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Informal hiring practices, particularly "hand-shake" deals with unlicensed contractors can too easily end up being a financial disaster for the homeowner. For more information on how to avoid problems when you hire a contractor, visit http://azroc.gov/downloads/consumer.html When you hire someone to repair or renovate your home, make sure you know what you're getting into. Homeowners who take a "hands-on" role in directing work done on their home may unknowingly cross the line between being a customer and being a contractor. This is particularly relevant if you do some of the work yourself, while hiring workers to complete other parts of your project. If you act as the prime or general contractor on your project, you may be responsible for ensuring that all health and safety regulations are being followed, and that required Workers' Compensation coverage is in place for all workers. If you fail to do this, you may be financially and legally vulnerable in the event of a workplace accident. This risk is very real. Homeowners acting as their own general contractor have faced substantial fines and penalties after a worker was injured on their property. Labor laws and health and safety regulations set out standards that apply to all residential construction projects, such as proper use of safety equipment and fall protection. Whoever is in charge of the work (the "prime" or "general" contractor) is responsible for making sure these regulations are followed. A razor cut or a piece of metal in the eye might not become your problem, but even with the smallest job, if something that requires hospitalization or treatment should occur, it could become a nightmare. Homeowners who act as their own general contractor can, under a variety of circumstances, become responsible for workplace safety, even though they are not in the contracting business and are simply having work done on their own home. The likelihood of this happening is greater if the homeowner is supplying some or all the construction materials and is actively involved in directing the work. It increases further if there is no written contract in place between the homeowner and those being hired. A written contract is an important part of protecting yourself from worker injury-related risks; not to mention the need for specifications of materials and exactly what is expected of you and the contractor to complete the project as outlined. Often, a homeowner trying to save money will hire an unlicensed worker to do a job. But what if they do not finish? Or what if the work they have done is not good or worse than when they started? Or what if it needs to be repaired because their workmanship was poor? To many homeowners have paid two or three times the cost because they hired an unlicensed contractor and the homeowner had no recourse for an unforeseen problem. To protect yourself from gambling with your money, security and peace of mind, hire a licensed, bonded and insured contractor. Visit AZROC.gov for more information.