Do You Really Save Anything?

In light of our current economic situation, we are all looking for deals on everything we purchase. That is also true when it comes to the building industry. There are deals out there and I am not against anyone that would want to invest wisely but what I am really talking about is labor and material.

The problems that we faced in the building industry during this past boom cycle are akin to the new problems that we are now seeing. During the boom, many businesses were started to take part in the financial reward of the demand and prices escalated. Businesses that should not have opened because they did not have the knowledge or integrity to provide a good product did open. Apprentice tradesmen and sales people became shop owners and realtors because they saw the dollar signs that would come if they hung their shingle but they were not fully trained to excel in their trade. At the time, it did not really matter, there was volume to be produced and money to be made. But now we see the effect of that time, we now have a surplus of product, the startup companies are now gone & have moved on to other things and any problems with their product now needs to be cleaned up by someone else, at the expense of the consumer because there is no one to warranty it.

Now, in the downward economy, what businesses that are left have had to lower their rates and use inferior products to try to keep their doors opened. There have been numerous lay-offs and the licensed contractors are now bidding against laid-off tradesmen for the same work. And that is primarily our new problem.

I can not blame someone for trying to feed their families but in so doing, they are bringing themselves and the consumer in jeopardy. The benefits of using an unlicensed contractor are appealing because of the cost savings. But what do you really save? There is a reason why the state licenses contractors. The main reason is that there is accountability to the state through inspection so the consumer will receive a good and safe product. There is insurances and bonds that are required to operate a contracting business. These are all put in place to protect the customer. If an unlicensed contractor is hired, these accountability measures are not in place for the consumers safety, both physical and financial.

If the job is done without inspection, anything goes. The products that are used may not be code legal or the construction methods may be suspect and lead to hazardous situations. In my industry, there have been times when a fire has started in a structure that had no inspections for electrical work and the insurance company has not paid the damages because of that. There have been many times in all the trades where an unlicensed contractor has done work for someone, did not finish it for whatever reason, applied faulty workmanship or was not able to complete it to the customer's satisfaction and have had to hire a licensed contractor to complete it. What did they save?

This article is more an editorial than an article but I hope that it stimulates thought about whom is hired for your project. Just as in the boom time, good money was going to bad workmanship because of demand, now good money could be going to a different breed of problems. Even with the cost savings of unlicensed labor, it is still better to protect yourself with safe & inspected building methods and against litigation that you may have no ability to win because of the hiring of an unlicensed contractor if a problem should arise.