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Are You Licensed to Practice as a General Contractor in Los Angeles?

All individuals or businesses in Los Angeles that wish to bid for or engage in construction and home improvement-related activities worth $500 or more must obtain a contractor license from the California Contractors State License Board (CSLB) before doing so. General contractors that violate this licensing requirement can face misdemeanor charges, which come with statutory penalties of up to $5,000 in fines and six months of jail time for first offenders. Note that these violators can also receive separate administrative fines of between $200 - $15,000.

The CSLB currently has four different contractor licensing classifications, namely:

• Class A - General Engineering Contractor: this type of license is required for specialized engineering projects
• Class B- General Building Contractor: this license is required by general contractors that wish to oversee or manage projects involving two or more unrelated building trades or crafts. Contractors with this license type are also authorized to perform framing or carpentry work.
• Class B2 – Residential Remodeling Contractor: this license is issued to contractors who wish to manage home improvement projects that require the use of three or more unrelated building trades or crafts. Contractors with this license can also personally do nonstructural home improvement work and make minor alterations to existing electrical, mechanical, or plumbing systems to install, repair, or replace electrical, mechanical, and plumbing fixtures. Note that these alterations are only authorized if the overall project requires the use of at least three unrelated building trades or crafts.
• Class C – Specialty Contractor: this license is required to perform specified types of construction and home improvement work that require specialized skill and knowledge

General contractors who wish to obtain any of the aforementioned license types from the CSLB must meet the following eligibility criteria.

• They must be at least 18 years old.
• They must have either a valid Social Security Number or an individual taxpayer identification number
• They must have proper construction-related knowledge, experience, and skills

Eligible applicants will be required to take the following steps:

• Complete and submit an Application for Original Contractor License Form to the board
• Pay a non-refundable application fee
• Provide acceptable documentation to verify that they have at least four years of experience in the particular licensing classification being applied for. Note that this experience must have been attained no more than 10 years before the application is submitted.
• Undergo a mandatory background check.
• Pass CSLB-administered licensing examinations. Note that the trade portion of these examinations may be waived for applicants who qualify for the board's reciprocity program.
• Comply with the board's mandatory insurance and bond requirements.

You can contact the CSLB at (800) 321-2752 to get additional information on its licensing requirements and procedures for general contractors that operate in Los Angeles. It is always in your best interest to ensure that your intended general contractor has complied with these requirements before finalizing any hiring agreements with them, as this is an indication that they have attained the minimum qualifications required for the job.

You can confirm that your intended general contractor holds a valid CSLB-issued license by either calling the aforementioned number or accessing the board's Check a License platform online.

How Much Do You Charge Compared to Other General Contractors in the City?

Certain factors typically influence the cost of hiring general contractors in Los Angeles, and these include:

• The type of construction or home remodeling project
• The nature and scope of the project
• The cost of materials required for the project
• The location of the project
• Accessibility to the project site and site conditions
• The quality of the prepared site plans, construction plans, and building drawings
• The urgency of the project
• Labor costs

While general contractors in the city typically charge clients based on the total cost of the contract, they usually utilize one of the following types of fee structures when calculating these charges:

• Fixed Price Fee Structure: Under this fee structure, the contractor bids for the project at a certain price, which becomes the exact cost of the project if accepted
• Time and Material Fee Structure: Under this fee structure, the workers involved in the project are paid on an hourly basis, and the general contractor includes a markup fee for all subcontractors involved as well as for the materials used for the project
• Cost Plus Fee Structure: The main difference between the cost plus fee structure and the time and material fee structure is that, instead of a markup for subcontractors and materials used, the general contractor sets a preset fee that will be dependent on the project's total cost

You should always get and compare bids and quotes from several general contractors for your project before selecting one best suited to get the job done within your specific parameters. However, costs should not be the sole deciding factor when hiring general contractors in Los Angeles. You should also ensure that your preferred general contractor has the experience and specialization needed to get the job done satisfactorily.

General contractors in Los Angeles earn an estimated annual average wage of $86,340. The list below compares the average hourly wage of these contractors with those of general contractors in other parts of California and other locations across the United States:

What Kind of General Contractor Services Do You Offer?

General contractors in Los Angeles typically manage and supervise construction and home remodeling projects in the city. However, the specific scope of the services these professionals offer largely depends on the client involved and the nature of the project in question. Nonetheless, when you hire a professional general contractor in Los Angeles, you can generally expect them to provide the following key services:

• Provide project cost estimates.
• Supply all required materials for the project
• Make arrangements for necessary labor needed for the project
• Hire specialized subcontractors where necessary
• Coordinate with suppliers and vendors
• Ensure that all required permits for the project are obtained
• Ensure that the work is done per pertinent building regulations and safety measures
• Oversee the quality of work being done and ensure that it is executed on time
• Manage cash flow, scheduling, worker payments, and other administrative aspects of the project
• Ensure that accurate project-related records are kept
• Perform actual construction, repair, or renovation work where necessary

Note that you should always verify the specific types of project supervision and management services your preferred general contractor provides before you finalize any hiring arrangements. You should equally note that the nature of your agreement with the general contractor may involve them doing the work with their own work crew and hiring subcontractors to handle certain portions of the project. This usually happens in situations where the general contractor is not licensed to perform the particular work themselves and does not have a worker or employee on their crew who is properly licensed and qualified to provide these specialized construction-related services. Common examples of these types of specialized services include plumbing, HVAC installations, electrical work, rough carpentry, and roofing.

The table below lists the key differences between general contractors and subcontractors that are involved in construction and home remodeling projects:

Will You Get the Necessary Permits as Required per the City Code?

A locally-issued permit is typically required for private property construction and home remodeling projects in Los Angeles, and these permits must be obtained before the commencement of the project in question. However, exemptions may be made for work that is valued at $500 or less as long as this work meets the following conditions:

• It does not affect the structural stability of a building
• It does not affect public safety
• It does not involve a change in the building's use or occupancy

Los Angeles permits are issued by the city's Department of Building and Safety (LADBS), and parties that fail to obtain all relevant permits for their projects are subject to disciplinary actions imposed at both the state and city levels. These include CSLB-administered civil penalties of up to $5,000 as well as any citations and administrative actions that the LADBS may deem necessary. Benefits of complying with the city's permit requirements for construction and home remodeling projects include:

• It protects your property's value.
• It saves you money on insurance.
• It ensures that the work is done per acceptable standards, thereby ensuring public safety, health, and welfare.
• It helps you avoid city and state-imposed sanctions and penalties for non-compliance
• It limits your exposure to additional and avoidable liability and costs
• It makes it easier to sell your property

Interested parties that wish to obtain permits from the LADBS may do so by taking the following steps:

• Utilizing the city's ZIMAS online research tool to confirm that their property is located within Los Angeles city lines and to get relevant zoning and property information
• Designing the project and preparing necessary construction plans and building drawings
• Submitting the prepared plans and drawings along with all completed pertinent permit application forms to the LADBS online via its ePlanLA portal for plan checks. However, submissions for small home remodeling and improvement projects that do not require a plan check can be made via a separate PermitLA portal. Alternatively, permit applications can be completed and submitted in person at any of the following LADBS office locations:

Applicants are generally required to submit the name of their city-approved construction waste hauler as well as any other additional forms and documents that the LADBS may deem necessary at the time of the application. Separate approvals from other local and state departments and agencies may also be required, depending on the scope of the project. Once all submitted documents have been submitted, reviewed, and approved, the requested permits will be issued by the LADBS, and the construction or home remodeling project can commence.

Note that the LADBS conducts inspections on construction and home remodeling projects in the city, and the specific types of inspections required for a project depend on the nature and scope of the project in question. Nevertheless, these inspections must be carried out before any work done on the project is covered or concealed, and a Certificate of Occupancy will only be issued after all required inspections have been conducted.

You can reach out to the LADBS at 311 or (213) 473-3231 for callers outside the City of Los Angeles to direct queries or get additional information on its permitting and inspection procedures and requirements for your specific construction or home remodeling project. Inquiries on this subject can also be directed to the LADBS in person at any of its office locations mentioned above. Note that these in-person inquiries should be made between the hours of 7:30 a.m. – 4:30 p.m. on Mondays, Tuesdays, Thursdays, and Fridays, and 9:00 a.m. – 4:30 p.m. on Wednesdays. Also, the LADBS's South LA and San Pedro offices are typically closed to members of the public between the hours of 12 noon and 1:00 p.m., Mondays to Fridays.

Do You Work with Subcontractors?

When making arrangements with general contractors in Los Angeles for the supervision or management of your construction or home remodeling project, you should always confirm whether they will require the services of subcontractors for parts of the job. This way, you can take adequate steps to ensure that you are insulated from liabilities if challenges or disagreements caused by late payments, unsatisfactory service delivery, or other similar issues arise between the general contractor and their subcontractors.

General contractors in the city typically hire subcontractors for a number of reasons, some of which include:

• To increase their job productivity and flexibility
• To get assistance on large, complex, or diverse projects
• To increase cost efficiency and mitigate risks
• To perform work or provide services that require specialized knowledge that either they or employees on their payroll do not have or are not appropriately licensed to offer
• To get access to expert knowledge on specific fields and trades

Portions of construction and home remodeling projects that are commonly subcontracted by general contractors in Los Angeles include:

• Plumbing
• Electrical work
• HVAC Installation
• Roofing
• Painting
• Flooring
• Window and door installations
• Carpentry
• Flooring and floor covering installation
• Appliance installation
• Welding
• Insulation installation
• Drywall installation

Per Section 218.8 of the California Labor Code, general contractors can be held liable for debts, unpaid wages, and benefits owed to subcontractors and other individuals hired by these subcontractors on projects that they supervise and manage. However, even though this law protects you from the actions of fraudulent or dishonest general contractors and subcontractors that may be involved in your project, you still face financial and legal exposure if these individuals place a mechanics lien on your property. According to Sections 8160 – 8848 of the California Civil Code, homeowners with mechanics liens placed on their property are ultimately responsible for any non-payments to subcontractors, laborers, or material suppliers and vendors involved in their construction or home remodeling project. This is regardless of whether or not these payments have already been made to the general contractor supervising or managing the project.

Having a mechanics lien placed on your property can result in a range of problems, which include:

• Double payment for the same job
• Foreclosure
• Difficulty borrowing against, refinancing, or selling the property

As such, even though it is possible to dispute mechanics liens, this is often a time, money, and energy-consuming ordeal that should ideally be avoided completely. To this end, you should always take the following actions when hiring a general contractor in Los Angeles to avoid dealing with mechanics liens-related problems:

• Due Diligence: carefully research any general contractor you plan on hiring and ensure they have a reputation for paying subcontractors and material suppliers on time.
• Valid licensing and bonding: ensure that your preferred general contractor has a valid CSLB-issued license, make sure that any subcontractors they hire have also been appropriately licensed, and verify that they maintain the required surety bonds for licensed contractors that operate in California
• Written contracts: make sure that you get a written contract for the project and ensure that this contract includes a payment schedule that indicates the start and completion dates for specific portions of the project as well as the cost of these portions, the identity of each subcontractor or laborer involved in each portion, and the identity of the material suppliers and vendors
• Preliminary notices: make sure that each subcontractor and material supplier involved in the project provides a preliminary notice stating the nature of goods or services they intend to offer
• Timely payment: ensure that payments for materials and subcontractor services are made to the general contractor on time
• Get lien waivers and releases: insist on getting signed lien waivers and releases for every payment made. This protects you from liens claims and is an effective strategy for ensuring the general contractor's accountability.
• Notice of completion: File a notice of completion with the LA County Recorder's Office after the work is completed. Doing this reduces the time available for any other parties to record a liens claim on your property. Note that you must file this notice of completion no later than 15 days from the completion of the work.

Do You Carry the Necessary Insurance Policy for General Contractors in the City?

Per the requirements of the California Contractors State License Board (CSLB), general contractors who wish to operate in Los Angeles must comply with the following insurance and bond requirements:

• They must post and maintain a $15,000 surety bond
• They must carry workers' compensation insurance for their employees

Note that while general contractors are not mandated to carry commercial general liability insurance, these contractors must inform homeowners of their liability insurance status before commencing home remodeling or improvement projects.

Working with an uninsured general contractor makes you liable for any unforeseen work-related events that may occur during your projects. These commonly include property damages caused by workers on site and on-the-job injuries incurred by any of these workers or the contractors themselves. Construction is one of the most dangerous occupations in California, with workers in this industry recording a fatal occupational injury rate of eight fatalities per 100,000 workers in 2020 alone, the second-highest fatality rate recorded for that year. Injuries and fatalities in this industry are caused by several physical and chemical safety hazards, such as:

• Slips, trips, and falls
• Working from heights
• Exposure to loud, excessive, and repetitive noises
• Electrocutions
• Awkward working positions
• Exposure to harmful substances like asbestos, lead paint, silica dust, and other toxic airborne fibers and materials
• Injuries from falling debris and moving objects
• Cuts, tears, and lacerations from work tools and sharp objects
• Exposure to extreme weather

Therefore, always confirm that your preferred general contractor is adequately insured and bonded before signing any hiring agreements. You can request copies of their insurance and bond certificates and contact the appropriate issuing organizations to authenticate them. Make sure that the general contractor also carries commercial general liability insurance that covers third-party bodily injury and accidental property damage, as well as professional liability insurance that covers their work. It is also a good idea to make sure that any subcontractors hired for the job will either be adequately covered by the general contractor's insurance or carry their separate insurance.

You can contact the CSLB at (800) 321-2752 to get additional information on its insurance and bonding requirements for Los Angeles general contractors.

Do You Provide a Warranty for Works Completed?

A warranty refers to a guarantee that is given to a consumer to assure them that the goods or services they have purchased will perform as expected. While there are several types of warranties, the ones offered by general contractors in Los Angeles usually fall under two main categories, which are:

• Explicit Warranties: explicit warranties are written warranties that are usually included in the project bid or contract the general contractor offers to the client
• Implied Warranties: implied warranties are not written but are nevertheless recognized by law, and they refer to implied assurances that the construction work and materials used for the work will perform as they should. These types of warranties generally occur in every construction and home remodeling project, regardless of whether an explicit warranty is eventually offered.

Some subcategories of these explicit and implied warranties that are commonly offered by general contractors include:

• Call-back Warranties: call-back warranties stipulate a set timeframe during which homeowners can ask contractors to return and fix any part of the project that was not done correctly, usually at no additional cost to the homeowner
• Materials and Equipment Warranties: these warranties cover materials and items used for the construction or home remodeling project and guarantee that they are not only new but also free from defect and will perform as specified
• Design-Build Warranties: these types of warranties cover the services of any design professionals, like architects and engineers, that may be involved in the project
• Warranty of Habitability: a warranty of habitability guarantees that the completed building or structure is safe to occupy and also appropriate for its intended use. This warranty is usually offered for projects involving residential buildings and structures.
• Vendor Warranties: vendor warranties are typically issued by the manufacturer or supplier of products and appliances used for the project
• Workmanship Warranties: workmanship warranties are issued to guarantee that workers and subcontractors involved in the project perform their work to the highest standard.

You should always find out the types of warranties that your preferred general contractor offers before they begin working on your project. Note that, per Section 900 of the California Civil Code, general contractors in Los Angeles must issue their clients a written warranty with a validity period of at least one year that covers the fit-to-finish of the following building components:

• Cabinets
• Flooring
• Interior and exterior walls
• Mirrors
• Countertops
• Trim
• Paint finishes

This warranty is effective even if the general contractor fails to issue it to you in writing, and claims for this particular warranty should be made within this one-year period. Likewise, Section 896 of the California Civil Code also stipulates the mandatory warranty coverage of the following areas in new construction projects in the city:

• Manufactured products, irrigation, drainage, and landscaping systems for up to one year
• Untreated wood posts and dryer ducts for up to two years
• Plumbing and sewer systems, electrical systems, exterior pathways, driveways, hardscape, sidewalls, sidewalks, and patios, untreated steel fences, and adjacent components that cause unreasonable corrosion for up to four years
• Paints and stains that cause deterioration of the building's surfaces for up to five years

Bear in mind that warranties usually include terms and conditions you must abide by. Otherwise, they can end up voided. Nonetheless, in situations where there is a breach of any of the warranties offered by your general contractor for your construction or home remodeling project, you can file a claim against the contractor. However, as stipulated by Sections 337.1 and 337.15 of the California Code of Civil Procedure, these claims must be filed no later than four years from the date of substantial completion of the project for matters involving patent defects. In cases where the matter involves a latent defect, the claim must be filed no later than 10 years from the project's substantial completion date. Note that this 10-year statute of repose latent defects does not apply to matters involving willful misconduct or fraudulent concealment.

Can You Provide References of Clients Served in Los Angeles?

When looking to undertake a construction or home improvement project in Los Angeles, it is common to ask friends and family who have successfully completed these types of projects for referrals. Likewise, you can utilize online directories like CSLB's Find My Licensed Contractor platform or reach out to reputable trade associations for recommendations. Examples of these associations include:

• The Southern California Contractors Association
• The Associated General Contractors of California
• The National Association of Home Builders
• The Building Industry Association of Southern California

Once you have gotten a list of potential general contractors, you should always ask them to provide you with at least three verifiable references of clients they have worked with. Professional general contractors typically do not hesitate to provide this information, which is an excellent way to verify your preferred contractors' legitimacy, reliability, and competence. Be wary of any general contractor who seems hesitant to provide you with references, and remember to contact any references that you are offered to get first-hand reviews and testimonials on the general contractor.

You can also get additional reviews and testimonials on the general contractor online via third-party websites like Yelp, Better Business Bureau, Google Review, and other similar platforms.

What Is the Expected Timeline for This Project?

Several factors affect the timeline for construction and home remodeling projects, and these include:

• The nature and scope of the intended project
• The time of year the project is expected to take place and the prevalent weather conditions during this time
• Availability of construction materials, workers, and necessary subcontractors
• Changes and modifications to the nature and scope of the project
• Regulatory requirements, such as permits and inspections

An advantage of retaining the services of professional and experienced general contractors to help supervise and manage your construction or home remodeling projects in Los Angeles is that these professionals can provide you with a practical timeline for the project. This in turn provides you with the following benefits:

• Easy monitoring of the project's progress
• Proper task allocation and execution
• Budget/cost control
• Increased work efficiency
• Better planning for upcoming events like new births, retirements, relocation, and weddings
• Early identification of possible project delays
• Reduced possibility of unsatisfactory service delivery and misunderstandings between you and the general contractor