Things to Know Before Hiring a Contractor
‘To Hire or Not to Hire; That is the Question’
First, let’s begin by identifying what work can be performed as an “Owner-Builder”
Who is considered an owner-builder?
Any individual or group of individuals who own the property on which they plan to construct, alter, repair, improve, or remodel a building or structure is considered an “owner-builder”.
Is an owner-builder required to have a license?
An owner-builder is exempt from licensure, but there are limitations.
A license is not required if:
• The owner-builder does the work himself or herself or through his or her own employees with wages as their sole compensation and the structure(s) is/are not intended for sale.
• The owner-builder contracts with properly licensed subcontractor(s).
• This exemption applies to the construction of a single-family residential structure and limits the number of structures intended or offered for sale to four or fewer in a calendar year.
• The owner-builder contracts with a General Building ("B") contractor.
• The number of structures is then unlimited.
Is a homeowner required to obtain a license if he/she wants to improve his/her home?
A homeowner improving his or her principal place of residence is exempt from licensure if all the following exist:
- The work is performed prior to sale;
- The homeowner resides in the residence for the 12 months prior to completion of the work; and,
- The homeowner has not taken advantage of this exemption on more than two structures during any three-year period.
Are there any trades that property owners are prohibited from performing themselves?
Property owners are prohibited from performing well-drilling work covered under the Well Drilling (C-57) classification.
Does the owner-builder exemption apply to an individual who builds homes for resale (spec homes) and are there any limitations?
Yes.
The owner-builder exemption would apply to an individual who builds homes for resale under any of the following conditions:
• Licensed tradesmen are hired to perform all work on the project
• provided no more than four structures per calendar year are intended for resale.
• A licensed general contractor is hired to perform and/or subcontract the completion of all work on the project.
• No restriction on the number of structures completed per calendar year.
• The owner-builder performs the work, all or in part, and resides in the completed structure for one year prior to resale.
• Applies to not more than two structures in a three-year period.
For more information regarding owner-builder, see Section 7044 of the Business & Professions Code or The Risks of Being an Owner-Builder under the "Consumers" section of the CSLB website.
CSLB – Contractor State License Board, www.cslb.ca.gov
If you decide to hire a contractor, here are 10 tips you should follow:
- Hire only state-licensed contractors.
- Check a contractor’s license number at cslb.ca.gov or by calling 800-321-CSLB (2752).
- Get at least three bids.
- Get three references from each bidder and review past work in person.
- Make sure all project expectations are in writing and only sign the contract if you completely understand the terms.
- Confirm that the contractor has workers’ compensation insurance for employees.
- Avoid paying more than 10% down or $1,000, whichever is less. * Avoid paying in cash.
- Avoid letting payments get ahead of the work.
- Keep a job file of all papers relating to your project, including all payments.
- Avoid making the final payment until you’re satisfied with the job.
* There is an exception to this rule for about a dozen contractors who have filed a blanket performance and payment bond with the Registrar. This information is noted on the contractor’s license detail page on CSLB’s website.
Tips from your Building Department –
• Be leery of a ‘contractor’ who asks you to pull the building permit, but they will do the work.
• Ask for a copy of the permit, especially if the contractor includes it in the invoice.
• Ask for a copy of the completed job card.
For further information, please contact the Cathedral City Building Department at 760-770-0340.
