The cost of buying or building a home in Denver is big money, and can be considered as a huge investment in an individual’s life. Hence why property owners look for the best deals from the materials down to the contractors.
There are many ways you can save money when building a property. Finding the best possible contractors is one way. However, many unlicensed contractors often under bid the licensed professional which may be too good to be true.
Bonds and Insurance for Owners
Getting an unlicensed contractor may seem to be cheap at first, but. When bad goes to worse comes to worst, property owners are left nowhere. Most unlicensed contractors do not have any bonds or insurance. Although being bonded or insured is different from being licensed, most licensed contractors have bonds that protect the property owner. If a contractor fails to complete the property according to the contract, then the bond can compensate the property owner.
Getting licensed contractors assures that owners have protections given by insurance companies or surety bonds if something goes wrong with the project. Each licensed contractor should have insurance and warranty information available to you and they usually provide a one year warranty on materials and labor.
Property owners have recourse against the contractor when all else fails, and it is not just with courts. A property owner that has dealt with a licensed contractor can always file a complaint against the contractor’s license and have it revoked. They may be subject to violations, if enough evidence has been proven. This is a property owner’s guarantee if workmanship is below the existing standards in the state where the contractor is licensed in.
Track Records and Assured Qualifications
Hiring a licensed contractor offers added protections to the property owner too.To receive a license, must be approved for the Supervisor card and possess a state electrical or plumbing contractor card. Therefore, by hiring licensed contractors, property owners are assured that they have reached a certain level of workmanship that is compliant with existing laws and regulations.
A license also shows that they have established their financial capabilities, as well as their competency to become contractors. A license brings a record of the contractor where you can check about their past records (up to two years) and previous projects. Basically, hiring a licensed contractor can definitely give you peace of mind when it comes to dealing with your property.
In the long run it may seem best to hire an unlicensed contractor, but Denver property owners do not have enough protections. Don’t fall prey. You will get a better night’s sleep knowing that your property is being developed by qualified people.
Tips for Hiring a Contractor
Hire only Licensed. Check your local county to verify licenses
Check references and complaints
Get a written contract
Have permits for code inspections
Proof of insurance
Don’t pay cash!