Protect Yourself from Construction Scams

What Every Homeowner Should Know Before Starting a Remodel

At NMG Construction, we believe homeowners deserve transparency, accountability, and peace of mind when hiring a contractor. Unfortunately, construction scams have become increasingly common. Whether you're planning a small renovation or a full remodel, these best practices can help you protect your investment.

1. Verify Contractor Licensing with the Arizona ROC

Before hiring any general contractor or trade professional, always check their license status through the Arizona Registrar of Contractors (ROC). Licensed professionals are held to state standards and provide important legal protections.

Search for a company or individual here:
https://roc.az.gov

2. Use Escrow

If your project involves a full remodel or ground-up construction, consider working with a title company or a real estate attorney to open an escrow account. Escrow helps protect both the homeowner and the contractor by:

• Releasing funds only as construction milestones are met

• Avoiding large upfront payments

• Keeping all parties accountable throughout the project

3. Structure Payments Wisely

Avoid paying in full upfront. Instead, arrange a payment schedule that aligns with progress. Some guidelines include:

• Paying based on completed work or agreed-upon phases

• Avoiding direct payments to subcontractors unless coordinated with your contractor or escrow

• Holding final payment until all work is completed to satisfaction

In some cases, a negotiated upfront payment may be appropriate to cover the cost of materials required to begin the project. If this is needed, make sure it’s clearly documented in your contract and tied to a verified materials order or receipt. This ensures transparency while allowing your contractor to mobilize and begin work.

4. Do Your Research

Take time to research your contractor. Look for:

• Verified license and insurance

• A professional website

• A clear portfolio of past projects

• A well-defined contract that outlines scope, budget, and timeline

These simple steps can help you avoid common pitfalls and make a more informed decision.

5. Prioritize Clear Communication

Professional contractors provide written contracts, set expectations clearly, and keep you updated throughout the project. Don’t move forward unless you understand:

• The full scope of work

• Project timelines and payment terms

• Who is responsible for permits, inspections, and coordination

Building Trust Since 2017

NMG Construction is a Latino-owned and family-operated company founded by Jorge Garcia Sr. and Jorge ("George") Garcia Jr. We’ve proudly served Arizona homeowners since 2017, offering reliable, licensed construction services that prioritize quality and integrity.

Have questions about your upcoming project?
Call us at 602-376-5052

Disclaimer:

The information provided in this post is for general informational purposes only and does not constitute legal, financial, or professional advice. NMG Construction is not a law firm and does not provide legal services. Please consult with a licensed attorney, title company, or other qualified professional before making decisions related to construction contracts or escrow services.