This article was posted 03/19/2013 and is most likely outdated.

Mike Holt - Pitfalls of Hiring an Unlicensed Contractor
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Pitfalls of Hiring an UnlicensedContractor

image1The Pitfalls of Hiring an Unlicensed Contractor

“Hi Mike,
I am a small contractor - myself and 1 or 2 other men.  I live in a farming community.  In many cases my customers are from word of mouth in our area. How can I educate my potential customers of the benefits of using a licensed contractor who will follow the Code; and let them understand the pitfalls and dangers of using unlicensed tradesmen? Thanks,
Dennis”

Dennis’s problem is quite common. In today’s environment, where work is scarce, there are many licensed contractors fighting to get jobs because unlicensed guys underbid all the time.

Elisabeth Leamy wrote an article for ABC News in 2006 that is just as relevant today. It is entitled “Unlicensed Contractors Will Rip You Off  and highlights pitfalls of hiring unlicensed tradesmen.  It is directed at the consumer, but this article will give you the talking points you need to educate your customers, write a flyer, or adapt for your marketing.

Unlicensed Contractors Will Rip You Off
By ELISABETH LEAMY (@elisabethleamy)
Nov. 3, 2006
Did you know you could be arrested for using an unlicensed contractor? It's true. In states that require licensing, hiring an unlicensed contractor is illegal. And if that's not bad enough, did you know an unlicensed contractor who gets hurt on your property could sue you -- and win? Unlicensed contractors are unlikely to carry proper insurance, so it has happened.

Click here to continue reading the article posted on ABC News.

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Comments
  • I think the article fails to mention Inspections by the AHJ (the local building dept). Pay a small deposit to get a permit, than pay a second payment for material. Next payment when rough in work gets inspected and passed inspection. Next payment when work is completted. Final payment when work has passed FINAL inspection and you get a certificate from the town/ City etc. This way the homeowner protects himself at all times. If the contractor is ligit he should have no problem with this arrangment.

    Steve  March 19 2013, 10:42 pm EDT

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