What You Should Know About
Hiring a Contractor,
Remodeler, or Handyman
Are you planning to hire someone to work on your home
or property? You need to Hire Smart.
We don’t usually think about nancial risks when
planning a home repair or remodeling project. Yet each
year, L&I hears from hundreds of homeowners who’ve
hired someone claiming to be a “contractor.”
The vast majority of Washington contractors are honest,
skilled, and focused on satisfying their customers. But they
also would agree that consumers need to be careful. The
nancial consequence of a bad or abandoned job can be
devastating for any homeowner.
What can you do to protect yourself?
Make sure you hire a registered contractor.
Contractors are required to be registered
in Washington if they:
Do any work that “adds to or subtracts from real estate.”
Provide advice or consult on a construction project.
Develop residential property or “ip” houses.
Contractors are not required to be registered if they
provide such services as:
Gutter cleaning.
Pruning or lawn care.
Window washing.
What is a registered contractor?
A registered contractor must maintain a
surety bond, carry liability insurance, and
have a Washington business license.
What work requires a registered contractor?
A list of work that must be done by registered
construction contractors can be found at
Lni.wa.gov/RegisterAsAContractor and
clicking on “63 specialties.”
If your project is listed, verify that you’re hiring
a registered contractor at Lni.wa.gov/Verify.
Washington state does not require
contractors to pass a competency or skills
test to become registered (though L&I does
test and license electricians and plumbers).
Still, it is not legal for anyone to perform
work, advertise, or submit bids without being
a registered contractor.
How do bond and insurance requirements in Washington
contractor laws help protect homeowners?
They give you nancial recourse: Required bonds give
homeowners some nancial recourse if the job is left
unnished or you are not satised with it. In these
cases, you may take civil action in Superior Court
against a contractor’s bond. General contractors must
post a $12,000 bond, and specialty contractors, such as
painters or landscapers, a $6,000 bond.
They can cover damage: The contractor’s required
general liability insurance coverage of $50,000 covers
damage to your property; the $200,000 public liability
insurance covers other personal damages.
They provide a ‘known’ business to work with:
Arequired current Washington business license
ensures the contractor is not a “y-by-night” company
and
—
if the contractor has employees
—
they are
covered by workers’ compensation insurance,
obtained through L&I.
You can ask to see your contractor’s liability insurance policy.
This will help you verify what it covers. Many liability
insurance policies for contractors include ‘construction
defect’ clauses and/or ‘exclusions for work outside of the
contractor’s normal business practices’. Reviewing the
contractor’s policy with your insurance agent may be
advisable, especially for larger projects.
Check out ProtectMyHome.net
It’s L&I’s online toolbox for homeowners looking for the
right contractor, where you can:
Verify a contractor’s Washington registration.
Find out how long they’ve been registered and if they
have workers’ compensation insurance for employees
they may have on your property.
Check for pending or past legal actions against the
contractor and their bonding company, other business
names used in the past, and past infractions.
Download a copy of our Hire Smart Worksheet.
Get step-by-step advice on how to hire a contractor.
Before you hire a contractor
orremodeler:
Hire smart. L&I can help.
1. Verify their contractor registration.
2. Get three written bids.
3. Don’t pay in full until the job gets done.
For more “Hire Smart” tips, go to:
ProtectMyHome.net
If you hire a person who is not a registered contractor,
beaware and manage the risks.
If you do decide to hire someone who is not a registered
contractor, you could be considered that person’s employer,
with wage, tax, workers’ comp, safety, and record-keeping
requirements.
To protect yourself from risk and liability
—
if you are not
working with a registered contractor
—
be sure to:
Get workers’ compensation insurance through L&I.
If your worker gets hurt, it will pay medical expenses
and protect you from being sued. (See Page 4.)
Pay at least the minimum wage. Find the current
required hourly wage at Lni.wa.gov/workers-rights.
Keep track of hours worked. You must pay overtime after
40 hours in a given week. Also, if the worker later claims
you failed to pay wages correctly, you will have a record.
Pay/withhold taxes due on the wages.
Go to BizGuide.wa.gov for information.
Heads up! Don’t pay twice.
Did you know that you, the property owner, are ultimately
responsible for ensuring suppliers, subcontractors and workers
are paid? If your contractor doesn’t pay them, they have the
right to le a lien on your property to obtain payment.
Learn more in Publication F625-017-000, Facts About
Construction Liens.
Protect yourself with permits
Your contractor should obtain all the necessary permits. If
you do the work youself, you need to check which permits
are required and obtain them if necessary.
Building permits: Contact your local county or city
building department.
Electrical permits: Lni.wa.gov/ElecPermit.
Manufactured homes permits: L&I must approve plans
and inspect both new and ‘altered’ manufactured/
factory-assembled homes and recreational vehicles for
safety. Call your local L&I ofce or go to Lni.wa.gov/FAS.
Elevator permits for any stair-lifter, pool lifting
device or other conveyance. For information, go to
Lni.wa.gov/Elevators and click the “Plans, Permits,
and Fees” tab.
Be wary of contractors who:
Provide credentials or references
that can’t be veried.
Offer a special price only if you
“sign today” or use other high-
pressure sales techniques.
Accept only cash, require large
deposits or the entire cost upfront.
Ask you to pay in their name,
rather than the name of a business.
Do not provide a written contract
or complete bid.
Ask you to pick up the building
permit, usually a contractor
requirement. (Permits are for your
protection; they help ensure you’ll
meet building codes.)
Offer exceptionally long warranties.
Want to do most or all the work on
weekends and after-hours.
Give you an offer that sounds
“toogood to be true.”
If you do choose to open a workers’
comp account, here’s how:
If you are hiring people for new
construction, remodeling work, or
a property addition, and choose to
have L&I workers’ comp insurance
for protection, here are the steps:
Go to dor.wa.gov and ll out a
Business License Application.
Or visit any L&I or WA Dept. of
Revenue Business Licensing Ofce
to get an application in person.
(Find a Revenue ofce: dor.wa.gov
or call 360-705-6741.)
Make sure you check the box that
asks if you are hiring workers.
The application will be routed to L&I
and an account manager will contact
you to set up the workers’ comp
account. The entire process usually
takes two weeks. Workers’ comp
premiums for construction workers
vary (from under $2 per hour to
$6 per hour or more for jobs with a
higher risk of injury). The coverage
provides full medical benets for the
worker if injured on your job.
IMPORTANT: Most homeowner
policies do not cover workers, so if
you decide to hire someone who is
not a registered contractor, check
with your insurance agent. If you
don’t have workers’ comp coverage,
you could be legally liable for a
worker’s injury costs and would be
unprotected from lawsuits.
Call L&I’s Employer Services program
for more information: 360-902-4817.
L&I has offices throughout Washington
ready to help you
Bellevue: 425-990-1400
Bellingham: 360-647-7300
E. Wenatchee: 509-886-6500
Everett: 425-290-1300
Kelso: 360-575-6900
Kennewick: 509-735-0100
Montesano: 360-533-8200
Moses Lake: 509-764-6900
Mt. Vernon: 360-416-3000
Pullman: 509-334-5296
Seattle: 206-515-2800
Sequim: 360-417-2700
Silverdale: 360-308-2800
Spokane: 509-324-2600
Tacoma: 253-596-3800
Tukwila: 206-835-1000
Tumwater: 360-902-5799
Union Gap: 509-454-3700
Vancouver: 360-896-2300
More resources
`
Office of the Attorney General, Washington State
For consumer information or to file a complaint:
Online: atg.wa.gov/safeguarding-consumers
Phone: 1-800-551-4636
`
Better Business Bureau
To check out a business or file a complaint:
Online: bbb.org
Phone: 206-431-2222 (western Washington)
509-455-4200 (eastern Washington)
Contractor information at L&I
ProtectMyHome.net
Lni.wa.gov/HiringAContractor
Call toll-free: 1-800-647-0982
Upon request, language support and formats for persons with
disabilities are available. Call 1-800-547-8367. TDD users, call 711.
L&I is an equal opportunity employer.
PUBLICATION F625-084-000 [01-2024]
