Why hire licensed contractors

The biggest investment made by most people in their lifetime would probably be the cost of buying and owning a home. Because of this, property buyers and owners often look for the lowest price when building or remodeling a home.  But only hire licensed contractors.

Most unlicensed contractors are generally not bonded and insured. They do not have the residential contractors’ recovery fund or any unemployment compensation insurance for their workers. These are the contractors that can offer lower bids than licensed professional. Their offer maybe at first attractive as a way to lower costs and save money for the home owner. But most of the time it is not.

There are now hundreds and even thousands of contractors especially southwest in the country, an unprecedented growth in the industry. There are people who may have worked as a laborer or a helper for just a short period of time to gain experience and then decided they are ready to start their own business. Lacking in sufficient capital and experience, they advertise and print flyers, place ads in the yellow pages and distribute business cards.

The Unlicensed Contractor

Homeowners and property owners always attempt to get the lowest price. Unsuspectingly, they call the numbers listed on the yellow pages and asked for a bid. The unlicensed contractor prepares the bid and submits it to the property owner, complete with business cards and flyers. Upon getting the bid, the client is impressed at how much this company can save him money.

Then the story begins. The contractor will require a large portion of the money up front. He will have several reasons why aside from buying the materials just to gain your sympathy. It may seem fine in the beginning. Workers would show up in a day or two to do some measurements or deliver a few materials for the project.

After a week has passed, no work is done. You call your contractor and all you get is a recorded message. Then you leave a polite message requesting for a return call. After several more days with no response, you call again and leave another message. This time it won’t be as polite as the first one.

When the contractor returns your call, he would sound very apologetic. He can tell you several reasons that are urgent in nature that is why he is not able to do his end of the project. There might be something wrong with his truck, or his family, or someone needs his help or there is another job that needed to be completed immediately. Then he promises to get right on your project the next day. A week would pass and he won’t show. If ever he does, he would tell you that he needs more money.

This often happens every day with the consumer losing hundreds or even thousands of dollars. This leaves property owners to have little recourse other than to pursue the matter in court.

The Licensed Contractor

When a property owner hires a licensed contractor, he/she enjoys several additional protections regarding residential property.

Firstly, a contractor can only obtain a license after passing a business management test and possess the minimum amount of experience. Licensed applicants have undergone a criminal history background check and are clear of any unresolved and outstanding contracting complaints.

As a residential property owner, you have the significant statutory protections against your licensed contractors. These are not available to persons utilizing unlicensed contractors.

The protection basically provides the ability to file a complaint against the contractor’s license. This is a guarantee should their workmanship fall below standard or is in violation of existing building codes. Under certain conditions, you are eligible to apply to the residential contractors’ recovery fund and can receive thirty thousand dollars to have the work corrected or completed.

Licensed contractors are covered for up to $200,000.00 to a minimum of $30,000.00 per residential property owner. This claim is on a first come, first serve basis based on the filing date of a complete claim.

Keep detailed records of your contract, all forms of payment and speed up the processing of your claim.

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