HOW DO I FIND THE RIGHT CONTRACTOR?

All contractor advertisements—whether it be an ad online, on the radio, TV, 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 have the California contractor's state license number issued by the Contractor’s 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 responsible. However, many of the problems CSLB sees could be prevented if homeowners knew their home improvement rights. A responsible and informed consumer can work more effectively with reputable licensed contractors and avoid being victimized by unscrupulous or unlicensed operators.

Get at least three written bids on your project, and make sure you're comparing bids based on identical plans, specifications, 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 substandard work to make a profit. Consumers can always find a list of CSLB-licensed contractors in their area by using the “Find My Licensed Contractor” feature on 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 people must be registered with CSLB as a Home 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 give you a low bid, the risks of possible financial and legal consequences outweigh any benefits a lower bid may seem to offer.

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.

Friends and family recently may have had similar projects completed. If they are satisfied with the results, chances are you will be too. Local customers, material suppliers, subcontractors, and financial institutions are good reference 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 cslb.ca.gov.

Make sure your contractor has a current business address and telephone number. A contractor who operates a business from the back of a pickup truck with a cellphone may be difficult to find if a job needs to be fixed after the last bill is paid. You can find a licensed contractor's "address of record" when you look up his/her license status.

Ask to see a copy of the Certificate of Insurance or ask for 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 be financially liable to pay for injuries 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 exempt from carrying insurance because they have no employees. It’s a red flag if the contractor says he/she has workers but has a workers’ compensation insurance exemption 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 able to explain how damage or losses will be; 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-39 roofing contractors (whether or not they have employees) must carry workers' compensation insurance or have a valid Certification of Self-Insurance on file with CSLB. This information is indicated when you review the status of a contractor's license.

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 professional integrity or competency of 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.

If you do have a problem with your contractor and can’t get it resolved, you can file a complaint with CSLB. Learn more about the complaint process at 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.