Mike Holt - Pitfalls of Hiring an Unlicensed Contractor

This article was posted 03/19/2013 and is most likely outdated.

Pitfalls of Hiring an UnlicensedContractor

The 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

Very good advice. But can even happen using licensed contractors: I send an RFP to a PV contractor in MD to install a grid-tied system for us. Proposal and contract came back: used misleading ROI data, failed to address voltage drop issues I had (150' PV to main panel), would not tell us what kind of equipment they would install until after contract signed, would ot link payments to inspections, wanted full payment at installation completion before final inspection and grid-tie, would not tell us expected power at the grid connection point, did not agree to use 2011 NEC, did not provide license info nor insurance or workman's comp data. Result - contract was rejected.

ib March 20 2013, 1:18 am EDT

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