In California, being and unlicensed contractor constitutes a fine in the neighborhood of $10,000. In California the state license board is sneaky. I had someone appear at my shop (garage) wanting kitchen cabinets. He was really pissed when I told him that I can't because I'm not a licensed contractor. As he drove away I noticed his license plates were "exempt". Meaning that it was a state vehicle.
In California, when you hire a LICENSED contractor, there are numerous implications.
1 ~ The contractor has a bond. Should the contractor abscond with your money, you can file a claim and be reimbursed from the bond.
2 ~ The contractor is required to carry Workman Compensation Insurance to protect the employees on the job site. If the contractor is unlicensed, YOU are the Workman Compensation Insurance carrier. It becomes your responsibility for any injuries incurred during the job. And, no, your home insurance will not cover this liability.
3 ~ Just the contractor being licensed the liabilities are removed from you and placed upon the contractor. Just being licensed, most liabilities are laid at the door of the contractor and not your door.
The above are California restrictions and liabilities. Your state of province may be different but should be similar.
There is one other thing about licensing. Generally speaking, licensed contractors are reputable. It is doubtful that they will grossly under bid a job and follow on with add on work, or expensive "additions". While it is possible that a job is underestimated, it is usually because of an undiscovered damage for necessary additional work.
As Mike Holmes pointed out, an unlicensed contractor can not put a lien on your property. (Especially in California.) If they try, the response is, "They are operating an illegal business."
So in summary my friends, Please go with a licensed contractor. Engaging a licensed contractor gives you more legal protections than imaginable. When it is all done and complete the total cost probably is probably less than going with an unlicensed contractor.
And for the record, I am not a contractor, I never will be a contractor, I have no interest in any contracting firm, I am not associated with any organization that supports contractors and I am not associated with any governmental agency.
In California, when you hire a LICENSED contractor, there are numerous implications.
1 ~ The contractor has a bond. Should the contractor abscond with your money, you can file a claim and be reimbursed from the bond.
2 ~ The contractor is required to carry Workman Compensation Insurance to protect the employees on the job site. If the contractor is unlicensed, YOU are the Workman Compensation Insurance carrier. It becomes your responsibility for any injuries incurred during the job. And, no, your home insurance will not cover this liability.
3 ~ Just the contractor being licensed the liabilities are removed from you and placed upon the contractor. Just being licensed, most liabilities are laid at the door of the contractor and not your door.
The above are California restrictions and liabilities. Your state of province may be different but should be similar.
There is one other thing about licensing. Generally speaking, licensed contractors are reputable. It is doubtful that they will grossly under bid a job and follow on with add on work, or expensive "additions". While it is possible that a job is underestimated, it is usually because of an undiscovered damage for necessary additional work.
As Mike Holmes pointed out, an unlicensed contractor can not put a lien on your property. (Especially in California.) If they try, the response is, "They are operating an illegal business."
So in summary my friends, Please go with a licensed contractor. Engaging a licensed contractor gives you more legal protections than imaginable. When it is all done and complete the total cost probably is probably less than going with an unlicensed contractor.
And for the record, I am not a contractor, I never will be a contractor, I have no interest in any contracting firm, I am not associated with any organization that supports contractors and I am not associated with any governmental agency.