Hiring a remodeling company vs hiring an individual

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With such a wide range in remodel project pricing, it’s no wonder many contemplate hiring an individual versus a professional remodel contractor. Homeowner’s often get contact information of potential contractor’s from their friends and family, neighbors, or online groups such as NextDoor or Facebook. While there is no question many of these individuals provide a great service, at a great price, there are a few caveats to watch out for.¬†Working with a contractor who does not have a corporation can be risky, as it may indicate that the contractor is not established, experienced, or licensed. Here are five reasons why you may want to avoid contractors without a corporation:
  1. Limited Liability: Contractors who operate as sole proprietors or partnerships may not have limited liability protection, meaning that they could be held personally liable for any damages or legal issues that arise during the project.
  2. Lack of Professionalism: A contractor without a corporation may not have the same level of professionalism or accountability as a company with a corporate structure. They may not have a dedicated office, employees, or an established reputation in the industry.
  3. Licensing and Insurance: Contractors who do not have a corporation may not be licensed, insured, or bonded, leaving you vulnerable to potential liability issues if something goes wrong during the project.
  4. Dispute Resolution: Contractors without a corporation may not have a formal dispute resolution process in place, making it challenging to address any issues that may arise during the project.
  5. Financial Stability: Contractors who do not have a corporation may not have a stable financial foundation, which could lead to potential issues with payment, project delays, or unfinished work.
When choosing a contractor, it’s important to consider their qualifications, experience, and reputation in the industry. Working with a licensed, insured, and reputable contractor can help ensure that your remodeling project is completed to your satisfaction and meets all applicable codes and regulations.

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