Six Reasons to Only Work with Licensed, Bonded and Insured Subcontractors in Arizona

December 10, 2019

Top remodeling contractors in Phoenix, AZ should hire licensed, bonded and insured subcontractors in the state of Arizona. Not only will this help secure double warranties and liability insurance coverage for clients, but it gives everyone peace of mind. Aside from the possibility of low-quality workmanship, hiring a remodeling contractor who doesn’t work with fully covered subcontractors can lead to a frustratingly long project, extra costs and the use of cheap materials. You open yourself up to a host of liability and financial risks like the ones listed below:

  • No recourse: Every homeowner dreams that their home renovation project will go off without a hitch. They want a good quote, excellent service, high-quality materials and for their project to go smoothly and be completed in a timely fashion. Unfortunately, should a problem arise and you’ve signed a contract with an unlicensed contractor who hires unlicensed subcontractors, you may not have any recourse, as any agreements you signed may not be legally enforceable.
  • Problems become your responsibility: Should your project turn problematic, you will be held financially accountable. For example, your contractor hires a person to install new siding on your house and a nail punctures a water pipe. There’s flooding and ruined insulation, flooring and furnishings. If neither party has liability insurance or the kind of problem is not covered under the contract, there may be no money to cover the loss.
  • Liable for future damage: Be very cautious of who you hire to do major home improvements for you, as letting an unlicensed contractor work on your house can result in serious repercussions. To put it bluntly, you—the homeowner—assume liability in the event the project causes future damage to the home. Furthermore, anything touched by an unlicensed contractor could void your homeowner’s insurance policy, should you submit a claim as a result of his or her work.
  • Liable for code violations: If your county says your project does not meet local building codes, or the contractor never pulled the necessary permits, you will be responsible across the board. An unlicensed contractor cannot pull permits. You will have to make repairs to meet code requirements at additional cost to you.
  • Responsible for injured workers: The contractor and subcontractors having liability insurance is so important—especially when it comes to home remodeling projects. Should a worker sent by the contractor sustain an injury on your property, and the contractor does not carry workers’ compensation insurance, you could become responsible for the injured person’s medical costs. Your homeowner’s insurance might help cover some of the cost to pay a worker’s comp claim, but that could raise your insurance rates.
  • You end up paying subcontractors: When making sure that the contractor is licensed, bonded and insured, ask them to not only clarify the license status of any subcontractors who’ll be on site, but also how they’ll be paid. If the contractor doesn’t plan to pay the subcontractors, and you are unaware that you’re supposed to do this yourself, the project could be left unfinished.

You will find only top remodeling contractors when you work with Renovations by Design in Phoenix, AZ. Call us today to learn more or arrange a consultation.

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