Pitfalls of Hiring Unlicensed Contractors

You might be tempted to use an unlicensed contractor but I promise you, it’s not worth the risk. You open the door to a number of different issues that could end up costing you a fortune and leave you legally liable. While the perception exists that hiring unlicensed contractors is usually cheaper and they might agree to do some work that others wouldn’t attempt, these advantages don’t weigh up equally against the pitfalls that you could fall into.

Legality

You better hope that they can’t prove you knowingly hired an unlicensed contractor. If anyone finds out that you did, you could be held legally accountable. You might even have your license for business revoked. Repercussions could include civil fines and having to redo the work that has already been completed. Getting caught could also affect your brand. We doubt that businesses or clients are going to want to use your services when they find out your practices were illegal. You might think that there’s little chance you’d get caught, but all it takes is one mistake made on the project and you’ll soon discover you’ve attracted the attention of the authorities.

Damages And Liability

Of course, it’s not just the use of the contractor where legal issues tend to arise. Unlicensed contractors often are not licensed for a reason. They don’t have the skill, the training or the expertise to complete the job, at least not safely. Due to this they might get themselves or their workers injured on a project. If they are injured you are legally accountable. Due to premises liability they can sue you for any damages or injuries that they suffer. Questions of insurance could apply and in the end if a claim were to happen it could end up being an amount that could cripple both you and your company.

Replacements, Redos and Property Values

Most users of unlicensed contractors find that the work is so poor it needs to be redone so they end up paying double what they should. Further, as property that has been repaired in an unlicensed manner is later sold, if it is discovered the work wasn’t completed to a high-quality level your sale price would likely be reduced.

Hiring an unlicensed contractor is never worth the cost.