Whenever a prolonged economic slump occurs, the average American searches for savvy ways to save a few dollars, maybe clipping coupons before grocery shopping or walking instead of driving to work. During a recession, padding the pocketbook with shortcuts like these is an exercise in prudent financial pragmatism, but there are instances when the cheaper option actually proves to be more costly.
Responding to the credit crunch that has crippled the construction industry in many areas of the country, some homeowners and homebuilders are electing to hire unlicensed contractors to perform installations, maintenance, repairs and other projects to improve their property. Unlike the licensed, bonded and insured contractors who have registered with the Arizona Registrar of Contractors (AZROC) office, unlicensed contractors have not proven their competency of qualifications. To compound the problem, when subpar work is performed, or contractual agreements are not honored, the homeowner or homebuilder who hires an unlicensed contractor forfeits the typical methods of recourse made available by the state’s legal system.
According to the AZROC’s official website, a contractor in the state of Arizona must be licensed through the Registrar of Contractors (ROC) to legally perform construction, home repair and remodeling jobs that require a building permit or when the total project cost is $1,000 or more. This law pertains to nearly every type of trade worker, including housepainters, electricians, plumbers, carpenters and landscapers. Contracting to perform work of this nature without proper licensure is known to endanger the health, safety and welfare of the public, while also undercutting licensed contractors who operate legitimately and lawfully, hurting the entire construction industry as a whole. In the event that a homeowner hires a worker who is not licensed, the recourse offered through the ROC complaint process or the Residential Contractors’ Recovery Fund is no longer furnished.
For licensed contractors who have voluntarily undertaken the extensive qualification process used by AZROC, which includes studying extensively to pass the thorough Business Management Examination and paying all applicable fees, the threat posed by unlicensed contractors is tangible. With homeowners desperate to save a few dollars, the allure of searching online for an unlicensed contractor, who can bid a job for half the cost a licensed contractor may offer, has proven to be quite powerful.
The AZROC website maintains an interactive database listing known violators of the licensed contractor law, highlighting hundreds of individuals and their associated enterprises across the state, as well as a AZROC’s Most Wanted list to focus attention on the most unrepentant offenders. The City of Flagstaff alone is home to more than a dozen recognized unlicensed contractors, or those who have been brought to the attention of AZROC’s and Inspections and Investigations department, and it is believed that hundreds more are operating under the state’s radar. When an individual is convicted of operating without a contractor’s license, the AZROC office issues immediate press releases detailing the charges, any plea agreements made by the defendant and the litany of fines and penalties to which they are subjected.
According to William Mundell, who serves as the director of the Arizona Registrar of Contractors, publically outing an unlicensed contractor helps to ensure that homeowners are less likely to be deceived in the future.
“Protecting the people of Arizona from illegal contracting is our highest priority,” he said in a recent advisory statement. “The citizens and independent businesses of this state are the employers of contractors and they expect quality construction work to be performed when services are contracted.”
As unlicensed contractors continue to plague the already weakened construction industry, many leaders in the homebuilding profession are taking a strict stand against shortcuts and charlatans. Chris Tortorello, the owner of Torel Custom Homes in Sedona since 1996, is recognized within the industry as a homebuilder who solely employs licensed contractors on his jobsites.
“Hiring only licensed subcontractors assures me that they have credibility, and a stake in the longevity of their company’s future,” Tortorello said. “It also provides me with recourse if there is ever a problem.”
Retaining the ability to seek redress through the legal system is a crucial component of the contractor licensing system for homeowners and homebuilders alike, because the work performed by unlicensed contractors typically falls below accepted industry standards.
“Homeowners who do not hire licensed contractors run the risk of creating several problems for themselves in the future,” Tortorello said. “We live in a very litigious society, and while homeowners may save themselves money in the short run by hiring unlicensed contractors, it usually costs much more money to rectify the building and maintenance problems which will inevitably arise.”
As a reputable homebuilder in Northern Arizona who has completed a number of high-profile custom projects in the area, Tortorello has enough experience to know that a license alone is not enough to guarantee competency or professionalism. He advises homeowners to apply the proper level of scrutiny to every contractor they employ, licensed or not, to effectively determine the right company or workman to hire.
“Using a licensed contractor does not guarantee that you will receive a professional job performance,” Tortorello said. “In addition to hiring professionals who are licensed, it’s also very important to seek references and recommendations from local realtors, other clients the contractor has worked for in the past, and any subcontractors who have worked for your prospective contractor.” FBN
For further information on the many benefits of working with licensed contractors, or to file a complaint against an unlicensed contractor, contact the local AZROC branch at 2901 Shamrell Blvd., Suite 100, in Flagstaff.
