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Public service announcement: Contractors State License Board offers rebuilding tips for declared disaster areas
Summary
The Contractors State License Board (CSLB) advised homeowners in declared disaster areas to follow California home improvement laws when rebuilding or reconstructing damaged homes, including limits on down payments and requirements for fixed-price contracts.
The Contractors State License Board (CSLB) advised homeowners in declared disaster areas to follow California home improvement laws when rebuilding or reconstructing damaged homes. CSLB said contractors may not demand more than 10% of the contract price or $1,000 up front, whichever is less, and that progress payments cannot exceed the value of work performed or materials delivered.
CSLB advised homeowners to check with their city or county building or environmental health departments about permits, demolition and debris removal and to see whether government-funded debris removal programs are available. The board directed homeowners to CSLB’s Fast Facts publication on debris removal at cslb.ca.gov for more details and to CSLB’s disaster help center for additional guidance.
The board cautioned homeowners to verify that any contractor they hire holds an active license and the proper classification for the work. CSLB said unlicensed contracting in a declared disaster area is a felony. It recommended using CSLB’s Find My License or License Check tools to confirm credentials, obtaining at least three bids, asking for references, and checking past projects.
CSLB warned against high-pressure sales tactics and offers of surplus-material deals. The agency said residential rebuild contracts in disaster areas must be fixed-price contracts, not time-and-materials or cost-plus agreements, and must include start and end dates, a payment schedule, a detailed list of materials, and the names of subcontractors and suppliers. CSLB advised that both homeowner and contractor sign the contract, that homeowners avoid paying in cash, and that homeowners ensure contractors pull necessary permits and have actually paid for plans or permits before reimbursing them; it suggested homeowners consider paying architects or permit costs directly when appropriate.
CSLB urged homeowners to keep all project-related documents, including insurance papers, organized and stored in a safe place, and to take their time during reconstruction to avoid costly mistakes. For more information, CSLB directed homeowners to its disaster help center at cslb.ca.gov.
