Early Warning Signs of an Unlicensed Contractor

So in this series, I want to continue with what to look out for when hiring a person to do work on your home. In this segment, let's go over the warning signs. 

Unlicensed Contracting – Early Warning Signs

• “Licensed & insured” doesn’t mean a thing by itself. It is a requirement per Florida Statute / St. Johns County Ordinance that an individual / company has their license number displayed on all advertisements, contracts, and business cards.
• You are asked to obtain the permit. A licensed contractor will always obtain their own permits.
• Verbal contract only, no detailed terms in writing. This is usually a sign of an unlicensed individual.
• Contractor does not have proof of insurance. All contractors must have general liability and workers’ compensation coverage or workers’ compensation exemption current at all times and be able to prove it. Call their agent to verify or contact the County Licensing Department.
• You are informed the job does not require a permit or inspections. All projects, except very minor repairs, generally require a permit and inspections.
• The contractor prefers to work on weekends or after hours. This is often a sign an individual is not licensed and may be afraid to work when building inspectors are on duty.
• When someone other than the person contracting with you obtains the permit. Additional questions may be necessary.
• Contractor displays only a local business tax receipt, (formerly Occupational License). In order to lawfully engage in contracting the individual must hold a State Certification, State Registration or Specialty Trade License in the field they are contracting. Each will have a current wallet card bearing his name and scope of trade.
• You are asked to make check payable in the individual contractor’s name or asked to make payment in cash, or to make the check payable to “cash.”
• Licensed contractors usually have separate business accounts, so when paying by check the check should reflect the same name as on the contract.
• Advertisements and contracts should reflect company name, phone number and contractor’s license number. Contractors will have an address, phone number, and license number which you should verify with you local Contractor Licensing Department.