Protect Yourself When Hiring Contractors: Key Tips for Homeowners

Put yourself in the best position to make informed decisions when hiring a contractor for your project. At Freedom Underground, we strive to be a trustworthy and reliable partner with you for your project. We are confident in our abilities and provide a lifetime guarantee for our work. However, as a homeowner or builder, you should know when navigating the contractor or subcontractor hiring process to ensure your project is successful.

The below advice is modeled after advice from the State of California. Review these tips, and when you are ready, call us at (408) 693-6018 or use our contact form. We are here to provide quality, reliable service.

Key Tips for Hiring Contractors

This advice is based on publications from the State of California:

• “Tips for Hiring a Contractor” – State of California Department of Justice.
• “Hire a Licensed Contractor” – California Department of Consumer Affairs, Contractor’s Licensing Board.
• “How do I find the right licensed contractor?” – California Department of Consumer Affairs, Contractor’s Licensing Board.

Following these guidelines can help homeowners and builders avoid common pitfalls and protect against scams.

• Hire Only Licensed Contractors and Verify Licensing:
  Be cautious of scam artists posing as contractors. Always work with licensed contractors, and confirm their license status through the California State License Board at www.cslb.ca.gov or by calling 1-800-321-CSLB (2752). We are an A-General Engineering and C36 Plumbing Licensed Contractor (license: #995136). Licensed contractors meet regulatory standards and have a bond required for licensure, adding a layer of protection.
• Identify the Type of Contractor Needed for Your Project:
  General Engineering and Building Contractors (often referred to as “General Contractors”) typically oversee projects and coordinate licensed subcontractors. Specialty or subcontractors, such as a C36 Licensed Plumber, perform specific jobs. For example, if you need only a water line repair, you should hire a contractor licensed in that specialty.
• Do Not Rush Into Repairs:
  While urgent repairs can feel pressing, there is value in not rushing into agreements. Take the time to research and understand your options to ensure you are choosing the best contractor for the job.
• Get Multiple Bids and Check References:
  Obtain at least three bids for your project, and ask for references of local work completed. Speaking with previous clients provides insight into a contractor’s reliability, work quality, and professionalism.
• Avoid Cash Payments:
  The State of California advises to not pay in cash. If you do, ensure you get a written receipt for your payment. While some contractors may offer discounts for cash payments, it is important to not pay cash in advance of progress work on your project. Freedom Underground takes checks and sometimes cash payments as we need to add credit card transaction fees when making a payment via a credit card. On a multi-thousand-dollar project, these credit card fees add up. projects.
• Avoid Overpaying in Advance:
  Do not let payments get ahead of the work completed. At Freedom Underground, we do not take payments before work is completed and only request progress payments for multi-day. We do not require deposits before the start of work but may ask for payment at the end of the first day of work for projects with significant materials costs. This is typically not necessary but when it is, we will be upfront with this arrangement before booking.
• Know the Limits on Deposits:
  California state law limits the amount a contractor can ask for as a deposit to 10% of the project’s total cost or $1,000, whichever is less. There is an exception if a specific completion bond is provided. This bond (in addition to the standard licensing bond) guarantees the completion of your project and provides added security if required. Again, Freedom Underground does not ask for any deposit before the start of work.
• Require a Written Contract:
  Insist on a detailed written contract that outlines the scope of work, materials, costs, and timelines. Review all terms thoroughly, and do not sign until you fully understand each part of the agreement. A clear, well-structured contract protects you and ensures all parties share the same expectations.

By following these steps, you can protect your investment and enjoy a positive experience with your project.