Contractor work license needed?

Question

I own a small condo right now that I am living in but am prepping it to rent. I am making renovations to make it appealing to prospective tenants and keep my wife happy in the mean time. I have a guy that isn’t licensed but does great work with every aspect of construction, from electric to Plumming. Is it ok to use this guy on any renovation. He’s 200 dollars a day flat fee regardless of the work so it’s a steal. Can’t find anything close.

I’ve lived in his work in the past. My buddy and his dad has rental properties and he does everything. They mentioned sometimes they have people finish the work so it looks like it was all done by someone with credentials.

The tough caveat is I have to have the plan and everything presented to him st the start. He doesn’t help with that. Every supply should be on site and ready for him.  Making it more difficult for someone who doesn’t do too many renovations on their own.

Dutch Langley · Answer

Every state is different and you should check with the licensing board and city/county ordinances. Per the North Carolina Licensing Board if you work on projects worth at least $30 K you must have GC license. If you do any electrical installation, wiring or repair work you need to be a licensed electrician. If you work on plumbing, heating or fire sprinkler systems you must have either a class I or Class II license. So basically in North Carolina a handyman should not be doing plumbing, electrical, heating, fire sprinkler, structural work without a license. License aside...I like being able to hold my licensed trades responsible in case something is not done correctly.

There can be numerous consequences as well if a property is being sold with an addition without being permitted.

Adam Schneider · Answer

@Edward Kanive You obviously raised questions that interested people. At the end of the day, you have the legal issues and the business issues. The legal issues are easy to figure out--@DutchLangley summarized them nicely. The business issues are risk/reward items you need to decide how to handle. The biggest dollar exposure issue if you are not selling it is the insurance exposure you will "enjoy" if the trade has no insurance and something happens. I think most people who have been in the business for some time have some items where they insist their trades be insured, and some where they take the risk. Obvious things are roofers (slip and fall), and trades where NC requires a license (plumbing, electrical, hvac).

Jason D. · Answer

@Edward Kanive if it were you and a friend, I would agree. You are paying someone to do the work, that isn't a friend, that's a handyman

Jason D. · Answer

@Edward Kanive I wouldnt risk it, especially in a condo. I'm assuming that he's also not insured, which is ok if it's a single family house and the only potential problem will affect your house, but in a condo, if he causes a severe plumbing leak, there is potential to cause serious damage to other peoples property.

If it was a SFR I would consider it. In a condo, I'd stick with professionals.

I also wouldnt pay a flat daily fee, just for the record.

Matthew Paul · Answer

@Edward Kanive , legally what you are doing would be wrong here in Maryland . I would advise against it .  BUT now in the real world , people do it all the time , basic electric and plumbing isnt difficult . Permits dont get pulled . its only a problem , when you get caught or something goes wrong

Edward Kanive · Answer

@Robert S.

@Jason DiClemente

I am just curious what everyone thinks the risky component of a bathroom reno is if I am not moving piping and doing minimal if any electric work. Just going down to studs, redoing cement board and walls, new tub, new shower attachements, new tile in shower and on floor and then re-installing the cabinet, toilet and vanity I have already done.  If what I am doing sounds crazy to pay a guy thats not licensed to do but I have seen many of his jobs, then maybe I will re-think it.

Right now cost savings is huge. I am a resident physician, wife medical student. Eventually I can open up the pocketbook but currently thats not possible with the debt we have along with the lack of income for the next 17 months.

Robert S. · Answer

@Edward Kanive Burst pipes and job mishaps are two different occurrences.  Homeowners’ Insurance Companies are in business, when bad things happen they send out investigators before writing checks.  Especially if the dollar amount is significant, in their eyes.  The cost of their investigators is way cheaper than covering claims caused by unlicensed professionals working in investors’ properties illegally.

Now there is a flip side to all of this, as a homeowner, you have the right to fill out your own permits and do your own work, if it is your primary residence.  Given that this is a condo, I would check with the municipality and see if you can go that route.

Edward Kanive · Answer

@Jason DiClemente thank you so much for mentioning liability. I have a great insurance agent and called to see what my options were for coverage and there really wasn't. However, if it was me and a friend doing the project, gross negligence would have to be proven.  Otherwise my normal HOI would cover even the unit below me if a pipe were to burst.  I wasn't really planning on doing plumming, just putting a new tub/shower in but not doing anything to old pipe. Electric work is questionable. I am not sure if who I bought it from did it correctly or not so I need to look more into that. I might just have an electrician buddy of mine come after and give a blessing.

Dan Moore · Answer

I’m curious to hear the feedback on this one myself. I have two guys who do all my work. They are better than anyone I can hire. I use them not because they are cheaper but because they do better work. But they are not licensed. But neither is the homeowner who does their own work. Some work needs permitting so that would be a different story but most rehab doesn’t need a permit which means a capable homeowner should be ok to do their own work.

Contractor work license needed?

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