Qualifications
A
Few Things You Should Know About Contractor Licensing, Insurance, and
Bonding.
Licensing
There is no general
contractor licensing in the State of Illinois. The only trade that
is required to have a true license is plumbing. At least one individual
who works for a plumbing firm must have passed a state plumbing exam.
Everyone else who works there may be "working under" that plumber’s
license.
Anyone working with
asbestos requires a license from the state of Illinois.
Warning: Asbestos is very dangerous! Make certain that anyone working
with asbestos proves to you that they are licensed. If you have doubt
or questions about license status of any plumbing, roofing or asbestos
contractor, telephone the State of Illinois at 217-782-0458.
The only other license
required in Illinois is not a true license. That is for roofers. This
license only requires proof of insurance and business address. There is
not even a simple test to ask where the applicant thinks the roof of a
building is located. Its purpose is to protect the elderly from being
taken advantage of by fly-by-nighters.
Anyone advertising
that they are a licensed contractor is at best fudging the creative advertising
because the most they might have is a plumbing or roofing license. Unless
you are having major plumbing work done contractor licensing has no relevance.
Be suspicious of anyone, besides
plumbers and roofers, who advertises that they are licensed.
Insurance
There are several
insurance items you should check on before letting anyone start work at
your home. The best way to check on all of them at once is to ask for
a "Certificate of Insurance". Do not accept a photocopy or a
copy delivered by hand. Always ask that the contractor’s insurance
company mail you the certificate directly. This is important because it
is your only proof that the policy is still in force and the only way
that the insurance company knows that they are covering work taking place
on your property.
For your protection
all contractors, even self-employed trades people, should carry general
liability insurance. We recommend that you demand a minimum of $500,000
coverage for work under $30,000 and a minimum of $1,000,000 for work over
$30,000. Check with your insurance carrier if you have any questions.
For
your protection we recommend that anyone doing work on your property,
even self-employed trades people, carry worker’s compensation
insurance. Contractors who do not do this are putting profit ahead
of customer safety.
Bonding
There is no requirement
in Illinois that contractors be bonded. In Illinois the traditional practice
of requiring a contractor to provide bonding is limited to public works
projects and to very large private projects.
A basic requirement
of a bonding company is that a contractor uses a certified public accountant
for bookkeeping and tax preparation. Our firm has used Barb Lichti of
Lichti Accounting for years. We have a long standing and good relationship
with Barb. She is perhaps the most conservative accountant we could find.
Barb is not a CPA. Unless we were to change accountants we will never
have bonding. We do not plan to change accountants.
For routine projects
under a million dollars bonding is an antiquated practice, similar to
needing a notary public. It is important that the contractor is adequately
insured.
|
