What is considered "contractor fraud"?

Contractor fraud is primarily defined as engaging in misrepresentation or deceit in contracting work. This can involve a variety of deceptive practices aimed at misleading clients, such as providing false information about the scope of work, the qualifications of the contractor, or the materials to be used. Essentially, contractor fraud undermines the trust between the contractor and the client, which is a fundamental pillar of all contractual relationships.

The other options, while relating to questionable practices within the contracting industry, do not encapsulate the broader concept of fraud. Falsifying insurance documents can also be serious and illegal, but it is a specific act of dishonesty regarding documentation rather than a general form of misrepresentation in contractual work. Working without a license is a regulatory violation and can lead to legal penalties, but it does not necessarily involve deceit towards clients. Overcharging clients for services is unethical and often illegal, but the act of overcharging itself does not constitute fraud unless it is combined with deception or misrepresentation to justify the inflated costs. Therefore, misrepresentation or deceit is the core element that defines contractor fraud in this context.