5 Reasons It’s Better to Be a Licensed ContractorJuly 19, 2021You probably know at least a few people who hired a friend or relative to do some work for them instead of hiring a licensed contractor. That might seem like an easy way for people to get what they want, but it’s full of problems. In fact, unlicensed contractors can make life a lot harder for reliable, honest contractors like the one you hope to be. Here are five reasons you’ll be glad you invested the time and effort to get your contractor license.
You Can Take Bigger Jobs
Most states have a requirement that any job costing more than a certain amount requires a licensed contractor. In the state of California, that’s $500. Of course, you will find unlicensed contractors who are offering to do work that costs more than that. They’re just breaking the law when they do so, and inviting all kinds of scrutiny into their businesses. In a lot of cases, clients with more money to spend would prefer to hire a licensed contractor over an unlicensed one. So if you have your license and keep it current, you’ll have a much wider variety of possible jobs that you can do.
You Can Charge Fair Prices for Your Services
Clients who hire licensed contractors know that they are getting a better service. There is more protection for people who have construction work done on their properties by somebody who carries the right licenses. That’s a benefit that you can take straight to the bank. Unlicensed contractors usually have to underbid because they can’t offer the security that comes with the license. As a licensed contractor, all you have to do is figure out what the competitive rates are for the services you want to offer, and set your prices accordingly.
You’ll Learn More
There’s a reason that people look at having a contractor license as an added benefit in hiring you to perform construction work for them. As part of the investment into getting your license, you learn a lot more about how to perform the work you’ll do and other aspects you need to run a successful contracting business. It can take a few years, from start to finish. But at the end, you’ll have a comprehensive set of knowledge and skills that you can apply to each construction job. You’ll also have a better foundation to build more skills as you gain business experience.
You Have More Career Options
There are lots of businesses looking to hire someone with a contractor’s license, which gives you more flexibility in determining the type of job you want to have. If you want to run your own business, you’ll need to carry a license in order to qualify for a lot of things that you will need to run that business. If you’re hoping to act as a subcontractor for other businesses, you should know the general contractors prefer licensed professionals over unlicensed ones. And if you’re planning to get a job with a larger firm, you may have more upward mobility with a license than you would without it.
You’ll Avoid the Stress of Not Having a License
Ultimately, being an unlicensed contractor can cause you a lot of stress. If you stick to the law, you can only charge a relatively small amount for projects, which might not cover your costs. If you charge more than that, then you run the risk of clients reporting you. And if you do work for people who don’t pay you, you have a little recourse to fight it. Of course, this doesn’t include all the problems you may face in getting loans or insurance for your business without the right licensing. Getting your contractor license takes work, but the alternative isn’t worth it.
Being a licensed contractor is the best way to start your own contracting business, and there are a lot of reasons for it. To find out how to become a licensed contractor, contact CSLS today!
Contact:Mary Birch, Business Development Managermaryb@cslscorp.com, (818) 458-7842
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