A Consumer Guide for Selecting
Responsible Contractors

At first, it sounds like a great deal: a contractor offers to build your construction project for half of what others charge. But when the work is done you discover faulty construction, mediocre materials, and shoddy workmanship. You discover that you're responsible for fixing them, and your contractor is nowhere to be found. Then, too late, you discover why: you hired an unlicensed contractor.

Hiring an unlicensed contractor can bring your project far more risks than savings. You can be held liable for on-the-job injuries, taxes or insurance. You can be held responsible for complying with city and county codes, or correcting problems with workmanship and warranties. You can even be held liable for an unlicensed contractor's illegal acts.

How can you protect yourself? Hire a contractor who's on the level: a licensed contractor. Licensed contractors are subject to laws designed to protect both you and your investment against empty promises and careless construction.

Most contractors are competent, honest, hard-working, financially responsible, and licensed. This guide is designed to help you hire and work with them. If you have any questions, contact your nearest Contractors State License Board office. And remember: if an offer sounds too good to be true, it probably is.

Keep your project on the level . . .

Ten tips for finding, hiring, and working with contractors on the level

Plan Your Project Carefully Accurate plans or drawings will enable contractors to correctly determine the scope of the work and costs. Determine what type of contractor you will need.
Shop Around Get at least three written bids from contractors licensed by the Contractors State License Board. Be sure each bid includes the contractor's license number. Beware of a bid substantially lower than the others; it may indicate that a contractor has made a mistake or is not including all of the work quoted by the competitors.
Check the Contractor's License Ask contractors for their pocket card, license number, and trade classifications. Then check their standing with the Contractors State License Board before you sign a contract or allow work to begin.
Check the Contractor's References Ask a prospective contractor for references in writing. Call previous customers and ask if they were satisfied with the work, or visit references and examine work the contractor has completed.
Hire a Licensed Contractor Licensed contractors are subject to laws designed to protect both you and your project, and the Contractors State License Board can assist you with most difficulties involving licensed contractors. Remember: Unlicensed contracting is a crime!
Get Everything in Writing No work or materials should be performed or furnished without your prior written authorization. Make all changes in writing, signed by you and the contractor, and retain one signed copy.
Understand the Contract. Everything you and your contractor have agreed to must be included in your contract. Anything you sign may become a contract, so don't sign any document until you completely understand what you are signing and agree to all the terms. Don't let anyone rush you.
Inspect the Work Make frequent inspections of your project, including a final walk-through.
Pay Directly and Correctly Pay by check, directly to the contractor only -- never pay employees or salesmen.
Know Your Warranty Many contracts provide warranty language that states when the warranty period begins, the length of the warranty period, the warranty coverage, and the exclusions under the warranty. Ask your contractor if he or she has a warranty policy. If so, ask for a copy in writing and make sure that you clearly understand the warranty language.

Special Note . . .

See the BES Membership Directoryfor a listing of hundreds of licensed and bonded contractors, subcontractors, material suppliers, and other building professionals.

Contractor Cautions . . .

A contractor may not be on the level when:

You can't verify the contractor's name, address, telephone number, or credentials.
You can't verify that the contractor is licensed, insured, and/or bonded when required.
The contractor doesn't comply with your request for references or the references have
reservations about the contractor's work.
The company or salesperson says your home will be used for advertising purposes
and that you will be given a special low price, or that the price is available only if you
sign the contract today.
The salesperson tries to pressure you into signing a contract by using scare tactics, intimidation, or threats.
The contractor asks you to obtain permits--a good indication that the contractor is unlicensed.
You are asked to pay for the entire job in advance, or to pay cash to a salesperson
instead of by check or money order to the contractor.


The Contractor's License . . .

Every person or corporation who submits a bid or contracts for construction work valued at $300 or more must hold a state contractors license in the appropriate license classification. The only exceptions are individuals who are specifically exempt from the license requirement by statute.

The Contractors State License Board, upon finding that an applicant has sufficient experience, general knowledge of building and construction laws, is knowledgeable in the classification for which he has applied, and is financially responsible, will issue a contractors license, which must be renewed every two years.

A licensed contractor is required to display his license in the contractor's main office of business. In order for those dealing with the contractor to be assured that the contractor is currently and properly licensed, each licensed contractor is provided with a license pocket card. If the contractor does not have a card in his possession, contact the Contractors State License Board to determine the contractor's status.