03-20-2018, 12:27 PM
Requiring licensed contractors is another plus, from a liability standpoint. I'm not referring to the quality of the roadwork. An unlicensed contractor may be able to deliver excellent work at a reasonable price. However, there is a serious concern about insurance and liability.
If the Association has an unlicensed contractor working on the roads, and they or their worker is injured or killed on the job (car accident; falls into a lava tube; etc.), the Association would undoubtedly be named in a hefty lawsuit. Similarly, if the unlicensed contractor caused any injury or damage while on the job, possibly due to negligence (stoned worker plows into family car), the Association would be named. Imagine how much the lawsuit would be if an unlicensed contractor working for the Association caused someone to be seriously injured or killed. Probable scenario would be the unlicensed contractor declares bankruptcy or skips the state, leaving the Association holding the bag.
Licensed contractors are required, either by law or the terms of the Contractors Association, to have adequate Commercial General Liability and Accident/Injury insurance coverage for them and their employees. It may be more expensive and a hassle, but its the way to go.
If the Association has an unlicensed contractor working on the roads, and they or their worker is injured or killed on the job (car accident; falls into a lava tube; etc.), the Association would undoubtedly be named in a hefty lawsuit. Similarly, if the unlicensed contractor caused any injury or damage while on the job, possibly due to negligence (stoned worker plows into family car), the Association would be named. Imagine how much the lawsuit would be if an unlicensed contractor working for the Association caused someone to be seriously injured or killed. Probable scenario would be the unlicensed contractor declares bankruptcy or skips the state, leaving the Association holding the bag.
Licensed contractors are required, either by law or the terms of the Contractors Association, to have adequate Commercial General Liability and Accident/Injury insurance coverage for them and their employees. It may be more expensive and a hassle, but its the way to go.