The Contractors State License Board (CSLB) licenses and regulates contractors in 43 classifications that constitute the construction industry. Currently there are approximately 280,000 licensed contractors in the state. The CSLB also registers home improvement salespersons.
The CSLB's functions include licensing, enforcing license law, and educating consumers about dealing with contractors. CSLB staff processes applications for licensure, requests for changes to licenses, and renewals. CSLB also investigates complaints against both licensed and unlicensed contractors, which may result in disciplinary or administrative action, such as citations or the suspension or revocation of licenses. The Board's Statewide Investigative Fraud Team (SWIFT) works to eliminate the underground economy by taking legal action against unlicensed contractors and by conducting undercover stings. Educational activities, including outreach to the media, participation at home and garden shows, a speakers' bureau, and the production of publications, are an ongoing function of the Board.
In California, anyone who contracts to perform work that is valued at $500 or more for materials and labor must hold a current, valid license from the Contractors State License Board in the specialty for which he or she is contracting.
Unlicensed contractors pose a risk to your financial security because they expose you to significant financial harm in the event of injury or property damage. Few unlicensed contractors have bonding or workers' compensation insurance.
If you contract with someone who does not have a license, the Contractors Board may not be able to assist you with a resolution to a complaint, and a remedy against an unlicensed contractor may be available only in civil court. This is one more good reason to work only with licensed contractors! Another consideration is that unlicensed contractors may not have the expertise and qualifications to do the job right the first time. You could end up having to hire a licensed, reputable contractor to correct the work-and paying for the job twice.
Ask to see the contractor's pocket license and some additional form of identification. The name on the pocket license should be the same as the name of the contractor or business name the contractor is working under.
It is illegal for one contractor to use another contractor's license, just as it is illegal for someone to use another person's driver's license.
When you establish that the contractor's or company's name matches what appears on the pocket license issued by the Contractors State License Board, and before you sign anything, check the CSLB Web site 
Selecting a Licensed Contractor
What Kind Do You Need?
There are 43 different types of contractor licenses, including general and specialty contractors. General building contractors usually oversee projects and coordinate the specific subcontractors for a job. Specialty or subcontractors usually are hired to perform a single job. For example, if you want only roofing or plumbing work, you may want to hire a contractor licensed in that particular specialty.
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. 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 the performance of plumbing, electrical and carpentry work under one contract; a licensed general building contractor should be hired. Under those circumstances, a general building contractor may perform all of the work on a building, or have specialty subcontractors do all or part of the scope of work for which the specialists are licensed.
Let The Buyer Beware
Most licensed contractors are competent, honest, hardworking and financially responsible. However, home improvement is a top source of consumer complaints nationwide. Most of the problems CSLB sees could be prevented if homeowners knew their home improvement rights and took responsibility for their project. A responsible and informed consumer can work more effectively with reputable contractors, and can avoid being victimized by unscrupulous or unlicensed operators.
The "buyer beware" principle can help prevent frustration and disappointment when preparing to make a major decision. By carefully considering what you want done to your property, what it will realistically take to do the job, and taking the time to research and check the license of the professional you hire to do the job, you may avoid many of the headaches often associated with remodeling.
Almost everyone knows someone who has a nightmare story to tell about their remodeling job: the length of time it took; the inconvenience of the noise, dust, and absence of such essentials as plumbing, electricity, heat, and air conditioning; lack of privacy during the job; or the cost overruns associated with homeowners who had to live through what they described as "the trauma" of even the smallest remodeling job.
Protect yourself--and your pocketbook--by doing your home improvement homework and planning responsibly for your project.
Three-Day Cancellation Period
The law requires a contractor to give you written notice of your right to cancel a contract within three business days of signing it, provided that it was solicited at someplace other than the contractor's place of business (your home, for instance). Use those three days to review your contract again. If something bothers you, don't be afraid to cancel the contract. If you do cancel, by all means call the contractor; but make sure your cancellation is in writing and mailed before midnight of the third day. Sending the cancellation to the contractor by registered mail will give you a record of its mailing date and of its receipt by the contractor. Thereafter, you can work out the problem with your contractor and sign a new contract, or you can get a different contractor, if you prefer.
If you have any concerns, see an attorney right away. Make sure all the contract terms are in writing and that you understand and agree to everything in the contract.
Home Improvement Bill of Rights
The Contractors State License Board reminds you to exercise your rights and responsibilities when making home improvements. As a California consumer, you have the following rights when working with contractors:
The right to hire only licensed contractors;
The right to make a down payment of no more than 10 percent of the project price or $1,000, whichever is less;
The right to a written contract that is clear and includes a payment schedule and completion date.
You also have the responsibility to properly plan and manage your project.
Before you sign anything, check the CSLB Web site, or call the Contractors State License Board at (800) 321-CSLB, to make sure the contractor is properly licensed in the class for the work to be performed, and the license is in good standing.
For more detail information on what you should know before hiring a contractor, please click the link below from the Contractors State License Board:
http://www.cslb.ca.gov/consumers/beforehiring.asp
To review the list of 43 contractor classifications, please click on the link below:
http://www.cslb.ca.gov/licensing/classifications.asp
Hiring State-Licensed Individuals or Businesses
Many occupations and businesses must be licensed by the State of California before they offer services to the public. State licensing helps to protect the public from inadequately trained individuals or businesses. The agency that issues a license can also revoke the license if the individual or business violates state laws, rules, or regulations.
The Complaint Referral Table in this Guide lists many occupations and businesses that require a license from the state. To determine if the business or individual you want to hire must have a license, look up the individual's business or occupation in the chart. The chart will list the page that contains information on the appropriate licensing agency.
It's always a good idea to check the license status and disciplinary history of any business or individual you intend to hire to perform services. Beginning this year, the Department of Consumer Affairs, California Trade and Commerce Agency, and the Employment Development Department will co-sponsor the annual publication of the California License Handbook, which lists requirements for those California businesses, professions, and vocations that are under state regulation. Copies of the handbook are available for $15 plus tax and shipping. (Sales tax is 7.75% for Sacramento County residents; 7.25% for residents of other counties. Shipping is $4.95 [1-9 copies] and $7.95 [10-20 copies].) Make checks out to Employment Development Department and mail to EDD, ATTN: Publication Orders, 7000 Franklin Blvd., Building 1100, Sacramento, CA 95823.
For more information, please click on the link below to enter the California Department of Consumer Affairs:
http://www.cslb.ca.gov/services/guides.asp - GHIRE
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