There are really only disadvantages and risks involved when you hire a general contractor that isn’t fully licensed, and if you want your home remodeling, renovation or addition project to be a success, hiring a licensed contractor is the only sensible solution.
Without the cost associated with maintaining a license and insurance, you may well end up paying less for your project when you take on a contractor who’s unlicensed, but you may end up paying out more than you anticipated further down the line, when the work they’ve carried out for you goes wrong or doesn’t hold up.
Below are just some of the many advantages to be gained when you hire a licensed general contractor to fulfil your construction needs:
It’s always safer
Licensed contractors will focus on making sure that your home is constructed safely, and in line with all state and city codes, and with their extensive knowledge and training, they’ll be able to prevent unsafe working conditions and know exactly what to do should an emergency occur.
When you hire an unlicensed contractor, they won’t have the authority to gain the necessary permits needed to fulfil your construction needs legitimately, and without a permit, there will be no obligation for an inspection once the work has been completed. Permits and follow-up inspections are essential for any successful building project, and without them, you put everything at risk, including your own safety.
Liability is never an issue
Licensed general contractors are liable not just for the work they themselves carry out, but for the work of their employees and sub-contractors, too. Once licensed, a general contractor can purchase the required levels of insurance to protect their employees in the event of an injury while working on a project, without which, the property owner becomes liable for any workers compensation claims that may arise.
Additionally, without a license, a general contractor is unable to provide surety bonds, which are the contracts between the contractor, owner, and a third party (which is usually a bank). Contracts like these cover any unfinished work if the contractor can’t complete the project, or refuses to, and also cover payments for labor and materials to subcontractors if the contractor doesn’t pay.
As a consumer, you’re fully protected
While licensed contractors are tested rigorously on their construction knowledge and skills, they’re also tested on their business acumen, from both an operational and ethical standpoint. This means that you can rest easy knowing that your chosen licensed contractor will operate ethically and fairly, when working for you.
Licenses are handed out to construction professionals for a reason, and primarily to protect the consumer from added expense, liability, stress and upset. So, if you want your construction project to go smoothly and with minimal risk, you should always hire only those construction professionals who are fully licensed and insured.