Why Plumbing Scams Are Common
Plumbing emergencies create vulnerable situations where homeowners make quick decisions under stress. Dishonest contractors exploit these circumstances, knowing that people will pay premium prices to solve immediate problems.
Colorado Statistics:
- • DORA receives 200+ contractor complaints annually
- • Average scam victim loses $2,500-$8,000
- • Emergency situations account for 60% of scams
- • Door-to-door solicitation is illegal for most trades
7 Major Red Flags
Door-to-Door Solicitation
Common Tactics:
- • "We were working in the neighborhood"
- • "We noticed a problem with your roof/plumbing"
- • "Special discounts today only"
- • High-pressure sales presentations
- • Unmarked vehicles or generic uniforms
Why It's Dangerous:
- • No time to verify credentials
- • Pressure to make immediate decisions
- • Often unlicensed contractors
- • Difficult to find them later if problems arise
What to Do:
- • Never hire contractors who come to your door
- • Ask them to leave immediately
- • Do not let them inspect your property
- • If they claim emergency, get second opinion
- • Report aggressive solicitation to police
Legal Note: Door-to-door sales for home improvements require special licensing in Colorado and 3-day cancellation period.
Demands Large Upfront Payments
Warning Signs:
- • Asks for 50%+ payment before starting
- • Wants full payment for materials upfront
- • Claims they need money for permits
- • Says they'll get "discounts" if you pay now
- • Only accepts cash or checks to personal accounts
The Scam:
- • Take money and disappear
- • Start work but never finish
- • Use your money for other projects
- • Create financial dependency
Legitimate Payment:
- • Maximum 10% down payment
- • Progress payments as work is completed
- • Final payment when job is finished
- • Professional payment methods
- • Written receipts for all payments
Colorado Law:
Contractors cannot demand more than 10% down payment or $1,000, whichever is less, for home improvements.
No Verifiable Business Address
Red Flags:
- • Only provides P.O. Box address
- • Uses only cell phone numbers
- • No company website or online presence
- • Vague about business location
- • No business license or registration
Why This Matters:
- • Can't find them if problems arise
- • No way to verify legitimacy
- • Often unlicensed operators
- • Makes legal action difficult
Legitimate Businesses Have:
- • Physical business address
- • Listed business phone number
- • Professional website
- • Business registration with state
- • Established online presence/reviews
Verify Business:
Check Colorado Secretary of State business database and Google the company name and address.
Won't Provide Written Estimates
Excuses They Use:
- • "We don't know costs until we start"
- • "It's just time and materials"
- • "Trust me, I'm honest"
- • "We'll work with your budget"
- • Verbal estimates only
The Problem:
- • No protection against price increases
- • No clear scope of work
- • Impossible to compare with others
- • No legal recourse for overcharging
Written Estimates Must Include:
- • Detailed scope of work
- • Materials and labor costs
- • Project timeline
- • Total cost range or fixed price
- • Warranty information
- • Payment schedule
Legal Requirement: Colorado law requires written contracts for home improvements over $500.
High-Pressure Sales Tactics
Common Pressure Tactics:
- • "Special discount expires today"
- • "Your pipes will burst if we don't fix now"
- • "We have extra materials from another job"
- • Won't leave until you sign contract
- • Claims dangerous conditions exist
Fear-Based Selling:
- • Exaggerates safety risks
- • Creates false urgency
- • Uses scare tactics about code violations
- • Claims repairs will be more expensive later
How to Respond:
- • Take time to think about major repairs
- • Get second and third opinions
- • Research the company thoroughly
- • Don't sign contracts under pressure
- • Ask them to leave if they won't stop
Good Contractors:
Professional plumbers encourage you to get multiple estimates and take time to make informed decisions.
Cannot Verify License or Insurance
Warning Signs:
- • Cannot provide license number
- • Says "license is in the mail"
- • Shows expired or invalid license
- • Cannot provide insurance certificate
- • Evades questions about credentials
Consequences of Unlicensed Work:
- • Insurance may not cover damages
- • No regulatory protection
- • Code violations possible
- • Safety hazards from poor workmanship
- • Legal liability for injuries
Always Verify:
- • Colorado DORA license database
- • Current license status
- • General liability insurance
- • Workers' compensation coverage
- • Any disciplinary actions
Never Hire:
Unlicensed plumbers, even for "small jobs." Colorado requires licenses for all plumbing work except basic maintenance.
Extremely High or Low Pricing
Overpricing Scams:
- • Quotes 200-300% above normal rates
- • Claims "emergency pricing"
- • Charges excessive diagnostic fees
- • Adds unexpected surcharges
- • Inflates material costs dramatically
Lowball Scams:
- • Initial quote unusually low
- • Price increases once work starts
- • Hidden fees appear
- • Uses inferior materials
- • Cuts corners on safety/quality
Fair Pricing Guidelines:
- • Estimates within 10-20% of each other
- • Hourly rates $45-$200 depending on complexity
- • Material markups 20-40% typical
- • Emergency surcharges 25-50% maximum
Best Practice:
Get 3 written estimates for any job over $500. Be suspicious of quotes significantly higher or lower than others.
Common Scam Scenarios
The "Emergency" Scam
Contractor claims to find dangerous condition requiring immediate expensive repairs. Uses fear to pressure quick decisions.
Protection:
Get second opinion for any "emergency" that wasn't obvious to you. Real emergencies are usually apparent to homeowners.
The "Materials Discount" Scam
Claims to have leftover materials from another job, offers discount, then demands large upfront payment for materials.
Protection:
Never pay large amounts upfront. Legitimate contractors buy materials as needed and include costs in progress payments.
The "Bait and Switch"
Low initial estimate, then discovers "additional problems" once work begins. Costs escalate dramatically.
Protection:
Require written approval for any additional work over $100. Stop work if costs exceed estimate significantly.
The "Permit and Inspection" Scam
Demands money for permits, inspections, or to "handle paperwork." Often no permits are actually obtained.
Protection:
Verify permit requirements directly with Lakewood Building Department. Never give cash for permits.
What to Do If You've Been Scammed
Immediate Actions:
- Stop all work and payments immediately
- Document everything (photos, contracts, receipts)
- Contact your bank/credit card company
- Get work inspected by licensed professional
- File police report if fraud suspected
Report the Scam To:
- • Colorado DORA (Department of Regulatory Agencies)
- • Colorado Attorney General's Office
- • Better Business Bureau
- • Local police (if criminal activity)
- • Your insurance company
Legal Action: Consider consulting with an attorney if losses are significant. You may be able to recover damages, especially if contractor was unlicensed.
Your Best Protection
Research First:
- • Verify license through DORA
- • Check online reviews carefully
- • Look up business registration
- • Ask for local references
- • Check Better Business Bureau
Get Everything in Writing:
- • Detailed written estimates
- • Clear scope of work
- • Material specifications
- • Payment schedule
- • Warranty information
Trust Your Instincts:
- • If it feels wrong, it probably is
- • Don't rush major decisions
- • Get second opinions
- • Ask questions until satisfied
- • Walk away from pressure tactics