UNLICENSED CONTRACTOR CANNOT RECOVER FOR WORK PERFORMED

   

    Husband and Wife (Homeowners) had entered into a contractor with an individual builder who agreed to construct a new home. At the time the contract was signed, the builder, individually, was an "unlicensed” general contractor.  Thereafter, he “transferred” the contract to his business (without the homeowners consent or knowledge), which had an official and duly authorized general contractor’s license and proceeded to build the home. Despite the fact that work was performed by the builder, the homeowners were not required to pay the builder.

    The Court relied upon precedent such as in Brady v. Fulghum, 309 NC 580 (held contract with unlicensed general contractor is unenforceable); Jenco v. Signature Homes, Inc., 122 NC App 95 (unlicensed contractor who transferred construction contract could not recover under an equitable theory of recover such as quantum meruit), Vetco Concrete Co. v. Troy Lumber, Co. 256 NC 709 (express contract precludes an implied contract as to the same subject matter).

    Therefore, it would be wise to make sure that any contractors who perform any work ensure that if they are not licensed, that they do not go above the statutory limits of what you are able to perform; and for homeowners, make sure that you check the credentials of persons that you allow to work on your home.