Why you shouldn’t use an unlicensed contractor
When you’re collecting quotes to do renovations on your home — whether it involves a gate/garage door or not — you should think twice about hiring an unlicensed contractor.
We know when you look at the price tag, it can be tempting to go with unlicensed contractor. “What’s the worst that could happen?” you think to yourself, eying the savings potential. But the reality is there’s a price difference for a reason.
By law contractors working on a job totaling more than $1,000 for labor and materials are required to be licensed with the California Contractors State License Board (CSLB), part of the Department of Consumer Affairs. Having the proper insurance and licensing increases costs for contractors, and therefore for homeowners, but using an unlicensed contractor puts YOU at risk of:
Poor Workmanship: Unlicensed contracts may not have the necessary skills to perform quality work, which can lead to issues down the road that take additional money and time to fix.
Liability Issues: All licensed contractors are required to be bonded, have liability insurance, and have workers’ compensation insurance. Unlicensed contractors may not have these, so if an unlicensed contractor is injured on the job, the homeowner could be held liable for medical expenses and/or damages due to the “interplay between several sections of the California Labor Code [that] may result in the inadvertent transformation of the contractor or its worker into an employee of the homeowner,” as this article from Inman explains.
Financial Risks: Homeowners might not be able to recover payments made to unlicensed contractors if work is not completed because they tend to only be in business for a short time and can be difficult to locate later.
Lack of Recourse: If an issue arises with a licensed contractor, a homeowner can file a complaint with the CSLB. Issues that arise from unlicensed contractors could only be addressed in court if at all.
Home Value Impact: Poor workman ship by unlicensed contractors can affect your home’s property value and insurance coverage. It can also complicate and delay the home selling process.