What with the recent fires and storms, many of us will be hiring a contractor in the near future. Here are some pointers so that this process doesn’t make matters worse.
I base my advice on both my own experience, as well as some of the unfortunate experiences my clients have had before retaining me.
1. Only hire licensed contractors. Regardless of whether someone says that he or she is licensed, always check the license out online at the California Contractors State License Board: www.cslb.ca.gov. When you go to that website, you will see a drop-down list marked “Consumers.” There you will find a link to “License Check.” Here you have five options to search for the contractor: License Number; Business Name; Personnel Name; Salesperson Number; and, Salesperson Name.
If, despite your best efforts, you cannot locate this particular contractor on the CSLB website, then that is a major Red Flag not to use this person, especially if the contractor said that he/she was licensed. Never a good omen when a relationship begins with a lie.
Assuming that the contractor is licensed, then make sure they carry worker’s compensation insurance. The CSLB does not require a contractor to carry such insurance if they do not have employees. But, unless it’s a small job that the contractor will handle entirely by himself, most contractors need help doing their jobs. Once they bring in workers to assist them, then they have employees. And, if the contractor does not have worker’s compensation insurance and one of the workers gets injured, that worker might sue you for their injuries.
2. Get bids from at least three different contractors. The bids need to be thorough with a realistic timeline and budget. Don’t accept any bid unless it is in writing.
3. Check out some of the work the contractor has done before. Get a list of at least three prior customers that you can talk to and visit. Once you get the list, make those calls and visit those homes. If a contractor won’t give you a list, then don’t work with him or her.
4. Make sure you have a written contract with the contractor. And make sure that the contract goes into specific detail about a) what the work is that is to be done; b) how long it will take to do the work and consequences if it takes too long; c) exactly what materials will be used; d) your ability to cancel the contract if the contractor takes too long, doesn’t show up for the job, or the quality of work does not meet your standards; and, e) make sure that the contractor has general liability insurance and includes you as an additional insured. There are many other items that should be covered, but you’re doing well if you’ve at least got these.
5. Under California law, you have three business days after you sign the contract to cancel. You don’t have to justify the cancellation, or to even provide any reason. And, if you are 65 or older, you have five business days to cancel. Under no circumstances do you sign a waiver of right to cancel.
6. Whenever you give the contractor any money, make sure you get them to give you a signed unconditional waiver and lien release. Contractors can foreclose on your home if you don’t pay them. The lien release removes the ability the contractor has to record a lien against your home, and to then later foreclose on that lien.
There are a number of other guidelines and suggestions, but these should get you started. And, remember, each of them is crucial. Don’t sign any construction contract unless you have followed each one.
Carl Kanowsky of Kanowsky & Associates is an attorney in the Santa Clarita Valley. He may be reached by email at [email protected]. His column represents his own views, and not necessarily those of The Signal. Nothing contained herein shall be or is intended to be construed as providing legal advice.
