In Support of Licensing
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With the newest issue of Angie’s List magazine focusing on contractor licensing, construction and service professionals would be well advised to either a) ensure that all their company’s licenses and registrations are up-to-date, or b) work on getting licensed ASAP if it’s a business step they’ve forgone up to now.
Many states already have contractor licensing laws in place, and others are working to enact them. Now, Angie’s List founder Angie Hicks is asking lawmakers nationwide to pass standardized licensing laws. The goal, Hicks says, is to give consumers the peace of mind that individuals working in their homes are qualified to perform the work.
Currently, 750,000 consumers in 124 cities are Angie’s List members. Those consumers write 40,000 reviews every month about service providers they’ve worked with, including details about whether or not they would hire them again. And with the intense focus on licensing, there’s a new detail to think about: As of Sept. 1, the organization is now requiring Angie’s List companies to confirm that they are in compliance with state and local laws. What’s more, Angie’s List will be auditing contractors to verify that they are following the law. Those not in compliance will have an opportunity to update their licenses or face actions from Angie’s List, including member notification of the company’s noncompliant status.
So, Why Do You Care?
Maybe you don’t do business with Angie’s List, and maybe you’re not intimidated by how it works. Maybe you see Angie’s List as a place for impossible-to-please homeowners to gripe and grumble because they weren’t happy with the work done at their house. Maybe your state has no licensing policies, so how can you be licensed? And maybe you think licensing is none of Angie’s List’s business.
That’s all fine, but let’s not forget that the website serves not just as a place for homeowners to air grievances, but also as a place to share praise about service providers who have gone above and beyond. Maybe your clients aren’t posting negative reviews about your company, but don’t you want them to think about Angie’s List when they want to share positive stories with 750,000 of their closest friends?
To the licensing point, it’s true that the licenses and registrations cost money and take time to acquire. It’s true that licensing is poorly enforced in some areas, and that some licensing tests may be more meaningful than others. And it’s true that contractors that do great work at a fair price for happy homeowners may not feel they need a license to prove their qualifications. I think it’s for these reasons that many unlicensed contractors choose not to go through the process.
But it’s also true that in many states licensing is required by law, and that continuing to work unlicensed in these states is illegal. Period. And while a company’s quality of work and word-of-mouth flair may be enough to maintain a backlog of eager customers, being licensed illustrates that the same company is intent on not just doing good work, but running a legal, compliant business. (Perhaps unlike the unlicensed XYZ Company down the street.)
Looking Out for the Consumer
Angie’s List is, first and foremost, a consumer-protection organization, which I appreciate as a consumer. (Aren't we all consumers, after all?) But because I work every day in an industry of small-business owners and service professionals, I would like to see more contractor benefits from organizations like Angie’s List and from state licensing boards, both of which often favor consumer rights and protections over those of the business owner.
That said, I wouldn’t ride in a car with an unlicensed driver, and I won’t hire an unlicensed contractor to work in my house. Not every consumer or service provider works with Angie’s List, but the name is well-known, and its efforts will reach and educate millions of homeowners beyond those who invest in its services. This includes licensing efforts.
Remodeling’s mission has always been to deliver business advice and best practices to its readers, and I believe this is one of those messages. It might take a little time and cost a little money, but it’ll be worth it in the end – if not to prove that you are qualified to do your job, then to prove that those who aren’t licensed aren’t qualified.
So far, Angie's List representatives say the majority of the feedback they've received regarding their state licening encouragement efforts has been positive – and has come largely from the trades, not from homeowners. How do you feel about the licensing laws in your state, and compliance around your area and around the industry. Share your comments here, or feel free to contact me directly.
Lauren
lhunter@hanleywood.com
www.twitter.com/LaurenHunter_HW