Why Low Bids From Unlicensed Contractors Are Really The Most Expensive. Because of the illegal nature and non-compliance with state and federal laws, unlicensed contractors often submit lower bids on jobs. Before considering what might seem to be a "too good to pass up bid", you might just consider why the low bid is usually the most expensive. First, unlicensed contractors have a way of taking your money and disappearing without completing your job. In these cases, when the deal goes bad with unlicensed contractors, the homeowner has very few options. Also, unlicensed contractors generally operate their businesses without accountability; disconnecting their phone and relocating their business at the first sign of trouble.

You Could Lose Your House in a Lien Sale. Most people assume that the risk posed by unlicensed work is limited to poor quality or unfinished work. But it gets much worse! The homeowner who hires unlicensed contractors is responsible for all fines and unpaid bills to suppliers and the wages of employees who worked for the unlicensed contractor. A mechanic's lien can be placed on your home and your home sold to satisfy the lien. If you already paid the unlicensed contractor, you may have to pay twice to keep from losing your house.