What are the Risks of using unlicensed contractors?

Unlicensed contractors can leave you with unfinished, substandard work and liable for issues in fulfilling permit requirements, payment of subcontractors and...may have taken your money without doing any work. Most states have a maximum amount a contractor can take up-front, usually 20% of the total contract amount. Other requirements include that they are insured against any damages to materials or injuries and should have verifiable references.

Look at the contractor's licensing for your state; most list the amount of bond they have put up, complaints that have been resolved and have an indication of good standing. If you have to pull permits, then you want licensed tradespeople doing the work. Do take care in making certain that the person you hire is actually the holder of the license they show you and that it is current.