How to Protect Yourself from ADU Contractor Nightmares

If you’ve been following ADU trends lately, or if you are planning on building one in your backyard, you’ve probably seen stories of homeowners left with half-built units, unpaid subcontractors, and costly headaches. And that’s all because they hired the wrong builder. Unfortunately, not every company in the booming ADU market is operating responsibly.

In the past year in Sacramento alone, two contractors have made headlines for all the wrong reasons, leaving homeowners in horrible situations. One ADU builder abruptly shut down after collecting millions in deposits, leaving hundreds of homeowners without completed projects. Another Sacramento-based company is now facing multiple complaints for taking large upfront payments, failing to deliver, pay subcontractors in a timely manner, and in some cases, not even pulling permits before starting construction.

Though we’re not naming names, these cases share some alarming patterns: high upfront deposits, poor communication, missed permits, and unpaid subcontractors — all of which leave homeowners exposed to costly delays or legal liability. It’s frustrating, especially for those who tried to do everything right. But these stories also serve as a powerful reminder:

Who you choose to build your ADU matters more than ever.

Red Flags That Should Make You Think Twice

So, what should you look for when interviewing an ADU builder or general contractor in Sacramento, California?

Whether you’re just exploring your options or narrowing down contractors, here are some common warning signs that should raise concern:

🚩 Large Upfront Deposits

California law limits pre-construction payments to 10% of the contract amount or $1,000 — whichever is less. If a contractor asks for more than that before work begins, it’s a red flag.

🚩 Delays in Permits

No project should begin until city permits are approved. And if permits are allowed to expire mid-project, that could mean more delays, stop-work orders, and extra costs.

🚩 Unpaid Subcontractors

Even if you’ve paid your builder, unpaid tradespeople can file a mechanic’s lien against your home. That’s a legal claim that can tie up your title and create a serious financial risk.

🚩 Disorganized Communication

Is your contractor hard to reach? Are you talking to different people every time? If communication is poor before the contract is signed, it usually gets worse after.

🚩 No Clear Schedule or Scope

You should always know when payments are due and what work is tied to each milestone. Vague descriptions like “foundation included” or “standard materials” aren’t enough.

Ask the Right Questions Before You Sign Anything

An ADU isn’t just another home upgrade; for many homeowners, it’s the second biggest financial investment they’ll ever make. So, before you sign any contract, ask smart questions to avoid surprises later:

• Will construction begin only after permits are fully approved?
• Can I see a detailed estimate, including a scope of work and materials?
• How are payments scheduled, and what triggers each one?
• Who’s handling architectural plans, permits, and inspections?
• Can I speak with recent clients or see examples of your work?

If a contractor dodges these questions or the estimate looks too good to be true, trust your instincts and keep looking.

Why Transparency (and Paperwork) Matters

At A+ Construction ADU Builders, we’ve helped many clients recover from half-done projects started by other contractors. Most of the time, it starts with a lack of clarity in the original agreement and ends with blown budgets, stop-work notices, or rushed fixes.

We don’t work that way.

• We provide detailed, transparent estimates
• We break down every line of scope and cost
• We tie payment milestones to completed work
• We don’t collect full payment up front
• We pull permits before any work begins

You’ll know exactly what you’re getting, when it’s happening, and how much it costs before the project starts.

Turnkey Project Management Makes a Difference

Here’s another big factor that separates experienced ADU builders from the rest: project management.

Some contractors might do a great job at small-scale home improvements, but struggle when it comes to managing a complex project like an ADU. There are a lot of things that come to play here, including zoning rules, utilities, inspections, and timelines. That’s when things fall apart.

At A+ Construction, we offer true turnkey service, meaning:

• You don’t need to coordinate with architects, engineers, or building departments
• You don’t need to chase contractors for updates
• You don’t need to wonder if your project is compliant, we handle everything
• You get one dedicated point of contact for the entire process

It’s smoother, faster, and far less stressful.

Want More Tips? Watch Our Contractor Guide on YouTube

If you want a deeper dive into avoiding construction disasters and choosing the right builder, watch our video guide:
👉 How to Choose a Reliable Contractor

In the video, we break down:

• Why over 65% of poorly managed construction projects fail
• What separates licensed professionals from risky builders
• How to compare bids the right way
• What a “complete” project scope should include
• Why real reviews, permits, and verified projects matter

Final Thoughts: Protect Your Investment

Choosing the right ADU contractor isn’t just about cost. It’s about trust, protection, and long-term peace of mind. The recent contractor failures in Sacramento are reminders of what can go wrong when you hire the wrong team.

At A+ Construction ADU Builders, we’ve earned our reputation by doing things the right way: honest pricing, detailed contracts, real communication, and full project support from day one. We’ve helped over 50 homeowners this year alone build successful, code-compliant ADUs — and we’d love to help you, too.

Ready to Get Started?

👉 Schedule a Free Consultation
👉 Visit our Showroom in North Highlands to see materials, layouts, and meet with a Certified ADU Specialist.

Let’s get you extra space in your backyard the right way.