3 Mistakes To Avoid, Part 2
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The second mistake I see is hiring someone who isn't licensed. There are many issues I take with this but I will focus on the role of the Construction Contractors Board, how it protects you, and why it's important to utilize its existence. Every remodeling contractor is required to hold a bond. That bond, used by the state of Oregon, is your protection as the customer. In their own words, the Oregon Construction Contractors Board uses bonds to -
“... pay all or a portion of a CCB final order if a contractor fails to pay the order in order to protect consumers”
Essentially, that's your protection as a customer. Should a contractor not complete the work properly or, in some cases, decide to stop showing up the CCB relies on bonds to protect the customer for reimbursement.
“If the CCB orders a contractor to pay money to the complainant, the contractor must pay as ordered. If the contractor does not do so, the bonding company will pay the money owed, up to the value of the bond”
An unlicensed contractor does not hold a bond and a licensed contractor whose bond is invalid will lose their license. If a problem comes up with an unlicensed contractor you may have to resort to small claims court, depending on the price of the contract and the payment made to the individual. In addition, if the price is over the amount covered by small claims court you can expect to see much higher court fees and it's very possible that your case would involve a lawyer. As we all know how expensive this all can be, it's a good idea to pay a licensed, bonded and insured contractor. It may cost more than the unlicensed laborer but in the long run it's cheaper than the hassles that will most likely come from cutting corners.
It's also very possible that work done by an unlicensed contractor will not be done properly or according to code. When you attempt to put your house up for sale you may find that the project you paid $20,000 for )which would have cost $40,000 through a legitimate remodeling business) may actually drop your home's value by $30-$50,000 due to unacceptable or unsafe conditions. What initially saved you $20,000 has now cost you an additional $30,000 in home value loss, resulting in a total cost of $50,000. If you decide to fix the problem to regain that home value it could result in a) a contractor having to “undo” the previous work, a possible charge of $10-$20,000 and b) the initial quoted price of $40,000 to complete the project properly. At the end of things the project's total final cost could be $70,000, almost double the cost initially bid by the properly licensed company.
If someone isn't willing to take the proper steps for licensing, what makes you think they'll do the work properly?
For the third mistake to avoid, click here.
