Tag Archives: Contractors State Licensing Board

Statewide sting nets 19 suspected unlicensed contractors in San Diego County

By Tanya Mannes/www.signonsandiego.com
Wednesday, March 16, 2011

Nineteen contractors in San Diego County were among 135 arrested last week during a statewide undercover operation seeking to identify people working without proper licensing.

The Contractors State License Board conducted the operation to spotlight the severe risks California consumers take when they hire unlicensed operators to work in and around their home.

Consumers often don’t realize the risk they run when hiring someone who is not licensed. Because these phony contractors don’t carry workers’ compensation insurance, the homeowner could be liable if a worker is hurt on the job. Also, if something goes wrong or the project is abandoned, homeowners have few options for getting back their money.

“Consumers must check out the people they’re going to hire to work on their home to make sure they’re properly licensed,” said CSLB Registrar Steve Sands. “A family’s safety or finances could be jeopardized by not taking a few minutes to verify the contractor on CSLB’s website or through our toll-free phone system. We hope this blitz is a wake-up call for consumers to check the license first.”

To verify licensing, visit www.cslb.ca.gov or call 1-800-321-CSLB.

Of those arrested statewide, some were registered sex offenders and others had warrants for arrest on suspicion of burglary, domestic violence or driving under the influence. (None of those cases were in San Diego County.)

The San Diego County operation received support from the District Attorney’s Office, the Sheriff’s Department and the California Department of Insurance.

Investigators from CSLB’s Statewide Investigative Fraud Team posed as homeowners or landlords, asking for bids on projects that ranged from landscaping, concrete and fencing to painting, gutters, garage doors, cabinets, tile work and tree trimming. Those who bid more than the legal limit of $500 for labor and materials received a notice to appear in Superior Court on suspicion of a misdemeanor charge of contracting without a license.

Other charges included illegal advertising and soliciting excessive down payments.

CSLB Sting Snatches Nine Illegal Operators in Glendora

Important CSLB Bulletin:
SACRAMENTO — The Contractors State License Board (CSLB) Statewide Investigative Fraud Team (SWIFT) caught nine people for violating state home improvement contracting laws during an undercover sting on December 13, 2010. SWIFT was assisted by the California Highway Patrol and the Los Angeles County District Attorney’a Office.

During the sting operation at a Glendora home, SWIFT investigators posed as homeowners seeking bids for painting, fencing, flooring, and cabinetry projects. Suspects who bid more than $500 for labor and materials received a notice to appear (NTA) in court. “Homeowners need to be fully aware of who they are letting into their homes,” said CSLB Registrar Steve Sands. “This operation illustrates the importance of spending a couple of minutes on CSLB website to check the license before you hire a contractor to ensure you aren’t putting your family or your home at risk.”
California law requires all home improvement jobs valued at more than $500 to be undertaken by a licensed contractor. Contractors also must place their state license number in all advertisements. Unlicensed individuals may advertise and accept jobs valued at less than $500, but their ads must state that they are not a licensed contractor. State law prohibits solicitation of a down payment that is greater than 10 percent of the projects value or $1,000, whichever is less, for home improvement contracts. There is an exception for about two dozen licensed contractors who purchase special consumer protection bonds and are noted on CSLB’s website. State law also requires those selling home improvement services for licensed contractors to register with CSLB.
Since 2005, state law has required criminal background checks for anyone applying for a new license or adding a license classification. California law also requires contractors to have workers compensation coverage for all of their employees to protect homeowners from liability.

CSLB Reports: More Than One Dozen Phony Contractors Caught in San Rafael Sting

Undercover operation highlights importance of checking the license first
SACRAMENTO – Thirteen people will be in Marin County Court next month for arraignment on charges related to contracting without a license. These unlicensed operators were caught this week in a two-day undercover sting conducted by the Contractors State License Board’s (CSLB) Statewide Investigative Fraud Team (SWIFT), along with investigators from the Marin County District Attorney’s Office.
On November 9-10, 2010, SWIFT investigators posed as homeowners seeking bids for fencing, landscaping, concrete, painting, sheet metal, and drywall work at a home in San Rafael. Suspects who bid more than $500 for labor and materials received a Notice to Appear (NTA) in court. California law requires all home improvement jobs valued at more than $500 to be undertaken by a licensed contractor. Contractors also must place their state contractor license number in all advertisements. Unlicensed individuals may advertise and accept jobs valued at less than $500, but their ads must state that they are not a licensed contractor.
Fraudulent use of an incorrect license number (Business & Professions Code Section 7027.3) is punishable by fines of up to $10,000 and/or time in state prison or up to one year in county jail. Misdemeanor contracting without a license (B&P §7028) is punishable by up to $5,000 in fines and/or up to six months in county jail.
“This sting operation underscores the importance of consumers asking to see a contractor’s pocket license card and photo identification to make sure the license is issued to that individual,” said CSLB Registrar Steve Sands. “Consumers can check the license number or contractor or business name on the CSLB website or toll-free phone line to verify the status of the license and to assure the licensee has workers’ compensation insurance.
State law requires that licensees have workers’ compensation coverage to protect property owners from liability, unless they certify they have no employees and receive an exemption. The law requires roofing contractors to carry a workers’ compensation policy for themselves even if they do not have employees.
Suspects who received NTAs will be arraigned at Marin County Superior Court at 3501 Civic Center Drive on December 3, 2010.

CSLB urges consumers to remember the following tips when hiring a contractor:
• Verify the contractor’s license by checking online at www.cslb.ca.gov, or via CSLB’s automated phone system at 1-800-321-CSLB (2752).
• Ask to see the person’s identification to make sure you are dealing with the correct individual.
• Don’t pay more than 10% down or $1,000, whichever is less. There is an exception to this for about two dozen contractors who purchase special bonds that are noted on CSLB’s website.
• Don’t pay in cash, and don’t let the payments get ahead of the work.
• Check references, and get at least three bids and a written contract before your project begins.
• Make sure your contractor obtains the necessary building permits for any project. If you are unsure of these requirements, contact your local building department.

STEPS TO BECOMING A LICENSED CONTRACTOR IN CALIFORNIA:What You Need To Know

What You Need To Know About Becoming A Licensed Contractor


Wondering how to become a Licensed Contractor or if you need to be Licensed? The following are the top questions we hear and answer guiding you and our students through becoming a Licensed Contractor successfully.

Who can become a licensed contractor?
A licensed contractor must be 18 years of age or older and have the experience and skills necessary to manage daily activities of a construction business, including field supervision, or be represented by a qualifying individual with the necessary experience and skills.

Who must be licensed as a contractor?
All businesses or individuals, who construct or alter any building, highway, road, parking facility, railroad, excavation, or other structure in California, must be licensed by the California Contractors State License Board if the total cost (labor and materials) of one or more contracts on the project is $500 or more. Contractors must be licensed before submitting bids.

How much does a license cost?
In addition to the financial requirements that must be met, it costs $250 for an original application fee (nonrefundable) and $150 for the initial license fee for one classification. The license must be renewed every two years. Currently, the renewal fee is $300.

How can you apply?
The Application for Original Contractor’s License is available at any office of the Contractors State License Board. It is also possible to order or download an application form from our Website, www.cslb.ca.gov, call the CSLB’s 24-hour automated information line, (800) 321-CSLB (2752), or write to the CSLB, at: P.O. Box 26000, Sacramento, CA 95826, to request an application.

What kind of experience is required?
At least four years of journey-level experience is required to qualify for the exam. Credit is given for experience as a journeyman, foreman, supervising employee, contractor, or owner-builder.

What are the other requirements?
All applicants must be fingerprinted and undergo a criminal background check before a license is issued at an additional cost to the applicant.

Is there an examination requirement for a contractor’s license?
Yes, the qualifying individual for a contractor’s license is required to pass law and trade examinations, unless he or she meets the requirements for a waiver. An examination notice will be sent at least three weeks prior to the examination date.

Is school necessary?
Although there are no educational requirements to qualify for a contractor’s license, it is highly encouraged to seek assistance from a school that specializes in helping students pass the Contractor State License Board Exam.

For more detailed information on becoming a California licensed contractor, see the CSLB publication, Blueprint
for Becoming a California Licensed Contractor or visit our Website, www.cslb.ca.gov or visit MakeMeAContractor.com for more information today.

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CSLB Sting Operations How To Not Get Stung

Daily we see reports of the CSLB’s Statewide Investigative Fraud Team (SWIFT) sending unlicensed operators to jail.  Just recently in July 2010 CSLB stings stung 13 illegal operators, including violators of state energy-saving programs. We thought it best to share an overview of what the CSLB -Contractors State License Board, considers an illegal contractor and share what penalties these operators are potentially subject to. 

According to the CSLB…

Who is considered an illegal contractor?

It is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more in labor and materials. Besides being illegal, unlicensed contractors lack accountability and have a high rate of involvement in construction scams. They also are unfair competition for licensed contractors who operate with bonds, insurance and other responsible business practices.

What is the CSLB doing to stop illegal activity?

The Statewide Investigative Fraud Team (SWIFT) is set up to monitor and combat illegal activity. SWIFT has teams around the state that conduct stings on a regular basis and sweep construction sites.

SWIFT also conducts joint operations and sweeps with other state agencies dedicated to combating underground activity. The partnerships with other agencies raise the penalties and fines for violators by increasing the scope of violations to include taxes, illegal payrolls, and workers compensation and worker safety.

CSLB :http://www.cslb.ca.gov/Consumers/ReportUnlicensedActivity/WhatIsIllegalContractorActivity.asp 

Penalties & Fines

“If you’re caught contracting without a license, you will likely have to go in front of a judge to answer to misdemeanor charges, which carry a potential sentence of up to six months in jail and/or a $500 fine, and a potential administrative fine of $200 to $15,000. If you get caught again, the penalties get stiffer. You could face a mandatory 90 day jail sentence as well as a fine of 20 percent of the contract price of the work performed, or a $4,500 fine.”, according to the CSLB.

Don’t get stung! Protect your future:

  • Get Licensed this is critical and the law
  • Do not engage in contracting work on any project valued at $500 or more in labor and materials
  • Advertised accurately

View Video of CSLB Sting in action

[youtube=http://www.youtube.com/watch?v=9-61eZ9EH7U]

Gain The Competitive Edge

As the Construction market landscape continues to be more competitive now more than ever it is important to obtain a Contractor’s License and or additional licenses to obtain a competitive edge. With limited dollars to spend on home improvement and construction consumers are compelled to hire the best Contractor they can find and are looking for the most cost effective opportunities.

Many Consumers are not taking a chance at hiring an unlicensed Contractor for fear of potential additional cost to their projects. Consumer skepticism includes fear of unlicensed operator’s not carrying adequate insurance coverage necessary to protect them from potential claims. Unlicensed operators do not carry workers’ compensation insurance for their employees as required by California Labor Code or the contractor license bonds required by the state’s Business and Professions (B&P) Code. In this case, should a problem arise the homeowner may be liable if a worker is hurt on their property and without financial recourse if something goes wrong with the project. Many consumers want to avoid costly pitfalls such as these by hiring an experienced Licensed Contractor. For example “badly installed heating or air-conditioning units cost California families money, harm the state’s ability to meet important energy and environmental goals, and can even make people sick,” said CSLB Registrar Steve Sands. Additionally, Failure to obtain a building department permit and have proper follow-up by a California Energy Commission-certified inspector could result in additional expense and risk for the homeowner. A deficient HVAC system may affect a property’s resale value, and could harm the state’s air quality and environment. Inspections ensure that a system is safe, will produce lower utility bills, and help the state and consumer meet energy-efficiency goals. [CSLB]

B&P Code also requires licensees to place their license number in all advertisements. Unlicensed contractors can advertise and perform projects valued at less than $500 but must state in their ads that they are not licensed. A Licensed Contractor in this case would be a more competitive candidate.

The Contractors State Licensing Board works diligently to protect California Consumers from costly mistakes. Recently, four unlicensed operators contracting to replace the air-conditioning unit of a Rancho Bernardo condominium were among the 13 snared for violating California home improvement contracting laws during an undercover contractor sting operation on July 28 and 29, 2010. The Contractors State License Board’s (CSLB) Statewide Investigative Fraud Team (SWIFT) was assisted by the San Diego Police and City Attorney, San Diego County District Attorney, and the California Department of Insurance. SWIFT members posed as homeowners seeking bids for the installation of a new air conditioner, and for plumbing, painting, and tile work. “Stings like this help keep California consumers from making an expensive mistake.”

Several industries and occupations also require or prefer licensed contractors which equates to a competitive landscape:

 

 

 

 

How might you gain a competitive edge?

 Get Licensed

 Network with other contractors for more business

 Continue your education with seminars and certification programs

 Advertise effectively

 Create a Corporation or DBA to protect your company

 Network and get connected via social media outlets such as Facebook, LinkedIn, Twitter

 Price competitively

 Do the best work and build a stellar reputation

 Ask for referrals