Did you hire a licensed contractor to do work on your home and think there might be a problem with the job? Or are you a contractor who would like to give your customer the extra peace of mind that the job meets workmanship standards? Then you might want to check out the Registrar of Contractors’ (ROC) Building Confidence Program!  The Building Confidence Program, launched on July 7, 2003, provides an avenue for resolving questions early on that homeowners or contractors may have about residential construction workmanship. As part of this process, the ROC always encourages homeowners to first contact their contractor to resolve questions or potential problems.

However, if discussions between the homeowner and contractor are not successful, a Building Confidence visit can be requested.  Homeowners or contractors may request a visit and an ROC inspector will meet with the homeowner to discuss his or her questions. The inspector will review the issues of concern, provided the work was completed within the past two years. During the visit, the homeowner will be advised whether the item(s) meet workmanship standards. Then, the inspector will give a completed copy of the results to the homeowner and mail a second copy to the licensed contractor.  After the Building Confidence visit, resolution of any workmanship issues rests with the homeowner and the contractor unless a formal complaint is filed with the Registrar of Contractors. A Building Confidence visit can be requested at any statewide ROC office. For questions about the program, contact us at 602-542-1525 or outside Maricopa County at 1-877-MY AZROC (1-877-692-9762).

Office of Administrative Hearings: The Office of Administrative Hearings (OAH), a separate state agency, will conduct your hearing. An administrative law judge who is not affiliated with the ROC will render a decision on the matter and will forward that decision to the Registrar’s Office. Upon review, the Registrar may accept, modify, or reject the determination. On average it takes 240-300 days to complete the entire administrative complaint process. During this process it is important that you respond to all communications from the Registrar’s Office in a timely manner. Failure to do so may cause your case to be closed. Eligible residential homeowners seeking restitution may apply to the Residential Contractors’ Recovery Fund after the complaint process is over and only if the contractor’s license has been suspended or revoked as a result of their complaint.

A proven violation of the Law may result in the suspension or revocation of the contractor’s license, as well as possible civil penalties. In addition, the contractor may be ordered to make repairs or replace defective construction work as a way to avoid suspension or revocation.

Completing Handyman Transaction and the Project — Inspect the completed project. Make sure that you are satisfied and that the terms negotiated in the contract have been met. Verify that any and all liens have been released Request a formal account statement from the contractor that reflects services rendered, invoice numbers and payments made. Ensure that the account statement reflects the balance of the account as “paid in full.”

How are my Handyman Contractor Complaints handled? Each fully completed, signed and submitted complaint is reviewed to determine if it falls within the Registrar of Contractors’ jurisdiction. If it does, we will notify you of what action may be taken and, if necessary, schedule an inspection of the related project. This inspection usually takes place within two to four weeks of receipt of your complaint, depending upon our current workload. A copy of your complaint and notice of your scheduled job site inspection will be sent to the contractor with an admonition to resolve the complaint without further involvement of the Registrar.

If, after this notification to the contractor, the problem is not resolved, our construction inspector will proceed with the inspection. To determine if there are violations of the law, the construction inspector will speak to you and the contractor. The inspector will also inspect any work complained of and review documents relating to your project. The inspector will determine what action, if any, needs to be taken by the contractor and advise the parties of his findings. If he concludes that the contractor needs to perform corrective work, he will issue a Corrective Work Order. If the contractor properly performs the corrective work required, the case will be closed. If you are not satisfied with the corrective work the contractor has performed or if the contractor believes correction is not necessary, either party may request that a formal citation be issued and that the matter proceed to an administrative hearing. At the hearing, both parties may, but are not required to be represented by an attorney. However, the rules of evidence and courtroom procedures do apply so having an attorney may be in your best interest.

Things to do when monitoring a handyman project: Monitor the job in progress. Keep all paperwork related to your job. All addendum’s, change orders and credits should be in writing with a date and signature of both parties. (Think of these as mini contracts). Keep a copy of the front side of personal or cashier’s checks issued as payment. Have the bank return a front and back copy of each canceled check issued as payment. Keep copies of bank statements that reflect when checks issued as payments clear your account. Keep copies of all credit card statements that reflect purchases for the project or payments made to a contractor. Obtain properly executed and authorized bank records (outgoing electronic wire transfer document) to document draws made to a contractor by

Should I Pay A Contractor Cash? Don’t make a large down payment and never pay with cash. Never pay a contractor’s employees directly with the employee’s name on the check. Make checks payable to the licensed contractor’s company name only. Make payments based on the pre-negotiated schedule. Request the appropriate lien waiver/ release in exchange for each payment made. Don’t make the final payment until the job is complete (exception – pool contracts). Keep detailed records of all payments made throughout the project.

Items to Look for in a Handyman Contract You Sign — Contractor information: Company name, address, telephone number and license number. Homeowner information: Name(s), address and the job site address. Date the parties entered into the contract and estimated date of completion. The agreed upon payment schedule. The cost of the project: The subtotal amounts for each trade and a grand total of the contract price listed. Drawings and plans (if any) approved and signed by all parties. Make sure you read and understand the contract before you sign. Check the contractor’s license status on the day you sign the contract, even if you did so earlier. License status can change overnight.

Write a detailed plan for your project. Use yellow pages, the Internet, friend recommendations, local publications, newspapers or trade magazines to find your bidders. Keep a detailed list of all contractors you have contacted while trying to obtain a bid. Get 2-3 detailed estimates with a description of the exact work to be performed, material and equipment to be provided. Make sure bids are dated and the correct contractor’s company name and license number are listed. Verify the contractor’s license status with the ROC or visit the ROC website at www.azroc.gov. While not required by statute, it is a good idea to make sure the contractor is insured and can provide proof of insurance. Check at least 3 references of recently completed projects. Require a written contract. Make sure you read and understand the contract before you sign. See ARS 32-1158B. Check the contractor’s license status on the day you sign the contract, even if you did so earlier. License status can change overnight.

When you hire a prime contractor to do construction on your home, he or she typically hires laborers and subcontractors to do some of the work, and purchases materials for the job from materials suppliers. No one would dispute that a homeowner should pay for goods or services provided to improve their home. If the contractor – or the subcontractors, workers or suppliers – who provide goods or services to improve your property aren’t paid, they can file what is called a mechanic’s lien on your home.

What is a Mechanic’s Lien?

A mechanic’s lien is a “hold” against your property that, if unpaid, allows a foreclosure action, forcing the sale of your home. It is recorded with the County Recorder’s office by the unpaid contractor, subcontractor or supplier. It means that any of these unpaid entities can claim a lien against the property until they are paid.

The prime contractor has a direct contractual agreement with the homeowner. If the contractor isn’t paid, he can sue on the contract and record a mechanic’s lien. But subcontractors, workers and suppliers don’t have a contract with the homeowner. A problem occurs when the homeowner pays the prime contractor for all or some of the work, but the prime contractor fails to pay the laborers, subcontractors and materials suppliers that were hired to do portions of the job. If they are not paid, often their only recourse is to file a mechanic’s lien on the home.

What happens when a lien is filed against your property?

A lien can result in a range of problems:

• Foreclosure, if the homeowner doesn’t pay off the lien or cannot afford to do so;
• Double payment for the same job – if the homeowner pays the prime contractor – and then has to pay the sub or supplier who wasn’t paid by the prime;
• A cloud on the title of the property, which can affect the homeowner’s ability to borrow against, refinance, or sell the property.

How can you protect yourself?

You can protect yourself from unwarranted liens by carefully selecting your contractor and responsibly managing your construction project.

Investigate your prime contractor before you sign a contract and do the following:

• Hire only licensed contractors and check the contractor’s license status on CSLB’s website at www.cslb.ca.gov;
• Make sure your contractor hires only licensed subcontractors, and check their licenses, too;
• Check with your local courthouse to see if the prime contractor has a history of litigation;
• Get a list of all subcontractors, laborers, and materials suppliers to be used by your prime contractor;
• Check with suppliers and workers about the payment history of the prime contractor;

Get a written contract and make sure it includes the following:

• A schedule that demonstrates when specific construction activities will start and end, (such as the framing, sheetrock work, or painting) and the projected payments tied to the contract price of these activities;
• Identification of subcontractors who will be performing these construction activities;
• Identification of suppliers who are providing materials necessary for these activities;

The Preliminary 20-Day Notice

If you receive a Preliminary 20-Day Notice, don’t panic. The preliminary notice isn’t a lien; it is a notice that a subcontractor or supplier has provided or will be providing goods and services to improve your property and could file a lien claim if they are not paid.

Don’t expect a 20-Day Notice from a prime contractor, however – since they have a direct contract with you, they aren’t required to send a 20-Day Notice.

These notices allow you to track who has a potential claim against your property. Subcontractors and suppliers must provide you with this notice in order to maintain their right to file a lien. If they don’t provide you with the notice, they lose the right to file a lien.

Watch the timing, however. A subcontractor or supplier can give you the Preliminary Notice before delivering supplies or starting work and up to 20 days after delivering supplies or starting work.

Preventing liens

Before you pay your prime contractor, deal with the possibility of a lien. The first step is to keep track of Preliminary 20-Day Notices and make sure you are aware of who can file a lien against you.

There are a few specific methods you can use to make sure potential lien claimants have been paid:

JOINT CHECKS

Joint checks are the simplest method of lien prevention. When the contractor presents a bill for materials or labor, compare it to the schedule of payments in your contract and the Preliminary 20-Day Notices you’ve received. Make sure that work was provided as described and then make out the check to both the contractor and the supplier, or the contractor and the subcontractor. Both parties will have to endorse the check, which will ensure that the subcontractors and suppliers get paid.

LIEN RELEASES

The release system is designed to allow property owners to track when potential lien claimants have been paid.

Here’s how the lien release system works:

• Before you make a payment, you should first get a signed conditional release from the possible lien claimants.
• You or your contractor can download a copy of this release from CSLB’s website at www.cslb.ca.gov. The prime contractor is required to get this release for you from the potential lien claimants, if you ask for it.
• After you receive the conditional releases, make the appropriate payment for the work that was done.
• After you pay, the contractor should get you an unconditional release signed by each of the claimants paid for the portion of the work being released. Make sure that the actual claimant signs the unconditional release.
• By law, you may withhold the next payment until you get the unconditional releases for the previous payment.

NOTICE OF COMPLETION

You can reduce the amount of time a contractor, subcontractor or supplier has to record a claim by filing a Notice of Completion with the County Recorder’s office after work is completed.

This notice reduces the amount of time a contractor has to record a mechanic’s lien from 90 to 60 days, and reduces the time a subcontractor or materials supplier has to record a mechanic’s lien from 90 days to 30 days.

There is a lien on your property – now what?

There are a number of reasons a lien might be invalid; for example, the work was not completed or the supplies were not incorporated into the structure. If a lien is placed on your home, you may want to consult an attorney for help in releasing the lien or identifying these issues.

Many lien claims are invalid because the contractor, subcontractor or materials supplier has failed to meet the required time lines for filing the claim. Review the Lien Requirements Checklist in this brochure, to determine if the claimant followed the required time lines.

Lien Requirements Checklist

Check to see if the Preliminary 20-Day Notice was given to you within the strict time frames.
A subcontractor or materials supplier has until 20 days after beginning work or delivering materials to serve you a Preliminary 20-Day Lien Notice. If the notice is late, the claimant loses lien rights for work done or materials delivered more than 20 days before the notice. Laborers don’t need to give you the 20-Day Notice.

Check to see if the potential lien claimant filed the mechanic’s lien within the legal time frame.
The potential lien claimant must record the mechanic’s lien within 90 days of:

• Completion of work
• When owner began using the improvement, or
• When owner accepted the improvement

If the potential lien claimant fails to record the mechanic’s lien within the appropriate time frame, the lien isn’t valid. Once a mechanic’s lien is recorded, it attaches to your title and must be removed.

As previously mentioned, if you recorded a Notice of Completion, a prime contractor has 60 days to record a lien while a subcontractor or materials supplier has 30 days to record a lien.

Check with the Superior Court to see if the subcontractor or materials supplier filed a timely Lien Foreclosure Action.
A Lien Foreclosure Action is a lawsuit to foreclose the mechanic’s lien. The lien claimant must file a Lien Foreclosure Action within 90 days of the date that he or she recorded the mechanic’s lien. Often a lien claimant with a valid claim will fail to follow through, making the lien invalid.

If the contractor, subcontractor or materials supplier fails to follow any of these strict time frames, you can petition the Superior Court to remove the lien.

Be aware that, although anyone can record a mechanic’s lien, unlicensed contractors cannot foreclose on a mechanic’s lien if the work is valued at more than $500.

Why should you remove an invalid lien?

Even when a contractor, subcontractor or materials supplier doesn’t act to foreclose on your property, the lien stays on the county records as a “cloud” on your property title until you take action to remove it. An invalid lien can make it difficult or impossible to refinance or sell your home.

Steps to remove an invalid lien

Follow the steps below to begin the process of removing an invalid lien:

• Send the lien claimant a written request by certified mail. Keep a copy of your letter and the certification as proof of your request. Include:
  • Deviations you’ve identified from the Lien Requirements Checklist.
  • A request for the claimant to remove the lien. Remind the claimant that, if the lien isn’t removed and you have to get an attorney to remove it, the court can award you attorney fees of up to $2,000.
• Keep your documentation. You may need to demonstrate to a court that “the lien claimant is unable or unwilling to execute a release of the lien or cannot, with reasonable diligence, be found.” (Civil Code Section 3154)
• Send the request to the claimant’s last known address. Do your homework to verify that you have the correct last known address.

Sometimes, sending the letter is enough to persuade the lien claimant to release the lien.

Petition to release the property from the lien

If the lien claimant doesn’t remove the invalid lien, and the time has expired to record the mechanic’s lien and take action to foreclose, you may petition the court for a decree to release the property from the lien. This is a complicated process that may require the services of an attorney. Refer to Section 3154 of the Civil Code for more information.

Civil Code Section 3154 (f) provides that if you use an attorney and you prevail, you are entitled to attorneys’ fees up to $2,000.

Minimize your risks and take steps to protect your home

The mechanic’s lien law is complicated and confusing, and there are real risks involved for homeowners. Don’t risk foreclosure, a cloud on your title, or having to pay twice for the same job. You can take steps to avoid these problems by preparing for the possibility of a lien and employing the safeguards in this brochure to protect your home and your financial stability.

Check Out The Handyman Contract Before Signing It: Did you read and do you understand your contract? Does the 3-day right to cancel a contract apply to you? Does the contract tell you when work will start and end? Does the contract include a detailed description of the work to be done, the material to be used, and equipment to be installed? This description should include a plan and scale drawing showing the shape, size, dimensions and specifications. It should include brand names, model numbers, quantities and colors. Specific descriptions now will prevent disputes later. Are you required to pay a down payment? If you are, the down payment should never be more than 10% of the contract price or $1,000, whichever is less. Is there a schedule of payments? If there is, you should pay only as work is completed and not before.

Did your contractor give you a “Notice to Owner,” a warning notice describing liens and ways to prevent them? Even if you pay your contractor, a lien can be placed on your home by unpaid laborers, subcontractors, or material suppliers. A lien can result in you paying twice or, in some cases, losing your home in a foreclosure. Check the “Notice to Owner” for ways to protect yourself. Did you know changes or additions to your contract must all be in writing? Putting changes in writing reduces the possibility of a later dispute.

Terms of Agreement, A Consumer Guide to Home Improvement Contracts:  A contract is a legal agreement between two or more people. A written agreement is one of the most important communication tools for both the contractor and consumer. It insures there are no misunderstandings about what a job will include. A thorough contract tells how the work will be done, when it will be done, what materials will be used and how much it will cost.

In California, there must be a written contract for all home improvement projects over $500. By law, that contract must include specific information about your rights and responsibilities. This Contractors State License Board (CSLB) brochure outlines the information for you.

A home improvement contract and any changes made to that contract must be in writing, be legible, be easy to understand, and inform the consumer of their rights to cancel or rescind the contract. If you are promised something orally make sure that it is included in writing.

Disagreements over home improvement projects can cost time and money. Besides producing bad feelings, they can also lead to lawsuits or other legal action. A well-written contract prevents that.

Anatomy of a Contract

A contract should contain everything agreed upon by the consumer and contractor. It should detail the work, price, when payments are made, who gets the necessary permits, and when the job will be finished. It should also identify the contractor, give their address and contractor license number.

A good contract also has warnings and notices about the right to cancel, mechanic’s liens, and permissible delays.

Don’t sign anything until you understand the contract and agree to the terms.

Description of Work to be Done

(The Sign of a Well-Built Contract)

The best way to avoid disputes over what is or isn’t expected from a home improvement job is to write out the details in a contract.

The contract should be as specific as possible regarding all materials to be used, such as the quality, quantity, weight, color, size, or brand name as it may apply.

For example, the contract should say “install oak kitchen cabinets, manufactured by Company XYZ, model 01381A, as per the plan,” not just “install kitchen cabinets.”

Swimming pool contracts must include a plan and scale drawing showing the shape, size dimensions, and construction and equipment specifications.

Make sure the contract includes everything that is agreed to, up to and including complete cleanup and removal of debris and materials, and special requests like saving lumber for firewood or saving certain materials or appliances.

Complaints and Warranties

Be sure to get any warranty offered by the contractor for labor and materials in writing. It should specify which parts of the work are covered and the duration of the warranty. You should also request any written warranties offered by the manufacturers of materials or appliances installed by the contractor.

Consumers generally have 4 years to file a complaint about a faulty project with the CSLB. That deadline can be extended if there are additional warranties written into the contract.

Money – The Bottom Line

Price – All contracts must include the price that was agreed upon for the work. Any job $500 or more needs a written home improvement contract. And by law, the job must be completed for the agreed upon contract price.

If the contract price needs to be changed, it MUST be done with a written “Change Order”, which then becomes a part of the contract.

Down Payment – If the contract calls for a down payment before work starts, the down payment can not be more than one thousand dollars ($1,000) or 10 percent of the contract price, whichever is less, for a home improvement job or swimming pool, excluding finance charges. There are no exceptions for special order materials.

Schedule of Payments – A home improvement contract must include the payment schedule. It should show the amount of each payment and explain what work, materials or services are to be performed for that particular payment.

Payments to the contractor cannot exceed the value of the work performed.

Swimming Pools – With swimming pool contracts, the final payment may be made at the completion of the final plastering phase of construction (Provided that any installation of equipment, decking, or fencing required by the contract is also completed). To learn more about hiring and dealing with swimming pool contractors, see the CLSB’s free publication, Before You Dive Into Swimming Pool Construction.

Finance Charges – Must be laid out separately from the contract amount.

Sales Commission – If the contract provides for a payment of a salesperson’s commission out of the contract price, that payment shall be made on a pro rata basis in proportion to the schedule of payments made to the contractor.

Salespersons – A salesperson cannot legally sign a home improvement contract for the contractor unless they are registered with the CSLB.

Mechanics Liens

Consumers are required to receive a “Notice to Owner” warning about property liens. Anyone who helps improve property, but who is not paid, may place what is called a mechanics’ lien on the property. A mechanics’ lien is a claim made against the property and recorded with the county.

Even if the contractor is paid in full, unpaid subcontractors, suppliers, and laborers involved in the project may record a mechanics’ lien and sue the property owner in court to foreclose the lien. A property owner could be forced to pay twice or have the court sell their home to pay the lien. Liens can also affect a consumer’s personal credit along with the ability to borrow and refinance.

Consumers can protect themselves from liens by getting a list from the contractor of all the subcontractors and material suppliers who will work on the project along with the dates when they will start. After 20 days it is possible to get suppliers and subcontractors to sign lien releases when their portion of the work is completed.

Another option for consumers is to pay with a joint check. Write a joint check payable to both the contractor and the subcontractor or material supplier.

For other ways to prevent liens, get the free CSLB Publication, A Homeowners Guide To Preventing Mechanics Liens.

Canceling

The Three-Day Right to Cancel – The Home Solicitation Sales Act requires a seller of home goods or services to give the buyer three days to think about whether or not to buy the offered goods or services.

To cancel, the buyer need only give the contractor written notice of his or her intent not to be bound by the contract — there is no penalty or obligation on the part of the buyer. Under the law when the contract is canceled the seller can be required to return the entire contract amount and, if a service has been provided, to return the consumer’s property to the way it was before the contract, and return any materials to the contractor that were applied to the project.

The purpose of the three-day right to cancel is to protect consumers from the pressure they often feel from door-to-door solicitors.

Unless the contract is negotiated at the contractor’s place of business, the buyer qualifies for the 3-day right to cancel.

The Exception

Service and Repair Contracts
One major exception to the “three-day right to cancel” is a ‘Service and Repair’ contract that covers emergency repairs or services that are requested by the consumer on short notice.  The right to a three-day notice is automatically canceled the moment the contract is signed and the contractor begins working on a service and repair contract.

A Consumer Guide to Filing Construction Complaints: It is illegal for an unlicensed person to perform contracting work on any project for which the combined total cost for labor and materials is $500 or more. CSLB works to curtail underground economy contracting activities and reduce unlicensed activity through stings, sweeps, and other enforcement actions.

For a complaint involving an unlicensed contractor, CSLB may issue a warning letter, a citation, or refer the complaint to the local district attorney for review and possible prosecution. CSLB has limited jurisdiction over unlicensed operators and cannot require an unlicensed person to make repairs to your project or pay restitution.

California Complaint Jurisdiction

Complaints within CSLB’s jurisdiction involve alleged violations of California Contractors License Law. CSLB has jurisdiction over licensed and unlicensed contractors for up to four years from the date of an illegal act.

The term “contractor” includes individuals or firms that offer services to improve real property, including, but not limited to, home building, remodeling, room additions, swimming pools, painting, roofing, landscaping, plumbing, electrical, heating and air conditioning, and installation and repair of mobile homes.

CSLB’s complaint investigation procedures are designed to protect the public in matters pertaining to construction and to assist in the resolution of construction-related complaints.

CSLB’s intent is to achieve timely and efficient complaint resolution through early intervention and mediation.

CSLB may provide help to consumers through mediation, arbitration, referral to other agencies, or providing information on other avenues for individual redress. These may include referring consumers to small claims court or referring consumers with private arbitration clauses in their contracts to the applicable arbitration process. Where appropriate, CSLB will take legal action against a contractor for violations of California Business and Professions Code.

How Complaints are Handled

Complaints involving a threat to public health and safety, and cases where consumers have suffered a significant financial injury, are given the highest priority.

CSLB also prioritizes complaints based on:

• The order of receipt;
• The nature and seriousness of the allegations; and
• Available CSLB resources, including budget and staffing

Every written complaint is reviewed to determine if it falls within CSLB’s jurisdiction. CSLB’s intake and mediation representatives will send you a written confirmation that your complaint has been received. A notice is also sent to the contractor to encourage resolution of the complaint without further intervention by CSLB.

MEDIATION
If the complaint is not resolved at this point, CSLB may ask you to provide additional information and/or documentation. You may also be contacted by a CSLB Consumer Services Representative (CSR). If mediation is appropriate, the CSR will contact you and the contractor and attempt to mediate the dispute.

If mediation is unsuccessful, the CSR may refer the complaint to the appropriate settlement option. These options could include referral to a CSLB arbitration program, assignment to an Enforcement Representative (ER) for investigation, or referral to alternative civil or dispute resolution methods. CSLB will determine the appropriate option, based on the facts of the case.

INVESTIGATION
If the CSR determines that the complaint requires further investigation, it will be assigned to an ER. The ER’s investigation will determine if there is clear and convincing evidence to support a violation of Contractors License Law. The investigation may include interviews with you, the contractor, other parties to the contract, and any other parties who can furnish relevant information.

DISCIPLINARY ACTION
Violations of the law by a licensed contractor may result in a citation or charges against the contractor that could lead to suspension or revocation of the contractor’s license. Citations may contain civil penalties of up to $5,000 and/or orders of correction requiring the contractor to make repairs to your project or pay you to hire others to do so. (If a disciplinary action is undertaken, the state Attorney General represents the CSLB to prosecute the case. The Attorney General is not counsel for the complainant, but counsel for the CSLB.)

SMALL CLAIMS COURT
Investigation by CSLB does not guarantee restitution to complainants. If your primary interest is to gain restitution, you should pursue the matter in small claims court or consult with an attorney. If you are considering legal action to recover damages of $7,500 or less, CSLB can provide you with information about filing a small claims court action. You can also consult the small claims court directly for information and assistance. Additional “self-help” information can be found online at www.courtinfo.ca.gov. If your damages are more than $7,500, you should consult with an attorney.

If you prevail in a civil or arbitration case against a licensed contractor, send CSLB documentation of the disposition. CSLB will notify the contractor that the license will be suspended if the judgment or award is not satisfied.

How to File a Complaint

You may file a complaint by mail or online.

• If you choose to file the complaint by mail, either download a copy from the CSLB Web site or call, 800.321.CSLB (2752).
• If you choose to file the complaint online, simply fill in the CSLB Web site form and submit the information.

Regardless of whether you submit your complaint by mail or electronically, you will need to submit copies of all relevant documentation to the CSLB. For example, send copies of all contracts (all pages, front and back), change orders, cancelled checks (front and back), and any other pertinent information, and mail them to the appropriate office detailed below.

Failure to enclose all documentation could result in a delay in the review and processing of your complaint. CSLB cannot process incomplete or unsigned complaint forms; incomplete forms will be returned.

For complaints on work performed in Imperial, Los Angeles, Orange, Riverside, San Bernardino, and San Diego counties, mail forms to:

Norwalk Intake & Mediation Center
12501 East Imperial Highway, Suite 620
Norwalk, CA 90650

For complaints on work performed in any California county not mentioned above, mail forms to:

Sacramento Intake & Mediation Center
P.O. Box 269116
Sacramento, CA 95826-9116

CSLB Arbitration Programs

CSLB administers two arbitration programs: a mandatory program for disputes involving alleged damages of $12,500 or less, and a voluntary program for disputes involving allegations of damage between $12,500 and $50,000.

Complaints must meet stringent criteria to qualify for referral to a CSLB arbitration program. CSLB staff will determine whether the dispute meets these criteria.

For more information on these programs, review CSLB’s Mandatory Arbitration Program or Voluntary Arbitration Program guides. Both are available on the CSLB Web site at www.cslb.ca.gov, or by calling 800.321.CSLB (2752).

Information Disclosure

Upon request, CSLB provides information about the status of a licensed contractor’s license and bond, as well as pending and prior legal actions.

If you want basic information about the status of a contractor’s license or complaint disclosure, consult the CSLB Web site at www.cslb.ca.gov, or call the CSLB’s automated phone response system at 1-800-321-CSLB (2752).

If you would like information about pending or prior legal actions against a contractor, visit the CSLB Web site at www.cslb.ca.gov and click on “Check a Licensed Contractor” or call the legal action disclosure unit at the appropriate CSLB office listed below:

Northern California 916.255.4041

Southern California 562.345.7656

What You Should Know Before You Hire a Contractor

• Read What You Should Know Before You Hire a Contractor, available online at www.cslb.ca.gov or at (800) 321-CSLB.
• Take your time before you make a decision about hiring a contractor.
• Get at least three bids and check references.
• Hire only licensed contractors. Anyone performing home improvement work valued at $500 or more must be licensed by the Contractors State License Board.
• Get the contractor’s license number and verify it online at www.cslb.ca.gov or at (800) 321-CSLB.

What You Should Know About the Contract

• Get your contract in writing and don’t sign anything until you understand the terms.
• Ask a friend or relative to review the contract before you sign it.
• Include in your contract: a specific description of work to be done, materials to be used, total cost of the project, and start and completion dates.

What You Should Know About Unscrupulous Contractor Scams . . .

Door-to-Door Solicitations

A solicitor offers to do roofing, painting or paving work at a reduced price. Once payment is made, little or no work is done and the project is abandoned.

High Pressure Sales

An unscrupulous contractor pushes for an immediate decision about work, which makes it impossible for the homeowner to get competitive bids, check licenses or review references.

Scare Tactics

A deceitful contractor offers to perform a free inspection, then claims that faulty wiring, bad plumbing, or a leaky roof put the homeowner in peril. The alarmed homeowner agrees to unnecessary and over-priced work.

Demand for Cash

A contractor demands cash payments, sometimes going so far as to drive the victim to the bank to withdraw funds. With money in hand, the unscrupulous operator takes the money and runs.

Illegally Large Down Payments

A dishonest contractor takes more for a down payment than is allowed by law, claiming to need instant cash for supplies and to pay workers. By law, a down payment cannot exceed 10 percent of the project price or $1,000, whichever is less.

Verbal Agreements

A contractor states that a written contract is unnecessary—promising to deliver on the verbal agreement. The shady operator takes advantage of the situation to perform shoddy work—or none at all.

What You Should Know About Payments

• Don’t pay cash.
• Include a payment schedule in your written contract.
• Don’t pay more than 10 percent of the job or $1,000, whichever is less, as a down payment.
• Don’t let payments get ahead of the work.

What You Should Know About the Contractors State License Board

• The CSLB provides information about a contractor’s license, bond and workers’ compensation insurance status, as well as pending and prior legal actions.
• Free consumer publications and complaint forms are available from the CSLB.
• Go to CSLB’s Web site at www.cslb.ca.gov, call (800) 321-CSLB, or write to CSLB, P.O. Box 26000, Sacramento, CA 95826 for information.

You can do more to protect yourself before hiring a contractor than the Contractors State License Board can do to help after you’ve been harmed.

Before you sign a contract;

Get free information from the Contractors State License Board at www.cslb.ca.gov.

Voluntary Arbitration Program Guide:    Many disputes between consumers and contractors can be resolved efficiently and satisfactorily through arbitration. Arbitration is usually defined as an informal process in which two or more persons agree to let an impartial third person or panel make a final decision in a dispute between them. Because of the many advantages arbitration can offer, the Contractors State License Board (CSLB) offers arbitration for the resolution of disputes that meet certain criteria. The CSLB will pay for the hearing, the arbitrator, and the services of one board-appointed expert witness per complaint. Only contractors with good records qualify for participation in arbitration. Complaints involving deceptive or fraudulent practices will continue to be investigated by the CSLB.

Criteria

For a case to qualify for voluntary arbitration under Business and Professions Code Section 7085 when all of the following apply:

1. The dispute must involve present or future damages greater than $12,500 and less than $50,000;
2. The contractor must possess a license that was in good standing at the time of the alleged violation;
3. The contractor must not have a record of prior violations;
4. The contractor must not currently have a disciplinary action pending against him or her; and
5. The parties must not have previously agreed to private arbitration of the dispute, either in their contract or otherwise.

Depending on the type of defect, the complaint must be filed within either four or ten years after the alleged wrongful act or omission causing the dispute occurred, or within the duration of any written warranty for which breach is alleged. The four-year time period applies to disputes involving patent defects and the ten-year time period applies to disputes involving latent structural defects (Business and Professions Code Section 7091).

Mandatory And Binding Arbitration

“Voluntary” and “binding” are key terms to understand before entering into arbitration. Participation in this program is voluntary for both parties; if either party chooses not to participate, the dispute in question will not be arbitrated but will instead be investigated by the Contractors State License Board.

If both parties agree to arbitration, however, they will be agreeing to binding arbitration. In other words, both the consumer and contractor must comply with the decision of the arbitrator. In binding arbitration, parties who refuse to comply may be taken to court and have a judgment entered against them. In addition, licensed contractors who fail to comply with an award that is issued against them may have their licenses suspended or revoked.

This brochure provides the information necessary to understand the CSLB Arbitration Program for the resolution of complaints in which the damages are between $12,500 and $50,000.

The CSLB Arbitration Program

An arbitration forum has been selected to arbitrate construction disputes for the CSLB. The arbitration forums have expert arbitrators throughout California who have been trained to resolve consumer/contractor disputes. All have undergone intensive training to ensure that both parties receive a fair hearing. The arbitration forum will contact you after the CSLB asks that your dispute be scheduled for a hearing.

How To Obtain Arbitration Services

Parties to a construction contract should consider arbitration when communications have broken down, the consumer has filed a complaint with the CSLB, and the board has determined that the dispute could be effectively handled through arbitration.

Once both parties agree to arbitration, and a representative of the board determines that a complaint qualifies for arbitration, the representative will send a Submission to Voluntary Arbitration form to the consumer and the contractor. The respective parties will fill in their names, addresses, and outline the claims and relief they are seeking.

The CSLB will send copies of the signed submission forms to the other party so that both of them will know exactly what issues are in dispute and what remedies are being sought. In most cases, a party will not be permitted to add to the issues in dispute or to increase the amount of damages sought after the submission form is sent to the opposing party.

Both parties can then prepare their cases for presentation at the arbitration hearing. A copy of the signed submission to arbitration forms will also be sent to the arbitration forum selected to handle the case.

Scheduling The Hearing

When the arbitration forum receives a signed Submission to Voluntary Arbitration form, it will prepare a candidate list of arbitrators to conduct the hearing. Each party may strike any unacceptable arbitrator from the list and rank the remaining in preferential order. If possible, the arbitration forum then appoints a mutually acceptable arbitrator from the returned lists and sets a hearing date, time, and place that is most convenient for all parties. If the parties cannot agree on an arbitrator from the submitted lists, the arbitration forum can appoint one from its pool of arbitrators. Similarly, if the parties cannot agree on a hearing date, the arbitrator has the authority to fix the date, time, and place for the hearing.

Case Preparation

Each party will be responsible for his or her own case presentation at the hearing, including relevant documents. Any documents previously sent to CSLB for the complaint file will not be forwarded to the arbitration forum. Parties may hire an attorney to represent them, at their own expense, or they may present their own cases. In either instance, case preparation is very important. Both parties should review the submission form for an understanding of all issues and as preparation for gathering relevant evidence. Any documents previously sent to the CSLB for the complaint file will not be forwarded to the arbitration forum.

Expert Witnesses

The CSLB will pay for one state-appointed expert witness per case.

An expert witness is a person who has extensive work experience and is competent to evaluate the work that is in dispute. If an expert witness is needed, the Contractors State License Board will hire one prior to referring the dispute to arbitration. This expert will become the state-appointed expert for the dispute. The CSLB has the discretion to hire an expert, depending on the circumstances of the dispute. If the the CSLB hires an Industry Expert to qualify the complaint as an arbitration referral, a second expert will not be hired.

When a state-appointed expert is used, both parties will receive a copy of the report of the expert witness shortly after the dispute is referred to the arbitration association. Either party may use the expert witness at the arbitration hearing. A party who wishes to use the testimony of the state-appointed expert at the hearing will be responsible for making arrangements with the expert witness to ensure his or her attendance at the hearing. At the time the referral is made to the arbitration forum, the name, address and telephone number of the Industry Expert is provided to the parties. If that information is not provided, the Enforcement Representative that handled the complaint and the referral should be contacted for the information. Arrangements to have a state-appointed expert testify should be made with the expert at least 15 days prior to the scheduled hearing.

The consumer or the contractor may use an expert who is not appointed by the state.

A party who uses the services of an expert witness who is not appointed by the state will be responsible for arranging and paying for the services of the expert witness. A party will not be able to collect this cost from the opposing party.

To locate an expert who is not appointed by the state, consult local sources, references, trade associations, building exchanges, or the yellow pages of the telephone book. The local office of the CSLB can also provide you with a list of expert witnesses who you can hire to assist in your dispute.

The Hearing

Arbitration hearings are conducted in an informal setting and are designed to bring out the facts involved in a case. The informality of the setting should not be considered as a casual discussion. The witnesses and information that the parties bring or do not bring, will have a tremendous bearing on the outcome of the hearing. Preparation for the hearing is essential. The award is binding.

The consumer presents his or her claims, evidence, and witnesses first, and then the contractor follows with his or her claims, evidence, and witnesses. Parties may be represented by legal counsel if they wish, but at their own expense. The rules that govern arbitration hearings under this program are found in Business and Professions Code Section 7085.5.

When a hearing is completed, the arbitrator has 30 calendar days in which to render a decision. The arbitrator has the authority to rule on the claims and to award money damages.

The Award

The arbitrator’s award is final and binding on both parties. In other words, the contractor and the consumer must abide by the terms of an award. If either party does not comply, the other may petition the superior court to have the award confirmed and made a judgment of the court. The court can then enforce the award as its civil judgment.

The procedure for enforcing awards can be found in the Code of Civil Procedure starting with section 1285. However, if court enforcement is necessary, an attorney should be consulted.

Consumers or contractors who wish to appeal an award in court must do so at their own expense. The CSLB will not represent parties in court. A consumer or contractor’s refusal to accept the terms of an award will not preclude the CSLB from taking action after an award is granted.

The CSLB has the authority to discipline contractors who do not comply with an arbitration award. Most awards will specify a final date for compliance. If the award is against the contractor and the contractor does not comply within the time specified in the award, the consumer should notify the CSLB’s Sacramento Case Management office at P. O. Box 26888, Sacramento., Ca. 95826. The board will investigate the report of noncompliance, and, if appropriate, suspend the contractor’s license. If the contractor complies with the arbitrator’s award within 90 days, his or her license may be reinstated; otherwise, it will be revoked.

Mandatory Arbitration Program Guide:  Many disputes between consumers and contractors can be resolved efficiently and satisfactorily through arbitration. Mandatory arbitration is a process in which an impartial third person is appointed by the Contractors State License Board (CSLB) or its representative to make a final decision in a dispute between two or more parties. Because of the many advantages arbitration can offer, the CSLB offers arbitration for the resolution of disputes that meet certain criteria. The CSLB will pay for the hearing, the arbitrator, and the services of one state-appointed expert witness per complaint. Only contractors with good records will qualify for participation in arbitration. Complaints involving deceptive or fraudulent practices will continue to be investigated by the CSLB.

Criteria

A case qualifies for mandatory arbitration under Business and Professions Code Section 7085:

1. The dispute involves present or future damages of $12,500 or less;
2. The contractor possesses a license that is in good standing, at the time of the alleged violation;
3. The contractor does not have a record of prior violations;
4. The contractor does not currently have a disciplinary action pending against him or her; and
5. The parties have not previously agreed to private arbitration of the dispute, either in their contract or otherwise.

The complaint must be filed within four or ten years after the alleged wrongful act or omission causing the dispute occurred, or within the duration of any written warranty for which breach is alleged. The four-year time period applies to disputes involving patent defects and the ten-year time period applies to disputes involving latent structural defects (Business and Professions Code Section 7091).

Mandatory And Binding Arbitration

“Mandatory” and “binding” are key terms to understand before entering into arbitration. Participation in this program is mandatory if a complainant wishes to have his or her complaint resolved by the CSLB. If the complainant (the person filing the complaint against a contractor) chooses not to participate in arbitration, the complaint will be closed and no further action will be taken by the board. If the complainant chooses to participate in arbitration, the contractor will be obligated to participate. If the respondent contractor (the contractor against whom the complaint is filed by the complainant) refuses to participate in arbitration and the complainant obtains an award against the contractor, the award will be enforced as if the respondent had been present at all of the proceedings. Arbitration in this program is binding. This means that both the consumer and contractor whose dispute is resolved by an independent third person (the arbitrator) must comply with the decision of that third person. In binding arbitration, parties who refuse to comply with the arbitrator’s award may be taken to court and have a judgment entered against them. In addition, licensed contractors who fail to comply with an award that is issued against them may have their licenses suspended or revoked.

This brochure provides the information necessary to understand the CSLB arbitration program for the resolution of complaints in which the damage is $12,500 or less.

The CSLB Arbitration Program

An arbitration forum has been selected to administer construction disputes involving arbitration through the CSLB. The arbitration forum has expert arbitrators throughout California who have been trained to resolve consumer/contractor disputes. All have undergone intensive training to ensure that both parties receive a fair hearing. The arbitration forum will contact you after the CSLB asks that your dispute be scheduled for a hearing.

Arbitration At Work

Parties to a construction contract should consider arbitration when communications have broken down, when the consumer has filed a complaint with the CSLB, and the board had determined that the dispute could be effectively handled through arbitration.

Once a representative of the board determines that a complaint involving damages (financial injury) of $12,500 or less qualifies for arbitration, a Submission to Mandatory Arbitration form will be sent to the consumer and the contractor. This form, indicating the names and addresses of the respective parties, will outline the claims and relief sought by each party. This form will advise both parties of the consequences of failing to participate in arbitration. If the complainant does not return a completed and properly executed (signed and dated) submission form to the CSLB within 30 calendar days of the board’s mailing date, the complaint will be closed and no further action will be taken by the board.

If the respondent (contractor) does not return a properly executed Submission to Mandatory Arbitration form within 30 calendar days, and the complainant does, the complaint will be resolved through arbitration and any award rendered against the licensed contractor will be enforced as if both parties had been present at all of the proceedings.

The CSLB will send copies of the signed submission forms to the other party so that both of them will know exactly what issues are in dispute and what remedies are being sought. Both can then prepare their cases for presentation at the arbitration hearing. A copy of the signed submission forms will also be sent to the arbitration forum to handle your case. In most cases, a party will not be permitted to add to the issues in dispute or to increase the amount of damages sought after the submission form is sent to the opposing party.

Scheduling The Hearing

When the arbitration forum receives a signed Submission to Mandatory Arbitration form, it will select an arbitrator to conduct the hearing. The arbitration forum will then set a hearing date, time, and place, and they will notify the parties in writing of the scheduled hearing.

Case Preparation

Each party will be responsible for his or her own case presentation at the hearing. Parties may hire an attorney to represent them, at their own expense or they may present their own cases. In either instance, case preparation is very important. Both parties should review the submission form for an understanding of all of the issues and as preparation for gathering relevant evidence. Any documents previously sent to the CSLB for the complaint file will not be forwarded to the arbitration forum.

Expert Witnesses

The CSLB will pay for one state-appointed expert witness per case.

An expert witness is a person who has extensive work experience and is competent to evaluate the work that is in dispute. If an expert witness is needed, the CSLB will hire one prior to referring the dispute to arbitration. This expert will become the state-appointed expert for the dispute. The CSLB has the discretion to hire an expert, depending on the circumstances of the dispute. If the CSLB hires an Industry Expert to qualify the complaint as an arbitration referral, a second expert will not be hired.

When a state-appointed expert is used, both parties will receive a copy of the report of the expert witness shortly after the dispute is referred to the arbitration association. Either party may use the expert witness at the arbitration hearing. A party who wishes to use the testimony of the state-appointed expert at the hearing will be responsible for making arrangements with the witness to ensure his or her attendance at the hearing. At the time the referral is made to the arbitration forum, the name, address and telephone number of the Industry Expert is provided to the parties. If that information is not provided, the Enforcement Representative that handled the complaint and the referral should be contacted for the information. Arrangements to have a state-appointed expert testify should be made with the expert at least 15 days prior to the scheduled hearing.

The consumer or the contractor may use an expert who is not appointed by the state.

A party who uses the services of an expert witness who is not appointed by the state will be responsible for arranging and paying for the services of that expert witness. A party will not be able to collect this cost from the opposing party.

To locate an expert who is not appointed by the state, consult local sources, references, trade associations, building exchanges, or the yellow pages of the telephone book. The local office of the CSLB can also provide you with a list of expert witnesses who you can hire to assist in your dispute.

The Hearing

Arbitration hearings are conducted in an informal setting and are designed to bring out the facts involved in a case. The informality of the setting should not be considered as a casual discussion. The witnesses and information that the parties bring or do not bring, will have a tremendous bearing on the outcome of the hearing. Preparation for the hearing is essential. The award is binding.

The consumer presents his or her claims, evidence, and witnesses first, then the contractor follows with his or her claims, evidence and witnesses. Parties may be represented by legal counsel, if they wish, but at their own expense. The rules that govern arbitration hearings under this program are found in Business and Professions Code section 7085.5.

When a hearing is completed, the arbitrator has 30 calendar days in which to render a decision. The arbitrator has the authority to rule on the claims asserted and to award monetary damages.

The Award

The arbitrator’s award is final and binding on both parties. In other words, the contractor and the consumer must abide by the terms of an award. If either party does not comply, the other may petition the superior court to have the award confirmed and made a judgment of the court. The court can then enforce the award as its civil judgment.

The procedure for enforcing awards can be found in the Code of Civil Procedure starting with section 1285. However, if court enforcement is necessary, an attorney should be consulted.

Consumers or contractors, who wish to appeal an award in court, must do so at their own expense. A consumer or contractor’s refusal to accept the terms of an award will not preclude the CSLB from taking action after an award is granted.

The CSLB has the authority to discipline contractors who do not comply with an arbitration award. Most awards will specify a final date for compliance. If the award is against the contractor and the contractor does not comply within the time specified in the award, the consumer should notify the CSLB’s Sacramento Case Management office in writing, at Post Office Box 26888, Sacramento, CA 95826. The board will investigate the report of noncompliance, and, if appropriate, the board may suspend the contractor’s license. If the contractor complies with the arbitrator’s award within 90 days, his or her license may be reinstated; otherwise, it will be revoked.

10 Tips for Making Sure Your Contractor Measures Up:

There are more than 310,000 licensed contractors in the state, in 43 different licensing classifications. In addition to educating consumers about contractors and construction law, CSLB activities include administering examinations to test prospective licensees, issuing licenses, investigating complaints against licensed and unlicensed contractors, issuing citations, suspending or revoking licenses, and seeking administrative, criminal, and civil sanctions against violators. In FY 2007/08 CSLB obtained more than $35.2 million in ordered restitution for consumers.

The CSLB’s Statewide Investigative Fraud Team (SWIFT) works to eliminate unlicensed contractors working in California. Undercover sting and sweep operations are conducted weekly around the state.

Handyman Contractor, Residential Limited (CCB): This contractor may arrange, and/or perform an unlimited amount of unrelated building trades on any residential property or small commercial property. This category includes new homebuilders, remodelers and contractors who work on residential and small commercial property.

A contractor is only eligible for this classification if they meet all of the following:

• You expect to gross less than $40,000 from your construction business in the next year.
• You do not contract to perform any work that exceeds $5,000.
• The value of any work you perform does not exceed $5,000 per job site per year.
• The Construction Contractors Board (CCB) may inspect your business’ Oregon Dept. of Revenue tax records to verify any of the above.
• You agree that if your gross construction business volume exceeds $40,000 during the coming year, you will immediately notify the CCB, change your category, increase your bond and your insurance coverage.

Owner-Builders in Hawaii A Guide to State Regulations: Before you sign on the dotted line… Chapter 444 of the Hawaii Revised Statutes (HRS) requires that a licensed contractor be hired for any construction work which is more than $1,000 or for which a building permit is required. This contractor is considered the responsible and liable party of record for the construction described in the permit. Property owners who are building or improving their own home or business site, however, can register as an Owner-Builder with their county building department. This exempts owners from the requirements to be licensed as contractors, yet still allows them to obtain building permits. In order to protect and inform consumers about the legal consequences of being an Owner-Builder, the law requires that each applicant must sign a Disclosure Statement provided by the county building departments.

This page discusses some of the major responsibilities and potential liabilities of being an Owner- Builder. What is the definition of owner-builder? Chapter 444, Hawaii Revised Statutes (HRS) defines owner-builders as owners or lessees of property who build or improve structures on property for their own use, or for use by their immediate family. How do I qualify as a builder-owner? You must register for a permit as an owner-builder at the Building Permit department in your County Building office and comply with the laws defining your responsibilities. Are there any restrictions on owner-builder exemption permits? As an owner-builder, a homeowner acts as its own contractor. However, all electrical and plumbing work must be performed by contractors licensed to perform that work. The structure cannot be sold or leased or offered for sale or lease within one (1) year after completion of the construction. If a person obtains an owner-builder exemption more than once within a two year period, that person is presumed under the law to be in violation of the exemption requirements.

What are the major responsibilities of an owner-builder? As an owner-builder, you are acting as your own general contractor overseeing that the work complies with all applicable laws, building codes and zoning regulations. It is your responsibility to insure that all subcontractors hired by you have the appropriate licenses required by state laws and county ordinances. As a general contractor, you may be acting as the employer of an worker or unlicensed contractors you hire. As an employer, you must comply with all employer requirements such as deducting and paying the State, FICA, and withholding taxes, and providing unemployment, temporary disability and workers’ compensation insurance for those workers. What are the risks of hiring an unlicensed contractor? You may be sued by an unlicensed individual who is injured while working on your project or be required to pay workers’ compensation or other insurance coverage if a claim is filed and an employer-employee relationship is determined.

How do owner-builders find themselves liable for these claims? An unlicensed contractor may persuade a property owner to obtain an owner-builder permit, and then have that unlicensed contractor do the work. The owner is considered the actual employer of any workers hired by an unlicensed contractor. Licensed contractors or subcontractors are only qualified to do specified types of construction. A licensed contractor working outside its company contracting license classification is considered an unlicensed contractor on the job. Does everyone engaging in contracting activity need to be licensed? The most frequently used and abused exemption in the contractor law is the $1,000 exemption, commonly referred to as the “handyman” exemption. The handyman exemption permits the hiring of a person not licensed as a contractor if the total cost of the project including labor, materials, taxes, and all other items if equal to, or less than $1,000. This exemption does not apply in any case where: 1. a building permit is required no matter what the total contract price is; 2. for electrical and plumbing work; 3. where the work is parceled out into multiple projects. Are there penalties for owner-builder violations? Depending on the type of infraction, a first offense may result in a fine of up to $5,000 or 40% of the appraised value of the building, whichever is greater. Subsequent violations may result in a fine of $10,000 or 50% of the building’s appraised value.

How can a property owner be protected? Hire contractors that you have confirmed are properly licensed and current in all employer withholdings and insurances. Contact the Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs (586-3000) for licensing information. You may call the Regulated Industries Complaints Office’s (RICO) complaints history line (808) 586- 2677) to check if there are any complaints against a contractor. If I am having problems with my contractor and want to file a complaint, who do I call? You may call the Regulated Industries Complaints Office, Consumer Resource Center, at (808) 587- 3222. Government Agencies Ready to Assist You The state Regulated Industries Complaints Office (RICO) has jurisdiction over complaints relating to licensed or unlicensed contractors. Call the Consumer Resource Center at (808) 587-3222 if you have a consumer complaint. From the neighbor islands, call the state toll-free telephone number listed below. (You will then be asked to dial the last five digits of the state phone number you want to call, then press the # sign.): Kauai 274-3141 Hawaii 974-4000 Maui 984-2400 Molokai/Lanai (800)468-4644 Call (808) 586-2677 for complaint history information. To check if a contractor is licensed, contact the state Professional and Vocational Licensing Division at (808) 586-3000.

Why should I hire a licensed handyman contractor? The cost of buying and owning a home is probably the biggest investment made by most people in their lifetime. Property owners therefore often look for the lowest price when looking to build or remodel a home. Since most unlicensed contractors are not bonded or insured and do not pay into the residential contractors’ recovery fund or pay any unemployment compensation for their workers, they can often under bid the licensed professional. This bottom line may at first be attractive to the property owner, as a way to lower costs and save money. Most of the time, it is not.

With the unprecedented growth in the country, and especially in the southwest, hundreds and even thousands of “would-be” contractors have appeared. People who may have worked as a laborer or a framer for a short period of time decide that they are ready to start their own business. In spite of the fact that they lack sufficient capital and experience, they print up fliers, distribute business cards and place an ad in the yellow pages.

In an attempt to get “the best price”, the unsuspecting customer calls the number listed on the flier or in the ad and asked for a bid. Often, such operations are run out of a mail drop or on an answering machine, but someone usually calls the customer back. When you get the bid, you are really pleased at how much this person / company says they can save you. You may even see “licensed, bonded and insured” on the business card or in the ad. Then the story begins. The contractor tells you he is going to need a large portion of the money up front. He may say he needs it to purchase materials, or to pay workers for another job where the property owner is slow to pay. He may even tell you about the unexpected medical bills he had to pay for a sick child (that he really doesn’t have), in hopes of gaining your sympathy.

At first things may seem fine. In a day or two a worker shows up and starts measuring, or a small load of material is delivered to the job site. Then the excuses begin. After a week has passed, with no work being done, you call your unlicensed contractor. All you get is a recorded message, so you leave a message, politely requesting a return phone call. Several more days passed, with no response, so you call and leave another message, not as polite as the first. When the contractor does call, he is very apologetic and tells you about some catastrophe involving either his truck, his family, his help or another job he just had to complete. He promises to get right on your job the next day. A week later he still hasn’t shown up, or he does show up and says he needs more money.

Sound ridiculous? Well it happens every day, often with the consumer losing hundreds or even thousands of dollars. You, as the property owner have little recourse other than to pursue the matter in court.  Hiring a licensed contractor offers many additional protections to the property owner, especially regarding residential property. First of all, a contractor can not obtain a license without possessing a minimum amount of experience and must pass a business management test. The applicant also may be subjected to a criminal history background check, and must not have any unresolved contracting complaints outstanding.

Should you experience the above problems with licensed contractor, you as a residential property owner have significant protections not available to persons utilizing an unlicensed contractor. Among them is the ability to file a complaint against the contractor’s license, in most cases, for a period of two years from the date of occupancy or date the last work was performed. This is your guarantee should the workmanship be below standard or in violation of existing codes.

Under certain conditions, you may also be eligible to apply to the residential contractors’ recovery fund and receive up to thirty thousand dollars to have the work corrected or completed. Each licensed contractor is covered for up to $200,000.00 to a maximum of $30,000.00 per residential property owner, on a first come, first serve basis upon filing a complete claim. Keeping detailed records of your contract, checks or other forms of payment will speed the processing of your claim, should the need arise. For more detailed information, you may contact the Residential Contractors’ Recovery Fund in Maricopa County Monday through Friday during regular business hours at 1 (602) 542-1525 or from elsewhere in the state at 1 1-877-MY AZROC (1-877-692-9762), toll free. These protections are in addition to other remedies available through the courts.

Licensed, Bonded and Insured? Just because the ad says it doesn’t mean it’s true!  Many complaints about unlicensed contractors are received where the home or business owner believed they had contracted with a Licensed, Bonded and Insured contractor, but they had not. The ads that appear in the yellow pages are not regulated by the publisher, and should be considered accurate only about the name of the company or individual and the phone number to call. The only sure way of knowing that your contractor is licensed is to call the Registrar of Contractors to confirm it.

Avoid Becoming a Victim by Unethical Handyman Contractors: Each year, thousands of property owners in Arizona are solicited by unlicensed contractors who promise deals, which sound too good to be true. Most of the time, they are, and all too often, the complainant is defrauded out of hundreds or even thousands of dollars. Some of the questionable tactics a consumer should be on guard against are:

DON’T accept a contractor’s advertising or word as proof of being legitimate or of possessing a current, valid contractor’s license. Call the ROC.

DON’T respond to “scare tactic” door to door salesman who say they were just driving by and notice a problem with your roof or driveway, and they just happen to have extra material on their truck. Call the ROC.

DON’T make major or full advance payments to the contractor for purchase of materials for your job site. Con men will often do superficial defective work, or even no work at all and never return. You then might encounter major bills to correct the damage or problems left behind.

DON’T supply telephone solicitors with credit card or other personal credit information on promises of free inspections or free gifts. Call the ROC, the Attorney General’s office, or the Better Business Bureau to check on other consumer complaints against the company.

DON’T accept the first price or bid that comes along, especially on major construction or remodeling projects. Be skeptical of bids or prices that are much lower than others obtained. Be sure all bidders possess current contractor’s licenses for the type of work to be performed.

DON’T assume that even if a contractor is licensed that you will get what you pay for and be protected. Occasionally, even licensed contractors develop financial difficulties, have employee or credit problems, or fail to keep their license current. Call the ROC before signing any contract or advancing any large payments for work that has not been performed.

DON’T allow solicitors or contractors to have access to your home or property without a prior appointment, and without having first verified the contractor’s name, the name of the business, the company’s current contractor license number, and the name of the person who will be sent to your home to do the work.

DON’T judge a book by its cover. Many con men depend upon their victim’s being fooled by their friendly, professional appearance or confident approach.

They may also take the other approach of attempting to intimidate or threaten people into signing contracts or making payments.  Call the Registrar of Contractors or call your local police.

DON’T forget that you are the customer. That means that you may also be a target for a fraudulent scheme or theft. Call the ROC!

Remember there is seldom a case where a property owner needs to sign a contract immediately.  A contractor who tells you that the work must be done right away, for your family’s or your own safety, is probably trying to force an immediate sale, or is perpetrating a fraud.  If you are told, or believe you have an emergency, such as a gas leak, or a serious electrical problem, call your local fire department or public utility company

Difficulties in Finding Affordable Handyman Auto Insurance —  There are many factors that go in to the type of coverage a person can obtain, as well as the rates which are available.  Automobile policy prices can be shifted based on a person’s age, marital status, location, driving habits, type of vehicle and many more details. Each of these factors can hurt a driver’s chance of finding the most affordable policy or even a carrier willing to accept their risk level. A driver with a high number of accidents and/or traffic violations could be considered a high risk driver and may be denied coverage by a number of insurers.

Drivers that have a hard time getting insured in the Bluegrass State do have options. The best method in locating an affordable policy would be to shop around and obtain as many quotes as possible to locate an insurer that will cover their risks at a reasonable price. Motorists that still have no luck may need to turn to the state for assistance finding a carrier. According to the Auto and Home Insurance Guide a motorist may choose to apply for coverage with the  Automobile Insurance Plan. Although typically regarded as a last resort due to the higher premiums that are charged, this program will locate coverage for a person who has been refused service within the last 60 days, can provide a premium deposit upon filing an application, and who can maintain residency. Motorists that may be in need of such assistance should be sure to practice safe driving in the future to enable them to find a policy without the KAIP and obtain cheaper coverage.

Finding Cheaper Handyman Vehicle Insurance — In order to compete with different companies or lure new customers, policy providers like to offer a wide range of ways in which vehicle owners can save money. It is not uncommon to see such savings as good driver, good student, multiple car, or customer loyalty discounts among others. By qualifying for several of these deals a person could end up saving a considerable amount of money on a premium, and new motorists can better choose a provider based off of the extent of discounts which may be available. Although the number of discounts available should not be the only driving force in choosing a particular provider, having them available is almost always helpful.

One commonly overlooked method of getting even cheaper automobile coverage is through preemptive methods. One of the most common reasons for a person’s premium to increase is because of being involved in an automobile accident or receiving traffic citations. Drivers should know that a point system in place where specific points are given to a motorist based off of a specific violation. For example, following another car too closely could amount to two points on a person’s record, and racing on the highway could amount to ten. Having an excessive number of points on one’s record could amount to more expensive coverage. In order to better understand this system the state has released a Consumer’s Guide to Automobile Insurance which details the point system. With this information in mind, becoming a good and cautious driver might just be one of the most effective ways of keeping cheaper coverage.