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Managers must use Contractors

Managers must use Contractors

Blog Image Contractors - Too Expensive To Use

I get a lot of questions, comments and often instructions from clients about this and I thought it would make a great blog article.

Contractors are not all created equal in the eyes of the State.  Anyone can go to the municipality    and get a business license and as far as the municipality is concerned they can do business.  The licensing in the municipality is mainly for revenue generation and no examination of qualifications is done of the licensee. It is simply pay us the fee and we will leave you alone. Technically the licensee can say they are licensed contractors, but in reality are not licensed with the State and should not be hired to make repairs unless the repairs to be done are under $1000 and not being done on a home that is being readied for sale or lease.  This is according to Nevada Statutes so if you are outside of Nevada, check with your own State on the law

Contractors that are licensed with the State are required a more in depth review of there ability to perform the tasks that are licensed for and must have experience and the financial wherewithal to do so. In Nevada, the Contractor must take an exam that covers the business aspect of contracting and then take and pass an examination to demonstrate knowledge of the trade applied for. If he/she  fails either exam, the contractor's license is not issued. There is also a Residential Recovery Fund maintained by the State that is a safety net for consumers that is not available when using a non-licensed state contractor. Each year the licensed contractors have to contribute to this fund.

Before allowing any work to be done on your home, It is essential to check to see if the person you are hiring has insurance to cover the liability that could be created when things go bad.  Ask for a certificate of insurance to be issued to you.

Chances are great that if he was into cutting corners to make a few extra bucks by not getting properly licensed, it is doubtful he spent the money he saved buying insurance to cover problems.

I actually had a vendor that wanted to do business with me tell me that he didn't have insurance and because of that, he was judgment proof as no attorney would try to sue him if it was known there was no pot of gold and the end of the rainbow.  Problem with that logic is that my insurance company would have to pick up the tab.

I suspect that the claim would be denied because the problem was self induced.  As a licensed Real Estate Broker and Property Manager, I too have a regulatory body that governs my actions. I must follow all Nevada Laws in order to keep my privileged license and have no intentions of gambling it away by using anyone but a licensed contractor on my clients properties.

Please let me know what you think. I appreciate your opinion.

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