Why it's Important to Hire Licensed Contractors & Steps to Take to Hire a Contractor

I want to start this post off by explaining what a licensed contractor is: a licensed contractor has the training and experience necessary to obtain a contractor’s license. The State of California’s Contractor’s License Board has checked into the contractor’s background and is satisfied that the person is qualified to hold a contractor’s license.

It’s important to note that you are not assured of getting the perfect job but quality work is most often attained when hiring a licensed contractor.  

Below are a couple tips when hiring a licensed contractor:

• Check I.D.: When a contractor comes to your home or building, ask to see their pocket contractor’s license and picture i.d.  You want to make sure you are dealing with the same person who holds the license.
• Shop Around: You should shop around before hiring a contractor and get at least 3 written estimates on your project, making sure each contractor is estimating the job using the same plans. Compare each estimate against each other and see what the differences are in what work will be done. If something is missing from one of the estimates, ask that contractor why they did not estimate that part of the project.
• Understand Bids: Remember that the lowest bid is not always the best bid.  It may be the best for your budget, but if it is more than 10% different from the others, you should look at it more thoroughly.   Maybe they are using cheaper parts or products or maybe they will underbid the project and do what is called a change order later or adding more cost to the contract. 
• Request Recommendations: You should ask for personal and professional recommendations and check them out carefully.  If possible go and see some of the work that has been done at another building or home.  
• Check Insurance: Check to make sure the contractor has liability insurance and has workers compensation insurance if required.  Don’t just ask, get it in writing. 
• Permits: Always make sure that the contractor takes out a permit when required and returns a completed and signed off permit before making the final payment.
• Payment: Never give more than 10% of the job cost before the work starts. Most often you can do the payment of contract in 4 payments including the initial startup payment. Withholding 20% of the contract’s total cost until the signed off permit is given to you is not uncommon. 

These are just some basic ideas on how & why you should hire a licensed contractor. Let us know your thoughts in the comments section below!