By now, you may have heard the adage “Better safe than sorry.” This couldn’t be truer when you’re thinking about hiring a general contractor. Licensed, bonded, and insured contractors can provide you with the peace of mind you need, knowing that your project is in capable hands. A general contractor with these qualifications can assure you that they are accountable for their work and that they protect your money, property, and interests at all times. It’s a no-brainer to hire a general contractor with these credentials.
There are several reasons why you should only hire licensed, bonded, and insured general contractors. Firstly, working with licensed and insured contractors means they follow established industry standards, codes and are covered in case there are any accidents or damages during the project. Even if they have experience and offer a good price, you should not work with a general contractor who is not licensed, bonded, and insured. Here’s why.
1. License
In the United States, most states require a general contractor to obtain a license in order to legally operate. A license assures that the contractor has the necessary knowledge, experience, and skills to do the job right. It’s also proof that the general contractor has passed certain technical and safety-related tests. Unlicensed contractors may save you money in the short term, but they end up costing you much more in terms of both money and time in the long term. That’s why you should always hire licensed general contractors. They can provide you with a written contract, offer warranties, and provide a written estimate.
2. Bond
A bond is a surety agreement issued by a third-party bonding company that guarantees you will be compensated if the general contractor does not complete the job as outlined in the contract. Bonds protect you from financial loss due to a contractor’s failure to perform their job within the established timeframe or according to the contract terms. A bonded general contractor is one who has demonstrated their financial strength and ability to manage a project in compliance with the contract. You should ask your general contractor if they are bonded and, if so, request a copy of their bond before you begin the project.
3. Insurance
Given how dangerous the construction industry can be, insurance is a must-have. Furthermore, think about all the valuable materials and fixtures that could be destroyed or stolen during the project. Your general contractor must also have proper insurance coverage that will protect you in case of property damage or injury to themselves or others on the job site. The two most important insurances your general contractor should have are Commercial General Liability and Workers’ Compensation. Hiring a general contractor with an insurance policy protects you from financial losses if anything goes wrong during the job.
4. A Dedicated Project Manager
A licensed, bonded, and insured general contractor provides an assurance that you are not alone in the construction process. They have a representative, known as a Project Manager, who can provide you with daily updates and answer any questions you may have. This person is your direct pipeline to the very soul of your project and can keep you informed of all the project management details such as payment schedules, plans, progress reports, permits, and timelines.
Hiring a licensed, bonded, and insured general contractor should be a non-negotiable requirement for anyone looking to undertake any construction project. You’ll be assured that you have a professional and experienced contractor who is accountable for their work and who will protect your interests, your money, and your property. It would be unfair to think that the benefits of hiring such a contractor come at a higher price; instead, all the mentioned liabilities signify an experienced and trustworthy contractor, committed to giving you your money’s worth at the end of the project. Remember, a safe and the quality construction project lay in the hiring of the right general contractor. So always prioritize hiring a contractor with the three fundamental credentials- licensed, bonded, and insured.