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The home improvement market is a resilient one, with spending projected to top $553 billion in 2026. Some homeowners choose the DIY route, even for major projects. However, complex jobs like bathroom renovations are typically handled by professionals. Industry standards typically require licensed professionals for electrical and plumbing work.
The problem is that hiring bathroom renovation contractors can be expensive, with labor costs making up a significant portion of a typical budget. This can cause some people to look for shortcuts by hiring unlicensed contractors. Working with unlicensed contractors provides one way to make savings. But what are the downsides of failing to recruit experts to reduce bathroom renovation expenses?
CMK Construction
Unregulated work and its associated costs
The team at CMK Construction has put together an overview of the undesirable outcomes and what homeowners can do to ensure the contractors they hire are licensed, reliable, and suitably skilled.
First and foremost, while unlicensed bathroom renovation contractors may provide far more affordable quotes than their licensed counterparts, the work they carry out will, by its nature, be unregulated. They won’t adhere to the same rules and regulations for everything, from the materials they choose to the way the bathroom’s pipework is fitted.
The most obvious side effect of this reality is the likelihood of mistakes that will require remedial work in the future. Get a cut-price renovation from bathroom renovation contractors without the proper licenses, and you’ll end up having to pay someone else to fix what they got wrong.
Given that one study found that 60% of people regret taking on debt for renovations they later deem unnecessary, there’s a lot at stake. With 80% of renovation projects exceeding their initial budget, additional repair costs from unlicensed work can significantly impact overall project expenses.
The insurance dilemma
Even if you are happy with the results achieved by unlicensed bathroom renovation contractors, the second stumbling block relates to home insurance. Should you need to make a claim later on, your provider may decide not to pay out on your policy if it discovers that unregulated work has been carried out.
With homeowners’ insurance up by 11.2% year over year, according to the most recent data, abiding by the requirements of your policy is another essential step. One slip-up like this could be expensive, both in short-term costs and long-term premium increases.
The legality aspect
Last but not least, most states have laws in place to encourage contractors to obtain proper licensing and for clients to seek out contractors with such licenses.
For instance, in Georgia, every residential and commercial general contractor must have a license to provide services. Without this, they cannot enforce any work contract they create, and may be liable for damages and other punitive measures.
Likewise, clients of unlicensed individuals and firms cannot expect the same legal protections they’d enjoy if they instead choose licensed bathroom renovation contractors to take on their project.
While regional differences in the law exist, the overarching advice remains the same. It is better to pick the safe path and pay for a properly licensed contractor, rather than squeezing a budget to breaking point and risking legal ramifications.
How homeowners can protect themselves from unlicensed bathroom renovation contractors
There are over 900,000 construction businesses nationwide, employing more than 8 million people. In order to find properly licensed professionals who adhere to all relevant rules and regulations as you plan your bathroom renovation project, there are a few things you can do:
Check for licensing
The first and most obvious step is to request that any prospective contractor provide proof of their licensed status before you commit.
You can double-check claims made via state-level resources, which the National Association of State Contractors Licensing Agencies provides details of on its site.
Review previous projects and client testimonials
A contractor being licensed does not guarantee that their work is in line with their prices. For peace of mind, ask to see evidence of previous bathroom renovation projects they’ve completed to gauge their abilities.
Better still, request testimonials from former clients and research any available online reviews so you can hear not only about the quality of the work but also about the experience of working with a contractor from an outside perspective.
Request a written contract
Some contractors will agree to a bathroom renovation project without a written contract, treating a verbal agreement as sufficient. This sounds convenient, but it creates the potential for complexities and hassle later on.
To eliminate ambiguity and clarify expectations on both sides, ask for a written contract that both parties can sign before work begins. As mentioned, unlicensed bathroom renovation contractors may not be able to enforce any contract they sign, but they could be easier to hold to account for the terms of one. Even so, choosing a licensed contractor and asking for a written contract is still your best option.
The truth about unlicensed contractor costs
In short, suspiciously affordable bathroom renovation contractors need to have their history and licensing status scrutinized. Failing to do so could leave homeowners with bigger bills down the line, along with the prospect of having home insurance claims denied and even encountering legal hot water.
Experts often view the upfront cost of renovation as a long-term investment. This makes it easier to justify steeper upfront costs and the associated access to skilled, regulated professionals that come with them. Poorly finished or unsafe work from unlicensed contractors affects all homeowners.
This story was produced by CMK Construction and reviewed and distributed by Stacker.
