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I'm looking to have a couple bathrooms combined and remodeled in my old house. I've met with several contractors and gotten estimates. Estimates varied widely, but that's because I had wanted the ceiling height raised, and some of the contractors thought that wasn't a very good idea and so quoted the job without raising the ceiling. (After seeing some of the guys' proposals for raising it, I'm starting to agree. The whole thing would just look awkward at the end.) The guy I liked best had good references, all A's on Angie's list, and has never had a claim on his insurance. However, he does not have an NC contractors license. I understand that licenses aren't needed for jobs under $40k, but why would a contractor forgo lucrative jobs instead of just getting a license?
Are there any contractors on here that can explain that? And has anyone on here had renovations done by unlicensed contractors, or is it just a bad idea altogether?
Getting a license requires passing a test, many parts of which don't really apply to small residential renovation projects as well as having a certain amount of working capital ($17k cash and receivables after deducting any expenses and principal due over the next 12 months for a limited license) then the liscence has to be renewed yearly with paperwork proving the financial stuff each year.
If this guy is doing mostly small projects he may not want to deal with the hassle. Also just because a project is larger does not mean it is more lucrative for the GC. It just means more money going to subs and potentially more risk to the GC if things go wrong. If things go right you might make a little more. Also, bigger more complex projects may need more labor and supervision than one person can provide and he may not want to deal with additional employees.
Assuming this company is reputable and in good financial standing I would have no issues using them if you feel comfortable but why not ask the guy directly and see why he is unlicensed. However if the total project cost us over $40k he cannot submit a bid. Of course make sure you read the contract and don't pay more than a few percent up front. Also ensure a realistic schedule of payments is set up ahead of time.
However if the total project cost us over $40k he cannot submit a bid.
And this is the part that bothers me.
He proposed demoing the two spaces first, then deciding what to do with them. He's estimating about $3500 to completely demo the spaces, and then $25-30k to refinish it. Of course, we have no idea what we're going to find once we demo (which is why I like the idea of demoing the spaces first and then drawing up a remodeling plan), so what happens if we find problems or if I choose finishes that drive the cost above $40k?
Maybe you'll get a good bargain that way? Say you choose something that comes to 45k, would he charge only the 40k for the sake of keeping the job? I don't know if that's ethical, but seems like it could possibly work out really well for you. Though I see what you're saying, too.... (and have no knowledge of the industry whatsoever, but can totally spot a potential bargain when I see one .
You have more recourse with a licensed contractor should things go wrong. There is not a licensure board to protect you/punish them if that happens with an unlicensed contractor. Someone dealing in remodels that are routinely 10k plus should have a license IMO.
Just a few other helpful hints that can be applied to any general contractor work:
Have whoever does the work sign a Lien Waiver stating all materials/subs are paid for so you do not find a lien on your house should they not get paid.
Verify their insurance personally by calling the insurance company with the policy number to make sure it is active.
Any structural changes you make tend to require a permit. This would include taking down walls or changing ceiling heights. You may need plumbing/electrical permits as well depending on what is being done.
Do not pay money up front, do not pay money up front, do not pay money up front! If the company cannot buy the materials themselves, I would worry about their solvency. It is acceptable to pay a portion upon their arrival with materials and ready to work. The only caveat would be ordering something that is a true custom piece. I do not understand why people accept paying contractors up front with the plethura of rip-off stories. The consumers need to change that practice to protect themselves. They have the expertise, but ultimately YOU are the boss. Best of luck!
You don't know what you want as the end product. The contractor you are leaning towards (who is unlicensed ) doesn't have a vision he can suggest or recommend to you.
You need to hire an Architect or Interior Designer to fill this glaring void of direction. Yes it will add to the cost, but you are contemplating a $40,000+ construction project without plans.
Who will be pulling the permits? Can you file for permits without plans? Are you planning to occupy the home during construction?
To quote an old adage: Failing to Plan is Planning to Fail
Make sure they have at least a privilege license. If he has a good rep and referral's there would be nothing wrong with using him. He should be able to pull the permits (otherwise I would worry.) There are 2 projects being performed so it could be up to $80k worth of work. There bathrooms design them yourself and save the designer fees. The GC and his subs willl have plenty of Ideas for you (that's what they do everyday) As a sparky I'm alwas giving people advice on there lighting designs. Designers know what looks good on paper (good art work) but don't understand the cost(time) it takes to complete the jobs and can blow budgets
If the jobs go over the $limits technically you only owe up to the $40k limit( or what ever the limit is.) Just make sure you have lein wavers signed by all the sub contractors.
I found an unlicensed contractor on the internet and liked him so much that I used him for remodeling my house, inside and out. He's a perfectionist and a natural at everything, with great natural instincts and so honest that I gave him a key to my house and the code to my garage door opener. I put him on angieslist, where he's gotten more jobs and everyone praises him highly.
So being unlicensed doesnt matter to me -- and neither does being licensed, as I've used licensed contractors who made a mess of the jobs. I might suggest that you give this guy small jobs to start and see how he does. Good luck!
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I think you need an Architect before a Contractor
) doesn't have a vision he can suggest or recommend to you.
