Hello and welcome to AE Carlson Design & Build. Today, I want to talk about a topic that’s really close to my heart—saving money while ensuring your home project is in the right hands.
In today’s economy, saving money is on everyone’s mind. Unfortunately, many homeowners have experienced—or know someone who has—a horror story involving a contractor who either did subpar work or vanished after taking a deposit. These situations aren’t just financially draining—they’re heartbreaking.
As a licensed, bonded, and insured General Contractor, I often get called in when a homeowner has already been burned. They’ll tell me things like, “The contractor asked for a $20,000 deposit, and I never heard from him again,” or “I paid $10,000 upfront for materials, and now he’s disappeared.” Sometimes I hear, “We signed a contract and paid the deposit, but the contractor just won’t answer my calls anymore.”
When this happens, my first question is, “Did you hire a licensed contractor?” More often than not, there’s a pause and a sigh, followed by a reluctant, “No.”
Why Licensing Matters
When you hire an unlicensed contractor, you’re putting yourself at risk. You have no recourse to make things right if something goes wrong. If the work is left incomplete, poorly done, or if the contractor takes your money and disappears, you’re left with little to no legal standing to recover your losses.
We’re currently working with a homeowner who hired a licensed general contractor for her project. While she now faces unexpected costs due to the corrections that need to be made, there’s an important difference: because her contractor was licensed, she can file a claim with the Contractors State License Board (CSLB) to recover the costs for the negligent work. This protection only exists when you hire a licensed and insured contractor.
Protecting Yourself and Your Investment
It may be tempting to go with the lowest bidder, but remember that sometimes cheap prices lead to costly mistakes. Hiring an unlicensed contractor may save you money upfront, but if things go wrong, it can end up costing you much more in the long run.
Here are a few tips to protect yourself:
- Always verify the contractor’s license on the CSLB website.
- Never pay large sums of money upfront. Payments should be tied to completed milestones.
- Get everything in writing. A detailed contract with itemized costs and a clear payment schedule will help you avoid misunderstandings later on.
- Ask for references and follow up with past clients to ensure the contractor’s track record is solid.
FAQs:
- What happens if I hire an unlicensed contractor?
Hiring an unlicensed contractor can leave you without legal protection. If the contractor does a poor job or disappears, you won’t be able to file claims or recoup losses. - How can I verify if a contractor is licensed?
You can verify a contractor’s license by visiting the Contractors State License Board (CSLB) website and using their lookup tool to confirm licensing status. - Why should I avoid paying large deposits upfront?
Large deposits can be risky. Reputable contractors often tie payments to project milestones, ensuring the work progresses as agreed before the next payment is due.
Relevant References:
- Contractors State License Board – Verify a License
https://www.cslb.ca.gov - HomeAdvisor – How to Hire a General Contractor
https://www.homeadvisor.com/r/hiring-general-contractor - This Old House – How to Hire a Contractor: Top Tips
https://www.thisoldhouse.com/how-to-hire-a-contractor