To my small but growing audience on the internet, I’m thrilled to invite you to my upcoming speaking event at the 2025 Financial Growth Series hosted by the Opportunity Engineers on January 29th! It’s going to be an exciting session on how small business owners like us can protect ourselves from manipulation, fraud, and poor investments. If you’re interested in learning more about how to safeguard your business and finances, please RSVP here. I’d love to see you there!
The Importance of Contracts, Avoiding Scope Creep, and Protecting Yourself
As small business owners and individuals navigating projects, we’ve all heard of or encountered situations where things went wrong due to poor communication or lack of clarity. Unfortunately, it’s far too easy to fall into the trap of scope creep, where a project starts expanding beyond the agreed-upon work without proper adjustments or documentation. This can lead to unexpected costs, frustration, and even regret.
Let me share a personal story about a roofing project that highlights why contracts are essential and why digital payments like Zelle or checks can sometimes complicate things.
A Roofing Project That Went Beyond Expectations
I recently hired a contractor to replace the roof on my property. The project started smoothly, but soon, I was hit with an unexpected scope creep. As the contractor got deeper into the job, they flagged a coping cap issue around the sides of the roof. This was an oversight that wasn’t caught during the initial assessment. To my surprise, this additional work cost me an extra 20% out of pocket, and the worst part? It wasn’t covered by insurance because it was deemed to be due to general wear and tear, not storm damage or an insurable issue.
The initial estimate I received was clear and well-defined, but once the work started, suddenly, the project expanded. The contractor explained the need for the extra work in a way that felt rushed—“we need to act quickly, and there is no other option to complete the roof.”
Lesson #1: When someone asks for immediate payment or pressures you to make quick decisions, take a step back. There’s nothing wrong with stopping the work midway to reassess. In fact, it’s often the most logical course of action.
When you’re under time pressure, it’s easy to make decisions you wouldn’t otherwise make. But taking a moment to pause, re-evaluate, and even get a second opinion could save you a lot of money and trouble in the long run.
Digital Payments: Why Zelle and Checks Aren’t Always the Best Options
Another red flag in this situation was the request for immediate payments for the materials to cover this additional scope of work. The contractor insisted I pay for roofing supplies, which I reluctantly did. Looking back, this should have raised an alarm. In today’s world, personal checks are not all that convenient, but they can also be risky, especially when you’re dealing with contractors or scope creep. It’s basically like handing over cash to the vendor. The banks cannot protect you or dispute these on your behalf I learned the hard way.
Lesson #2: Always use secure platforms for transactions, and avoid sending payments directly through methods like Zelle or checks unless you’re fully confident in the contractor’s reliability and they’re willing to operate within a formal agreement.
As I’ve learned, relying on these quick payment methods can make it harder to track and dispute charges later if the work doesn’t go as planned or if there are discrepancies.
The Ghosting: A Red Flag of Unethical Practices
Despite my respect for the contractor and the work done so far, once I raised concerns about the extra charges and requested more detailed receipts and documentation for the additional costs, I was met with silence. This was an absolute red flag.
Lesson #3: If a contractor or any service provider suddenly goes silent or ghosts you after a conflict arises, it’s a strong sign that you might be dealing with an unethical or unprofessional business. Transparent communication and a willingness to address issues are key to a strong working relationship.
How to Protect Yourself and Spot the Signs of Abuse
So, what can we learn from this experience? How can you protect yourself?
- Always use contracts: Clearly define the scope of work, the expected costs, and the payment schedule before the work begins. No contract? No work.
- Watch for scope creep: If a contractor suddenly claims extra work is necessary, pause the project and reassess. Get a second opinion if needed.
- Don’t rush payments: Avoid making payments before work is completed, and never use payment methods like Zelle or personal checks unless you trust the contractor fully. Use secure methods that offer tracking and a formal dispute process. Use your credit cards which offer much more protection.
- Be wary of ghosting: If communication breaks down or you feel like you’re being ignored, don’t hesitate to escalate the issue or even switch contractors.
At the end of the day, protecting yourself in any business transaction is about being informed, cautious, and proactive. It’s not always easy, but setting boundaries and sticking to your agreements is crucial.
I hope these lessons help you as you navigate your own projects or business dealings. I’d love to hear your stories or tips on how you’ve handled similar situations—drop a comment below or send me a message!
And don’t forget to RSVP for my talk at the Financial Growth Series on January 29th! Let’s keep the conversation going and help each other grow stronger and smarter in business.