Beware The Unlicensed Contractor

Homeowners often face expenses to maintain or repair their property. It makes sense to look for the most affordable contractor available to do the work. Many times homeowners come across unlicensed contractors during their search for a company to do the work.

Most often, an unlicensed contractor will provide a bid that is lower than bids from licensed contractors and will promise to do the same work. It sounds so appealing to save money and still get great workmanship that some people do that. However, the cheapest contractor available might be the one that will cost you the most in the long run.

It is not surprising that an unlicensed contractor would be less expensive than a licensed contractor. Unlicensed contractors have advantages that enable them to provide lower prices.

• They do not have to pay licensing fees.
• They do not have to obtain a bond to protect their work.
• More often than not, they do not purchase liability or workers compensation insurance.

Without these added expenses, unlicensed contractors can provide their services at a rate lower than the legitimately licensed professional.

It is true that having a contractor’s license is not a guarantee that the work will be done well, or even properly. Since there is no guarantee that a licensed contractor will do a better job, why should a homeowner or association care if the contractor has a license? The answer is simple: a license protects the homeowner from a myriad of problems that could arise.