Pitfalls of Unlicensed Contractors

Let’s face it! Economic times are still tough and everyone is looking for a bargain. But the one area a homeowner should avoid taking shortcuts with is hiring an unlicensed contractor. There are plenty of them out there and most often, they come in at lower bids. And what seems like a “great deal” could end up winding you a lot more than you bargained for in the end.

Take for example a recent case of an older Santa Rosa couple who wanted to save themselves $1,500 on a job by hiring an unlicensed contractor (this technically made the homeowner the contractor and liable for any and all mistakes and injury). During the job, one of the workers fell off a ladder and was seriously injured. He in turn sued the couple for over a $100,000 and was successful!

An unlicensed contractor lacks the necessary permits and the liability and workers compensation insurance that’s required. Failing to check for a license or overlooking the lack of one, can backfire if the contractor simply disappears without doing the work or if the work is shoddy. Not only can homeowners be subject to a rude awakening, but the homeowner’s insurance policy might not pay the claim if it was connected to an unlicensed activity.

DK Landscaping provides you key things to look for when hiring a prospective contractor to ensure they meet certain qualifications and make your landscaping experience a positive and professional one:

• Contact your Contractors State License Board (CSLB) or go visit http://www.cslb.ca.gov: A contractor’s license offers the homeowner some degree of protection during and after the project. An active license indicates that someone in the company attended classes for their trade, passed a state exam and can legally work in the State of California. Here you can look up the status, bankruptcy, years in business, fines and disciplinary actions. You can also make sure the contractor is not currently involved in any disputes.

• Get Proof of Insurance: Call the contractors insurance company and confirm insurance is current and will cover your type of project. Liability insurance covers property and bodily injury losses caused by the contractor. Surety bonds pay damages to the homeowner if the contractor fails in his or her duties. Finally, workers’ compensation covers employees who are injured on the job and ensures that those injury claims don’t come back to you, which they could if your contractor doesn’t have workers’ compensation insurance.

• Check References: Get a list of references and call to find out about the quality of the work. Did the contractor stick to the original budget numbers and timeliness? Were they happy with the contractors work?  Did the homeowner have any issues with problems after the project was over?

If your unlicensed contractor goes missing in action or phone calls aren’t returned after the job completion, be prepared to pay for someone else to do the repairs. If disputes arise with your licensed contractor, the CLSB has a dispute resolution process including mediation. You can make a claim against the contractor and get the work completed or obtain a judgment for the contractor’s surety payment.

Most importantly, know who you are letting into your home. Once they are able to satisfy the legal requirements to perform your work, make sure they perform the work to YOUR satisfaction.

DK Landscaping is a fully licensed and bonded landscape contractor. For more information on our services please call us at (707) 280-3632 or contact us by email, davidmunlee@aol.com.