Contractor Licensing – Proceed with Caution!
Unlicensed subcontractors can essentially ruin your business. Many contractors have good relationships with their subcontractors and know of the quality of work they can and will provide. There are times though, in a pinch when you’re required to go with someone you don’t know. Before you get yourself in trouble and start losing your customers, make sure you check these tips…
Licensing- Most states now require subcontractors to be licensed and insured. Check references, and check with your local agencies before you sign a contractor/subcontractor agreement. Most (if not all) states offer an online search for anyone to be able to see if their contractor/subcontractor is licensed. If they don’t have an online search, you can always call and check to see if a contractor is licensed. Here’s a few to get you started:
Oregon Construction Contractors Board
Indiana Professional Regulation License Look Up
Illinois Department of Financial & Professional Regulation
California Contractors State License Board
Michigan Department of Energy, Labor, and Economic Growth
If your state is not listed, go to your state’s website and search “Contractor Licensing” or “SubContractor Licensing”.
If you’ve found an unlicensed contractor in your area, and licensing is required, you can file a complaint with your states labor board. Filing a complaint can help save time, money, and even lives. Unlicensed and uninsured contractors are usually untrained and present a major risk. Often they will offer their work at a discounted price, but with that discounted price comes higher liability and potential for shoddy workmanship. As a licensed and insured contractor, you know what you went through to get licensed- and you know the quality of work you can provide to your clients. Now make sure that the subcontractors you hire are licensed and insured.
Check out what can happen with a contractor/subcontractor relationship gone wrong here and find out more ways to protect yourself and your business.
Are you licensed but not insured yet? We can help you find an agent in your state. Get a free quote from insurance agents at EZContractorsInsurance.com
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