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Licensed or unlicensed? Contractors State License Board says to watch out for these red flags

Nine contractors were cited for unlicensed contracting in San Luis Obispo County last month.
Contractor
Posted at 6:45 PM, Jun 20, 2024

After nine contractors were cited for unlicensed contracting during an undercover operation in San Luis Obispo County last month, the Contractors State License Board (CSLB) shared ways to identify a contractor operating without a license.

Katherine White, CSLB chief of public affairs, says there are signs your contractor isn’t licensed.

“If they are asking for $2,000 for a $4,000 project, [and] they're asking that upfront, that's a big red flag," White said.

In fact, there’s a maximum deposit all licensed contractors are allowed to charge.

“All contractors are supposed to request no more than $1,000 or 10% of the total product cost, whichever is less," White said.

Clients can also ask for their contractor's license number.

“Licensed contractors have a pocket card that they're supposed to carry on them when they're doing bids, that kind of thing. But then the other big requirement is [that] they are required to have their license number on advertisements," White said.

The CSLB website allows clients to check that the license number is authentic and matches the contractor's identity.

“You also want to make sure that the person who's listed on the license is named on that license profile because we've also had the case of some people using other people's licenses without their permission," White said.

General contractor Tristan Riva of Central Coast Renovations said he gives his customers answers to their questions upfront.

"We have a list of questions that they can use with our answers and it just explains, Are you a licensed contractor? Do you have worker’s comp? Are your trade partners licensed for this?" Riva said.

If the business doesn’t have an informational handout, he recommends asking additional questions and doing your own research.

“I would always ask for a license number and a business name," Riva said. "Find out what the different laws are [and] regulations around contracting as well."

Editor's note: A previous version of this web story incorrectly said there's a maximum fee all licensed contractors are allowed to charge. It's a deposit, not a fee. The article has been updated to reflect that.