Using Unlicensed Contractors Can Hurt Your Business

You may be working with an unlicensed contractor and never know it until something happens. But at that point it may too late to mitigate your responsibility or liability.

At Leon Williams Contractors we’re happy to offer our licenses and certifications to prospective partners, and if you are dealing with a reputable company, it shouldn’t be a problem. While a handshake agreement is nice, as a developer or commercial construction firm it’s in your best interest to know who is working on your site at all times. If you don’t have a process, you need to develop one and have it in place before hiring more help on your job site.

Here are some bullet points to follow before you hire another contractor:

  1. Have a policy in place that requires contractors to fill out the necessary forms showing their licenses, certifications, proof of insurance and other documents before considering a contractor. In some states it is illegal and punishable by hefty fines to employ an unlicensed contractor.


  1. Have legal counsel review your policies and requirements to be sure you are following the letter of the law regarding your rights and what you can and cannot request.


  1. Ask for references. References from reputable businesses or previous contractors will give you a better idea of the company’s track record.


  1. Ask about your subcontractors’ hiring requirements. Do they do background checks? Criminal checks? Financial or credit checks? Depending on your state or local laws, you may be able to verify this information.


  1. Make sure all of your insurance and liability policies are current and in effect before hiring subcontractors to be sure your business is covered in the event of an accident or injury.

No one wants to think about it, but a serious accident on the job site caused by negligence or lack of knowledge by a subcontractor could cause your business to suffer considerable damage. (And it can affect the image of the commercial contracting industry as well).

Leon Williams Contractors has spent many years building its reputation in the East Tennessee area as a qualified and reputable commercial contractor. We welcome your comments and feedback about our blog topics.

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