Not All Contractors Are Created Equal

   Chances are that you won’t be complaining about the bad job done by that unlicensed contractor you hired. That’s because they will probably never do any of the work. They will show up to estimate your project, promise you the moon, and then ask you for money upfront to purchase materials. And, you guessed it. Poof! They disappear never to be seen by you again.

   Hawai'i State Law requires that you hire a licensed contractor for work over $1,000. This includes labor AND material. You must also hire a licensed contractor if the project requires a building permit or there is plumbing and/or electrical work involved. 

  There are continues attempt to raise this amount to $3,000 but it is easily defeated by contractors and others who benefit from keeping this amount at only $1,500. It is unfortunate as there are many jobs that are too big for a handyman, but also too small for the contractors to be interested. It is just not worth it for them, especially in our area with our current traffic problems. 

Yes, hiring a licensed contractor is going to cost you more money. They have expenses to run their business including licensing fees, workman’s compensation insurance, etc. You will have recourse if you hire a licensed contractor. Remember, you could be held liable for someone hurt on your property if the company you hired is unlicensed. 

To protect yourself, confirm the license number provided to you and know the different types of licenses. Unlicensed contractors have been known to use a General Excise Tax license number on their promotional materials. This is NOT a contractor’s license number. You can search online or call the Regulated Industries Complaints Office at 808-587-4272. 

There is no guarantee that you won’t have any problems with a licensed contractor. But, it’s more than likely you’ll have nothing but problems hiring one that is unlicensed.