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Tag Archives: uninsured employees

The High Price To The Low Bid – Why You Should Never Hire An Unlicensed Contractor To Work On Your Property (When A License Is Required)

The High Price To The Low Bid – Why You Should Never Hire An Unlicensed Contractor To Work On Your Property (When A License Is Required)

It Never Makes Sense To Hire An Unlicensed Contractor – The Risks Far Outweigh Any Rewards And It’s Against The Law

In California, like many states, contracting for work where the labor and materials are greater than $500 requires a contractor’s license – there are no exceptions.  Month after month I hear stories of people, including other real estate agents, who hire unlicensed contractors (when the work unambiguously requires a contractor’s license) in an effort to save money.  In reality when they do so they are breaking the law, and exposing themselves and their brokers, and/or their clients, to unnecessary risk.  In addition to all of the potential workmanship issues associated with unlicensed contractors, the red-flag that is most prevalent and potentially damaging is the insurance issue.  Unlicensed contractors are NOT insured.  Unlicensed contractor’s work is NOT bonded.  Unlicensed contractor’s employees are NOT covered by worker’s compensation insurance.  Unlicensed contractor’s work is NOT guaranteed.

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