A general contractor is a professional who manages and oversees construction or renovation projects from start to finish. They coordinate workers, materials, and schedules to keep the job running smoothly. Choosing the right contractor can make all the difference between a stress-free project and a costly mistake. That’s why it’s essential to think carefully before hiring. One key decision many homeowners face is whether to hire a licensed contractor or take a chance with someone unlicensed. In this guide, we’ll break down the facts to help you understand the difference between a licensed general contractor and an unlicensed one.
Licensed General Contractor vs. Unlicensed: Who Are They?
Whenever someone thinks of starting construction work on any building or residential place, they always prefer hiring a licensed general contractor. A licensed general contractor meets all the basic city and state standards to work on legal terms. They are working in the construction industry after passing the proper examination, security bonds, as well as holding active insurance policies. Meanwhile, they also have licensing issues with regulatory boards or government agencies, depending on your location.
However, on the other hand, there is the existence of unlicensed general contractors in NYC construction industry in operating illegally without a proper license. They lack the necessary competence, control and coverage to work in this sector or participate in any construction project. To sum it up, when you hire a licensed contractor (general), you are in the safe hands of the individual who is licensed, works with a legal person and has a responsibility.
Significant Differences Between Unlicensed and Licensed General Contractor
After a general overview, let’s highlight the key differences between licensed and unlicensed general contractors in New York for a better understanding:
Legal Compliance
One significant difference between licensed and unlicensed commercial general contractors NYC is in legal compliance. Licensed specialists will always work according to state laws. Hence, they make sure they work according to local building codes and secure permits. Plus, they also ensure that the authorities have approved their work without any errors. The unlicensed person will never follow legal steps. They skip inspections or permits and work outside the law.
Insurance and Liability
In terms of insurance and liability, licensed contractors have both. They carry workers’ compensation coverage and liability insurance. This protects the team in case any accident or mishap happens at the time of project completion. Unlicensed commercial general contractors Manhattan do not care about being insured or not. They do not focus on the liability concerns of the team, as, for them, it can lead to costly investments.
Quality of Work
Because of the quality of work, licensed contractors meet all basic standards according to local authorities. They are more trained and experienced, showing better results. Plus, they also focus on the inspection process to ensure everything stays in place accordingly. Unlicensed contractors are all concerned about completing the job and taking the money. They do not have formal training and lack skills in performing a task successfully.
Financial Protection
Lastly, a significant difference is due to financial protection. Licensed general contractors Manhattan offer payment schedules, written warranties and contractors. They also use tools for the protection of investment and give you the best peace of mind. Thus, they do have more options for resolving any kind of dispute if things don’t go as planned. When you hire an unlicensed contractor, you often have no written agreement or legal protections. There’s a higher risk of losing money through fraud, poor work, or unfinished jobs.
How to Verify a Contractor’s License?
Before hiring any commercial general contractors, it is essential to verify their license firsthand. Making sure they are licensed properly gives you peace of mind that you are in safe hands. Start by checking the state’s contractor licensing board. Most states come with online tools from where you can search by the contractor’s license number or name. During the hiring process, be open to inquiring about their proof of current bonding and insurance. This will protect you from any financial risk if something goes wrong.
Meanwhile, you should also research their market reputation by looking at the reviews. Ask about their previous work. A reliable contractor will be the one who will openly share information about their profession without any hesitation. Taking all such simple steps can be helpful in picking the right option without facing any financial loss.
Trust Your Project to Pros: BDB Enterprise Has You Covered
Let your construction project be treated in safe and reliable hands by hiring expert contractor services from BDB Construction Enterprise. We have a professional team whom you can trust to deliver results with excellent reliability, safety and quality. Don’t risk your investments on shady or shortcut work. Our licensed team brings proven experience, protection and professionalism to every project. Whether it’s residential, commercial, or remodelling, we handle it right the first time.