The state of New York is responsible for spending over forty billion dollars of the total six hundred and six billion (plus) dollars spent on construction in the US last year according to sources. Observing the kind of development taking place in the region, this comes as no surprise. On a flipside, this also means those looking to invest in construction this year need to do so carefully.
One of the things many potential investors need to be careful about is construction and real estate fraud and given the thriving New York construction market, there’s no shortage of scammers and crooks!
Avoiding Common Construction Frauds: How to Do It?
As a company that provides construction consultants and consultancy services to those investing in construction in New York, we know our way around the industry. One of our jobs is ensuring that our clients are not swindled out of what they have invested in. Here are some ways we feel you can help avoid common construction frauds!
When it comes to construction fraud, one of the easiest scams for people to pull off is false payments or dues. This is done by overstating costs such as materials, labor and transportation. It can also be done by charging for processes that have nothing to do with the construction its self but are stated in the bill anyway!
Be careful when issuing payments. Do your due diligence in advance. Ask for cost estimates prior to starting work and tally estimated amounts with what is done. Also do your market research and make sure that you’re not being charged excessively for tasks for which the market price may be a lot lower.
Sometimes people might have you pay for certain materials, start construction with what you’ve paid for and then switch over to a cheaper alternative half way through your process. In order to avoid such swindling, you need to be vigilant.
Make sure your contractors are using the materials you have approved and keep on checking on your construction at various stages of the work. Don’t leave your site unattended and be vigilant about what is going on.
If you’re investing in a larger scale construction process where multiple units need to be built, make sure you’re clear on your numbers. It is not uncommon for certain dishonest contractors to do things like build you fifteen units but bill you for seventeen. Though this might seem like a drop in the bucket for bigger spenders, it really isn’t.
Furthermore, it adds up. Make sure what you’re paying for is indeed what you received!
Sounds Like a Lot of Work!
If you think this sounds like a lot of work, you’re right. It is. For those of you whose organizations are not related to the construction industry, this can also be difficult to manage. The best way forward is to hire a construction consultant and have them oversee such projects for you from start to finish.
You can rest assured, if you work with one of our consultants, your construction project will be hassle free. Follow the tips above or hire us. Either way, make sure you don’t get the short end of the stick when you invest in construction!