Most tradies are honest people who want to do a good job and get paid fairly. But every year, homeowners get caught out by dodgy operators who take a deposit and vanish, do rushed work, or charge far more than agreed. The good news is that the warning signs tend to look the same, and once you know them they're hard to miss.
Here are the red flags to watch for, and what to do if something feels off.
Red flags at the door
Some of the biggest warning signs show up before you've even asked for a quote.
They knocked on your door uninvited
Consumer Affairs Victoria warns about fake tradies, also called travelling con men, who offer cheap maintenance work and then disappear with your money. They often door-knock, approach people working in the garden, or leave flyers that look professional and even show an ABN. Common jobs include driveway resurfacing, painting, roof repairs, tree work and carpet cleaning.
Be suspicious of anyone who:
- says they've got leftover materials from a job down the road
- offers a "today only" price or says a nearby job has just cancelled
- asks for cash up front, or offers to drive you to an ATM or the bank
- only gives a first name and a mobile number
- pushes you to say yes on the spot
WA's Consumer Protection agency gives similar advice in its page on travelling conmen: this kind of work is often left unfinished or done to a poor standard, and the people behind it can be hard to track down afterwards.
Your rights with door-to-door sales
Not every door-knocker is a scammer, but the law sets rules for them. The ACCC's guide to telemarketing and door-to-door sales explains that these are called unsolicited consumer agreements, and the rules generally apply when the total value is more than $100. You must be given a written agreement, and you usually have a 10 business day cooling-off period where you can cancel for any reason. During that time the seller generally can't supply services or take payment, except for electricity, gas or emergency repairs.
If someone at your door refuses to leave when you ask, they're breaking the rules. You don't have to open the door to anyone you don't know.
Red flags when you ask for a quote
No paperwork
A genuine business should be able to give you a written quote with its business name, ABN and contact details. Be wary of anyone who only wants to give you a price over the phone or a figure scribbled on the back of a card. Our guide on how to compare tradie quotes covers what a good quote should include.
No licence, or a licence they won't share
Many trades, such as electrical, plumbing, gas fitting and larger building work, generally need a licence or registration, although the rules differ between states. If a tradie won't give you their full name and licence number, treat that as a warning sign. You can check it yourself on your state regulator's public register. Our guide on how to check a tradie's licence shows where to look in each state and territory.
The ABN doesn't match
Look up the business on ABN Lookup and check the name matches the quote, the invoice and the licence. Keep in mind that scammers can copy real logos and ABNs, so a valid ABN on its own doesn't prove you're dealing with that business.
A price that seems too good to be true
A quote far lower than everyone else's might leave things out, use cheaper materials, or be a hook to get a deposit. Ask what's included, and get two or three written quotes for the same job so you can see the going rate.
Red flags around payment
Cash only, and no receipts
Paying cash isn't automatically a problem, but a tradie who insists on cash only and won't give receipts is a red flag. Scamwatch lists requests for payment by cash or gift cards, and refusing to give receipts, as warning signs of in-person scams. Without a paper trail, it's much harder to sort out a problem later.
A big deposit before any work starts
Deposits are normal on bigger jobs, especially where materials need to be ordered. But a large upfront payment for a small job, or a request to pay most of the price before anything happens, is worth questioning. Rules differ by state. In NSW, for example, the NSW Government's page on contracts for residential building work says the maximum deposit you can be asked to pay under home building law is 10 per cent. Check your own state's fair trading or consumer affairs agency before you pay.
Bank details that suddenly change
This one catches people out even with a legitimate tradie. Scamwatch warns about fake invoice scams, where scammers hack or copy a real business's email and send an invoice with different bank details. The email can look exactly like the real thing and even appear in the same email thread.
If an invoice arrives with new payment details, don't pay it straight away. Call the tradie on a number you already have or found yourself, not one in the email, and confirm the BSB and account number.
Red flags once the job is underway
- No written contract for bigger jobs. Rules differ between states, but larger building jobs generally need a written contract. Ask before work starts.
- Changes agreed with a handshake. Any extra work or price change should be agreed in writing before it's done.
- Pressure to pay early. Be wary of requests to pay the next stage before it's finished.
What to do if something feels off
- Stop and don't pay anything more until you're comfortable.
- Ask for the business name, ABN and licence details in writing, and check them yourself.
- Keep copies of quotes, messages, receipts and photos of the work.
- If someone is pressuring you at your door, ask them to leave. If you think it's a scam, report it to Scamwatch.
- For a dispute with a tradie, contact your state's fair trading or consumer affairs agency.
Finding a tradie
The safest jobs usually start with you choosing who to call. Browse builders, roofers or painters near you, or start with builders in Sydney and builders in Melbourne. Then check their details and get a written quote before you agree to anything.
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Frequently asked questions
Is it a red flag if a tradie asks for a deposit?
Not on its own. Deposits are common on bigger jobs where materials need to be ordered. Be wary of large deposits for small jobs, and check your state's rules, as some states limit how much can be asked for building work.
Can I cancel a job I agreed to at my front door?
Often, yes. If a tradie approached you uninvited, the agreement is usually an unsolicited consumer agreement with a cooling-off period. The ACCC website explains the rules and exceptions.
Does a valid ABN mean the tradie is legitimate?
Not by itself. Scammers can copy real ABNs and logos. Check that the ABN, business name, licence and contact details all match, and contact the business using details you found yourself.
What should I do if I've already paid a scammer?
Contact your bank straight away, then report it to Scamwatch. If the person is still nearby or you feel unsafe, call the police.
This guide is general information only, not legal or financial advice. Rules change, so check the official sources linked above for your state.