How to Identify an Unlicensed Contractor
A recent article in The Sun-Sentinel, “How to Avoid Hiring Unlicensed Contractors," explained that 6,000 complaints were filed in the state of Florida last year alone regarding unlicensed contractors. That’s a lot of complaints! It’s important to educate yourself on how to properly hire a licensed contractor, what questions to ask, and how to spot a fraud.
Background Check
The following contractors need a state certificate or need to be registered with the state:
- General
- Building
- Plumbing
- Mechanical
- Electrical
- Alarm system
- Sheet metal
- Roofing
- Plumbing
- Air conditioning
Licensed contractors must
- Put their license number in advertisements of all forms
- Carry general liability, property damage, and worker’s compensation insurance
Red Flags
- Your contractor suggests a large down payment before the work begins. Only partial payments should be made.
- If they call themselves a “licensed handyman”- there’s no such thing!
- If you’re asked to pay in cash or make the check payable to cash or an individual instead of a company
- You, as the homeowner, are asked to secure permits
- If you’re told the job doesn’t need a building permit. This is very rare! Check it out with your local building department first
- If the contractor will only work weekends and evenings
- If the contractor only asks for a verbal contract- get it in writing!
- If the contractor does not have proof of insurance
Be Proactive
- Get estimates from at least three contractors. They should specify how long it will take them and the type of material they’ll use for the job.
- Don’t choose your contractor just on price. Ask for references, see how long they’ve been working, check out past jobs they’ve done.
- If you’re using an independent contractor, ask to see both a professional and a driver’s license and make sure the names match up
- Check if your contractor has unresolved complaints, or if his or her license has ever been revoked or suspended
- Get everything in writing!
- To check out a license, you can go to www.myfloridalicense.com, Click “Verify a License”. Or call (850) 487-1395
Consequences
If you hire an unlicensed contractor, even if accidentally, you put yourself at the following risks:
- Losing your deposit
- Having an unfinished job
- Being liable for injured workers on your property
- Having fewer options if something does go wrong
- Wasted time and money!