Friday, February 11, 2011

Licensed Contractors

  1. Ever since the real estate market took a plunge here in Arizona, everyone that had a skill became self employed. Now the construction industry is flooded with unlicensed contractors promising good deals. Most of these people have never operated a small business before so they are not aware of the coming events, such as warranty work. This is a part of the project that does not allow you to invoice for your time which means you don't get paid. Now I'm sure there are alot of qualified tradesmen doing the work but let's look at what the law says. According to the Arizona Registrar of Contractors "Any business which contracts or offers to contract to build, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, development or improvement, or to do any part of the work must be a licensed contractor". The way some get around this law is "the handyman exemption" http://www.azleg.gov/ars/32/01121.htm. It would be in the best interest of anyone considering a handyman to visit the website of the Registrar of Contractors @ http://www.azroc.gov/ , this site will help you educate yourself on what is required by law for every contractor licensed or unlicensed.
Another area to consider when choosing a contractor will be your homeowners insurance policy. In Arizona we are a licensed contractor state so I have been told that if you use an unlicensed contractor to do work in your home and they damage something or even worse they burn down your home, your homeowners policy will not cover the damages because the contractor was not licensd, bonded or insured. I would advise you to verify this with your insurance company.

Hiring a licensed, bonded and insured company will not guarantee you a high quality job without any trials along the way but the license does say that this person has passed the proper tests and has the experience to do the job you are requesting, the bond and inurance is there for the protection of the client. In our business we pay alot of money for this license, bond and insurance for the protection of our clients, mistakes will happen but without this protection in place the solution will be much harder to reach if it can ever be reached.

My advice to you is verify the contractors license through the ROC website, ask for some references and follow up on them. If possible visit an active jobsite of the contractor your considering. When considering more than one contractor compare their proposals side by side and don't assume they are going to do something, if its not in writing it will most likely not happen.

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