When you hire a licensed contractor you may be entitled to the Recovery Fund. The Virginia Contractor Transaction Recovery Act provides relief to eligible consumers who have incurred losses through the improper or dishonest conduct of a licensed residential contractor. The Recovery Fund is supported entirely by assessments paid by licensed contractors, not by any tax revenues.
Hello and thank you for your question, when it comes to hiring the firm that is going to be providing you with remodeling and or construction services it is always important to look at the big picture, remember that old saying "penny wise not dollar safe"
When you hire a licensed contractor her or her can easily be found in the case things do not proceed as planned. Unfortunately the day or project will arrive Even if both homeowner and contractor have the best intensions things just do not work out and a job can go sour.
If a licensed contractor decides to just Walk Away from a problem or issue on the job the homeowner has plenty of leverage on getting he or she to return for example
Licensed contractors must fary a contractor bond of $12,500.00
The bond company is connected with the CSLB if the bond pays a home owner the contractor must pay the bond company within 10 days or their contractors license will be suspended.
A licensed contractor usually has all his ducks in order, it is their livelihood not hobby.
When you hire a licensed contractor you have options available to you if the contractor fails to live up to your agreed upon terms of contract. If you hire a non licensed contractor your only recourse is to file a lawsuit and chances are it will cost you more in attorneys fees than what you will get back, if anything, from the unlicensed contractor. Unlicensed contractors do not play by the same rules licensed contractors have to, according to State and Federal regulations and restrictions. You can also file with the lien recovery fund if the licensed contractor you hired fails to perform and then the State goes after the licensed contractor for repayment.
This winter I was called out to a house that was for sale, and was being remodeled by the owner. In an effort to save money he hired a handy man to install a A/C and Heating split system into a house that never had central air. The handy man took money upfront and an additional payment to complete the job, then was never heard from again. When I assessed the system, the unit was not sized properly for the square footag of the home. The duct system was undersized, and everything was so far out of building code I could only shake my head. Basically I had to tear the whole system out, and the owner in an effort to save money paid to have it done twice. Not to mention if they are unlicensed and get hurt, you are liable.
There are many benefits to hiring a licensed contractor. Mainly, safety. You know that a contractor with a license has put forth the time and effort to learn his or her trade properly. They will have the knowledge on how to correctly build, repair, or alter your home or other facility.
In addition to their knowledge, it is also more likely that they will have maintained their licenses, certificates, and insurance. If something happens, those factors can make a world of difference in protecting you and your investment. Many, if not all, include a warranty with their work, as well.
All the other posts are accurate but how about that it may be the law requiring a licensed professional? The reason for the licenses (and permits) is all about safety and following the building/local laws. People who want to avoid licensed individuals feel as though that they will get a better price - the post about the split system A/C is a perfect example as to why to hire licensed individuals (as a contractor, I look to the expert subcontractors and will only hired licensed individuals for subcontract work).
Many states require contractors to be licensed and/or bonded. In NYC where I work, it is required by law. Make sure the contractor’s license is current. It is meant to protect the consumer’s interests against fraudulent, incompetent and unfit contractors.
Hello and thank you for your question. There are many benefits to hiring a licensed contractor.
When you hire a licensed contractor you may be entitled to the Recovery Fund.
When you hire a licensed contractor you have options available to you if the contractor fails to live up to your agreed upon terms of contract.
Make sure the contractor’s license is current. It is meant to protect the consumer’s interests against fraudulent, incompetent and unfit contractors.
For your safety never hire a none licensed contractor!