When businesses or homeowners start considering contractors for specific jobs, there is a strong temptation to go with an unlicensed contractor and save money. Some unlicensed contractors even come highly recommended from past customers for the quality of their work and their professionalism. But in every case, the positive aspects of hiring an unlicensed contractor are an elaborate smoke screen that is used to trick unsuspecting customers into making a very big mistake.
No Liability Insurance
Unlicensed contractors are not bound by the same rules as licensed contractors, which means that unlicensed contractors can cut corners on costs. One area unlicensed contractors cut corners is in not getting liability insurance to cover their work. If you hire an unlicensed contractor and that contractor gets injured on your property, then you are liable for paying the medical bills and property damage bills. In the end, hiring an unlicensed contractor can cost you significantly more than a licensed company.
Damaging Your Property Values
According to the Better Business Bureau, another way that unlicensed contractors cut costs is to not get the necessary permits to legally do work on your home. Work done without a permit can be considered illegal, and you could be liable for financial damages associated with that work when you try to sell or refinance your home. Once your city or town finds out that you had work done without a permit, you could be facing serious fines that your unlicensed contractor would not be responsible for.
Losing Your Money
According to the Orlando Business Journal, some unlicensed contractors actually work together to commit fraud on unsuspecting customers and steal the customers’ money and property. These criminals usually go door-to-door offering exceptionally low prices on contracting work, and then they will demand a deposit. They will take your deposit, show up to your home, steal some of your property, never do any work, and then keep your deposit. It is a common scam among unlicensed contractors that consumers need to be aware of.
Not Following The Building Codes
Not only will unlicensed contractors damage your property value and cost you money by not getting the proper permits, they will also cause a lot of problems by not adhering to your local building codes. Licensed contractors know and follow all of the local building codes that are designed to protect your home from local issues. For example, many California building codes are put in place to try and protect homes and businesses from earthquake damage. When an unlicensed contractor does not follow the local building codes, they are putting your home at risk and giving your local government another reason to fine you if you try to sell your home.
Contractors that want to start the process of becoming licensed can browse courses by state at PDH Contractors and take that first step. If you want to create a legal business that will grow based on your positive reputation, then start studying at PDH Contractors and get your business the education it needs to be licensed.