All states require some form of licensing with regard to building contractors. These laws have been passed to protect property owners from incompetent or dishonest contractors.

The licensing process tests for basic competency and most licensing programs have some way of screening out dishonest contractors.

A valid license is the first indication that your contractor might be qualified to do the job. Another reason to use a licensed contractor is that some states have dispute resolution programs, and sometimes even funds, to help resolve disputes and compensate property owners. You will want to take full advantage of such a program by making sure your contractor has a current license for all the work he or she proposes to do.