Using Home Building Contractors – Should You Hire Only Licensed Builders?

What does licensing really tell you? When homeowner builders build their own homes and use their own labor along with that of friends, does this prove it’s okay to also use unlicensed contractors?Not exactly … here’s what I mean.Question: What’s the value of hiring licensed contractors?Answer:I’ll answer this question in a minute. But, first … is a licensed contractor necessarily a better contractor? The answer to that is no. Just because a builder or tradesman is licensed doesn’t necessarily make him or her better.But, that is not the whole story. You wouldn’t look at the license as an indication of quality as much as you want assurances that you can go back to the builder for reparations. When building and remodeling, there is a lot of work to be done, a ton of management, and quite a few companies and people involved. The fact is, with all that is involved, things can and usually do go wrong from time to time.Licensing Can Indicate Insurance and ExperienceIn most states and provinces, as well as some other parts of the world, a licensed contractor is required to demonstrate a certain amount of experience first. Also, licensed contractors are usually required to be bonded and insured. This is your fall back recourse if you feel products and services were provided with inferior results.But, never assume they are bonded and insured. Always ask to see their license and ask them to prove their insurance is current.Can You Be Your Own Builder and Still Have Protection?Laws and practices vary, and this isn’t meant to replace legal counsel, but, the beauty of hiring licensed subcontractors is it can provide you with some protection as an unlicensed builder yourself. You can build or remodel your own home by wearing your own General Contractor’s hat and hiring all licensed subcontractors to do the actual physical work.So, licensed contractors are essential, and with a good homebuilding coach and a proven step by step system, your savings can be significant.