If you choose a contractor to perform work on your home or property, it is essential to hire an experienced, licensed, and bonded contractor. You can check this bond website to learn more about it. If you hire an unlicensed contractor, you are taking on significant risks, including exposure to litigation and the possibility that warranties provided by state law may fail. In the event of a claim caused by the contractor, liability insurance can help you. The last thing you want with an unlicensed individual is to have problems with the company and the weather. Read on to find out exactly what it means for a contractor to be bonded and accredited and the ideal method to verify license and bonding.
Licensed Contractor
Even though the legislation for obtaining a contractor’s license varies from state to state, a license is normally required to perform any work on another person’s home or property. The state may have specific requirements, such as minimum training or work experience, for obtaining a license. The status may also require the contractor to pass an exam with exceptional levels of certification for being very good at performing jobs of various sizes. Additionally, the state may require the contractor to have a strong workers’ compensation insurance policy to find a license. In most states, acquisition can be a necessity to obtain a license.
Bonded Contractor
Becoming insured is different from becoming accredited, but sometimes they are equally related. How do you know if a contractor is bonded or not and if a contractor should be bonded? When a contractor is bonded, it means they have acquired a bond. The bond provides some assurance of liability, and if the contractor fails to complete a job as required or contracted, the bond may provide compensation to the homeowner.
The likelihood that the bond will be sufficient to pay the claim depends on the amount of the bond the contractor has requested and also whether there are timely claims against the contractor. The Oregon Construction Contractors Board (CCB) warns customers that required deposits in Oregon can provide limited financial security for homeowners, as required deposits are typically small compared to the number of work contractors perform. However, this may be different in your case, and your contractor may sometimes purchase a larger bond than required by law. To determine the total bond amount available to you if you hire an insurance contractor, it is best to speak with an attorney before signing a construction contract.
Reasons You Should Hire a Bonded and Licensed Contractor
There are important reasons to hire a licensed and bonded contractor. First, an unlicensed contractor is often breaking the law by working without a license and is most likely not complying with certain laws, including licensing and inspection requirements. Second, it can be much more difficult to determine if an unlicensed contractor provides you with quality work because the worker has not had his or her understanding evaluated or reviewed by a licensing board. Aside from the increased likelihood of shoddy workmanship, these proposed warranty laws often require the contractor to be accredited to enforce them. Therefore, if you are trying to recover in any way, if you win in civil court without a bond, there is an excellent possibility that the unlicensed contractor will not have the ability to pay your damages.