Hiring a Contractor or Remodeler

While the law provides some protection from fraudulent or incompetent contractors, it doesn't guarantee honest transactions or perfect performance. Informed, cautious consumers can better protect their financial investment.

What does the law require of the contractor?

• A general contractor must maintain a $12,000 bond. A specialty contractor, such as a painter, must maintain a $6,000 bond. Dissatisfied consumers may pursue restitution by taking civil action against a contractor's bond in Superior Court.
• All registered contractors must carry general liability insurance coverage in the amount of $250,000.

Contractors must also have a master Business liscense.

Know your contractor

• If a contractor is currently registered.

  Call Labor and Industries' local service or toll-free contractor registration hotline (1-800-647-0982) or L & I website to learn:

• How long the contractor has been registered.
• If action against the contractor's bond is pending or has been taken in the past.
• The name of the contractor's insurance company, if you want to verify coverage.

If you're not sure whether the work you're contemplating requires a registered contractor, call the hotline. In general, work that "adds to or subtracts from real estate" requires a registered contractor.

Businesses that provide services such as gutter cleaning, pruning, lawn care, or window washing do not need to be registered. (call Department of Labor and Industries for more information)

"Smart consumers ask questions, and track progress."

Before you hire a contractor or remodeler:

1. Plan your project carefully. If you know what you want done and can clearly explain it, you're less likely to misunderstand instructions or encounter cost overruns.
2. Try to interview several qualified contractors and solicit written bids. Bids that are significantly lower than all others should be questioned.
3. Make sure the contractor or remodeler is properly registered and bonded. Ask them to show you their L&I contractor registration card.
4. Ask for references. Then check them out.
5. Be wary of contractors who ask you to pick up the building permit. In most instances, the contractor is required to take out the permits. Permits are your protection. Make sure they are in place as work progresses and that your contractor or remodeler is named on the permit.
6. Try to anticipate problems and inconveniences, such as cost overruns or clean up, and come to agreement with your contractor on how they will be handled - before he or she begins work.

Once you have hired a contractor or remodeler:

1. Obtain a written contract that includes price, sales tax, and, if applicable, permit fees. Specify the work to be performed, materials used, start and completion dates and payment schedules.
2. Make sure you understand the terms before you sign anything.
3. When advancing money for materials, it may be possible to make checks payable to both the contractor and the supply house. Be very cautious about paying for work not yet completed.
4. Put all change orders in writing. Ask questions as work progresses. If you do not like an answer or don't understand it, stop the work until you do.
5. Make frequent inspections and consult your local building department. Be sure that all permits are in place and that inspections are in order.

Look for the contractor registration number in advertisements for contractors. The law requires this number to be included in all advertisements, as well as on bids.

For more information call the Labor and Industries toll-free hotline: 1-800-647-0982, or visit their web page.