Our firm often receives calls from homeowners who have disputes with contractors. There are often things that homeowners are not aware of when working with contractors. In this short note, I am going to discuss some helpful things that every homeowner should know about working with contractors on your home. While this note may not cover all situations, it should help as a basic overview.
Who regulates contractors? If I have a complaint about the quality of workmanship of a contractor, who can I contact?
In California, the government agency which regulates contractors is called the Contractor’s State License Board in the Department of Consumer Affairs. The Contractor’s Board website is full of useful information that can help a homeowner check on their contractor.
The website address for the California Contractor’s State License Board is available by clicking this link: CSLB-Home -CSLB and if that link does not work, it can be found at https://www.cslb.ca.gov Also, you can just Google, Duck Duck Go, or use another search engine and type in California Contractors State License Board and you should easily find it.
At this website, you can do many different things.
How do I check if my contractor is licensed?
After going to the California Contractor’s State License Board website, there is a link for license check. If you click on that, it brings you to another website, see this link below:
At that link, you can use the business name or a license number verify that your contractor’s license is valid. You will find various pieces of information about the contractor. You will find the business information, including the address and phone number. You will also see the type of entity, like a Corporation. There will also be the issue date and expiration date for the license.
The license status will also be shown, for example, it may show that the status is “current and active”. It will also list the classification of the contractor, such as a Roofing contractor or others.
There is also Bonding Information, which includes the bond company, bond number, bond amount, effective date, contractor’s bond history, and the bond of a qualifying individual. A common amount for the bond as of November 2024, is $25,000 (Twenty Five Thousand United States dollars).
There is also a note about Workers’ Compensation information.
What does the Bonding Information mean?
The bond is a insurance policy issued by a surety company to help cover the Contractor from claims made against the Contractor. One example of how the contractor bond might apply would be if a contractor did not pay a subcontractor and that subcontractor sued or claimed unpaid monies against the homeowner. In that situation, the homeowner could make a claim against the bond for the amount that the homeowner has to pay the subcontractor to settle their claim. If you don’t’ know what a subcontractor is, see the short note right below.
What is a subcontractor?
A subcontractor is a person or company hired (often by the general contractor of a job) to do specific work, like deliver parts (wood, steel), or do a specific service (like maybe an electrician). This person is a called a subcontractor because they were hired by the general contractor directly, rather than the subcontractor being hired directly by the homeowner. The homeowner may or may not be aware of a subcontractor working on his home or project.
What is Workers’ Compensation Insurance?
Workers’ Compensation insurance is an insurance policy which covers workers (employees) of a business if they are injured on the job. For example, in the context of a homeowner who hires a general contractor, having workers’ compensation insurance is important because that would cover any worker who gets hurt while doing the project. This insurance provides medical treatment for those workers. This insurance reduces the risk of a claim against the homeowner or the homeowner’s insurance for any home improvement project.
How much can a contractor require as up-front payment for a home improvement project?
The most a contractor is allowed to charge prior to work or materials delivered is the greater of 10% of the contract price or $1,000. There is a link below to an alert by the Contractors State License Board on this exact subject.
Don’t Pay Too Much Money Up Front on Home Improvement Projects
If you have already paid more than that, then demand a refund of that amount. If they don’t comply, then you should contact the California Contractors State License Board and file a complaint.
