ShareThisQ: A couple of months ago, we hired a contractor to remodel our house. He had been referred by a good friend, so we paid the contractor 75 percent of the total amount to start doing our house.However, after reading some of your articles, we realized that we should ask to see his contractor license. He tried to avoid the subject first and then told us he would quit, leaving the house without finishing half of what he promised.We didn't want to have anyone without a license remodeling our house, but he asked us to pay him the rest of the balance or he would sue us.Are we in trouble for hiring someone not licensed?A: Because several cities and states across the country require licensing, I often warn my readers to use "licensed where necessary" contractors, but my first rule is to never pay more than 10 percent for the job in advance.It's OK to pay a small, and sometimes nonrefundable, retainer to ensure an agreement with the contractor and to let him know you are serious about using his services. If your project requires special ordered materials, you may be asked to pay for those in advance, but that money goes to the supplier, so ask for a receipt.My second rule is to get references and to actually call them and drive by to take a look at the work the contractor is so proud of.Whether or not a license is required depends on your local or state government. I have no problem in hiring a trained or experienced contractor where licensing is not required, but I do insist that contractors have insurance on themselves, their employees and on my property. You should ask for a certificate of insurance, a certificate with your property listed on the coverage.Just as not all licensed drivers are good drivers, the same can be said of other license holders such as contractors, doctors, barbers, home inspectors and many other professions.A license is a form of a tax paid by the licensee to the licensor in order to do business in that area.In most cases, the person holding a license has to achieve a set number of continuing-education credits each year or meet other guidelines set by the licensor. Sometimes the courses are beneficial, adding knowledge and valuable training to the licensee, but most of the courses I'm familiar with are rudimentary, going over the same material time after time.One of the most important benefits of issuing a license is to protect the public from felons and criminal activity. In my opinion, asking for 75 percent of the estimate in advance borders on criminal -- especially if the contractor tries to walk away from an incomplete project.The contractor's license, if he has one, will be on file with either your local or state building authority, so you should be able to locate that yourself.If you do not have a certificate of insurance, stop the builder and keep him and his workers off your property until all credentials and certificates can be verified.Any differences you have with what the builder said he would do and what he has done or intends to do should be handled by a licensed (there's that word again) attorney.(Dwight Barnett is a certified master inspector with the American Society of Home Inspectors. Write to him with home improvement questions at C. Dwight Barnett, Evansville Courier & Press, P.O. Box 286, Evansville, Ind. 47702 or e-mail him at d.Barnett(at)insightbb.com.)
Contractor's license not always required
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