Hiring a Contractor? Employees vs. Subcontractors: What You Should Know and Look Out For

Planning a home improvement soon? We’ve all been there. Making the decision to finally tackle that home project you’ve been waiting for. You schedule a few appointments with Contractors & get quotes. You weigh the estimates, timeline & overall knowledge of the person you’re thinking of working with. Before you sign that contract let’s talk for a minute about qualifications and what questions should be asked. Not all home improvements require a licensed professional so I would refer you to check with the Florida DBPR and verify their license number.

Does the company you are choosing have actual employees or are they subcontractors?

Employees offer quality control, loyalty, and reliability for consistent work. They have procedures laid out by the company/owner. Also, they are covered with liability and Workers’ Comp insurance. Most companies require a background check prior to hiring and that’s a great piece of mind when it involves your home, personal property and safety. 

And who exactly is responsible to resolve an issue should one arise?

Accountability is important. What happens if the licensed contractor you contract with hires unlicensed subcontractors instead of having employees? You have very little recourse and could result in substantial financial loss to your property and overall shotty workmanship. Who is going to return and rectify issues once the checks are deposited and two months have gone by? 

We all know employees are paid weekly, biweekly or monthly with deductions. Many have benefits and even financial perks. Having employees can add additional costs and overhead resulting in higher estimates. However, with employees, policies must be adhered to, and disciplinary actions can be enforced. Contractors and companies that use subcontractors don’t incur these extra costs and can be more competitive in pricing. It also allows flexibility to increase or decrease workforce as needed as jobs are completed. Another thing to consider is that you can’t tell a subcontractor when or how they do the work. 

Participating in the hiring of unlicensed contractors is unlawful in the State of Florida. An occupational license, nor being registered with the Division of Corporations, qualifies an individual or a company to function as a contractor. Licensed Contractors have years of experience needed to obtain a Florida State License. Florida requires continuing education, so they are up to date with code changes that affect their area of expertise. We mentioned earlier about proper insurance so don’t be shy about asking for a current certificate of Liability and Workers’ Comp insurance. 

There are several Red Flags to watch out for when choosing the right contractor or company to work for you. 

• If the price sounds too good to be true or is severely less than the other estimates.
• Are they advertising without a license number?
• Are you (the homeowner) being asked to apply for any permitting required?
• How did you hear about them? Be cautious of door to door soliciting. Most Contractors/Companies use print /digital advertising, display their work at home and garden shows, or are referred by a neighbor or friend.

Home improvement projects are costly and it’s always a good idea to get multiple estimates. Don’t fall for high-pressure sales tactics and cash only requests. 

For more information call 352-322-1192 or visit www.allseasonroomfl.com.