Should a Contractor Be Licensed?

Contractors You Hire Should be Licensed

A home renovation can be a great way to increase the value of your property. If you are planning to sell your home, a home inspection may expose some problems you need to fix before you place it on the market. If you do not plan on selling, you might still have projects in mind to increase its value. Or you may just want to make some improvements. Either way, you should make sure the contractor(s) you choose are licensed and insured to avoid any pitfalls that could occur. Once the work has been completed, remember to have your property re-inspected to get that third-party perspective of how well the work was done.

Check State Laws

The Contractor State License Board (CSLB) was established in 1929 to help raise construction standards through state regulation and, thereby, protect consumers. Enforcement of state contracting laws is part of the regulatory process. Those who are caught contracting without a license are subject to appear before a Superior Court judge to answer misdemeanor charges. However, the financial scope of a particular project may allow for exemption (when the projected cost for an undertaking is less than $500).

Watch Out for Workarounds

Unfortunately, some contractors could attempt to find a workaround in order to claim exemption. If you are in negotiation with a company that wants to break up your renovation project into very small increments, this may be the case. Don’t allow an individual or company to compartmentalize a large project simply so that they can avoid licensing requirements. If they insist on doing this, you should resume shopping for contractors. Don’t forget that many home inspection companies also offer repair services from licensed contractors or they may be able to point you in the direction of a reliable 3rd party company.

Your Liability

One of the top reasons you should ensure that a potential contractor is licensed is to prevent unnecessary liability on your part. A contractor that is unlicensed will not provide worker’s compensation insurance to its employees. Thus, if a mishap occurs on your property and a worker is injured, you would be held financially responsible for the injury.

Due Diligence

Lastly, you cannot take a handyman’s claim of proper licensing at face value. It is worth taking the extra step to verify such a claim before hiring a company or individual. Ask for a license number if possible, and seek a website for your state where contractors’ licenses can be confirmed.

Termite and Home Inspection Services in California

Ensuring that a contractor has a license will spare you much time, money and frustration. Once the work is done, be sure to hire a reputable home inspection company, such as Homeguard Incorporated, to perform an inspection. We offer a variety of real estate services, including roof inspections, termite inspections and home inspections in Northern California. From San Jose up through Santa Rosa and Sacramento, down to San Diego area, we’ve got you covered. Call us at (855) 331-1900, or contact us online today.