Things homeowners should know

New license numbers, how long have they been in business??

 
Many construction companies come and go and some change their business name and license number every 3 or 4 years to avoid fixing their poor quality work later….. So it's in your best interest to ask your contractor or sub-contractor……

 “How long have you been in business, and how old is your contractors license number? “

Is that license number, actually THEIR license number??

 
By California law, all contractors and sub contractors are to have a contractor’s state   license to work in California.
Some people will knowingly use the license number of a friend or other company, hoping homeowners will not bother to check to see if it is actually their license number and it's active and in good standing with the state license board. 

                       State license board web address:   http://www.cslb.ca.gov/

 
 
Do they have liability insurance and workman compensation insurance?

All contractors and sub contractors are required to have general liability insurance, and work compensation insurance if they have one or more employees working for them.

What does this mean to you? It means if something happens on your project, for example, it rains 6 months after the job is completed, and the windows, doors or stucco leaks water and ruins your floors, drywall, carpet, furniture; you will have some recourse to have the problem fixed and your damaged items replaced, either by the contractor, sub-contractor or their liability insurance.

 
IF an employee of a contractor or sub-contractor is injured on your project, the workman compensation insurance company will take care of all  hospital/ medical  bills and lost wages ect.

 
If they do not have insurance, YOU are responsible for all hospital /medical bills, lost wages, and future lost wages, if the employee can no longer perform his job.

It is always a good idea to ask for proof of liability and work compensation insurance before signing any contract. It is also a good idea to have the contractor provide a material and labor lien release, to show all sub-contractors and material companies have been paid on your project, otherwise, unpaid employees or companies may file a lien on your property, requiring you to pay the money owed, even if you have paid the contractor.

 
If a contractor or sub contractor says he is exempt from having work compensation insurance because he has no employees at this time, but when he shows up to do the work, and he has “ helpers” other than him on the job……. Something is not correct and it is in your best interest to look into it and ask for insurance.

State of California Contractors License Board

                                          http://www.cslb.ca.gov/