What’s the difference between an unlicensed and licensed electrical contractor in Colorado? And how does hiring one or the other impact the safety - and legality - of your projects? These are important questions every homeowner should ask when deciding who to hire for the electrical work being planned for their property.
As a licensed electrical contractor in the Pikes Peak region, Direct Electric has run into countless projects in which an unlicensed contractor was hired to perform electrical work but either wasn’t able to complete the job, left the “finished” project in an unsafe and unworkmanlike manner, or miscalculated the actual cost of the job and began requesting additional funds half way through the project.
In our first ever blog post, we’re going over why working with a contractor who is licensed through DORA and registered with the local regional building department is crucial to your home’s safety and marketability.
Unpermitted Work and What it Means for your Home
Only licensed electrical contractors in the state of Colorado can pull permits and call inspections - unlicensed contractors cannot. Savvy DIY’ers know that you can pull a homeowner permit for electrical upgrades and installation, but the caveat to that is that the homeowner themselves has to conduct the work. You cannot pull a homeowner’s permit, then pay a contractor (licensed or otherwise) to complete the work for you.
With that preliminary information out of the way, let’s take a look at the importance of obtaining permits for electrical work being conducted by an electrical contractor.
The benefits of obtaining a permit for electrical work is multi-faceted:
1. It ensures the work is recorded with the local regional building department. Permits leaving a lasting record of the work performed; this record can be accessed for decades after the work was completed. A record of work performed retains important information about the contractor who did the project, including their company name and contact details. This lasting record helps to hold contractors accountable if there are questions about how the work was performed, or (in the worst case scenario) should something go wrong with the work done in the future.
2. Permitting and Inspections Go Hand in Hand: Permitted work requires an inspection at the end of the project in order to be considered complete by regional building authorities. Electrical inspectors employed by regional building departments and DORA are highly trained to ensure that the work conducted by your contractor is not only safe, but also done properly and is up-to-code.
3. Unpermitted Work Can Impact the Marketability of a Home: Unpermitted work is a red flag for home buyers - and in some instances, it can stop a home sale in its tracks. Home buyers want to feel safe and confident with the upgrades and maintenance in a home they’re spending hundreds of thousands of dollars on. Unpermitted work has no paper trail, no knowledgeable contractor linked to the work, and no one to hold accountable should any issues come up in the future. This can leave homeowners wondering if the electrical in the home is safe - a question mark that can reduce perceived value of a home or kill interest in a property entirely. Furthermore, should an appraiser notice unpermitted work has been done in the home, the value of the home could be reduced, causing lenders to balk when underwriting the loan.
4. Homeowner’s Insurance Issues: Homeowner’s insurance companies may refuse to cover the home or increase the insurance premium, due to the increased risk and liability associated with unprofessional, uninspected work. Because the majority of properties are purchased using a loan, and lenders require property insurance in order to provide a loan for a home purchase, homeowner’s insurance issues can hinder a home sale.
Avoid Double Paying for the Same Project
When planning a home remodel or renovation, it’s natural to want to save as much money as possible. This (reasonable) desire to save a few dollars on a home renovation often leads homeowners to fall prey to unlicensed contractors who offer to complete the job for a heavily reduced price and without pulling a permit.
We at Direct Electric can’t begin to count the instances in which we’ve been called out to a home to fix work done previously by an unlicensed contractor. The projects have included basement remodels, panel upgrades, addition wiring, and more.
In almost every instance, the homeowner’s story is the same: they had a friend or acquaintance who said they could complete the job for a cheaper price. Then, the unlicensed contractor either abandoned the job completely, performed unsatisfactory work, or began requesting more money mid-project due to supposed unforeseen costs.
The result is that the homeowner now has to pay double to have a licensed contractor come in and finish the job or correct the work previously performed by the unlicensed individual. This frequently leaves homeowners disastrously over budget and the project severely delayed.
A home is one of the biggest investments people make in their entire lifetime, and electrical installation is a fundamental component of every home. Using a licensed contractor for your electrical needs protects not only your home as an investment, but also the safety of your family and those living in the property. We hope this article explaining the difference between using unlicensed vs licensed electrical contractors in Colorado helps you as you plan your next project. If you need a licensed electrical contractor in the Colorado Springs region, contact us today at (719) 717-8889.
