McCray and Sons Home Services has always prided themselves on being honest, reliable, and affordable. Obtaining our contractor’s license has opened us up to being able to take on larger projects for our customers, while still maintaining our “no job too small” handyman services. We have learned a lot along the way and would like to pass on some information on what you may need to know about hiring licensed vs. unlicensed contractors.
You may be planning improvements, have a honey-do list, or may have a household emergency and you might need to hire some outside help.
In these instances, it is time to bring on a contractor to do the work for you. And perhaps you were unaware, but when it comes to certain projects (construction, plumbing, fencing, to name a few) there are licenses at play. You will have the option to hire a licensed or unlicensed contractor, its up to you to weigh the advantages and disadvantages.
If you opt to choose a licensed contractor, we encourage you to ask for verification.
Quality work: Licensed and insured contractors are known to be the best option for price in the long run. Obtaining a license for the trades requires training, demonstrating the required skills and pursuing continuing education to maintain that license. |
Licensed vs. Unlicensed Contractor: The Price
There’s always the budget that comes into play when first hiring a professional. “How much is this project going to cost me?” It is an important question in the project planning. Really this is what makes an unlicensed contractor a more appealing option
- by being able to offer lower quotes for projects, they can be seemingly cheaper than the licensed competition. This is enticing but has its own risks and can cost you more in the long run.
Consider this: the unlicensed contractor can offer the lower rates as they may not pull proper permits for your work, have the insurance and bonds that protect you, the homeowner, as well as the contractor and their work.
For example:
🔸 Say you hire a friend of a friend who was a plumber for 20 years. However, he hasn’t plumbed in 10 years, he wouldn’t know the new codes.
🔸 Consider you hire unlicensed contractor to clean gutters because he was cheapest option, and he falls off your roof or causes property damage. You’re liable.
Bonds
Let’s talk bonds – They are similar, but different from insurance. With a bond, the contractor pays fees to a bond company. The bond acts as a guarantee that your contractor will perform the work you each agreed to. A bond, or “surety bond,” is required by each state. You should never take your contractor’s word that one is in place, but rather ask for proof. |
Hiring a contractor who is not bonded is another risk you don’t want to take.
One of the greatest concerns is that an unlicensed contractor will not have liability or worker’s compensation insurance. That means you will be held liable if an employee or third party is injured on your project or worksite.
It is always best to take these into account when budgeting for your projects. While the cheaper option is the advantage of the unlicensed, when you really consider the financial consequences should something go wrong. The savings might not be worth the risks.
"Contractor license bonds are legal contracts designed to protect the general public by guaranteeing contractors will adhere to all state laws and regulations as outlined in the California Business & Professions code or risk a bond payout, which in addition to resulting in a financial loss, can result in disciplinary action by the CSLB. Unlicensed contractors are not bonded and as such, do not provide the same level of financial protection to consumers. Each year the California Contractors License Board receives thousands of complaints regarding unlicensed contractors, and they regularly conduct sting operations designed to catch and prosecute these offenders."
Click to read more from --> California Contractors License Bond Guide
Insurances
When hiring a licensed contract, be sure that they are properly insured in the trades they are practicing.
Let’s talk insurances – There two types of insurance: liability and worker’s compensation. All licensed contractors should carry both. |
Liability insurance will protect you and your property should any liability claims arise on the job performed. As for workers compensation, will protect you, in the event someone gets hurt on the jobsite. Your contractor must have it both for themselves and their employees.
Why should I hire a Licensed Contractor?
It’s as simple as reliability, ease of mind, specialized skillsets & tools, and protection.
Credibility: Licensed and insured contractors know what to look for and how to address repairs properly in and safe manner. They care about the quality their work and rely on customer referrals and reviews.
Protection: When your contractor is properly insured, you are not liable or responsible.
Specialized tools and equipment: Licensed and insured contractors likely have tools and equipment that most don’t have. These tools may be needed to get the job done correctly and safely.
Finding a License
The next time you find yourself looking for a contractor for a project you have in mind, make sure you verify that they are licensed. When you do your research online, most will have their license number easily to view on their website.
In California you can search for your contractor several different ways (license number, business name, etc.). To do this simply visit the Contractors State License Board’s website, search your contractor, your state. There you’ll be able to see their licensing info and any complaints files against them to the CSLB.
When selecting your contractor, be sure you ask to see their license, as well as proof of any insurances and/or bonds they may carry. Always feel welcome to ask for these types of verification – it’s part of the trade! And any honest, licensed contractor should happily provide this for you.
McCray and Sons Home Services is licensed (cslb #1101649), bonded and insured. Consider us on your next home project.
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