I don’t need no stinking license
First uttered in 1948 by bandit leader Gold Hat (played by Alfonso Bedoya), to Fred C. Dobbs (Humphrey Bogart) in The Treasure of the Sierra Madre, the actual quote is “I don’t have to show you any stinking badges.” But since contractors don’t get badges, just licenses, I thought I’d make the phrase more relevant. And just as Fred C. Dobbs was not fooled for a minute by these ruffians without the proper credentials, he must not fall prey to their machinations either.
Unfortunately, during the previous “economic downturn,” more than 400,000 construction workers lost their jobs. Giving each of them the benefit of the doubt, let’s assume that they are all hard-working craftsmen who are experts in their chosen field. With no jobs available in their specific area of expertise, many market themselves as contractors, and who can blame them: they need to work. But even a master carpenter is usually not well versed in all other aspects of contracting such as business management, scheduling, design, planning, electrical, plumbing, etc., etc. It takes a lot more than experience in a construction or remodeling area to be a successful contractor, and your Department of Consumer Protection (DCP) knows this all too well. That is why they require contractors to be licensed.
You can check the reputation of a licensed contractor by contacting the DCP and the Better Business Bureau. And, in some areas, you can quickly see how long a home improvement contractor has been in business by looking at their license number. In some municipalities, the last 2 digits of the license number indicate what year they first received their license, for example, WC1234-H95 indicates that the business was licensed in 1995. As a firm believer in “Experience is the best teacher When you’re ready to remodel, select a company that has been around a while and has a proven track record. Especially in crowded suburban areas, which have numerous independent building departments, each with their own rules and regulations.
In addition to experience, the DCP also requires licensed contractors to maintain current workers’ compensation, disability, liability, and vehicle insurance. This protects the consumer from any financial exposure due to accidents that occur on their property during the course of a remodel. If an uninsured worker is injured while working at home, YOU may be responsible for their medical and disability payments for a long time. And be careful, there is a loophole in the New York State Workers’ Compensation insurance law! If a contractor (even a licensed one) is the sole employee of your business, he or she can waive Workers’ Compensation insurance coverage; still get the license from it; And you’re still responsible for medical payments if they get hurt! It is best to ask the contractor for proof of actual coverage.
I know how tempting it is to hire “this guy” you heard about from a friend. He heard that it’s fast, cheap and does a great job. Just keep in mind that there is no recourse if something goes wrong. It might be fast and cheap, but can you find it again if something goes wrong? To whom will you complain if promises are not kept? Will you be around to honor your guarantee? Will he steal your gold?
If you think the short-term financial savings outweigh all of the aforementioned obligations, then I wish you luck. Go ahead and hire someone who doesn’t have a stinking license. But if you’re looking for peace of mind and long-term satisfaction, look for someone Fred C. Dobbs would trust: a contractor who can proudly display his credentials.