When homeowners hire an underground contractor for cash and without a contract, bad things can happen. In the vast majority of cases where there are problems, the homeowners lose their money and have to live with the frustration of paying another contractor to complete the work properly.

However, sometimes things can get far more serious. For example, the parties can end up in court. Or the homeowner can face fines and legal actions initiated by government agencies. As well, each year there are a number of homeowners who become victims of contractor fraud, often losing significant amounts of money.

This section reports on some of these more serious problems, showing "how bad it can get" when consumers deal with underground contractors. The information is presented in three categories:

1) Court cases involving homeowners and contractors where lack of a written contract was a significant issue.

2) Fines and regulatory actions by governments against homeowners as a result of their hiring arrangements with contractors.

3) Reports of consumer renovation fraud reported by law enforcement agencies across Canada.