How do I know whether a contractor has a contractor license and is bonded?

Before signing any contract, check with your local contractor licensing board. It should tell you whether the contractor’s license is valid, whether a bond is in place, and whether there have been any claims filed against the contractor that you should know about.

What Is a Contractor License Board?

The contractor licensing board is a state-run organization that approves and tracks contractors, builders, and sub-contractors. It also issues licenses to contractors in the area, typically upon passing certain state requirements. This board also has the ability to revoke licenses.

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What Does It Mean That a Contractor Is Bonded?

Most states require that contractors secure a bond in their name in order to obtain a license. A bond is a large sum of money, held in a non-interest bearing account in case the contractor should make a mistake that warrants a large amount of liability. Most bonds are obtained through insurance companies and the contractor makes a regular payment to maintain their bond.

When Contractors Do Not Have a Valid Contractor License

If the contractor’s license is not valid or it has been revoked, contact the state licensing board and file a complaint. It may also be in your best interest to contact a construction law attorney as well to ensure the proper avenues are taken to protect your assets from retribution by the contractor. The attorney may also have grounds to file a criminal claim for completing construction work without a license.

Where to Find Information on a Contractor License & Bond

In most states, the licensing board posts contractors by their name and company name on a website. You may also be able to view things such as how long the contractor has been licensed in the state, whether they have any complaints filed against them, or whether they have a bond and insurance. If your state does not have a website with this information, look up the number for the department on your state’s website and call the office. The information is always free and open to the public and you can typically get an answer that same day.

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Case Studies

Case Study 1: The Unlicensed Contractor

John Smith hired a contractor to remodel his kitchen without verifying the contractor’s license. The contractor claimed to be licensed but did not provide any proof. As the project progressed, John realized that the contractor lacked the necessary skills and expertise.

Unfortunately, he had no legal recourse since the contractor was unlicensed. John learned the hard way that hiring an unlicensed contractor can lead to subpar work and potential financial losses.

Case Study 2: The Bonded Contractor

Mary Johnson decided to hire a contractor to build an addition to her home. Before signing the contract, she diligently checked with the local contractor licensing board to ensure the contractor’s license was valid and discovered that the contractor had a bond in place.

This gave Mary peace of mind because she knew that if any issues or damages arose during the construction process, she would have recourse through the contractor’s bond. This case study highlights the importance of hiring a bonded contractor to protect against potential liabilities.

Case Study 3: The License Revocation

Sarah Davis hired a contractor who claimed to have a valid license and a bond. However, Sarah discovered that the contractor’s license had been revoked due to multiple complaints and violations. Concerned about the quality of work and potential legal issues, Sarah promptly filed a complaint with the state licensing board.

She also consulted a construction law attorney to ensure her assets were protected and explore possible criminal claims against the contractor. This case study emphasizes the need for vigilance and prompt action when dealing with contractors whose licenses have been revoked.

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