Bonded and Licensed Contractors- Meaning and Why Hire them
When you need a contractor to do any work in your property or home, make sure that they are bonded and licensed. An unlicensed contractor brings significant risks that include a possible lawsuit. They can also give void warranties that the state law affords you.
A Bonded Contractor
A bonded contractor is a professional that has bought a surety bond. This is an insurance policy that provides protection to the property owner. A bond provides a specific level of liability protection. For instance, if a contractor does not complete the contracted or required work, the bond provides the property owner compensation.
However, for a homeowner to be paid out by the bond, they must win the claim with a contractor’s bond first by proving that the hired contractor did not perform the specified work.
A Licensed Contractor
Contractor’s license laws differ from one state to another. However, contractors are mostly required to have a license to provide any skilled labor on the property or home of another person.
For instance, a contractor that performs different tasks may be required to have a license for a general contractor. In most states, there are specific requirements for licensing. These may include minimum education and work experience. Contractors may also be required to take a specific exam with varying licensing levels to perform different jobs.
What’s more, contractors may be required to have worker’s compensation insurance to be licensed. Being bonded is also a requirement for licensing.
Why Hire a Bonded and Licensed Contractor
An unlicensed contractor can break the law. They most likely do not comply with laws that include inspection requirements and permit requirements. This implies that your project may not be up to code. It may also necessitate removals or repairs if the property is inspected or before selling a property.
Additionally, determining whether an unlicensed contractor provides quality workmanship is not easy. Thus, you are likely to get poor workmanship and be subjected to unnecessary liability because they most likely don’t have insurance.
To avoid troubles during and after your construction project, hire a bonded and licensed contractor.