Before You Hire A Contractor

It is unfortunate that many consumers spend more time selecting a vehicle than choosing a contractor and learning about the process of selecting a reputable contracting company. Most issues arise because consumers are unaware of what their specific obligations are.

One of the biggest mistakes many homeowners make is that they feel that they could save money by hiring each of the subcontractors individually instead of hiring a general contractor to oversee the entire job. Unfortunately, most are not aware that by doing this, they become the general contractor.

This type of project is classified as an “owner/builder” project and it is then the homeowner’s obligation to include state and federal taxes, workers’ compensation, building permits and other legal liabilities. If something is to go wrong, such as a worker gets injured or if your contractor damages your property and doesn’t carry general liability insurance, you or your insurance policy could end up paying for damages, injuries and rehabilitation.

The three key areas to check out before hiring a contractor are:

• Make sure they are licensed
• They carry relevant Worker’s Comp insurance
• They have sufficient general liability insurance

In California, before hiring a contractor you can check their license status, bonding and worker’s comp information by entering their license number on the California State License Board website at https://www2.cslb.ca.gov/OnlineServices/CheckLicense/LicenseRequest.asp