If you`re still not convinced, let me give you a few more details about the seven main consequences of hiring an unlicensed contractor. What happens if you buy a home and find out that the owner has done contract work without a permit? Due to the seriousness of unlicensed operation, the Contractors State License Board (CSLB), established in 1929, will impose penalties on anyone operating without a contractual license. Unlicensed contracts can harm the public, damage the reputation and reliability of the construction industry, and undermine the economy by working under the table. This is taken very seriously, especially because of the number of contractors paid without a tax return or Form 1099. This has a negative impact on the state`s economy and the nation as a whole. The cost of getting your license is affordable and should not only be an investment in your career, but also avoid convictions or negative grades for your permanent record. Always hire a licensed contractor who has workers` compensation insurance and liability insurance. The authorized contractor will obtain all necessary permits and will always ensure that their work complies with the code. This is the best way to ensure that your project is carried out correctly and that you are not held responsible in case of problems.
Criminal charges will be laid against anyone who illegally uses someone else`s contractor`s licence or attempts to mislead consumers into becoming a licensed contractor. Anyone who contracts for work in a state or federal natural disaster zone without an active state contractor license could also face crime. If a person is convicted of a crime, they may have to serve a sentence in a state prison. It turns out that Chuck, who stopped answering your calls after you wrote him his check, never paid Tim for the tile work. Now it`s up to you to cover the cost of the tile. Even if you thought you had already paid! You probably won`t be able to sell or refinance your home until you do. And you don`t have much choice but to pay. A license also shows that the contractor takes any work they do seriously and won`t cut corners when it comes to their work on your construction project. On the other hand, an unlicensed contractor cannot give you the same assurance. No matter how you find an unlicensed contractor or your motivation to hire a contractor, you should know that the reason they can offer the job at such a low price is because of all the corners they have to cut to work without a license. As with most things in life, if it sounds too good to be true, it probably is.
So how do you choose? I`m glad you asked! This article will break down the pros and cons of hiring an unlicensed or licensed contractor for your next renovation or renovation project. We`ll discuss contracts that aren`t licensed and what to look for when licensing a contractor, whether you`re working with a licensed independent contractor or an unlicensed subcontractor, learn more about the differences between licensing and unlicensed after reading this article. Tip: Licensed contractors win. Read on to find out why. If you`ve already hired an unlicensed contractor, there are ways to resolve disputes. I`ve answered a few frequently asked questions to help you. In the state of California, it is illegal for an unlicensed contractor to work on a construction project with a total value greater than $500. This concerns both combined work and equipment, and it can include all employees who work under you as a contractor. This is a strict law, and the only way around it is if the contractor in question actually obtained a license during the period when the work was actively processed and completed. In addition, it means that if an unlicensed contractor attempts to sue a client for unpaid work, no California state court will impose payment. In addition, it is considered a crime to operate under the license of another board-certified contractor or to knowingly deceive your consumer into believing that you have a current license.
But instead, let`s consider what can go wrong if you don`t use a reputable and licensed contractor. Some home improvement projects require a building permit from the city, county, or state. Licensed contractors will always contact them, but unlicensed contractors will not, so they skip that step and don`t ask for it. Since the correct approvals have not been obtained, this can affect your overall value. The negligence of your unauthorized contractor is also your responsibility, and as an employer, you are responsible for their actions during their tenure as employees. If you don`t see yourself cleaning your contractor`s construction site so you don`t get chased by a neighbor after their child steps on a nail, you may want to protect yourself and hire a licensed contractor. The biggest appeal of using an unlicensed contractor is the fact that they are usually able to offer a much lower price. Since you may have a tight budget for your home renovation project, this can often be a significant draw, as an unlicensed contractor will sometimes be able to significantly outbid the competition. Hiring contractors without the correct license can lead to unwanted delays.
Surety bonds are similar but different from insurance. With a bond, the contractor pays a fee to a surety company, and if he does not complete the project as agreed, the money is given to the client, namely you, the owner. On the other hand, if you hire an authorized contractor, you have the assurance that all work has been paid for and is guaranteed.
Recent Comments