During a construction project, you will likely need to hire a contractor to perform work that your company cannot perform itself. These typically include electrical contractors and plumbers. If this is the case, it's important to work with an attorney to make sure that you are working with the right type of contractor and that they have the proper licenses.
When you are working with a licensed contractor, they will be carrying workers' compensation that will ensure that a worker will be compensated in the event that they become injured. If you are working with an unlicensed contractor, you may find that you are personally liable for any injuries the workers suffer on your construction site.
If you hire a contractor who is not licensed and they make a mistake that leads to damages done to another party, you may be held liable unless the contractor is carrying liability insurance and is licensed. Otherwise, the defendant might have the right to seek compensation from both you and the contractor.
If you are concerned about whether or not you will face any liability concerns, you should speak with a construction lawyer. With their advice, you can make sure that you are adequately shielded from any liability.
If you are working with a bonded contractor, you will be compensated through an insurance policy if the contractor is not able to complete the work. However, if a contractor is not licensed, they are more likely to not be bonded.
A bonded contractor can be useful if the current contractor makes a major mistake and you must hire a different one to correct the problem. The insurance will pay for the cost of fixing the problem. You could sue a contractor who is not bonded, but this will take more time and cost more money.
After the Construction Project
A building that is constructed with the labor of an unlicensed contractor might not be safe as a result. If the property is sold, this would have to be disclosed to potential buyers. It is better to avoid legal headaches by hiring licensed contractors for your construction project from the start and having a construction attorney look over any contracts you form with these contractors.
When your contract is drafted by a construction law attorney, you will be able to protect yourself in the event that something does go wrong or you are forced to cancel your relationship with the contractor.