5 Red Flags to Watch for When Hiring a Contractor in Phoenix

We have all heard the horror stories. A homeowner hires a contractor for a kitchen remodel or a restoration project, pays a large deposit, and then… silence. The work stops, the phone goes to voicemail, and the homeowner is left with a demolished house and a drained bank account.

In the booming construction market of Phoenix, Scottsdale, and Mesa, these stories are unfortunately too common. When demand is high, "fly-by-night" operators flood the market.

At Black Ridge Contracting, we believe an educated customer is our best customer. Whether you hire us or someone else, we want you to be protected. Here are the 5 major red flags to watch out for when vetting a General Contractor.

Red Flag #1: They Can’t Prove They Are "Licensed, Insured, and Bonded"

This is the single most important factor. In Arizona, contracting work over a certain dollar amount must be performed by a licensed professional.

• The Risk: If an unlicensed worker gets hurt on your property, you could be liable for their medical bills. If they burn your house down, your insurance might deny the claim because you used an unauthorized worker.

• The Fix: Always ask for their ROC (Registrar of Contractors) license number and check it on the Arizona ROC website.

• Black Ridge Contracting is fully Licensed, Insured, and Bonded. We carry General Liability and Workers' Compensation insurance to protect you, your home, and our team.

Red Flag #2: The "I Was Just In The Neighborhood" Pitch

Be very wary of contractors who show up at your door unannounced, especially after a monsoon storm in Chandler or Gilbert. These are often referred to as "Storm Chasers."

• They travel from state to state following weather events.

• They often pressure you to sign a contract immediately to "get on the schedule."

• They may not be around in six months to honor a warranty if the roof leaks again.

Always choose a local company with a physical address in the Valley. You want someone who will still be here next year.

Red Flag #3: Large Cash Deposits Upfront

While it is standard to pay a deposit to schedule a job or cover material costs, be suspicious of a contractor who demands 50% or more upfront—especially in cash.

• The Risk: This is the classic sign of a contractor who is robbing Peter to pay Paul (using your money to finish their last job).

• The Professional Way: A reputable General Contractor will have a draw schedule based on milestones (e.g., payment upon delivery of cabinets, payment upon completion of drywall).

Red Flag #4: They Refuse to Work With Your Insurance

If you are dealing with water damage or restoration, your contractor needs to be comfortable working with insurance adjusters. Some contractors will say, "I don't deal with insurance; just get the check and pay me." This puts the burden entirely on you. You need a partner who understands Xactimate (the pricing software insurers use) and can advocate for the correct scope of work so you aren't paying out of pocket for things your policy should cover.

Red Flag #5: The Estimate is on the Back of a Napkin

A professional construction project requires a professional scope of work. If a contractor gives you a verbal price or a vague text message like "Kitchen Remodel: $20,000," run away.

• A vague contract leads to "Change Orders." Suddenly, that $20,000 job becomes $35,000 because they claim they didn't know you wanted the walls painted.

• At Black Ridge, we provide detailed, written estimates. We outline exactly what is included—and what isn't—so there are no surprises.

Peace of Mind is Worth It

Your home is likely your largest financial asset. When disaster strikes or when it’s time to remodel, you need a partner, not a gambler.

Black Ridge Contracting has built a reputation in the Greater Phoenix area for honesty, transparency, and quality craftsmanship. We don't cut corners, and we don't hide costs.

Make the safe choice. Call us today to schedule a consultation with a Licensed, Insured, and Bonded professional who puts your home first.