There are certainly a lot of contractors listed on the Internet under home renovations, remodeling, painting and handyman services; however, in order to choose the right contractor for a homeowners project, the homeowners need to know if the contractor actually has the expertise to do the specific project they are bidding before making a final decision on whether to hire them or not. The cheapest is not always the best choice. If one contractors estimate is way less than the others, this should always throw up a red flag. There must be some reason, usually a very big reason, they seem to come out 25%-40% under the other estimates. It usually means they are unlicensed, uninsured, don't pay taxes and worst of all, have to take shortcuts in order to meet their low price and still make a profit.
One of the major considerations for hiring a contractor should be if they are licensed or not. There are several reasons why a homeowner should go with a licensed contractor over a contractor who has no licenses...
-Licensed contractors are usually licensed by the state they are located in and will have to complete a number of courses or training and continuing education in order to obtain and maintain a license for their business. A licensed contractor typically means that they know what they are doing and will take better care when conducting business in and on a homeowner's property.
-A licensed contractor will signify to a homeowner that they care about their clients and their property. That they took enough time to become licensed or obtain insurance, which in most cases is a long process of paperwork, training, proving assets, proving knowledge in their fields, understanding building code requirements and understanding the guidelines of their crafts. This shows homeowners that they are not some 'fly-by-night' operation.
-Another consideration to make about a licensed contractor is that they are usually required to carry some form of insurance, mainly liability and workers compensation in case their employees damage a homeowners property or if their employees were to be injured on the job these types of insurances would cover any costs associated with these types of accidents. Most homeowner's insurance policies will not cover accidents or errors that happen due to the negligence of a construction company or someone working on a homeowner's house.
-Hiring a licensed contractor may also mean that the price might not be your lowest estimate. This is not always a bad thing. Hear me out...I can almost always beat another reputable, licensed contractors estimate by at least 10%. This is because I've had many years of experience of trimming my overhead down to a minimum operating cost, so that I can offer top quality service at very reasonable prices. I'll not give away all my trade secrets but one way I'll reveal is just a common sense approach. I've personally found it's better to hire a few highly skilled laborers that know their field inside and out rather than a plethora of average, not-so-skilled workers, that don't show up for work as they should and waste a lot of time when they do work. Higher skilled, higher paid workers generally have better attitudes, more trustworthy and are able to comprehend the project quicker and perform faster, which saves everyone money in the end.
Knowing that a contractor is licensed to operate and conduct the type of business that a homeowner is looking for gives homeowners' peace of mind. They know that the contractor they have chosen is reputable and will conduct their business in a professional manor and will know what they are doing so that the homeowner will not be wasting their time or money on a company that will not get the job done right the first time. A licensed contractors credentials can be checked easily by contacting the state board that issued their license. The licensed contractor is governed by that board and must answer to that board should a complaint get filed against them for misconduct. We've all heard the horror stories of an unlicensed company doing unsatisfactory work, takes the money and runs, then the homeowner who thought they were getting a great deal, can't find them and has no way to make them correct the work or return any of their funds.
Many people don't realize that getting a contractor license isn't as easy as just taking a weekend seminar and buying a license to hang on the wall. I've spent numerous hours (months actually) studying, training, testing, continuing ed., having to obtain letters of recommendation from other licensed contractors who trusted my abilities, prove financial assets and liabilities and then submit all this to the NC Board of Licensed General Contractors, BEFORE they would issue my license in general contracting. I still have to take so many hours of continuing ed. and resubmit my credentials yearly before Dec.31 in order for my license to renew. It's not just a one time thing.
The challenge for property owners is to not go instantly for the lowest price. It’s appealing; you’ve already spent a ton on your home and you don’t want to keep putting a ton of money in, but 9 times out of 10 the cheapest price is from an unlicensed contractor. They’re not bonded or insured, and they don’t have to pay into the residential contractors’ recovery fund or pay any unemployment compensation for their workers, etc. Simply put: their costs are lower so they can offer cheaper prices. Saving money looks great on paper, but when the trouble starts and the work is shoddy, you’ll end up spending more and being far more frustrated.
Hiring a licensed contractor helps protect against construction fraud. The licensing system is designed to protect property owners, particularly residential property owners.
The decision is yours.
