Those of you who know us well, know that we hold a very strong opinion about unlicensed contractors. We feel that the state laws are in place in order to protect Contractors and Customers alike. And, while we don’t always agree with every portion of those laws, we respect and abide by them. Contractors who adhere to the state’s licensing requirements and subsequent laws often end up spending a large amount of time and money in order to do so. Then, we find ourselves in direct competition with unlicensed Contractors who are able to charge a much lower price, and often get the job.
So, this year Santa has a late gift for all of the licensed Contractors in California. As of January 1st new, tougher penalties have been put into place for those operating without a license. According to a December 30th article in the Orange County Register:
“Starting Jan. 1, those caught contracting in California without a license for the first time will face six months in jail or a fine of up to $5,000 because of a new law that will take affect. Right now the offense is only considered a misdemeanor with no set jail time or penalties.
Second-timers must pay 20 percent of the contract price, or $5,000, whichever is greater and spend at least 90 days in county jail. A third offense would be punishable with 90 days to one year in a county jail and a fine between $5,000 and $10,000, or 20 percent of the contract price, according to the law, Assembly Bill 370.”
Many customers don’t realize that most unlicensed Contractors do not carry Worker’s Compensation Insurance which can end up costing the homeowner much more than they bargained for. If a worker is injured in their home while on the job the homeowner can be held liable for those injuries. Unlike licensed Contractors, those without a license also do not have to submit to a background check. California law requires that a Contractor be licensed for all jobs over $500.
Here are some tips from the Contractors State License Board and a few of our own for hiring a Contractor:
•Ask to see contractor’s licenses.
•Verify the contractor’s license at www.cslb.ca.gov or 1-800-321-2752.
•Don’t pay more than 10 percent or $1,000, whichever is less, as a down payment.
•Get three bids, check references and get a written contract.
•Don’t pay in cash and don’t let the payments get ahead of the work.
•Ask to see a copy of the contractor’s liability and worker’s compensation insurance certifications.
If you are looking for a reputable, licensed contractor contact us today at 714-558-1094!
