Red Flags to Watch Out For When Hiring a Filipino Contractor

Warning Signs You’re Hiring the Wrong Contractor in the Philippines

Hiring the right contractor is important in building your dream house for so many reasons. Construction in the Philippines can be a long and costly process, so you need a reliable contractor to avoid delays and wasted money. Whether you’re planning to build a new home or renovate your current space, make sure to recognize the early signs of a problematic contractor before it’s too late. Here are the top red flags to watch out for when hiring a Philippine contractor.

No Valid PCAB License

Legit contractors are accredited by the Philippine Contractors Accreditation Board to ensure they meet specific standards in terms of technical expertise and competency. If they can’t provide you with a valid PCAB license, then it’s a major red flag. You can check their license online through the PCAB Portal. Just go to the PCAB regular license online verification section and search the ID or name of the firm.

Verbal Agreements Only

A reliable contractor will always provide a detailed written contract. If they avoid documentation or rely only on verbal agreements, it opens the door for disputes, unexpected charges, and unfinished projects. So, make sure to always ask for a contract that specifies the project scope, materials, timelines, payment terms, and penalties if expectations are not met.

Demands for Large Upfront Payments

The usual down payment for building contractors in the Philippines is 25% upon release of building permits. If your contractor demands a much higher amount before starting the actual construction, be more cautious. Scammers often disappear after collecting the money in advance. You might be surprised that even some Filipino celebrities have a fair share of horror stories with problematic contractors.

Suspiciously Low Estimates

Aside from not having a portfolio or references, dishonest contractors also offer quotes that are too good to be true. They often attract clients with low rates but later compromise on quality and add hidden charges. To avoid this, compare multiple bids and assess which contractor suits your preferences and has the credibility to meet your requirements.

No Permits or Shortcut Offers

All construction work in the Philippines requires building permits. If a contractor offers to skip these major requirements and other paperwork for a cheaper price, walk away. This can lead to legal trouble, demolition orders, and huge penalties from the local government. Always obtain the necessary permits when building a house to ensure all legal requirements are met.

Final Thoughts

Before hiring, you can search the contractor’s name on the PCAB website or social media forums to check if there are complaints against them. Protect your investment by doing proper research, verifying licenses, reviewing contracts, and trusting your instincts. Spot these warning signs early to avoid costly mistakes. If you’re looking for a house and lot in Baguio City or anywhere in the Philippines, just go to REALS.PH website. You can also list your property with us, and our real estate agents will sell it for you!