How to use a Contractors License Number

Choose a contractor using a contractors’ license number

Contractors do advertise and you commonly see their advertisement in an ad in the phone book or newspaper, the company’s name on the side of a truck, or on a flyer that suddenly shows up at your front door. Advertisements must bear the contractors license number. Having the number with you, check the license status online and call (800) 321-CSLB (2752) to confirm the status of the license number.

Let us bear in mind that most licensed contractors are honest, hardworking, competent and financially responsible. However, most of the problems in construction projects can be prevented if homeowners and landlords have knowledge of their home improvement rights and are willing to take responsibility over their project. A well informed and responsible homeowner and landlord can get along well with good contractors.

1. Shop around before hiring a contractor

When you have a project at hand and need a contractor, acquire at least three written bids on your project. For your benefit, provide your contractors with identical plans, specifications, and scope of work. An apple to apple comparison is easier to identify differences. Automatically accepting the lowest bid submitted could be a blunder on the homeowner’s part. Be vigilant on any low bids submitted. Lower bids could mean several reasons. It can indicate that the contractor has made a mistake or has not including all the specified work as you have required. This mistake can lead to disputes in the future. An abnormally low bid may also mean the contractor has plans of cutting corners to do substandard work to make a profit. Be cautious about this.

While bidding is in progress, always ask the pocket license with a picture ID of every contractor that comes to your house to submit a bid. Verify if the person you are dealing with is the person on the license.

At often times, contractors also rely on salespersons. CSLB also certifies these persons as home improvement salesperson. Check their registration cards together with their ID picture and make sure you are talking to certified people.

It is a requirement by law that all contractors include their contractor license number on business cards aside from all bids and contracts submitted. But looking at a license number does not mean it is a valid license. You have to check the license status. An unlicensed operator can give you a low bid but the risks of possible financial and legal consequences may outweigh any benefits you may derive from a lower bid.

2. Solicit some personal recommendations from people you know

Your friends and family may have similar projects completed recently. Having satisfied results, chances are you will have them too. You ask around from local customers within your vicinity, some material suppliers, even licensed subcontractors and reputable financial institutions to check on a contractor if he is financially responsible. Still unsure, you can also check the contractor with your local building department, consumer protection agency, trade association or union, Better Business Bureau and the consumer fraud unit.

3. Check and verify the contractor’s telephone number business location

Prefer a contractor who has a current telephone number and business address. Contractors who operate a business on the back of his track are difficult to find if a back job needs to fix. In looking up for the license status, you can retrieve the business address and telephone number of your contractor in the address of records.

4. Verify the contractor’s workers’ compensation and commercial general liability insurance coverage

You can ask to see a copy of the Certificate of Insurance, or merely ask for the name of the contractor’s insurance carrier and agency to call, verify and confirm that the contractor is still covered by that insurance sufficiently.

California laws require contractors to carry worker’s compensation insurance in case he/she have employees. If his worker is injured working on your property, and without this insurance, you can be financially liable to pay for the injuries and rehabilitation of the worker.

A homeowner’s insurance may or may not cover these costs. Check with your insurance carrier to make sure the workers’ compensation insurance coverage being provided by the contractor is sufficient enough. You can get more information from the California Department of Insurance and learn more about coverage.

A licensed contractor always provides the information on both types of insurances in the written contract. However, a contractor should carry the general liability insurance together with his contractors license number and without it he/she should specify how damage or losses will be.