Contractors can make the process of completing a home remodeling project quite a joy…or a total nightmare. So choose carefully. And if you choose to hire unlicensed contractors, make sure you know the applicable laws in your stateā¦as well as the potential risks and liabilities you’re assuming.
Even if you prefer to do it yourself (DIY), there will be times when you need the services of outside contractors. One way to save money is to act as your own general contractor and deal directly with subcontractors and skilled labor, although you must be prepared to handle many associated headaches. You can try to beat around the bush to get high-quality workers at reasonable prices on your own. It has worked fine for me. For example, I learned that our hardworking maintenance groundsmen were also proficient in fencing, plumbing, irrigation, grading, and masonry. Ask through your network of friends and neighbors. Plus, I’ve met good workers chatting with the crowd on my trips to the local home improvement store (be sure to ask for references though!).
However, I wouldn’t suggest doing it this way on major renovations or new builds; it’s too much for an amateur to handle. But it has worked for me on the smaller upgrade, update, and upgrade projects that I focus on (although I’ve had my share of bad experiences).
Keep in mind that if the workers you hire are unlicensed, bonded, insured, or legal residents, you could risk getting mired in legal or liability issues, not to mention ethical issues. If you hire unlicensed workers, be sure to check the laws in your state. For example, in California, any contractor paid more than $500 for a job technically must be licensed by the state board. Also, unlicensed contractors are not covered by state worker’s compensation. The California Contractors State Licensing Board (cslb.ca.gov) recommends that homeowners get at least three offers, ask to see their license, and be wary of door-to-door applicants.
You can certainly save a lot of money by acting as your own general contractor and hiring your own specialty subcontractors, licensed or unlicensed. However, when you use unlicensed workers, you can end up spending a lot more if you have to bring people in later to fix problems. So make sure you have confidence in who you hire, especially for plumbing and electrical, where the consequences of shoddy work can be catastrophic and likely place the responsibility squarely on your shoulders.
Let me leave you with one more tip. Try to avoid paying any contractor up front, for building materials or anything else. There’s nothing worse than having a contractor start the demolition stage, but then sit your project down for days at a time because another (seemingly more important) client needs you to do a new project or repair an old one. You won’t be in a position to fire him and bring in someone else if you already paid him a lot of money up front, and meanwhile his house is still a mess since the demo. In other words, don’t give away all the leverage!
Look for simplicity, comfort and value!