Why It Matters That a Contractor Is Licensed (And How to Check)

With the assistance of a recent Colorado case to make the point, we demonstrate why it matters, and what it can cost you.

The Reminder You Didn't Want But Needed

In June 2024, the Leona Scott case made local headlines. Scott, an Aurora-based contractor, was arrested on suspicion of ripping off over $1.3 million from four rebuild clients in unincorporated Boulder County following the Marshall Fire. He negotiated with the families, took their funds, but failed to complete the work - or spend the money on its intended purpose.

Even more frightening: he was not properly licensed to build homes in that county.

This case should send a red flag to all homeowners: it takes more than being wowed by how a contractor comes across on paper or bids on the job. The license check matters too!

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Why a License Matters (Beyond Official Legal Boxes)

✅ Looks Out for You If Something Goes Wrong

When you hire a licensed (and insured) contractor, you have recourse. You can have warranties, liability insurance, or professional board oversight. Without it? You're on your own, usually.

✅ Ensures Minimum Standards

A licensed contractor has met some requirements—training, permitting, inspections. Unlicensed building can skip critical steps (which affects safety, resale value, code compliance).

✅ Adds Value and Marketability to Your Home

At the time of sale, home purchasers and home inspectors will be asking themselves: "Was work performed properly, with permits, and code compliant?" Transactions could collapse or surprise bills lie ahead if unlicensed or undocumented labor has been conducted.

✅ Minimizes Opportunity for Fraud or Misconduct

Even where a contractor seems satisfactory, the majority of fraud begins either with one of two issues: improper licensure or lack of proper documentation. The Scott case is an example of how bad it can get.

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How to Verify a Contractor's License in Colorado

Below is an easy, step-by-step guide you can follow if you're bringing on a homeowner repair, remodel, or build contractor on the Front Range of Colorado.

1. Request Their License/Registration Number

Start with the fundamentals: Request the contractor's license number (or registration, if your county uses this term instead). Reliable contractors will always have it on hand.

2. Verify the State/County Database

In Colorado, the licensing to build/remodel is municipal, so you may be required to check:

• The city or county in which the construction will take place (e.g., Boulder County)

• Or the city building department

For example, the Boulder County News report of the Scott case specifically reports that he "was not properly licensed to build homes in Boulder County."

3. Check Insurance Coverage

Even if license is up to date, ask for proof of:

• General liability insurance

• Workers' compensation (if required). Ask for a certificate of insurance and verify.

4. Ask for References and Past Permits

A good contractor will give you:

• Recent permit history from your local building department

• A couple of recent homeowner referrals (specifically in your area)

• Maybe even a portfolio of completed work

5. Watch Out for Red Flags

These are some red flag indicators:

• No license or registration number provided

• Bids significantly lower than anyone else

• Contractor says they don't require permits or "can save you money by skipping that". The Scott case involved not only a high-level financial breach, but lack of licensure to boot.

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What To Do Next

If you're having a home remodel or build on the Front Range:

• Verify licensing, insurance, and references before signing on the dotted line.

• Have the contractor give you a written estimate that covers permit fees and a clear payment schedule.

• Keep all documentation (contract, licenses, payment receipt, change orders) safe and in one place.

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Final Thoughts

The Leona Scott case is an extreme one, but we see what happens when licensing and regulation are skipped. Taking fifteen minutes to verify a contractor might save you thousands of dollars, months of hassle, or worse.

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👉At Alpine Home Repairs, we’re licensed, insured, and fully transparent. We’ll show you our credentials and walk you through every step so you feel confident in our work.

Alpine Home Repairs