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Are You Licensed to Practice as a General Contractor in San Diego?

Professionals who wish to operate as general contractors in San Diego must be licensed by the California Department of Consumer Affairs Contractors State License Board (CSLB). Per state law, it is a grievous offense to practice or proclaim oneself as a general contractor in San Diego or any city within California without first obtaining a license. Likewise, it is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more in combined labor and material costs. Parties guilty of these offenses may face serious punishment. For example, contracting without a license may result in a sentence of up to six months in jail and/or a $5,000 fine, as well as an administrative fine of $200 to $15,000.

Furthermore, if the offender refuses to stop the illegal contracting after their first offense, such a person risks being sentenced to 90 days in prison and paying a fine of 20 percent of the contract price or $5,000. Note that consumers are not legally required to pay a person who is not state-licensed and cannot be sued for non-payment.

Interested parties may apply for any of the three categories of general contractor licenses issued by the CSLB. These general contractor license categories include general engineering contractor license, general building contractor license, and general manufactured housing contractor license. Note that applicants must meet the following requirements to be eligible for a general contractor license.

• Applicant must be at least 18 years old,
• Have either a valid Social Security Number or an Individual Taxpayer Identification Number
• The applicant must have or present a qualifier who has the knowledge, experience, and skills to manage the daily activities of a construction business. Such a person must have at least four years of experience within the past ten years as a journeyperson, foreperson, supervising employee, or contractor in the trade being applied for
• Applicants are required to pass a state examination for licensure If they or their qualifying agent have not taken any examination for licensure on the license category being applied for. Queries concerning examination for licensure can be directed to the CSLB at (800) 321-2752
• Applicants are required to have a $15,000 bond in place to be licensed
• Applicants are required to have liability insurance and workers compensation insurance
• Applicants must complete a mandatory fingerprint exercise with the CSLB
• Depending on their business structures, applicants are also required to register with the California Secretary of State or the San Diego County Clerk's Office.

Having met these requirements, applicants can now complete their general contractor license application online using the easy-fill application portal or by downloading, completing, and mailing an application for original contractor license packet to:

Applicants are required to complete all the appropriate forms in the application for the original contractor license packet before submission—failure to complete all the necessary forms before submission may lead to denial of the license. For more information concerning the process and requirements for obtaining a general contractor license in San Diego, call the CSLB at (800) 321-2752. Likewise, homeowners and those needing the services of general contractors should endeavor to contact the above-mentioned telephone number to find out more about a contractor. Also, homeowners can validate the authenticity of a contractor's license status before deciding on hiring them using the CSLB's contractor lookup tool. Similarly, homeowners can use the CSLB's Find My Licensed Contractor tool to view the licensed contractors nearby.

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

San Diego general contractors consider the following factors when billing for their services:

• The type and size of the construction project
• The cost of the needed materials for the project
• The amount of labor required to complete the job
• Accessibility and topographical condition of the site.
• The cost of a similar construction project
• The contractor's reputation
• Project's quality and specification
• Cost of pulling the project permits

General contractors in San Diego also use several pricing methods that aid in properly estimating and calculating project costs. These methods include:

• Unit Pricing Method: This pricing method requires the client to pay per unit of individual costs. This is determined by several variables, which include labor, materials, and overhead costs. Note that a change in the scope of the project affects the unit price of the contractor's work.
• Lump Sum Pricing Method: This method requires the contractor to bid for the project's total cost against the unit price. The lump Sum pricing method is usually referred to as a "stipulated sum contract." It is so-called because of a stipulated price that must cover all costs of the project to avoid delay or disruption for whatever reason is agreed upon. This pricing method favors projects with well-defined scope.
• Cost Plus Pricing Method: This pricing method is most suitable for projects with uncertain overall scope. The pricing method requires the client to pay for the total cost of labor and materials, including an additional sum to the contractor. The additional sum to be paid is usually between 10 to 20 percent of the project cost. This may or may not favor the client in the long run. It favors the client only in a situation where the project consumes less than estimated materials or labor costs; thus, a refund is made. On the other hand, when the project demands more materials or labor costs, the client must pay more, as in the agreement. Homeowners are advised not to fall cheaply for contractors who charge considerably low at first instance under this pricing method, as they may subsequently increase their charges when the project turns out to be more expensive than it was initially estimated. Clients should insist on contractors with good reputations, a considerable level of experience, and one who has a perfect understanding of the nature and quality of services required.

Having seen factors that determine the cost of hiring a general contractor in San Diego and the common pricing methods used by general contractors, homeowners can now focus on how to get a fair price from the contractor they wish to hire.

To get a fair price for their project, San Diego homeowners are encouraged to find out how much similar projects cost in the city and, or how much other reputable general contractors in the city charge for these projects to avoid being scammed or cheated by some dubious contractors who deliberately inflate the price of their services.

To be sure, homeowners can request and compare estimates from at least three contractors before choosing the contractor that offers the most reasonable price and shows adequate project knowledge.

General Contractors in San Diego earn an estimated annual average wage of $87,420. The list below compares the average hourly wage of these contractors with those of general contractors in other parts of San Diego and other locations across the United States:

What Kind of General Contractor Services Do You Offer?

San Diego general contractors offer the following services to members of the public:

• Provide a timeline for completion of the project and organize the labor required to execute the project
• Provide the materials and equipment needed to complete the project
• Supervise the entire project
• Pulling the necessary permits for the job
• Ensuring that the work done complies with applicable building codes and safety precautions
• Supervising project administrative aspects such as scheduling, cash flow, and worker payments
• Record keeping

Before hiring the services of a general contractor in San Diego, it is critical to research the nature and scope of the construction work you want. That way, you can focus your search for a contractor on professionals with the skill and experience to get the work done. This will increase your chances of choosing someone that will execute the job expertly.

Nonetheless, it is important to keep in mind that a general contractor is allowed to subcontract an aspect of a project to an appropriately licensed specialty contractor where necessary. A general contractor will hire a subcontractor to handle aspects of construction such as plumbing, electrical work, HVAC installation, carpentry, and roofing that the general contractor or laborers may not be qualified to handle themselves. However, there are some key distinctions between general contractors and subcontractors who work on construction projects, and these are as follows:

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

In San Diego, a permit is required to perform specific construction work. For instance, a building permit is typically required in San Diego to construct new buildings and improve an existing building. Some projects requiring a building permit in the city include constructing, remodeling, adding, or removing walls, roofs, and tall fences, and installations of major building equipment.

Any person undertaking any of the aforementioned projects without pulling the appropriate permits shall be mandated to pay an investigation fee alongside the initial permit fee to the Building Official. Note that payment of the investigation fee does not exempt the individual from complying with all the provisions set out in the city's building code. Any violation of the city's building code will attract a different penalty from the one listed above.

While a permit may be required for some projects in the city, some projects do not require permits. Some construction activities exempt from permitting in San Diego are listed below:

• Construction of retaining walls not more than 3 feet in height when measured from the top of the footing to the top of the wall
• Construction of fences and freemasonry walls not more than 6 feet high, provided that they comply with the fencing and landscaping regulations of the city.
• Construction of oil derricks
• Construction of public utility towers and poles
• Construction of one-story detached accessory buildings provided the floor area does not exceed 120 square feet and does not require any electrical, plumbing, or mechanical permit.
• Minor repair work, such as replacing a fuse and repairing a lamp socket or a receptacle
• Repair, installation, or removal of any appliances used for household purposes only in a residential building
• Repairing or replacing the fixtures of a toilet, bidet, showerhead, or faucet, provided that the work is performed by a plumber licensed by the CSLB.
• Clearing a stoppage or repairing a leak in a pipe, valve, or fixture, provided that the repair does not involve the rearrangement or replacement of the pipe, valve, or fixture.

When considering hiring a general contractor in San Diego, it is always a good idea to speak with a representative of the city's Development Services Department (DSD) to confirm if a permit will be required for your project. Interested persons can book a virtual meeting or in-person counter appointment at the city operations building to get all the permit information they need from a DSD representative. Once it is confirmed that a permit will be required for their project, homeowners should speak to their preferred contractor to ensure that they pull the necessary permit for the work. Contractors can obtain a permit from the DSD online via the city's Citizens Portal. Note that new applicants must create a user profile before they can be allowed to log in to the portal. Applicants can begin their building permit application as soon as their user profile is approved.

Building permit applications in San Diego involve the submission of construction plans, project contact information, and other necessary documents such as hazardous materials reporting form and high-piled combustible storage form. Applicants can use the building permit template to create their building construction plans. Note that failure to upload the necessary permit documents will lead to denial of the permit by the DSD. To upload these documents, applicants are required to review the fact sheet for uploading digital plans and documents.

The DSD will review the application once the necessary documents and application have been submitted. This may take up to 4 weeks, depending on the documents uploaded. After that, successful applicants will be required to pay the right permit fee before a permit is issued to them. In addition to the issuance of a permit, the DSD also carried out inspections on all building projects. In San Diego, inspections are required for all building construction projects and occur during different phases of construction. Queries concerning building permits and inspection processes and requirements can be directed to the DSD at (619) 446-5000.

Do You Work with Subcontractors?

Per state law, general building contractors in San Diego can subcontract aspects of construction work to an appropriately licensed specialty contractor. A specialty contractor is a professional whose operations involve the performance of construction work requiring special skill and whose principal contracting business involves specialized building trades or crafts. General contractors in San Diego may require the services of specialty contractors or subcontractors for the following reasons:

• They are very skilled in the work they perform
• They make large or diverse projects easy to execute
• They are more efficient and guarantee more productivity and flexibility
• They ensure that construction work does not exceed the project timeline
• They are more conversant with on-the-job hazards associated with their trade, thereby reducing the possibility of work accidents that may result from negligence or incompetency

Regardless of the many benefits that come with hiring a subcontractor, it is a bad idea to assume that your contractor will hire a subcontractor without asking. Where contractors and their crews can complete the project without the assistance of a specialty contractor, the services of a subcontractor may not be required. As a result, it is crucial to find out whether the individual you intend to hire will subcontract some aspects of your project. General contractors commonly subcontract the following areas of construction projects:

• Plumbing
• Electrical work
• HVAC installations
• Roofing
• Carpentry
• Welding
• Painting
• Appliance installation
• Drywalling and insulation installation
• Window installation

Having confirmed that your general contractor will hire specialty contractors to complete some aspects of the construction work, it is now necessary that you take precautionary steps to ensure that you are not held liable for any disputes that may arise between your general contractor and the specialty contractor they hired for the project. The two prominent causes of disputes between general contractors and subcontractors in San Diego are:

• Late payments
• Shoddy or unsatisfactory work

In San Diego, subcontractors are deemed to be employees of a general contractor, and the contractor shall be directly responsible for their work. Likewise, the contractor shall be liable for any late payments involving subcontractors they hired for a project. If the general contractor refuses to pay a subcontractor after the homeowner has made the necessary monthly payment to the general contractor, the subcontractor may file a claim for late payment. While the homeowner is usually exempted from a late payment claim made by a subcontractor working on their project, homeowners may still face financial liabilities if a subcontractor places a lien on the property.

Per state law, contractors, subcontractors, laborers, and materials suppliers can file a mechanic lien on a homeowner's property if they do not get paid. However, homeowners can avoid financial and legal liabilities associated with this process by taking the following steps:

• Due diligence: Always confirm the general contractor and subcontractor's license status with the CSLB before reaching any agreement with them.
• Request lien waiver: Get a lien waiver for every payment you make. The subcontractors will be unable to place a lien on your property as a result. Lien waivers are also a great way to ensure that your general contractor is held accountable for how they deal with subcontractors.
• Hire only bonded contractors: ensure the general contractor you intend to hire carries a valid payment bond. This allows subcontractors to file a claim against the bond instead.
• Get a written Contract: Make sure you are given a written contract for any arrangement made with your contractor before the work commences. Always make sure that the contract includes a payment schedule that states when specific phases of the work start and end and the price for each segment.
• Joint Checks: the easiest way to ensure that subcontractors and suppliers are paid for the services is by using a joint check that can only be cashed when both parties sign
• Keep Necessary Paperwork: Always keep the preliminary notice the supplier and subcontractors sent to you. The notice typically states that the subcontractor or supplier has provided, or will provide, goods and services to improve your property and could file a lien claim if they are not paid. By saving this notice, you can keep track of who is owed money and when they are paid.
• Notice of Completion: make sure you file a notice of completion with the county recorder's office after work is completed to reduce the amount of time a contractor, subcontractor, laborer, or materials supplier has to record a claim. Homeowners have 15 days from the date of completion to da

However, if a mechanic lien is filed on your property, you should take the following steps to determine if the lien is valid:

• Confirm if the preliminary notice was given to you within the appropriate time frame
• Check to see if the lien was filed within the legal time frame. A mechanic lien can be filed within 90 days of completion of work.
• Check with your local superior court to see if the subcontractor or supplier filed a timely lien foreclosure action.

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

San Diego general contractors are required to carry some insurance policies before they can work in the city. For example, if a contractor has employees, they are required to carry workers' compensation insurance. Hiring a general contractor that has workers' compensation insurance will ensure that you are not financially liable to pay for injuries and rehabilitation. To be sure, you should ask your insurance carrier to confirm if the contractor's workers' compensation insurance coverage is adequate. For more information on workers' compensation insurance, visit the California Department of Insurance.

While workers' compensation insurance is mandatory in the city, a general contractor is not required to carry commercial general liability insurance before they can operate. However, any general contractor that does not carry active general liability insurance should be able to explain how damage or losses will be covered to you. Otherwise, you or your insurance company could end up paying for damages. This could result in huge financial liabilities and legal pitfalls, especially when construction workers are often exposed to several on-the-job hazards while performing their jobs. Some of these on-the-job hazards include:

• Falls from heights
• Electrocutions
• Exposure to harsh weather conditions
• Exposure to noise
• Lifting heavy loads
• Exposure to silica dust, asbestos, and other toxic substances
• Cuts, tears, and lacerations from tools and sharp objects on work sites
• Injuries from flying debris and falling objects

With the number of on-the-job hazards construction workers are exposed to, it is no surprise that the California construction industry recorded 464 fatalities from 2013 - 2019. To avoid being held liable for on-the-job hazards that may occur during your project, you should always request an insurance certificate from the contractor you intend to hire. You should also confirm the authenticity of the insurance certificate by contacting the insurance company that issued the certificate.

In addition to carrying the necessary insurance policies, contractors are required to have a contractor license bond. Bonds can be grouped into three, namely:

• Contractor License Bonds: licensed contractors are required to have a contractor license bond of $15,000, which will cover any project the contractor agrees to perform. Note that this bond may not be enough to cover multiple complaints made against it or your project if it's worth more than the value of the bond.
• Contract Bonds: this guarantees both the completion of the job and payment for all labor and materials. In most situations, the bonding company will not have to pay more than the face amount of the bond. The cost of this bond is usually 1-2 percent of the contract price.
• Blanket Performance and Payment Bonds: it allows a contractor to ask for a down payment of more than 10% of the contract price on a home improvement project or $1,000, whichever is less.

For more information concerning contractor bonds in California, call the CSLB at (800) 321-2752.

Do You Provide a Warranty for Works Completed?

In California, the terms of all home improvement projects over $500, including material and labor costs, must be in a contract that contains specific information about consumer rights, such as warranties and the right to cancel. Most San Diego general contractors provide warranties on the quality of the goods and services they are offering to the general public. A warranty ensures that the goods and services purchased by the customer are of high quality and that customers will be given certain considerations if the goods or services fail to perform as expected. Warranties provided by general contractors are classified into two types:

• Explicit Warranty: this type of warranty is written and included in the construction contract
• Implied Warranty: this type of warranty is not written or included in the contract but is created by state law. Implied warranties are common in all types of construction projects, whether or not a written warranty is issued.

Subcategories of these aforementioned warranties include:

• Material and Equipment Warranty: this type of warranty covers the equipment and materials used in the construction project. It also ensures that the equipment and materials are brand new and of high quality.
• Call-back Warranty: this type of warranty allows the homeowner to call the general contractor back within a specified time frame to correct any aspect of the construction that was not completed correctly
• Vendor Warranty: this type of warranty is typically given by the manufacturer of products and appliances used for the construction project
• Warranty of Habitability: this warranty ensures that the completed building or structure is safe to live in and suitable for its intended purpose. This warranty is usually given to residential structures.

If the contractor provides a warranty for labor or materials, always make sure it is documented. The document must state which parts of the work are covered and how long the warranty lasts. You should also request any written warranties provided by the manufacturers of any materials or appliances installed by the contractor. San Diego homeowners have four years to file a complaint with the Contractors State License Board (CSLB) about a faulty project. Note that the deadline can be extended if additional warranties are written into the contract.

Can You Provide References of Clients Served in San Diego?

In your quest to hire a general contractor in San Diego, friends, and family remain vital sources of referrals, especially those who may have completed similar projects in the past. You can also conduct an online search to get recommendations from reputable trade associations and organizations like:

• The Associated General Contractors of America (AGC) San Diego Chapter
• The Building Industry Association (BIA) of San Diego
• The National Association of Home Builders

Regardless of how you come in contact with the general contractor you wish to hire, you should take certain steps to determine their legitimacy, experience level, and professionalism. Firstly, you should ask your preferred general contractor to provide references from past clients from whom you can inquire about their experience, expertise, and professionalism before signing an agreement with them. Ensure that you contact the references provided to get information and reviews on the general contractor you intend to hire.

In a bid to get vital and reliable information on the general contractor you intend to hire, you can also search third-party websites like Better Business Bureau, Yelp, and Google Reviews to see if complaints have been made against the contractor in the past. Similarly, you can contact the CSLB at (800) 321-2752 to see if there are any complaints filed against the general contractor and the nature of the complaints.

Note that contractors who are reluctant to give references from past clients they have worked for in the past cannot be trusted. This is because, in most cases, such general contractors may have been involved in poor service delivery or some fraudulent activities.

What Is the Expected Timeline for This Project?

Creating an expected timeline for a construction project is one of the services provided by general contractors in San Diego. A construction project timeline includes a detailed schedule of tasks arranged in chronological order and a deadline for the completion of each task and the entire project. General contractors in San Diego consider the following factors when deciding on a project timeline:

• The size and scope of the work
• The type of construction work to be done
• The availability of construction workers, materials, and other resources
• The prevalent weather conditions and time of the year
• The amount of time it takes to obtain a permit for the project

Listed below are some of the advantages of having a construction project timeline:

• It leads to better organization
• It helps everyone working on the project to be on the same page
• It eliminates waste by specifying the exact quantity and type of construction resources required for each task.
• It assists the contractor and construction crew in determining how the project is progressing
• It eliminates unnecessary delays by ensuring that each task is completed on time
• It aids in the control of construction costs
• It increases the efficiency of the contractor and other construction workers
• It assists the contractor in determining which aspects of the project are lagging