Licensed Contractors, Part 1: The Importance of Hiring a Licensed Contractor

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Hiring the right contractors for your commercial project can make all the difference between a job well done, with no complications, and a project plagued by a variety of problems, including potential legal liabilities. In this first of this three-part series of posts on the subject, we will examine the importance of licensing in your choice of contractor.

Arizona law requires contractors to be licensed. with those whose jobs do not exceed $1,000 in total cost (including parts, materials, and labor). A handyman should be used sparingly and only for very minor repairs/improvements where no licensing is required by the state. While an independent handyman might be able to complete a minor work project for less than a licensed contractor would charge, you would still be well advised to insist that even the smallest contractor holds a contractor’s license, even if you must pay more for your job. You must take into account what a contractor would have to do to get his or her price below the $1,000 mark. Most likely, this contractor is foregoing not only the licensing expenses but also such essentials as bonding and worker’s compensation insurance. As a result, the homeowner has little protection if a liability event occurs at the property.

The quality of the work between a licensed and unlicensed contractor is no small consideration – and it, too, might ultimately have legal or financial implications. A license not only indicates that the contractor takes his or her work seriously enough to go through proper legal channels and requirements, but it also means that he or she has passed the necessary business management test and demonstrated the necessary competence/experience in his field. A contractor lacking in these qualities will often cut corners on your project. If the shoddy work results in injury, damage, or non-compliance violations, you do not have the same leverage for taking legal action or receiving reparations, as you would have if you’d engaged a licensed contractor.

Part 2 of this series can be found HERE and Part 3 of this series on Licensed Contractors can be found HERE.

© 2018 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved

This article has been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.