How do you proceed? What most people do is go looking for someone skilled to do the job. So, you gather bids and want to automatically gravitate towards the cheapest bid. But hold on? What else should you consider about the contractor you are hiring to do the work?
Are they licensed? Are they insured? You might find an unlicensed contractor willing to do the work for you for less. But is it wise to hire someone who is unlicensed? The answer is a resounding no. When you hire an unlicensed contractor, you by default become the contractor. Therefore, if you are experiencing issues that involve an unlicensed contractor, it may be in your best interest to hire an experienced, local real estate lawyer as soon as possible.
And if an issue develops, a real estate lawyer who has experience with such matters will be able to offer guidance on the legal rights and remedies you have in your particular circumstances.
Your lawyer will also be able to determine whether you have a valid claim against an unlicensed contractor, and if so, can assist you in filing a lawsuit and recovering damages for any losses you may have suffered as a result of their actions. Or, if an unlicensed contractor has brought suit against you for payment for work that they have completed on your property, your lawyer can mount the best possible defense available under the law of the state in which you live.
Finally, regardless of whether your legal matter ends up in court or leads to a settlement agreement, your lawyer will be able to provide representation on your behalf in either scenario.
Susan Nerlinger. Susan is a member of the State Bar of California. She received her J. She also taught civil procedure in the Paralegal program at Santa Clara University. She then taught English as a foreign language for eight years in the Czech Republic. Now she devotes her time to writing on legal and environmental topics. You can follow her on her LinkedIn page. Ken LaMance.
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Please enter a valid zip code or city. Please select a city from the list. Connecting …. Are You a Lawyer? There are several risks involved when using unlicensed contractors , starting with the fact that working on large projects without a license is illegal in many states, including California. However, for the property owner, the financial liability risks are of much greater concern, as they could be incredibly costly.
This is especially true if a worker is injured on the job and your unlicensed contractor is without workers compensation.
The biggest risk involved in hiring unlicensed contractors comes down to liability. When you hire an unlicensed contractor, they actually are not a contractor at all — they are your employee. Therefore, it is actually your responsibility to provide them with a safe workplace and cover them should they be injured.
An unlicensed contractor can sue you for damage if they sustain an injury while working on your project and you could be on the hook for expensive medical bills, legal fees, and also have to pay for their lost wages for as long as their injury holds them out of work. These financial damages can amount to thousands of dollars, far more than the initial savings you thought you were getting by using an unlicensed contractor.
If your contractor is unlicensed, he or she and anyone else that is brought on to work on your remodel are all considered to be your employees.
This makes them all your responsibility to insure. You, the homeowners, and employer, carry the burden of determining whether a worker is licensed. This means you could be held liable whether you knew they were licensed or not. The best thing to do to protect yourself against this potentially financially crippling situation is to hire a contractor who holds the appropriate license to do the work you need to be performed.
This way you will not unwittingly become an employer and the target of a costly personal injury lawsuit. Beyond assuming the responsibility for injured workers, you also need to be wary of shoddy workmanship. A bond will protect the homeowner should there be any damages caused to your home during the remodel, Contractor license bonds will state that your contractor will work within certain regulations and protect you against the risk of financial loss.
However, an unlicensed contractor is bound by no such agreement. If their work is unsatisfactory, they are bound by nothing to fix their mistakes, and you may have to pay someone else to come and make the necessary repairs. These repairs may be more expensive than hiring the licensed contractor in the first place. Well, remember how the unlicensed contractor has to cut corners in order to complete your project?
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