HIRING A LICENSED OR UNLICENSED CONTRACTOR IN SAN FRANCISCO

Very often, the question comes up.

Your water heater or furnace breaks down, your toilet is clogged and you just need to call someone to fix it.
It's not a big deal but you need to make a service call. And you want to save some money.
 
Should you hire an unlicensed contractor? A friend of a friend knows somebody cheap.
 
Well, here are the two scenarios at hand to consider:
 
1) Hiring an unlicensed contractor:
 
Anyone has the right under the law to advertise for work and or be employed by any company, or individual.
As a homeowner, you have the right under the law to hire and employ any person deemed qualified -that person does not have to be a licensed contractor.
You also can and have the right under the law to buy workers' compensation insurance from the State of California if you have the legitimate concern that the individual you are planning to hire may get hurt while working on your home.
Now, the work is done  You are satisfied. All is well.

Or,

The work is done but a while later (let's say a few hours, days, months), you still have the same issue or have more problems -your heater still does not work well, your toilet overflows... You called the guy you hired but he is not answering your calls, or he is telling you that your heater needs to be replaced, your sewer line needs to be replaced...

What recourse do you have? NONE
 
2) Hiring a licensed contractor:
 
A licensed contractor working in the State of California is regulated and licensed by the California State Licensed Board (http://www.cslb.ca.gov/). He or she is to carry liability insurance, which is to protect you in case of any damage caused by the licensed and insured contractor you've hired.
And don't count on your homeowner’s policy to cover you unless you have additional coverage for in-home employees.
The California State License Board also requires any licensed Contractor to be bonded, which is a guarantee that the licensed contractor you've hired will perform the work you've hired him or her to do to code.
Workers' compensation insurance: If the licensed contractor you've hired has no employee, then workers' compensation insurance is not needed or required. On the other hand, if the contractor has employees working at your property and one of them gets injured while working and the contractor did not carry workers' compensation insurance, then what?
Your homeowner’s insurance policy might help cover the cost to pay that worker’s claim, after you meet your deductible, but that claim could result in an increase in your rates and make it more difficult for you to get insured in the future.
 
An unlicensed contractor is neither bonded or insured which is placing you, the homeowner, at risk in case of trouble.
 
It's your project, your call. I hope this blog will help when you have trying to make a hiring decision for your next project or the emergency that just popped up today.

Maryline Linares, Co-owner - On Shore Construction and Mechanical (www.on-shoreinc.com)
A local and experienced licensed plumbing and heating contractor in San Francisco. We provide free estimate 7 days a week.