The Importance Of Contractors And Homeowners Licensing, Bonding, And Insurance
April 6, 2021
You will not breach the law if you sign a contract with an unlicensed contractor, but you will be taking a big risk. Shoddy workmanship will result in a lot of money being lost. As a result, many states in the United States devote significant resources to catching and punishing unlicensed contractors. Continue reading to learn more. Check bid bonds.
There are organisations that provide legal assistance to both licenced and unlicensed contractors who are facing fines and legal proceedings as a result of licence violations. Furthermore, they explain why the DBPR and CILB regard surety bonds, licences, and insurance as essential aspects of the construction industry as a whole.
THE LICENSING PROCESS
The DBPR and CILB regulate contractor’s licences to ensure that each person who receives one meets the criteria, which include financial accountability, experience in the industry, a clean criminal record, and insurance coverage depending on the type of licence.
Aside from that, it’s important to remember that licenced professionals can be held liable if they don’t finish the job or if they’ve received complaints. As a result, the professionals do their utmost to finish the job on time in order to stop having their licences revoked permanently. As a consequence, it is vital for each professional to meet their deadlines.
BONDS OF SURETY
Any construction contract states that the project will be completed within the specified time frame. If the deadline is not met, the contractor will face difficulties. A surety bond will help the homeowners in this situation. A bonded status provides insurance to business owners in the event of unexpected circumstances, but it is not necessary if you are based in Florida. It does matter, however, if the contractor’s credit score is below 660.
Homeowners will rest easy knowing that the project will be completed thanks to a surety bond. However, if the contractor fails, the surety firm will be responsible for finding a replacement contractor. Alternatively, the corporation may compensate the homeowner for any damages sustained.
It’s understandable that mishaps will occur. It’s likely that an employee will be harmed or that the property will be damaged. Whatever happens, you will have to accept the loss. In the event of an accident, however, you can stop paying the bill. Your state can ensure the safety of both employees and the general public. So, if you try to get a contractor’s licence, you’ll need to keep property damage, liability, and workers’ compensation insurance. Also licenced professionals may get themselves into trouble. If the DBPR performs a site inspection, for example, the pro will be required to pay hefty fines if they do not have insurance.
So, if you want to become a contractor or employ a contractor to complete your construction project as quickly as possible, we recommend that you search for and hire only a good licenced contractor.