How to Hire a Reliable Contractor in Pakistan Without Getting Scammed

Labour Contract (Theka): You buy materials, contractor provides labor. Cheaper but requires your active involvement in purchasing. Rate: PKR 800–1,400/sq ft for labor only. Grey Structure Contract: Contractor handles labor and materials for the structure only. Rate: PKR 2,800–4,500/sq ft. Turnkey Contract: Contractor delivers a finished house. Most convenient but most expensive. Rate: PKR 5,000–9,000/sq ft. Choose based on your available time, construction knowledge, and risk tolerance.

Visit at least 2–3 completed projects by the contractor. Talk to previous clients without the contractor present. Verify their CNIC and business registration. Check if they have a permanent office (avoid contractors who only have a phone number). Ask for a detailed quotation broken down by item — vague lump-sum quotes are a red flag. Verify their team size: a reliable contractor should have dedicated masons, electricians, and plumbers.

Always sign a written contract (even a stamp paper agreement works). Include: detailed scope of work with specifications, total cost with payment schedule, start and completion dates with penalty clause for delays (typically 0.1% of contract value per day), material specifications (brand, grade, origin), warranty period (minimum 1 year for waterproofing, 5 years for structural), dispute resolution mechanism, and termination conditions.

Never pay more than 10% advance. Suggested milestones: Foundation completion — 20%. Ground floor slab — 20%. First floor slab — 20%. Grey structure completion — 15%. Finishing 50% — 15%. Final handover — 10%. Always retain 10% as a security deposit, released 3–6 months after handover. Pay against measurement and verified work only — never based on time elapsed.

Demanding large advance payments (more than 15%). No written agreement or reluctance to sign one. Cannot provide references from previous clients. Unusually low quotation compared to market rates (likely to cut corners or demand extras later). Frequent requests for additional payments beyond the contract. Subcontracting work without your knowledge. Poor site cleanliness and unsafe working conditions.