The economic downturn has caused just about everyone to look for ways to save money. The construction industry has not been exempt from this trend, with many homeowners choosing to be “owner-builders” and even hiring unlicensed contractors instead of working with properly licensed builders.
But this behavior can be both costly and challenging for a homeowner.
Here are 5 reasons why a licensed builder can provide you with a better home.
1. Compliance With Permit And Inspection Requirements
Since the contractor is already breaking the law by working without a license, there’s also a good chance that he would not be complying with other laws including those for permit requirements and inspection requirements. This can result in your home not being up to code and making repairs or removals necessary if your home is inspected or if you decide to sell it. A licensed builder is experienced with processing permits and inspections and will know exactly what needs to be done to meet code requirements.
2. Quality Workmanship
Since an unlicensed contractor has not submitted to any examination or review of his knowledge by a licensing board, you can’t be assured that he will provide you with quality workmanship. A quality home built by an experienced contractor should need less maintenance and fewer repairs during its lifetime, has better resale value and is likely to hold its value longer.
3. Builders Warranty
Licensed builders provide Domestic Building Insurance when the cost of building work under the contract with the builder is more than $16,000 (including labour and material costs). Should you sell your property within six and a half years of the completion of building work, domestic building insurance, whether provided by an owner-builder or a registered building practitioner, will cover the purchaser of that property. This gives an assurance that the owner-builder or registered builder will be responsible for ensuring that the building work complies with the relevant legislation at the time of construction.
4. Building Indemnity Insurance
When a contractor builds a house, does renovations or builds an extension costing $12,000 or more, which require council approval, they take out a Building Indemnity Insurance. This insurance protects the current and future building owner if work has not been completed or faulty work has not been rectified or if the builder dies, disappears or is declared bankrupt. This insurance can only be taken out by a person or company that holds a builder’s license.
5. Network Of Connections That Benefit The Homeowner
Licensed and experienced builders have a network of connections that can be very beneficial for you. They usually have the best subcontractors for particular tasks so you would only need to deal with one person for the entire duration of your build. They also normally evaluate multiple bids from their subcontractors, which means that you can get the benefit of discounted contractor rates with suppliers. Experienced builders also know how to reach inspectors quickly, making your build a lot more seamless and hassle-free.
We’ve all heard horror stories about consumers losing hundreds or even thousands of dollars because of hiring inexperienced and unlicensed builders. Don’t be a part of one of those stories and build your home with a licensed contractor like Built By La Sala, who can save you a lot of headaches as well as time and money.