Before Hiring a Contractor

If you are a consumer interested in having work done by a contractor, this section can help you by:
1. Explaining how the Washington state contractor registration program works.
2. Describing how the contractor registration law protects you, the consumer.
3. Outlining the requirements for contractors.

Consumers and businesses need to learn about prospective contractors before contracts are signed, and before money is paid. If you have questions about a contractor or need more information about the contractor registration law, call the Department of Labor and Industries on their state-wide toll-free contractor registration information line: 1-800-647-0982

Requirements

Washington state law requires all contractors to be registered. General contractors must maintain a $12,000 bond and specialty contractors must maintain a $6,000 bond. (Specialty contractors are those who participate in no more than two trades and do not subcontract work to other contractors.)

It is against state law for any contractor to submit bids or perform any contracting work without being registered with the Department of Labor and Industries. It also is illegal for contractors to advertise without including their 12-character contractor registration number in the advertisement.

Consumer Protection

The contractor registration law exists to protect consumers from incompetent and/or fraudulent contractors.

Requiring contractors to be bonded gives consumers some financial protections against unsatisfactory or incomplete work. Dissatisfied consumers may take civil action to obtain restitution by taking action against a contractor's bond in Superior court.

The law also requires contractors to carry insurance for property damage and public liability. It also ensures that contractors have a current Unified Business Identifier (UBI) Account Number and Federal Employer Account Number.

Any correspondence you send to a contractor should clearly state that bids will not be accepted unless the contractor provides a valid registration number.

While the law does not guarantee perfect performance, it improves the likelihood that the contractor does competent work.

Registration Penalties

A maximum $3,000 fine and a misdemeanor infraction can be levied against any contractor who performs work or submits a bid without being registered with Labor and Industries.

Insurance Protection

Contractors are required to carry at least $20,000 in property damage insurance coverage and $100,000 in bodily injury or death insurance.

You are encouraged to verify the contractor's insurance coverage with his or her agent, as the department's records may not reflect current coverage.

12 Tips to Remember

1. Make sure your contractor is properly registered.
2. Be wary of contractors who ask you to pick up the building permit.
3. Plan your project carefully, including detailed plans, if necessary.
4. Try to get at least three written bids on each job.
5. Ask contractors for references.
6. Ask what inconveniences might arise.
7. Obtain a written contract.
8. Make sure you understand the terms before you sign anything.
9. Be cautious about paying for work not yet completed.
10. Put all change orders in writing.
11. Make frequent inspections and consult your local building department.
12. Avoid making final payment until you have received a lien release from suppliers and subcontractors.

Information Line

The Labor and Industries contractor registration information line:
1-800-647-0982
operates weekdays from 8 a.m. until noon and 1 to 5 p.m., excluding state holidays. The information line allows you to check whether commercial and residential contractors are registered and properly bonded.