"When looking to hire a contractor you need to protect yourself from hiring those that are not qualified to do construction related services."
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Continued from: Innovative tips that will help you hire a contractor and have a successful home improvement project.
continued from Home Remodeling

What are you protecting yourself from when hiring a contractor?

When hiring a contractor in a state that requires contractors to be licensed, you are protecting yourself from those that are not qualified to do construction related services (electrical work, plumbing work, mechanical work, etc.) and do not have a license yet call themselves contractors, a.k.a. unlicensed contractors. 
What You May Encounter When Looking For a Contractor...
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What you might think of as a simple construction project, such as installing hurricane shutters, changing out windows or doors, or adding a new bathroom, depending where you live will require a level of competency that would require licensed tradesmen and building permits.  Some homeowners who don't fully understand may be tempted to overlook obtaining the licensed contractor and permitting requirements just to save money. Speaking from experience, it will cost you more time and money down the road; therefore, just like anything else, the best thing you can do is do it right the first time with the proper permits for plumbing, building, mechanical, electrical, etc. You can visit the Consumer Warnings page for more tips about hiring a contractor and watch a short informative video about scams by unlicensed contractors.
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