Back in the mid-80s, when the underground economy started to gain recognition, many people predicted that it would have drastic effects on the economy in the future if it wasn’t addressed. Fast forward to today, and we can see many problems that the underground economy has greatly contributed to.
One significant issue is that the underground economy largely relies on people who are unlicensed or not legally allowed to be here. Since they are unlicensed and not legally allowed to work, they are not accountable to the standards and processes that legal licensed contractors must follow. Typically, you will find more safety violations in the work of unlicensed contractors than in that of licensed ones.
I’m not talking about whether they tied off a ladder or not; I’m talking about the actual quality of construction. I’m talking about people who are qualified to pull wires and hook them up correctly, so your house doesn’t burn down, people who understand how to properly frame a building, who know the right headers and spans, so your house doesn’t collapse during seismic activity. I’m talking about people who know how to seal a house properly to prevent mold, how to correctly install insulation, sheetrock, mud and tape, and plumbing. I’m talking about how to do a project properly from start to finish.
I’m not saying every underground contractor doesn’t know what they’re doing, but I am saying that you are more likely to find subpar quality when working with unlicensed contractors compared to legally licensed ones. Some people think they are making big savings by hiring someone cheap, only to realize later that the contractor is cheap because they don’t know what they’re doing. They might not understand how to properly install floors or windows, or they might not pay their bills, leading to a lien on the homeowner’s property due to outstanding bills. That the homeowner does not find out about for months later after the contractor is gone. Leaving them with little or no recourse.
If a contractor isn’t reputable enough to get a license and do the job right, how can you trust them to protect you and do your job properly? Using a licensed contractor for home projects offers several advantages over hiring an unlicensed, “under the table” contractor. Here are some key reasons:
- Quality of Work:
- Licensed contractors typically have proven skills and knowledge.
- They adhere to industry standards and best practices, ensuring high-quality workmanship.
- Accountability:
- Licensed contractors are held accountable by regulatory bodies and can face penalties for substandard work.
- They are more likely to address and correct any issues that arise during or after the project.
- Insurance and Liability:
- Licensed contractors carry liability insurance and workers’ compensation, protecting you from financial responsibility in case of accidents or damage.
- Without insurance, you may be liable for injuries or damages that occur on your property.
- Permits and Inspections:
- Licensed contractors are familiar with local building codes and can obtain the necessary permits.
- They ensure the project meets all legal requirements and passes inspections, avoiding potential fines or the need to redo work.
- Warranty and Guarantees:
- Licensed contractors often provide warranties on their work, giving you peace of mind and protection against future issues.
- Unlicensed contractors may not offer any guarantees, leaving you with no recourse if problems arise.
- Experience and Expertise:
- Licensed contractors have typically undergone rigorous training and testing.
- They bring a wealth of experience and expertise to your project, ensuring better results.
- Professionalism:
- Licensed contractors operate legitimate businesses and adhere to professional standards of conduct.
- They are more likely to maintain clear communication, provide written contracts, and deliver on their promises.
- Legal Protection:
- Hiring a licensed contractor provides legal recourse in case of disputes or unsatisfactory work.
- Unlicensed work can result in legal issues, including fines and difficulties selling your property in the future.
- Market Value:
- Work done by licensed contractors can increase the market value of your home.
- Properly documented and permitted work is more attractive to potential buyers.
- Peace of Mind:
- Knowing that your contractor is licensed and follows all legal and professional standards provides peace of mind.
- It reduces the stress and uncertainty often associated with home improvement projects.
