Why It’s Important to Use a Licensed Contractor

By May 22, 2018Interiors

You are so close to finding the right contractor who will bring your vision to reality. Your decision has come down to two contractors, both are similar in almost every category, but there is one difference, one is not licensed.

Often, a client will consider an unlicensed contractor because their prices are lower than licensed contractors. Beware of this common trap, because although the initial cost is cheaper, an unlicensed contractor will cost you in the long run. Regardless of the category of construction, you want to use a licensed contractor. In fact, contractors must be licensed in Oregon to do most all construction work.

Hiring a licensed contractor provides financial protection

Licensed contractors must carry insurance to cover damage to your property or for any injuries caused by the contractor or its employees.

Coverage if an employee is injured

If a contractor hires employees, it must also provide workers’ compensation insurance.

Access to a bond

Licensed contractors must hold a bond to provide payment to a customer who suffers damage from poor workmanship. (The bond amounts range from $10,000 to $20,000 for a residential contractor.)

Mediation services

The Construction Contractors Board (CCB) has professional mediators who help resolve disputes between customers and licensed contractors. If the dispute cannot be resolved, the CCB may be able to provide evidence if you go to court.

Track record you can check

If a contractor is licensed by the CCB, there is a record of any past sanctions or claims against the contractor or associated businesses. You may obtain this information through CCB’s website.

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