California Contractor FAQ
Common questions about California contractor verification, CSLB licensing requirements, and federal compliance checks. Each answer includes specific statute citations and current penalty amounts.
What is contractor vetting in California?
Contractor vetting is verifying a contractor's license, insurance, bond, and federal compliance before hiring. In California, any project over $500 requires a licensed contractor, and vetting includes checking CSLB license status, SAM.gov for federal debarment, OSHA for safety violations, and DOL for wage theft. GCs who skip these checks risk liability under Labor Code 3700 and payment disputes under B&P Code 7031.
What databases does SiteVetter check?
SiteVetter checks six data sources: CSLB (license, bond, workers' comp), SAM.gov (federal debarment), OSHA (safety inspections), DOL (wage violations), EPA ECHO (environmental compliance), and building permits from major CA cities. Running these checks manually takes 45+ minutes across separate government websites.
How long does manual contractor vetting take?
Manual contractor vetting takes 45+ minutes per contractor. Each database requires a separate search: CSLB (5-10 min), SAM.gov (5-10 min), OSHA (10-15 min), DOL (10-15 min), and EPA (5-10 min). Most GCs skip databases they don't know exist, missing critical violations.
What is SAM.gov debarment?
SAM.gov debarment is federal exclusion from government contracts, typically resulting from fraud, criminal conduct, or serious contract violations. Under FAR 9.405, debarred contractors cannot receive federal contracts or subcontracts over $45,000. GCs on federal projects must verify subcontractors are not debarred before award.
What is CSLB?
CSLB (Contractors State License Board) is California's agency for licensing and regulating contractors. CSLB licenses approximately 290,000 contractors across 44 classifications and maintains public records of license status, workers' comp, bond information, and disciplinary actions. Any California project valued at $500+ requires a valid CSLB license.
Why do GCs need to vet subcontractors?
GCs vet subcontractors to manage four key risks: legal liability (Labor Code 3700), payment disputes (B&P Code 7031 disgorgement), project delays (debarred subs halt federal projects), and reputation damage (OSHA citations affect EMR and bid competitiveness). Proper vetting protects against all four.
What is workers' compensation exemption?
A workers' comp exemption is a CSLB certificate stating the contractor has no employees and is exempt from carrying workers' comp insurance. Under Labor Code 3700, employers must provide coverage, but sole owners without employees may file an exemption. If an "exempt" contractor has employees, the exemption is invalid.
What are OSHA serious violations?
An OSHA serious violation occurs when a workplace hazard could cause death or serious harm, and the employer knew or should have known. Maximum penalties are $16,550 per serious violation and $165,514 per willful violation (as of January 2025). Multiple serious violations indicate systemic safety problems.
How much does a contractor bond cost in California?
California requires a $25,000 contractor license bond (B&P Code 7071.6), costing $250-$750/year (1-3% of bond amount). The bond protects consumers from defective work or license violations, not the contractor. LLCs must also post an additional $100,000 employee worker bond.
What happens if I hire an unlicensed contractor?
Hiring an unlicensed contractor in California means they cannot sue for payment (B&P 7031(a)) and you can recover all payments made (disgorgement under 7031(b)). However, you lose protections: homeowner's insurance may not cover their work, you cannot file bond claims, and you may face liability if their worker is injured.
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