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If you are planning a new home construction or a small home renovation, it is important to choose a licensed and insured contractor. Unlicensed contractors can be risky and may not follow safety codes or provide you with quality work.
Most states require contractors to carry a certain amount of liability insurance before they can obtain their license. This insurance protects you from lawsuits that may result from damage or injuries a contractor causes during a project.
Check the Contractor’s License
If you’re looking to hire a contractor for a project, it is important to check their license and insurance. This can prevent you from having any issues with the job that they have done for you.
To do this, you need to search for their license number online. It is required by law that all contractors include their license number on their business cards, bids, and contracts.
You should also call their license number and ask to see a copy of their license. Taking the time to do this can save you a lot of money and headaches in the future.
Most states require a contractor to obtain a license before they can work on construction projects. This ensures that they follow state regulations and provide quality work to their customers.
Check the Contractor’s Insurance
As a homeowner, it’s important to verify that the contractor you are hiring has valid insurance coverage. Specifically, you want to check that they have General Liability and Worker’s Compensation policies in place.
These two types of policies provide protection to you in the event that an employee or contractor is injured while working on your property. This can be devastating to your finances.
In addition, it’s always best to make sure that the contractor you are hiring has enough insurance for your project to be complete with no gaps in coverage.
To do this, you should request a certificate of insurance from the company that issued the policy. This certificate should include the contractor’s name, policy number, and effective dates of coverage.
Check the Contractor’s Bond
When you work with a contractor, it’s important to check their bond and their license to make sure that they are legally allowed to perform your project. Using an unlicensed contractor can have a range of negative effects, including the possibility of jail time and substantial fines.
A contractor’s license is required by law in most states. It is issued by a state licensing agency and provides clients and the public with a way to file a claim for financial compensation if they are harmed by a contractor’s work.
Similarly, a contractor’s bond is issued by a surety company to protect the person who hired them from monetary loss should the contractor fail to fulfill their obligations as per the terms of their contract. There are three types of contractor bonds: bid, performance and payment.
Bid bonds are issued when a contractor enters into a bidding process for a construction project. These bonds protect the person who hired them by ensuring that they are awarded the original bid amount should the contractor choose to back out of the contract or not submit a performance bid.
Check the Contractor’s References
If you want to ensure that your contractor is reputable, then it is essential to check his references before hiring him. This is a good way to make sure that your project will be completed in a timely manner and with high quality work.
During the course of your reference calls, you should ask the contractor’s references a series of questions. This will help you to get a clear picture of the contractor’s work ethic and professionalism.
You can also ask them about the type of project they hired the contractor for and how that was handled. This is important as it will help you to understand whether the contractor was efficient or not in managing his team.