Where is my $10,000.00?

He was a nice guy. His business card looked so professional. That's what the woman told me. In the end, a name and cell phone number was all she really had. The "Contractor" she hired vanished into the night with her 10 grand. I hear more and more of these stories lately. Unlicensed "Contractors" have become a big problem. A licensed contractor has made a significant investment in his business. He has completed all the requirements as far as time in the trade etc. Passed a rigorous test and has posted a bond. Also they maintain all of the proper insurances such as liability, workers comp, vehicle etc. The Contractors State License Board offers many protections for consumers. In this day and age it is very simple to check the status of a contractor. Here in California you can just go to the web site http://www.cslb.ca.gov/
type in a name or license number and in seconds you will know whether or not a license is active, who the officers and sales people are, who the bonding company is and how much the bond is worth, workers comp info etc. You may be saying, who cares about all that? I just want my work done cheap. I like cheap too but is it really cheap? Suppose the guy you hire has an accident in your home? Let's say he hurts himself. If he has no insurance or license he will most likely bring a law suit against you. Or let's say he damages something in your home. Something expensive? Will he be able to pay you for it? What if he does not pay his help? They can ask you for payment and if you refuse they can lien your home. I am not saying all this to scare anyone, rather to make you think. I spent an hour this morning looking on the internet for nightmare contractor stories. I was amazed at how many I was able to find with very little effort. I think competition in pricing is very good but it is good to make sure that all the competitors are on an even field. An unlicensed guy will always be cheaper but then again, he is probably working out of his living room, has no bond, no liability insurance, no workers comp. and as such is not really firmly rooted in the community.