As demand for construction work has grown and construction costs have risen faster in the Valley than national averages, it can be tempting to simply take the lowest bid on a construction project. Maybe you have put the project off for longer than you would like and just want to get it done at the lowest cost. And maybe you just haven’t been able to find a contractor who fits your budget. These are common challenges and it is certainly reasonable to look for ways to reduce cost. However, not only is it illegal for a contractor to perform unlicensed work, you – the consumer – run the risk of being not only the victim of a scam-artist, but even the best intentioned unlicensed contractors can cause significant harm to a homeowner by providing shoddy or unpermitted work. Here are some things to know about hiring unlicensed contractors and the risks of related construction defects in Arizona.
Contracting without a License in Arizona
First, Arizona law is clear: it is against the law for a person/party to submit a proposal, respond to a request for work, and represent one has the ability to perform. and perform construction work without a license. Arizona Revised Statutes 32-1151. This is because the State of Arizona wishes to protect Arizona consumers from poor workmanship and shady business practices. Of course, some exemptions exist for smaller, handyman-type tasks, but they are extremely limited in scope and it is always important to be familiar with Arizona laws before engaging a “handyman” to conduct this work. See Arizona Revised Statutes 32-1121 – Persons not required to be licensed; penalties; applicability (azleg.gov) For instance, it is possible to engage a “handyman” where the total value of the sales contract or transaction involving such items (finished products, materials or articles of merchandise) and the cost of the installation or attachment of such items to a structure does not exceed $1,000, including labor, materials and all other items. However, this exemption does not apply if the work requires a permit. In any event,it is not a good idea to have anyone perform contracting work on your home or business without a license.
For those individuals and businesses caught contracting without a license in Arizona, they will likely face a fine and surcharge on the price charged for the work. In addition, contracting without a license is a class 1 misdemeanor, carrying with it jail term and significant fines.
Arizona Unlicensed Contractor Tip Hotline
Everyone in the state can play a role in preventing unlicensed contractors from harming Arizona residents. If you have hired or simply become aware of a contractor in Arizona performing construction work without a license, the Arizona Registrar of Contractors has a website form to report the allegation. You can submit the tips anonymously or leave your personal contact information if you want the AROC to follow up with you after the investigation. A few minutes of time can save many other people from being defrauded by unscrupulous contractors.
Arizona Contractor Search and the Online Database “Most Wanted” List.
To help combat against unlicensed contractors defrauding Arizona residents, the AROC also maintains a page on their site with the Registrar of Contractors Most Wanted list. You can find a list of people and the related business names that have received numerous complaints for defective contracting work, misrepresentation, and fraud. It should go without saying that it is wise to steer clear on any person or business on that list. It is also quick and easy to use the AROC contractor search page on the site to make sure the contractor you are potentially hiring is licensed and clear of any complaints. Before moving forward with any new construction project, ask for the contractor’s license number and business entity name and take the time to perform this basic online search. Quick Tip: a licensed contractor is required to submit their ROC number on any invoice or advertisement, so look for their number on any business card or submitted bid. This simple step can save you an immense amount of time, money and heartache down the road.
Additional Risks of Hiring an Unlicensed Contractor in Arizona – Lack of Permit
Hiring an unlicensed contractor to perform work typically means allowing “unpermitted” construction work as well. This can leave you in a dire situation where you are unable to sell your home because the necessary permits were not obtained. Since all property sellers in Arizona are required to provide the buyer with a Seller’s Property Disclosure Statement listing all known work and issues with the property, the property owner may face a situation where they are legally at risk if they do not provide all the details of that work and are responsible for all the costs to rectify any related defects before they can complete the sale.
Hire an Expert Arizona Construction Law Attorney
The experienced attorneys at RSN Law have represented individual property owners and businesses with all types of construction law matters. Our firm can assist with the review of a construction project proposal to help avoid any legal issues before they happen. Our attorneys can also assess a construction project or contractor dispute at any stage to help find a resolution. If you have hired an unlicensed contractor, knowingly or unknowingly, it is essential to act quickly before any legal consequences spiral out of control. RSN attorneys can quickly review the case and help determine the best course of action expeditiously. Contact our firm today at 480-712-0035 to schedule an initial consultation or make an appointment on the contact us page of our site.
RSN Law intends this article to be for informational purposes, not to be relief on a specific legal matter, and does not create an attorney-client relationship.