What is the risk associated with hiring a builder or landscape contractor who is not licensed, bonded or insured?

I know during hard times the consumer might think about their pocket book in hiring a non-licensed builder or landscape contractor. There are some risks you the consumer should be aware of, and budget should not be the only decision during this hiring process.

1. Not having a written contract. Not having a written contract is not only risky but is required by the Landscape and Building Contractors Board, as well as insurance companies and banks offering construction financing.

2. Not having the adequate amount of bond or insurance. This leaves the consumer  vulnerable and leaves you without any recourse, which could result in seeking legal advice as the only alternative thus accruing unanticipated  legal fees.

3. Not having worker's compensation. The consumer could be liable for any injuries that occured on their property and leave the home owner vulnerable to expensive law suits. 

4. Not obtaining required permits. If permits are not obtained the builder will not have the home inspected by the local county building department. The inspections are enforced as a means to protect the homeowner from safety and construction defects. In the end, this can become an issue when the home owner decides to sell the property.

5. The contractor may falsify their credentials in order to impress the consumer to obtain the construction project.  

The solution for you the consumer is to first and foremost check with the Construction Contractor's Board to ensure the contractor is licensed, bonded and insured. Ask for references and go look at recent projects completed by the contractor. Protect yourself by being an informed consumer and understand the potential legal ramifications of selecting the least expensive contractor.  Expense shouldn't be the only deciding factor when selecting a contractor. Don't sacrifice safety and quality by looking for the least expensive bid.