Importance of Choosing a Licensed Contractor

Why is licensing importanat?

Anyone that has been involved in or contemplated a renovation project has heard talk of using a licensed contractor. Why is that important? It seems like this is fairly self-evident, but I am always amazed when I hear about someone hiring a contractor without licensing.

Let’s start with the two types of licensing in Washington State. General contractor and specialty contractor. With the exception of 6 Specialty Contractors (plumbing, electrical, elevators, mobile home installations, boilers and asbestos), there is no additional training or proof of knowledge requirement in Washington. That means that essentially anyone can get a General Contracting or Specialty license (except for the 6 listed above). The only requirement for getting a license is the ability to obtain insurance and bonding and pay the licensing fee to the Department of Labor and Industry. So, if there is no proof of knowledge requirement, why would I bother to use a licensed contractor and not just hire “Chuck in a Truck”?

The simple answer is for your protection. Not that governmental oversight can protect you from poor craftsmanship or inferior work but there are many aspects that it can protect you from outside of the actual craftsmanship side of things. There may be others, but here are the main items how using a licensed contractor protects you:

• • Personal Liability: if an unlicensed worker gets injured on your property, likely, you will be responsible for cost of care and, in our litigious society, any additional pain and suffering claims that the unlicensed worker brings against you and your homeowners policy.
  • Incidental damage: there are a number of things that can go wrong during the construction process. Improper structural changes, plumbing mishaps and electrical hazards are probably the most dangerous. Structural defects can lead to simple things: challenges with finish installations, drywall cracking and structural failure. Plumbing challenges can lead to poor drain function, water leaks or flooding. Electrical mishaps can be as simple as non-functioning fixtures or system failures that can lead to electrocution or fire.
  • Financial Liability: Use of non-licensed contractors may void homeowners’ insurance, and an unlicensed contractor will be unlikely to have insurance to cover any issues that arise.
  • Quality Control: With an unlicensed contractor, if there are items that you are unhappy with at the end of your project, there is no governing body to supplement your efforts to seek resolution. If a contractor is licensed, the state will mediate resolution and can garnish a contractor’s bond to assist with remediation of the corrective action.

As in life, there are good and bad among us. Whether licensed or not, I’m sure you can find some of each in both categories. I’ve seen good, licensed contractors get in over their head and struggle to complete a project. I’m sure there are unlicensed contractors that do everything they can to ensure an excellent result at the end of the project. It really comes down to the ability to ensure that you are protected from both financial and safety risks. 

If you are hiring a contractor, the most important thing that you can do is verify that they are licensed (which would automatically ensure that they have insurance and bonding). This is easily done by following this link ( https://secure.lni.wa.gov/verify/ ) and typing in the name of the contractor. It will show you if their license is valid or not, their insurance and bonding status and carrier and it will list any violations filed against them.

Hiring a licensed, insured and bonded contractor is for your protection – both fiscally and from a liability standpoint. But it is up to you to make sure you are protected from poor craftsmanship. Obtain and contact referrals. Get photos of recently completed projects. Schedule a site visit to a completed project. There are numerous simple things you can do to protect yourself and your home.