In California, anyone who contracts to perform work that is valued at $500 or more for materials and labor must hold a current, valid license from the Contractors State License Board in the specialty for which they are contracting.

When obtaining your own building permit vs. having a licensed contractor obtaining the permit for you, YOU (not the person you hire) assume all responsibility for the overall job. Your responsibilities include things such as state and federal taxes, worker’s compensation insurance, and other legal liabilities. If a worker is injured while working on your property, you could be asked to pay for injuries and rehabilitation through your homeowner’s insurance policy. Few unlicensed contractors have bonding or workmen’s compensation insurance.

Another consideration is that unlicensed contractors may not have the expertise and qualifications to do the job right the first time. You could end up having to hire a licensed, reputable contractor to correct the work - paying for the job twice.

Do not be fooled if the person you hire says they can do the work under their “friend’s” contractor’s license. It is illegal for someone to use another’s contractor’s license, just as it is illegal for someone to use another person’s driver’s license.

Protect yourself and your wallet by following these steps from the California Contractor’s License Board when hiring a contractor:

1) Hire only licensed contractors.

2) Check a contractor’s license number online at www.cslb.ca.gov or by calling (800) 321-2752.

3) Get at least three bids.

4) Get three references from each bidder and review past work in person.

5) Make sure all project expectations are in writing and only sign the contract if you completely understand the terms.

6) Confirm that the contractor has workmen’s compensation insurance for employees.

7) Never pay more than 10% down or $1,000, whichever is less. Do not pay in cash.

8) Do not let payments get ahead of the work.

9) Keep a job file of all papers relating to your project, including all payments.

10) Do not make the final payment until you are satisfied with the job.

For additional information contact your local Building Department at 235 North Broadway, or call us at (760) 922-6130.