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FAQ #3: what is a licensed contractor?

Huck | Posted in Business on February 4, 2008 07:59am

what does it mean to be a “licensed contractor”?

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In <!—-> <!—-><!—->California<!—-> <!—->, the law states that anyone contracting for work on a project costing $500 or more (labor and materials, regardless of who purchases the materials) must hold a current, valid contractor’s license from the Contractor’s State License Board. You can verify the license on-line at http://www2.cslb.ca.gov/CSLB_LIBRARY/license+request.asp,

 or by calling toll free 1-800-321-CSLB (2752).

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It is generally worthwhile to go online and check a contractor before calling him for a bid.  It is simple and easy to do, and there are a large number of people advertising as “licensedâ€, when all they have is a city business license, or a fraudulent contractor’s license number which does not belong to them.  Furthermore, the contractor’s license website can tell you how long they have been licensed, who the company owner or qualifier is, if they have worker’s compensation, pending civil actions against them, and other information that can be of interest.

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Ulicensed contractors pose a financial risk, as they may expose you to significant financial harm should an employee become injured while working on your property, should your property get damaged, if their work is incomplete or defective.  Most unlicensed contractors do not have bonding or workers’ compensation insurance. The quality of their work often doesn’t compare to that of a licensed contractor.  While you could take the chance in order to save a few dollars, you might end up paying more in the long run.

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The California Contractor’s Board licenses contractors under 43 different classifications. This covers general contractors to swimming pool contractors, landscapers, painters, electricians, plumbers and many more. It’s easier to decide the right type of contractor if you have carefully planned your project, and clearly defined what exactly you want done.

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General contractors usually oversee or manage projects involving numerous trades, and coordinate the specific licensed subcontractors needed.  Specialty or subcontractors are usually hired to perform a single trade. For example, if you want only roofing, or only plumbing work, you would likely hire a contractor licensed in that particular specialty.

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A general building contractor may also contract for specialty work, but must hold a specialty license for that work or actually have a specialty contractor do the work. There is an exception is if the job requires more than two types of work on a building. Then it is appropriate for a licensed general building contractor to contract for and oversee the entire project. For example, if your kitchen remodeling will involve plumbing, electrical and carpentry work under one contract, you should hire a licensed general contractor.  He may perform all of the work by himself, of with his crew, or he may subcontract portions to contractors with specialty licenses.

View Image Ã¢â‚¬Å“Good work costs much more than poor imitation or factory product†– Charles Greene
CaliforniaRemodelingContractor.com

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  1. bridge_dog | Feb 04, 2008 10:40am | #1

    Speciality contractors are usually considered electrical, pluming and heating. I do know that general contractors are NOT ALLOWED to this kind of work, they have to sub this work out. Even though most of us have done this work before not being licensed in it you can put yourself in a situation of considerable risk. General contractors can do anything else; framing, concrete, roofing in essence general building. I know in Michigan they are a little more clear as to what kind of work you can and can not do. For instance they have what's call a maintenance and alteration license for roofing, one for framing, one for concrete so and so forth. When you get an M&A license you can only perform that task. However if you get a general contractors license or builders license you can perform all these tasks. All you have to do is study and pass the test. To get specialty license like electrical you have have so many hours (not sure how many) experience working under a licensed person and pass the test. Actually in Mi a builder can't even pull an electrical permit. He/she must get a master electrician to do it. In Florida to get a builder license you have to prove work experience to even apply for the test. Kind of like an electrician in Mi.

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