If your company is tempted to save a few bucks by hiring an unlicensed contractor, reconsider. What you think is saving you money could end up costing you more than you bargained for.
Here’s why you should never hire an unlicensed contractor.
Liability
When a contractor is licensed, they have insurance for themselves and their employees. This insurance also covers any potential damage that your company may suffer, along with injuries sustained by the contractor or their staff. They also carry workers’ compensation insurance.
An unlicensed contractor does not carry these types of insurances, which means that the business owner is responsible for all related costs if an accident should occur.
Permits
Unlicensed contractors can’t pull building permits, which means if you hire them to make additions to your business, they won’t be able to secure the permits to do so.
A permit requires an inspection at the end of the project, and without an inspection, you may find faults in the future that put you in a bad position. You also may have trouble selling your business with unpermitted additions.
Contractor’s Bond
Only licensed contractors can produce a contractor’s bond, which is a document between the contractor, business owner, and surety that ensures the contractor will fulfill their agreement. You should never begin a project without this document.
Shady Business
If a contractor is unlicensed, they also might be involved with scams and other illegal activities related to construction. A license brings along with it a sense of security for both you and the contractor—it lets you know that you can trust them.
Licensing Know-How
If you realize that you’ve accidentally hired an unlicensed contractor, you aren’t stuck in the situation. What you can do is file a complaint to your state license board to get out of the agreement.
Never be shy to ask a contractor to see their license. If a contractor has a license, they will have no problem showing it to you—in fact, they’ll probably be glad to show it off. And you can check the validity too—every state has a public record that you can search for a contractor by name, company, and license number, to make sure the license is active.
At One Man & A Toolbox, we employ only the highest-quality licensed contractors. Get in touch with us to start your project today.