How Can You Tell If a Pool Builder Is Scamming Your? Red Flags to Watch Out For

With Arizona’s extreme heat, long build times, and contractor licensing laws, how do you know if your pool builder is legitimate? How do you know if a pool builder is scamming you? What are the biggest red flags to watch for before signing a contract? Have you heard the horror stories of unfinished pools, surprise costs, and builders disappearing?

If you’re investing in your dream backyard, you want to ensure you’re not being taken advantage of. As a local family business of almost 60 years, with in-house Remodeling and Service divisions, we've seen homeowners lose thousands to financially unstable or dishonest builders. 

In this article, we'll break down the biggest red flags so you can protect your investment and hire a pool builder you can trust

What Should You Know About Pool Construction Contracts?

A pool construction contract is your first line of defense against potential fraud or misunderstandings. It should clearly outline every aspect of the project, including scope of work, materials to be used, timelines, payment schedules, and warranties (Learn more about Pool Warranty Fine Prints). If a builder hesitates to provide a detailed contract or avoids putting agreements in writing, consider it a major red flag.

How Much Should You Pay as a Down Payment for a Pool?

While down payments are standard practice to secure services, excessive initial payments can be a warning sign that a company may not be as stable as you would like for such a permanent investment. 

The lower the deposit requirement for a company to get started, the more you can be confident that they are probably okay financially…you want the company you choose to be there for any service or warranty needs; if a company is out of business, so is your warranty coverage. 

A reasonable deposit is typically 5%-10%, but the ROC allows up to 15% for companies to collect. If a pool builder asks for more than this upfront it’s a major red flag of either financial shakiness or dishonesty. Some pool companies have even requested 50% or more and then disappear, leaving homeowners with unfinished pools.

Should the Pool Permit Be in Your Name or the Builder's?

One major red flag that homeowners often overlook is whose name is on the pool permit—yours or the builder’s. In Arizona, if a contractor asks to put the permit in your name, or worse doesn’t even ask, that’s a huge warning sign. Why? Because the moment your name is on that permit, you, not the contractor, are legally responsible for the entire project.

If something goes wrong—like faulty electrical work, incorrect plumbing, or a major structural issue—you’re the one on the hook, not the builder. Imagine discovering a serious drainage problem after the pool is completed, only to realize the city holds you responsible because the permit was in your name. Worse yet, if an unlicensed subcontractor gets injured on your property, you could be liable for medical bills or even lawsuits; this is not a hypothetical scenario, it has actually happened.

A legitimate, professional pool builder will always pull the permit in their company's name, because they are the ones taking full responsibility for the work being done to meet the quality you deserve. This protects you as the homeowner, ensuring the builder follows Arizona’s strict construction laws, maintains proper insurance, and is held accountable for quality and safety. Before signing any contract, ask: “Will the permit be in my name or yours?” If they hesitate or try to convince you otherwise, consider it a major red flag—and don’t walk…RUN away!

How Do Dishonest Pool Builders Use Poor Communication to Scam You

No Detailed Project Timeline

A reputable pool builder will provide a breakdown of the average timeline for pool construction and include any processing and permit timelines, setting realistic expectations for the project's duration. The front end “red tape” could add an entire month to that timeline that wasn’t brought to your attention.

A reputable pool builder should provide you with:

• A detailed timeline for each stage of construction
• Estimated time for permits and approvals
• A project schedule based on current jobs in progress
• Regular updates to avoid unexpected delays.

Vague or Nonexistent Updates

Regular updates from your pool builder are crucial to ensure that the project construction stays on track and within budget. A lack of clear, consistent communication is often a precursor to disputes and dissatisfaction. There are many construction management systems available today that provide customer portal’s that keep you in the loop with a simple click of a button.  If your company doesn’t have something like this, that could mean that builder doesn’t care about the communication process during construction or isn’t financially stable enough to invest in a customer-centric program that assists with communication…either scenario should cause you to strongly consider whether or not that builder is the right choice for your permanent investment. Before signing the contract ask, “What is the established communication process after I sign a contract? And is there a project management system that allows me to check in on my project’s progress, see a general schedule and/or does it have built in updates with pictures and comments?”

What Are The Risks of Hiring an Unlicensed or Uninsured Pool Builder?

Always verify that your pool builder is licensed and insured. This protects you against liability for accidents on your property and assures you of their professionalism. Unlicensed builders may undercut costs by reducing products or systems you wouldn't have known to ask for but often come at a higher price in terms of risks and potential penalties. In fact, many unlicensed companies or DIY assisting companies brag that “the price appears lower to the consumer but the profit percentage is greater because I don’t include what they don’t know what to ask for” . Learn more about Licensed and Unlicensed pool builders.

How Can You Spot High-Pressure Sales Tactics?

Be wary of pool builders who use high-pressure sales tactics to rush your decision-making process. Reputable professionals will give you the space to review their proposal and make an informed decision that alien's with your needs and wants. The best companies will empower and educate your to all of your options available so you're in total control of who your pool operates and what the cost of ownership will be. It's too permanent and too large of an investment to rush or pressured into.

How Do Dishonest Pool Builders Overpromise and Under-Deliver?

Unrealistic Completion Dates

If completion dates seem too good to be true, they probably are. Unrealistic deadlines are a common tactic used by disreputable builders to entice customers. Quality pool construction requires careful planning and execution that should not be rushed.

Promises Without Guarantees

Any promises made by your builder should be backed up with guarantees documented in your contract. If a builder makes verbal promises but won’t include them in writing, it’s a clear indication that they might not deliver on those promises.

Inconsistent Pricing or Hidden Fees - How Can You Avoid Hidden Fees from Pool Builders?

A pool builder may quote you a ‘low’ price but leave out essentials like excavation, tax, or permits. Later, these 'unexpected costs' balloon your final bill by thousands. This most often is displayed in “package pricing”, also known as loss-leaders.  This is not unlike going to buy a car to see the price on the windshield you can afford, only to walk into the dealership to find out its thousands more with fees and taxes that weren’t listed on the car.  A swimming pool “sort of” needs an excavated hole, permit and tax to get completed… so you should ask yourself why it is left out in an advertisement or package price. Always ask for a fully itemized quote to avoid surprise expenses.

Read Reviews and References to Help You Choose a Reliable Pool Builder

Importance of Researching Reviews and testimonials can provide insights into a builder’s reputation and the quality of their work. A pattern of negative reviews can reveal common problems past clients have faced, look for trends in complaints and try to decipher the “one offs”. Listen, no one is perfect, and not every expectation from the general public is within reason…I am sure we all have “that one family member” we can think of when it comes to unreasonable expectations that usually make the Thanksgiving dinner discussion an interesting one.

That being said, review sites like Google are always a good place to start because that is almost always where the volume of reviews are found.  The Google review system is trustworthy because they use AI-driven spam detection, strict anti-manipulation policies, a user reporting system, and enforcement actions against offenders, ensuring that businesses with low ratings face real consequences, like reduced general public visibility and fake review offenders risk removal from Google Business listings, and, in extreme cases, fraudulent practices can lead to legal action.

Checking References

Directly speaking with past customers can provide deeper insights into a builder's reliability and quality of work. Ask detailed questions about their experience, focusing on the builder's communication, adherence to budget, and timeline.

How Can You Protect Yourself from Dishonest Pool Builders?

Educating yourself about the pool construction process is the best strategy to protect your investment. It might be “boring to learn” but knowledge is truly powerful when it comes to such a large and permanent investment…regret on an investment like this either has no fix or comes with an extremely high price tag, often eliminating any perceived savings when comparing companies. Always conduct thorough research, insist on written contracts, and consult with multiple builders before making a decision.

Unless You have a Peace of Mind, Wait or Don’t Do it

Spotting these red flags early can mean the difference between a smooth pool installation and a financial disaster. Many homeowners have fallen victim to hidden fees, unlicensed work, and false promises.

Now that you know what to look for, your next step is to get multiple quotes from reputable builders and verify their credentials. Here is the list of Top 5 Pool Builder Checklist to make an informed choice. With the right knowledge, you can enjoy a hassle-free pool construction experience.