Answering Your Questions About Certified Contracting

Some of Specialized Outsource Solutions’ clients have been talking to us a lot about one of our recent blog posts from June 2013 titled “Notify a Bad Contractor with a Breach of Contract Letter.” Since most people can relate to stories about hiring bad contractors, either on a personal note or through a neighbor or friend, SOS hopes to shed more insight into this type of scenario.

An esteemed source of information on this topic is California’s Contractors State License Board (CSLB). The team at SOS has put together information from the CSLB website pertaining to questions that often arise from our community. See if you can learn something new today:

• Cool tool: CLICK HERE to easily check a contractor’s license information and their complaint disclosure
• It is illegal for a construction contractor to ask for a down payment of more than 10% of the total contract price or $1,000 – whichever less is
• Take these precautions to avoid mechanics liens: Make payments at the same pace of the project, get joint signatures on payment checks between the prime contractor and their suppliers/subcontractors, sign proper lien release forms, and make the final payment after you’re satisfied and all parties have been compensated
• Never make cash payments
• Leave a paper trail whenever possible (receipts, copies of signed documents, etc)
• Licensed contractors, by law, are required to list their license number on all forms of advertising (e.g. business cards, websites, contracts, etc.)
• Unlicensed contracting, by law, cannot exceed a total contract cost of $500 (including labor and materials)
• CLICK HERE to see how the complaint process works for licensed contractors
• CLICK HERE to see how the complaint process works for unlicensed contractors

We really enjoy answering questions and addressing concerns when it comes to our line of business. What do you need to know? Leave your questions below in the “comments” section, or email us at info@sos-crnnetwork.com. Remember, SOS will refer you to quality contractors for a job done right.

(SOURCE: Department of Consumer Affairs. Contractors State License Board. http://www.cslb.ca.gov/)

Notify a Bad Contractor with a Breach of Contract Letter

If you've hired a bad contractor who has not lived up to the signed contract, you can notify them of a breach of contract and request that they remedy the parts of the job that have gotten off track.

Start with examining your contract. It’s important you find ways to prove the agreement between you and the contractor has been compromised. Document these indiscretions as best as possible, as this will be the basis of your case if things get really messy and you have to go to court. Make sure to be as specific as possible (include dates, times, specific events, etc.).

After you document the specific issues, write a formal letter detailing the breach of contract. This will be sent to the contracting company and will serve as a notice of your terms. These terms should request the violation(s) be resolved within a given amount of days. The typical amount of time is 10 days from the date of the letter.

It's important to note the contract you signed may have language that describes what happens if either party breaches the contract. If so, be sure to note this in your letter. Conclude with a statement about pursuing appropriate legal action if the issues are not remedied within your proposed time frame.

• Be professional, not emotional
• Avoid foul language
• Use a formal letterhead
• Date the letter 
• Make a copy for your records
• Do not threaten suing or filing a lawsuit, as you may get legal ramifications if you threaten these things without actual intention of doing so
• Include a copy of the original contract and if you reference certain parts of it in your letter be sure to cite where (e.g. “On page two, paragraph five…”)
• Mail the letter via certified mail at the post office and request a delivery confirmation. Keep it in your files once you are notified it has been delivered
• Log on to the California State Contractor’s Website to file a formal complaint against the contractor 
• Be wary of bashing the contractor on social media websites, as libel can pose more unwanted, messy problems

(NOTE: Consult with an attorney regarding specific state contract laws)

If this has happened to you, make sure to hire a reputable contractor the next time around, and review the contract carefully before proceeding. Call Specialized Outsource Solutions at 1.888.589.1868 for referrals to qualified contractors. 

If you've had a bad experience with a contractor, please share your story on our Facebook site so others may benefit from your advice.