Unlicensed contractor that is bonded and insured. Would you hire?

Question

If a contractor is bonded and insured, should you still be concerned that they are not licensed? If so, what are some of the pros and cons?

Thanks,

Mike Sz.

JD Martin · Answer

I suppose for me it would depend on the state, the relationship (brother, 2nd cousin twice removed, etc) the type of work/repair, and the cost. My brother doing some drywall repair for $100? Yup. My second cousin twice removed doing a full electric rewire for $5k? Nope.

Matthew Paul · Answer

When a problem happens and the insurance company that insures the unlicensed contractor becomes aware that the contractor is not following the laws of that state , they may not pay any damage claims , and the same for who ever holds the bond .

What is an unlicensed electrician ?  An unlicensed plumber ?  An unlicensed driver ? An unlicensed real estate agent ?

I am an unlicensed brain surgeon , I can operate on you a lot cheaper than the other guy .I have insurance and I am bonded too .

Wayne Brooks · Answer

Depends on what you call a “contractor”, GC or not?  This determines licensing requirements.

I did $1M earthwork jobs with just the required “occupational license” had insurance of course and occasionally had to provide Performance and Payment bonds, much tougher than what’s required for the typical “bonded” contractor. I’m not even sure what the typical “bond” offers in way of protection for the owner with a “bonded contractor”.

A non licensed contractor of course can not pull any required permits.

Matthew Paul · Answer

Here in Maryland becoming a licensed contractor is an open book test . Now there is NOT ONE question about building , none . Its all contract law and how you can and can not sell the customer . I took the test at 23 years old , and at that time I was very inexperienced . BUT I had a license . Now at 57 I have a bit of experience under my belt .

Joe Norman · Answer

For me it would depend on the scope of the work to be done.  If its a full gut rehab then I would stick with someone licensed.  If its a minor tile job, then I'd be more likely to take my chances on someone unlicensed.

Brian Pulaski · Answer

Depends on licensing requirements in your area. Not all types of contractors in all areas require licenses...

Michael Szypulinski · Answer

Yeah.  My confusion was why does an unlicensed contractor even had the ability to be insured and bonded?

The reason I ask is I have a family member that is unlicensed but is bonded and insured. From what I hear he is pretty good, but I am having second doubts since he is unlicensed.

@Matthew Paul

Unlicensed contractor that is bonded and insured. Would you hire?

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