Contractors are people you don't screw around with. Some states, like Texas, allow contractors (even auto repair shops) to put a lien on your property if you do not pay them. The fine print of some Mortgage Loans require that you notify them immediately if any liens are placed on the property. Failure to comply might allow the mortgage lender to force you to buy absurdly priced insurance (like 3x-4x market rate) from their selected insurer. Then you have all the hassle of clearing up the title and being unable to sell the property until things are properly cleaned up.
I've personally had a case where a contractor vanished but all his sub-contractors continued to work and deliver materials. The contractor didn't pay them so we had to. At least the sub-contractors got paid for the work they did do (which was quite excellent). We had to sue the contractor's company and get a judgement. There's nothing to collect, however, and the owner is now in prison. Not because of his dealings with us but because he decided to pretend to be a cop, lure "models" to a hotel, then sexually assault them while threatening arrest. Had to do a double-take on the evening news when his portrait was on the screen along with his full name.