Hire a Licensed Contractor

All contractor advertisements—whether it be an ad online, on the radio, T , in the newspaper, or phone book, a flyer that shows up at your front door, or the company s name on the side of a truck must ha e the California contractor s state license number issued by the Contractors State License

Board. You can check the license status online at www.cslb. ca.gov or call (800) 321-CSLB (2752). You can also build a personalized list of licensed contractors in your area with the “Find My Licensed Contractor” on the CSLB’s website. Most licensed contractors are competent, honest, hardworking and financially res onsi le. owe er, many o the ro lems CSLB sees could be prevented if homeowners knew their home improvement rights. A responsible and informed consumer can work more effecti ely with re uta le licensed contractors and avoid being victimized by unscrupulous or unlicensed operators.

Shop Around Before Hiring a Contractor

Get at least three written bids on your project, and make sure you’re com aring ids ased on identical lans, s ecifications and scope of work. Do not automatically accept the lowest bid. In fact, you should beware of any bid that is substantially lower than the others. It probably indicates that the contractor made a mistake or is not including all the work quoted by his or her competitors. You may be headed for a dispute with your contractor if you accept an abnormally low bid. It also is possible that a low-bidding contractor may cut corners or do su standard work to make a rofit. Consumers can always find a list of CSLB-licensed contractors in their area by using the “Find My Licensed Contractor” feature on www.cslb.ca.gov.

When the contractor comes to your house to give you a bid, ask to see his/her pocket license, along with a picture I.D. Make sure the person you’re dealing with is the same person on the license.

Contractors also can hire salespeople to work for them. Those eo le must e registered with CSLB as a ome Improvement Salesperson. Ask to see the registration card, along with a picture I.D.

Contractors are required to have their state license number on their business card and on all bids and contracts. Seeing a license number doesn’t necessarily mean the license is valid. Check the license status. Although an unlicensed operator may gi e you a low id, the risks o ossi le financial and legal conse uences outweigh any enefits a lower id may seem to offer.

Out of State Contractors

Contractors who work in California must be licensed by CSLB. A contractor licensed in Nevada cannot take a job in California unless they are licensed by CSLB.

Ask for ersonal Recommendations

Friends and family recently may have had similar projects com leted. I they are satisfied with the results, chances

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are you will be too. Local customers, material suppliers, su contractors and financial institutions are good re erence sources to check whether the contractor is financially responsible. If you are still unsure, you also may wish to check the contractor out with your local building department, trade association or union, consumer protection agency, consumer fraud unit, and the Better Business Bureau. Check your references using CSLB’s Instant License Check to make sure the contractor has an active license on www.cslb.ca.gov.

erify Contact Information

Make sure your contractor has a current business address and telephone number. A contractor who operates a business from the ack o a icku truck with a cell hone may e di cult to find i a o needs to e fi ed a ter the last ill is aid. ou can find a licensed contractor’s address o record when you look up his/her license status.

erify Insurance Co erage

Ask to see a co y o the Certificate o Insurance or ask or the name of the contractor’s insurance carrier and agency to verify that the contractor has insurance. In California, if a contractor has employees, he/she is required to carry workers’ compensation insurance. The importance of this cannot be overstated. If a worker is injured working on your property and the contractor doesn’t have insurance you could e financially lia le to ay or in uries and rehabilitation. Your homeowner’s insurance may or may not cover those costs. When you look up a contractor’s license status on CSLB’s website you will see the insurance information, or a statement that the contractor is e em t rom carrying insurance ecause they ha e no em loyees. It’s a red flag i the contractor says he/ she has workers but has a workers’ compensation insurance e em tion on file with CSLB. Also, you should check with your insurance carrier to make sure the workers’ compensation insurance coverage being provided by the contractor will cover all the workers on your job. Commercial general liability insurance is not required; however, it covers damage to your property. If the contractor does not carry general liability insurance, he/she should be a le to e lain how damage or losses will e otherwise you or your insurance company could end up paying for damages. A licensed contractor must provide you with information regarding both types of insurance in your written contract. All C roofing contractors whether or not they ha e employees) must carry workers’ compensation insurance or ha e a alid Certification o Sel Insurance on file with CSLB. This information is indicated when you review the status of a contractor’s license.

Learn About Contractor Bonds

California licensed contractors are required to have a $15,000 license bond. Other bonds are not required, but might be good for the contractor to get for your job. Some bonds are designed to protect you against substandard work that does not meet with local building codes. Bonds do not assure the financial or ro essional integrity or com etency o a contractor. Institutional lenders such as savings and loans, insurance companies or commercial banks generally require licensed contractors to secure bonds for large jobs. Learn more about bonds by reading CSLB’s Guide to License Bonds at https://www.cslb.ca.gov/Resources/GuidesAndPublications/ ContractorsLicenseBondsGuide.pdf.

iling a Complaint

If you do have a problem with your contractor and can’t get it resol ed, you can file a com laint with CSLB. Learn more a out the complaint process at

http://cslb.ca.gov/Consumers/Filing_A_Complaint/How_The_Complaint_ Process_Works.aspx This article is reprinted with permission from the California Contractors State License Board. For more information, visit www.cslb.ca.gov.