Does my contractor have to be licensed?

Question

I have found a guy who is reliable but he is not licensed, will that be an issue? Also are they're any reliable/well trusted general contractors in the DMV area?

Douglas Mcqueen · Answer

@Omar Butler  the short answer is no.  However there is a a lot to consider.  Typically price is the main driver here, but make sure you take all costs into account as Will alluded to the price of the non licensed contractor vs licensed is much more then their individual rate.  A licensed tradesman assumes a certain amount of liability for their work and this liability is backed by insurance.  Non licensed "handy men and women" do not assume this liability and even if they say they do they are more often then not insured and it would be un-actionable in the legal system.

The real question is does the job you need done, if done in correctly poise a tangible risk?  And if so are you willing to take on that financial and potentially legal liability should the worst case be realized.  Is that liability worth the extra money it would take to have the same work performed by a licensed tradesman?

Nik Moushon · Answer

The two biggest concerns that come out of this are:

1 - Does your city/state require them to? This could cause trouble being able to pull permits or get things approved by the inspector. Which will could cost you both money and time if things go wrong.

2 - Being able to hold them accountable for failed work. If they are not licensed it will be hard to prove in court that they should take the full responsibility for failed work. You took the risk of not hiring a licensed "professional". Now professional in the terms of the law, not that they do or do not know what they are doing. This also comes into play during law suites for injuries as well as failed work.

Now I will say that just because he isnt licensed doesnt mean he is less knowledgeable or competent than someone who is. Some state require testing to get a GC licenses and others dont.

My biggest concern is liability. You can get around the above concern with a correctly worded contract. Now he might not sign it. But I would not work with someone who is not willing to take responsibility and stand by their work. No matter how good they are. Insurance is another MUST. He has to have liability insurance. Otherwise its the owner, YOU, who gets stuck with all the blame and the million dollar law suite. You should have insurance as well.

Eric Teran · Answer

@Omar Butler I am an Architect and like to refer a few Contractors to clients and friends. A few question for you first, what type of work are you going to do, what is your budget, and where is the project located? If you give me that info I can give you two or three contractors that I trust in the DMV area.

Will Fraser · Answer

Hey @Omar Butler!  This is going to present more liability for you than a licensed person would, but at the end of the day it will depend a lot on what trade you are talking about.  If it is plumbing, electrical, or mechanical then IMO you'll want to hire a licensed tradesman, but other things like trim carpentry, sheetrock, etc usually do not have licenses and, even if they did, may not constitute a big enough risk to worry with.

David M. · Answer

@Omar Butler

Depends...  very State is different, an so are some towns...  in NJ electricians and plumbers have to be licensed.  All other home improvement work just has to be registered — basically shows proof of insurance.  Some towns (I believe parts of upstate NY for example) require contractors to register with them

Depends... how do you want to do your investments?  I’m not advocating you do anything illegal..  if you need to pull a permit, depending on the trade somebody is going to need to be licensed/registered.  If somebody gets injured on the job...

Not sure if that was the point of your question here, but just throwing in my two cents on more administrative side..

Omar Butler · Answer

Makes sense! Thank you Will

Does my contractor have to be licensed?

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