We are all looking for a deal. This is especially true when soliciting bids for construction. Businesses and individuals alike are in the constant search to get the highest output for the lowest price. However, if you consider hiring an unlicensed contractor, you may be setting yourself up for a pricey headache. Unlicensed contractors have a tendency to be less skilled than their licensed counterparts and typically cut their costs by not purchasing liability insurance. That means if they get hurt while working on your project, you are responsible for their injuries. The money you save by working with them could be lost in an instant.
In Part one of this series, we listed several reasons why it’s a bad idea to hire an unlicensed contractor. Here are a few more reasons why this is a questionable business practice:
Working with an Unlicensed Contractor Makes You Liable for Property Damage
If an unlicensed contractor causes damage to someone’s property, you will be held responsible. Many unlicensed contractors don’t have insurance to cover such instances. For example, if an unlicensed contractor breaks a pipe that leads to water damage to a neighboring property, you can be sued for damages.
Unlicensed Contractors May Not Understand Building Codes
Building codes were created for a reason. They play a critical role in ensuring the creation of a safe structure. When you hire an unlicensed contractor, they are not being held accountable by state standards, including knowledge of building codes. The issues with this practice are twofold. One, without proper knowledge of building codes, it’s likely that your structure will not pass inspection. Second, a structure that’s not built to code may pose a safety risk to those who actively use it.
An Unlicensed Subcontractor Can Cause Your Insurance Company to Cancel Your Policy
In general, hiring an unlicensed contractor is seen as a risky business practice. So if your insurance company gains knowledge that you’ve hired one to perform work for you, your insurance may be canceled. This can potentially affect your ability to do business if you’re a contractor
Hiring an unlicensed contractor is a dangerous practice. However, you may not realize that you are doing so until it’s too late. If you want to recover damages from an unlicensed contractor for their substandard work, contact our Orlando construction attorneys.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.