driveway on the spot. Sure you can opt in to do it it. But is it going to be worth your while? Even if its a really good bargain (by no means a sure thing), taking them up on the offer is risky. If you have no idea who they are and have not checked references. And the driveway starts cracking next year, you can bet you wont find this bunch again.

How to protect yourself: Never hire a contractor on the spot, whether it is a driveway paver, an emergency repair man who shows up after a major storm, or a landscaper with surplus plantings. Take your time and search through the SAPAC Platform for a reliable professional or Contractor (See video above)