What's Up With CA Unlicensed 'handymen'?

metroconstruct

Every state has different laws regarding contractors and licensing... some states don't even require a license, however, if you are in a state which requires a license to work as a contractor...

WHY not get licensed? What is the problem?

I suspect that many unlicensed 'contractors' are criminals and do not qualify to be a licensed contractor.

But, this is merely one facet of the problem... CONSUMERS must be aware of licensing and the importance of it; each state which has requirements for contractors to be licensed, also have a mechanism that enables consumers to check license numbers.

California contractor's license numbers, for instance, can be checked here:
http://www2.cslb.ca.gov/General-Info...se+Request.asp

Please check out these video links before hiring any contractor in California: http://www.genisiswebsites.com/genis...ca1/cslb1.html

Unlicensed 'contractors' caught in CSLB stings:

1. http://video.msn.com/video.aspx?mkt=...8-1a57f23b05ae

2. http://genisiswebsites.com/genisiswe...ntitled-1.html

Webpage of links and articles about unlicensed 'contractor' criminals in the news:

http://www.gouca.org/unlicensed_contractors_beware.htm

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JumboJack

You are preaching to the choir.This place is for contractors.We don't need advise about hiring a contractor.Consumers do..This would be a good post for the DIY forum...

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in texas with framing and cornish people will do it for 3.00 a foot. What do yall think about that? Just laber

metroconstruct

Jumbo Jack - perhaps I should post a consumer warning in DIY.

Regarding your 'choir' here, however, said ensemble seems to have a bunch of unlicensed, miscreant 'vocalists' in it.

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JumboJack

Not realy sure how you know if someone is licensed or not by reading a post.

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in texas with framing and cornish people will do it for 3.00 a foot. What do yall think about that? Just laber

Spectatorz

I would guess the First Clue would be "Handyman" listed as their "Trade"

Is that a "Trade" really ?

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metroconstruct

Jumbo Jack,

I checked with the CSLB website, and if your company is Masterson Construction out of Lakewood, then I am glad to see you are an active, licensed contractor; you obviously had enough resolve to get a license.

You have been only licensed in the state of California for just over a month.
As you begin to advertise your new business, (unless you have a rich uncle or a sugar daddy) you will soon find out how difficult it can be in this state to compete with unlicensed contractors and stay afloat.

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L. B. Condulet

Wow, Jumbojack has the newest license I've seen. Soon that odometer is going to roll over and we'll have 7 digit license numbers. My license number is 428050 and I find that having a "seasoned" number gets you respect, whether it's deserved or not!

thom

With new residential construction in the toilet, you will see increasing numbers of unlicensed contractors. Thousands (probably millions nationwide) of unemployed tradesmen will do what they can to pay the bills. Competing with this on price is impossible. The states do little to help. The costs savings by ignoring the law are substantial. When the government actually prosecutes they may get a conviction. They will not get a penalty that fits the crimes. A judge will not hand out a punishment that will even offset the savings on the job the unlicensed contractor was caught on.

Consider the laws broken and the money saved

No license, no licensing fees or bonds.
No permits, no permit fees
No liability insurance or related costs
No workmens compensation insurance or related costs
No employees federal withholding taxes or related paperwork costs
No employees state withholding taxes or related paperwork costs
No employees fica (social security) withholding taxes or related paperwork costs
lNo employers fica taxes
No employees futa (medicare) or related paperwork costs
No employers futa taxes
No personal income taxes to the contractor
No sales tax (in my state we contractors charge and send to the state, about 7% of the total job)

In all fairness the courts should make the unlicensed contractor pay all of the above, probably times 100 to cover the work done without being caught, just as restitution. Punishment should be additional, maybe jail time. The courts will not impose this because the courts see that the guy is just desperately trying to make a living. The courts do not see that there is a victim in these crimes.

The guys who follow the law get screwed again. The worse the construction economy gets, the worse the problem will be.

Brickie

I agree, however, you missed a major point. You forgot about the continuing influx of illegals that compound things even more

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L. B. Condulet

Another odd paradox is, the government has done nothing to stem the explosive growth of the underground economy, and because the underground cash based economy does not pay taxes, the funds required for the government to police the underground economy are diminishing so as the underground economy grows, the enforcement of laws is scaled back.

All great societies eventually reach their zenith, then they begin to degenerate and slowly collapse because the number of citizens using government services exceeds those paying for the services. Ancient Rome is a good example of this.

JumboJack

ANOTHER big problem are the many,many licensed GC's that either hire illegals and pay no taxes on them or the GC's that have only "sub's" and 1099 all of them and have no WC even though they are actually employees.You know who you are...

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in texas with framing and cornish people will do it for 3.00 a foot. What do yall think about that? Just laber

metroconstruct

That's right jumbojack, there are some unscrupulous contractors out there whom hire illegal labor, and don't take out Workman's Comp Insurance.

In my opinion, they should have their license revoked as well as a caning administerd by the Register...

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send_it_all

Better yet, the caning should be administered by some of the legitimate contractors they undercut. I know I would line up to knock one out of the park.

metroconstruct

Sorry everyone ... this thread has had a hostile takeover.... apparently this thread has been shelved and your opinions don't really matter on the general discussion board.

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tnt specialty

thom;
Imagine trying to operate a legit contracting business here in Colorado where all that is the "norm".....It's a cess-pool......

There's never been a license board, and I'm confident there never will be.....the "powers-at-be" have a sweet thing going.....add to that the recent years influx of the illegals....it's driven a good majority of legit contractors out of the biz, or to states that have licensing.

The only operations that do really well, are the larger, well established outfits, and the "jackleg" crimminal types...

The larger companies are insulated by the fact that the legit, smaller contractor's are typically destined to fail due to the stiff competition by the unscrupulous types that are allowed to flourish in Colorado.

The unscrupulous/unethical types have a "free-run" at it all! Add to that Colorado's "sancturary" envioronment for illegals......It's not rocket science.....