Nexus Plumbing Blog

Planning a Plumbing Remodel: What Are the Options?

When planning any plumbing addition, you must first consider code restrictions; the limitations of your system’s layout; and, of course, your own abilities. Although it’s usually straightforward to route supply lines to a new location, tying into drain-waste-vent (DWV) pipes is a different story.

The simplest and most cost-efficient way to add a new fixture or group of fixtures is to connect them to the existing main soil stack, either directly or through a branch drain. A common strategy is to install them above or below existing fixtures on the stack, piggyback style (see below left), but check codes carefully for restrictions. Another way is to place the new fixture or fixtures back-to-back with an existing group attached to the main soil stack (see below right).

If your planned addition is across the house from the existing plumbing, you’ll probably need to run a new vent stack up through the roof and a new branch drain to the soil stack (see bottom right) or to the main house drain via an existing cleanout. To save on labor costs, tie a bathroom sink, tub, or shower stall (although not a toilet) directly into an existing branch drain instead if possible.

Three common ways to install new fixtures include above or below old fixtures on the soil stack (A); back-to-back with existing installations (B); and with a new vent stack and branch drain (C).

To see photos and full article visit :http://www.hometips.com/buying-guides/plumbing-remodel-planning.html

By Suzanne Ervine, Construction Commando

1. Failing to Provide a Preliminary Notice at All. Any subcontractor who enters into a contractual relationship exceeding $400 is required by law to prepare and serve a Preliminary Notice. Failure to do so constitutes grounds for disciplinary action by the Registrar of Contractors.

2. Serving the Notice Too Late. To preserve Mechanic’s Lien or Stop Notice rights, a Preliminary Notice must be served within 20 calendar days of the first date services were performed or materials were provided on a job. If the Preliminary Notice is served later than 20 days after you first worked on a job, you are entitled to Lien or Stop Notice rights only for work performed within the 20 days prior to serving the Notice.

3. Waiting Until the 19th Day to Prepare the Notice. Putting off the preparation of a Preliminary Notice leaves little time to resolve any problems that may arise, such as difficulty reaching the prime contractor to request additional information, or delays at the governmental offices where you need to verify information in recorded documents and/or building permits. Furthermore, because the law requires the Notice to be sent via certified or registered mail, simply arriving at the Post Office even 5 minutes after the counter closes could result in missing the cutoff. Plan ahead!

http://blog.chs-law.com/2006/10/top-10-mistakes-preliminary-20-day.html

4. Mailing the Notice by Regular First Class Mail. The Preliminary Notice may only be served by personal delivery, or by first class certified or registered mail. Sending the Notice by regular first class mail is not sufficient, and the courts have ruled against contractors who did not comply with the strict requirements of the statute. In IGA Aluminum Products, Inc. v. Manufacturers Bank, the court ruled, “The statute clearly states that proper notice is a prerequisite to perfecting a mechanic’s lien, and that if service of the notice is accomplished by mail, the notice must be sent by registered or certified mail.” Proof that the Notice was served by mail in accordance with the statute must be accompanied by either the return receipt of certified or registered mail, or by a copy of the record of delivery; or in the event of nondelivery, by the returned envelope itself.

5. Providing an Arbitrary Estimate of the Total Price for the Job. While the law requires a Preliminary Notice to contain an estimate of the total price of a job, any such estimate must be a good faith estimate. The estimate must be “a derived figure, arrived at by rational analysis.” (Rental Equipment, Inc. v. McDaniel Builders, Inc..) Estimates that are “made up out of whole cloth” are insufficient.

6. Deviating from the Required Language in the “Notice to Property Owner” (private works only). California law is very specific about the language required in a Preliminary Notice for private works of improvement. The California Civil Code sets forth the exact language required in the “Notice to Property Owner” contained on the face of the Preliminary Notice. California courts have long held that deviation from this language will render your Notice invalid. In Harold L. James, Inc. v. Five Points Ranch, Inc., the court held that, “Where the Legislature has provided a detailed and specific mandate as to the manner or form of serving notice upon an affected party that its property interests are at stake, any deviation from the statutory mandate will be viewed with extreme disfavor” (emphasis added).

7. Failing to Verify Proper Identities of Notice Recipients. Many subcontractors rely on information obtained from the prime contractor. However, this is insufficient and could render your Notice invalid, thus barring any future mechanic’s lien or stop notice legal action. Contractors seeking to enforce a lien or stop notice remedy have a duty to inspect readily available public records to determine the identities of a property owner or construction lender. In Romak Iron Works v. Prudential Ins. Co., the court held that Civil Code section 3097, subsections (i) and (j) “impose on a prospective stop notice claimant the duty to examine…the building permit and the specially-indexed official records of the county.” The court further ruled that, “If he fails to examine the two sources, subdivisions (i) and (j) operate to charge him with constructive notice of the information recorded in either.” Ignorance is no excuse – make sure you check the official public records!

8. Failing to File the Preliminary Notice with the County Recorder. Although not required by law, filing a copy of the Notice with the County Recorder can help contractors ensure that mechanic’s lien or stop notice rights are fully protected. If a contractor has filed a Preliminary Notice, the County Recorder is required to notify him of any subsequently filed Notice of Completion or Notice of Cessation. If a property owner files either of these documents, the time within which to file a mechanic’s lien or stop notice action is shortened to just 60 days for prime contractors, or 30 days for subcontractors and suppliers. Notification of this shortened time frame enables you to seek legal counsel and initiate legal action before the deadline. Please note, however, that the County Recorder’s failure to notify a potential claimant of a Notice of Completion or Cessation does not extend the amount of time you have to initiate litigation to perfect the lien or stop notice.

9. Failing to Send a Copy of the Notice to the Surety Company. To enforce a claim on a payment bond, notice must be given to the bond surety and bond principal within 15 days of the recording of a Notice of Completion or Notice of Cessation (or within 75 days after completion of the work if neither Notice is recorded). This payment bond notice can be accomplished by simply serving the bond surety with the Preliminary Notice, and further ensures that a very short 15-day deadline is not missed.

10. Serving Only One Notice if Multiple Notices Are Required. Generally, a contractor must serve only one Preliminary Notice per job, regardless of the length of time or amount of materials and services provided. However, if you are providing services or materials to a jobsite under multiple contracts with multiple subcontractors, a separate Notice must be prepared and served pursuant to the contract with you have with each subcontractor. This most often occurs with suppliers who provide materials to many contractors for the same job.

San Diegans will pay roughly 6.4 percent more for water starting in March, after the City Council voted 6-2 Monday to increase rates despite angry comments by a few dozen ratepayers and more than 13,000 signed protest forms.

Even larger rate increases have been adopted elsewhere around the region in recent months, as cities and water districts struggle to swallow a series of hefty rate increases from wholesale suppliers.

“Pretty soon, this native San Diegan is going to have to find somewhere else to live,” said John Robinson of University Heights.

San Diego council members said they had no choice but to increase charges that will push the bill for the typical homeowner to $72.03 starting in March — a 67 percent increase since early 2007. That’s about $4.33 per month more than residential customers pay today for a citywide total of about $25 million a year.

If the city had not adopted the increase, it would have had to find other funds to pay the bills, such as taking cost-cutting measures or using savings.

Water rates across the county
Escondido: The City Council on Wednesday will consider a 9 percent increase to pay for wholesale increases and city plans, such as replacing aging infrastructure.

Helix: Rates went up 8 percent in November to cover higher wholesale costs, replenish the agency’s rate stabilization fund and make up for lost sales to customers who conserved more than anticipated.

Santa Fe: Recently raised 2011 rates by 12 percent and set the groundwork for similar increases each of the next two years.

Valley Center: Increased domestic rates by 16 percent. Besides water expenses, the district said it had to boost rates because operating revenues weren’t covering operating costs.

Vista: Residents will pay about 7 percent more starting in March to cover higher wholesale rates. Agency officials said they didn’t add any of their own costs.
Council members said they wouldn’t stop with Monday’s decision. They also voted to ask the state Legislature to support investigations into the finances of the Metropolitan Water District of Southern California, which supplies the bulk of the region’s water. And they signaled interest in joining the San Diego County Water Authority in a lawsuit against Metropolitan’s rate structure, which local officials said subsidizes other regions at the expense of San Diego County residents.

The issue of rate increases is almost certain to emerge again by the end of the year if Metropolitan follows through with plans to increase its rates by 7.5 percent in 2012.

“We are completely at the mercy of MWD,” said councilwoman Lorie Zapf, who crafted an amendment seeking investigations into the wholesalers’ finances. “While I am respectful of those who chose to vote no today, personally I worried that voting no was a return to past practices where the city created a long list of deferred maintenance because nobody wanted to make the tough decisions.”

Councilman Carl DeMaio said there were several ways to cut waste out of the city water department and voted along with Marti Emerald to oppose the rate increases. Emerald urged city officials to tap more than $30 million in savings to avoid the increases.

“You’ve got a (rate) stabilization fund set up just for this purpose — to give a break to people on fixed incomes,” Emerald said.

City utility officials opposed her idea because they plan to use that money for construction projects they said the city needs to maintain a safe drinking water system.

“We don’t have much of a choice here,” Council president Tony Young said outside the meeting.

Metropolitan leaders have maintained for months that they are cutting costs aggressively and are themselves hostage to forces beyond their control, such as energy prices, debt on infrastructure, environmental restrictions and falling water sales. They have rejected the water authority’s argument that regional rates are unfair.

San Diego council members said they would explore the possibility of joining the rate lawsuit against Metropolitan in closed session as a way to show a more aggressive stance toward the Los Angeles-based agency. City Attorney Jan Goldsmith warned that the council may not want to do that because it would increase the city’s legal fees in the case, which the city already is helping fund through the county water authority.

Before the council’s decision, speaker after speaker urged city leaders to find another way to pay the higher bills from Metropolitan. Most of them were retirees or unemployed people who said they were barely making ends meet. One woman brought a notice from the city that her water was about to be shut off.

Gae Walker of Scripps Ranch voiced a common concern, saying she and her husband had cut their water use by more than 30 percent in recent years “yet the bills continue to rise.”

mike.lee@uniontrib.com; (619) 293-2034; Twitter @sdenvirobeat

http://www.signonsandiego.com/news/2011/jan/24/san-diego-water-rates-going-64-percent/

10 Things Plumbers Won’t Tell You
1. “There’s an old plumber’s adage: ‘An ounce of prevention could cost me thousands.’”

Water is the single most common cause of household damage, according to Jim Swegle, Vice President Safeco Personal Insurance, a Seattle-based homeowner’s insurance company. Roughly 30% of home water-damage claims results from appliance failure and another 62% from faulty plumbing systems, according to Safeco. The biggest culprits: water heaters and washing machines. And repairs are costly. Swegel says that American households with water damage spend as much as of $5,000 for each episode.

Some easy cautionary measures can lower the risk of water damage and dramatically reduce your reliance on plumbers. First, take stock. Make a checklist of your home’s water-based appliances and equipment — water heaters, washing machines, sump pumps — and note any wear and tear, especially on appliance parts (washing machine hoses, for example). Water heaters have a life expectancy that is hard to predict, so check yours monthly for puddling and follow all maintenance guidelines precisely. There might not be an immediately visible problem, but tanks can rust on the inside, leading to a rupture.

Hot water tanks should be replaced every ten to twelve years, says Swegel. Energy efficiency has come a long way – replacing your tank with a more modern one will result in energy savings, he says.

2. “I’m not really a plumber.”

A big chunk of the plumbing industry is made up of handymen, guys with tools and a little plumbing know-how. Although some of these Mr. Fix-Its are competent, many are not. The best way to minimize your risk is to hire a licensed plumber or at least one with a lot of experience. Licensed plumbers are required to abide by state regulations governing how the work is done and to follow local safety and building codes; they’re also more likely to carry liability and worker’s comp insurance. In states without licensed plumbers, your next-best bet is a licensed plumbing contractor, or at least someone who belongs to a plumbing trade organization.

“I can’t just go out and say I’m a plumber — just like I can’t click my heels and say I can put in irrigation” says plumber Roy Dillard, who works with certifications at the American Backflow Prevention Association. It’s important to leave the plumbing to plumbers, because they are technically protecting the public. “You don’t want just anybody plugging into the water supply,” he says.

Operating without a license or permit carries a lot of liability, but it happens. For instance, Dillard’s neighbor recently had her water heater go out, and was charged more than $1000 for a $200 hot water heater. She filed a complaint. “Come to find out he’d had his license suspended before for price gouging,” he says.

3. “My less-experienced underling will be over in a minute.”

Risa Hoag, a public relations firm owner, was surprised when much of the work in a new upstairs bathroom in her Nanuet, N.Y., home was done by people other than the plumber who gave her the initial estimate. That plumber, who was hired by Hoag’s contractor, visited the home and assessed the job, but was assisted by an apprentice. The assistant neglected to cap a radiator line, which eventually flooded and ruined the ceiling of the kitchen below. “No one checked his work, and we had to rip out a new ceiling,” Hoag says.

It’s common for plumbers to bring apprentices on a job; in fact, it’s a required part of the licensing process for trainees. However, although many states require a licensed plumber to supervise an apprentice, that doesn’t always happen. The best way to protect yourself is to negotiate personnel at the outset. Most plumbing companies, whether individually run or larger operations, have multiple jobs going at once, so it’s common practice to send employees or even trainees along with (or instead of) the guy whose name is on the side of the truck. But you can insist that a licensed plumber or plumbing contractor be present on the job, either to work or, at the very least, to supervise.

Updated and adapted from the book “1,001 Things They Won’t Tell You: An Insider’s Guide to Spending, Saving, and Living Wisely,” by Jonathan Dahl and the editors of SmartMoney

Read more: 10 Things Plumbers Won’t Tell You – Spending – Rip-offs – SmartMoney.com http://www.smartmoney.com/spending/rip-offs/10-things-your-plumber-wont-tell-you-18259/#ixzz19QROze17

1. Leaving hoses connected during winter

This is a classic plumbing error that one must assume is caused most often by extreme laziness. Unlike holiday lights, hoses can cause damage when left out all year: They can lead to freezing of the sillcock (outdoor faucet) or its water supply pipe. It’s terrible for your hose, too.

2. Using too much drain cleaner

When used judiciously and as directed on the right kind of clog, drain cleaners can be effective and relatively safe for drains.

When used with abandon, they can corrode some drain materials, and they can actually make clogs worse. It’s also not very nice for the plumber who eventually comes out to clear that clog.

3. Pouring household chemicals into a septic system

If you’re used to living with a “private” sewage system, you probably know how to take care of it. But if you just bought a house with septic, or maybe you’re renting a rural cottage for the summer, you might not think twice about using chemicals like drain cleaner, chlorine bleach, paint, and even anti-bacterial soaps.

These chemicals kill the essential waste-eating bacteria in the septic tank, and you can guess the result. Also, be careful about grease (see below) what else you put into a septic system.

4. Screwing, nailing, or cutting into a wall with hidden plumbing pipes

Now we’re into the realm of “Oh, yeah. I did that once.” Do this with a screw, and you might hear a fine spray of water hitting the back of the drywall. Do it with a reciprocating saw, and you’re in for a gusher.

5. Pouring grease down the kitchen drain

If you’re in the habit of pouring bacon grease down the kitchen-sink drain, you might as well try to stuff the whole pig down there.

Grease is one of the best things for clogging drains. (So is all the soap we use in the bathroom, but that’s a harder habit to break.)

6. Abusing the garbage disposal

Even if you’re not drain grease in the sink, you might be one of those folks who thinks a food disposer (garbage disposal) is the equivalent of a space-fantasy ray gun. It’s not.

It’s a motor with a spinning wheel that has two metal teeth thingees, and it does very little to stop the following from clogging your drain: flour, rice, potato peels (and some other veggie peels), and many fibrous foods such as asparagus and chard.

7. Using the toilet as a trash can

We all know it’s stupid, and we all do it anyway. It’s as though, at the back of our minds, each of us believes that if we can just get it to flush away, it will be magically out of our lives forever.

As if, at the other end of the toilet, there is nothing but a black hole, a portal to a subterranean outer space that swallows up everything we discard and whisks it off into oblivion. Unfortunately, that oblivion is a 3-inch drain pipe that leads into another drain pipe, which is THE drain pipe to your entire house.

In other words, flushing one improper item down the toilet ultimately can stop up everything in the house. But we do it anyway. And the bottom line is, if it ain’t toilet paper , it doesn’t belong there.

For a pressure regulator to work accurately the pressure setting on it must be at least 15 PSI lower than the inlet pressure. So if your static pressure is 70 PSI, the highest pressure you should set on the pressure regulator would be 55 PSI. 55 PSI is a good pressure for both the needs of a house and a sprinkler system.

Believe it or not, some people have too much pressure. If your home is in a low lying area, water pressure may be higher than average. And if it’s higher than 70 psi, you should have a plumber install a pressure-reducing valve.

If so, you need to know the following important information:

As of April 22, 2010, contractors remodeling or demolishing more than six square feet indoors or 20 square feet outdoors must be trained and certified for lead safety by the United States Environmental Protection Agency (US EPA) to work in homes, childcare facilities or schools built in or before 1978.

Buildings constructed in or before 1978 are likely to contain lead-based paint that can be disturbed during remodeling or demolition, creating dust and exposing workers and occupants to the potential health hazards associated with lead.

Scientific studies show children with high levels of lead in their bodies can potentially suffer from:

Damage to brain and nervous system
Behavior and learning problems
Slowed growth
Hearing problems
Headaches
US EPA Renovate Right booklet: http://www.epa.gov/lead/pubs/renovaterightbrochure.pdf (Your contractor should provide you with a copy)

Database of CSLB-licensed contractors who are lead-certified: http://cfpub.epa.gov/flpp/searchrrp_firm.htm

Note: Homes constructed in or before 1978 may also contain asbestos!!

Any project 100 square feet or more that involves asbestos-containing construction materials must be performed by a contractor registered with the California Department of Occupational Safety and Health (DOSH).

Asbestos Registrants Database: http://www.dir.ca.gov/databases/doshacru/acrusearch.html

Avoid Legal Hazards
Require written contracts for all work you perform. Retain copies of contracts for at least three years.
Have contracts and warranties reviewed by your attorney. Do not accept/assume responsibilities you are not familiar with.
If you hire subcontractors:
Have written contracts with subcontractors, with requirements for them to hold you harmless, indemnify, and defend you against any claim or liability arising from the performance of the contract.
Require each subcontractor to submit certificates of insurance for liability and workers’ compensation coverage, prior to beginning a job. Certificates should show limits of liability (if applicable) at least equal to the limits of your policies, indicate a policy period covering the period(s) of time work will be conducted, and be kept on file for premium auditors.
If you are working as a subcontractor, specifically limit contractual agreements for you to hold the owner or general contractor harmless, indemnify, and defend them against any claim or liability arising from the performance of the contract, to the work you perform.
Have licensed professional engineers or architects design and/or approve project plans and specifications.

Prevent Losses on the Job Site
Use employment applications and check references of prospective employees. (Applications available at most office supply stores).
Provide written safety rules and enforce them! Safety rules should be based on OSHA, or other government agency safety requirements and accepted industry practices. Areas of particular concern are:
Full Protection (Work at heights)
Lock-Out / Tag-Out of Energy Sources
Confined Space Entry Program
Hazard Communication Program
Personal Protective Equipment
Employees should have similar job experience, or be provided training in any job they may be assigned.
Assign responsibility for safety to a supervisor or foreman.
Hold regular safety meetings.
Conduct periodic safety inspections.
Review the safety practices of all subcontractors you have hired. Be sure they meet the same standards you have established.
Have a first aid kit available.
Post emergency phone numbers and have a phone available to summon help in the event of an emergency.
Have fully charged, easily accessible, portable fire extinguishers.
Provide protective equipment such as safety glasses, hearing protection and hard hats. Enforce their proper use!
Secure the job site! Fence the site to prevent vandalism and public access to hazardous areas. Control access to customers and their vendors. Provide lighting when possible.
Barricade work areas and provide warning signs near excavations and other hazards.
Secure equipment and materials left on the job site. Lock tools in boxes and secure large equipment with chains. Limit tools and materials left on the site as much as practical.
Store/handle hazardous materials properly. Protect containers from damage and secure tanks in an upright position. Use safety cans for gasoline and other flammable liquids.
Practice good housekeeping! Remove scrap and debris daily. Limit the accumulation of sawdust.
Store waste materials and dumpsters well detached from buildings.
Follow precautions for welding and other hot work. Shield or wet combustible surfaces. End such operations at least 30 minutes before leaving the site unoccupied.
Temporary heating units should be UL/AGA approved. Follow manufacturer’s suggested precautions and provide adequate clearance from combustible material.
Have procedures for reporting and investigating incidents and accidents. Lessons learned even from “near misses” may help to identify ways to avoid future accidents.
Require proper use of ladders and scaffolds.
Limit the exposure of adjacent properties to damage and comply with all building and environmental codes.

Prevent Losses on the Road
If employees drive your vehicles, or drive their own in the course of work, have your agent check their driving record.
If your employees drive their own vehicles in the course of work, verify their insurance coverage and make sure their limits are equal to your insurance.
Provide written driving safety rules to anyone who operates a vehicle.
Have procedures for reporting and investigating accidents.
Develop written preventative maintenance procedures for all vehicles and equipment.

Vehicle Safety
The following are common safety rules that many companies use to ensure safe operation of their vehicles. Their implementation and enforcement may help you avoid accidents and lower your insurance costs.

Only designated employees should operate company vehicles.
Driver’s license numbers must be provided and are subject to periodic record checks.
A revoked or suspended license must be reported to a supervisor.
Drivers must adhere to all laws and regulations pertaining to the use of the specific type of vehicle they are operating, including requirements for special licenses or permits.
Accidents of any nature or severity must be reported immediately to a supervisor.
Tickets for any violation must be reported to a supervisor. The driver is personally responsible for any fines or penalties resulting from the manner in which they operate the vehicle.
Drivers are responsible for inspecting and verifying the safe operating condition of their vehicle at the beginning and end of each workday.
Unsafe vehicle conditions must be reported to a supervisor.
All speed limits and traffic laws must be obeyed. Speed should be reduced as road conditions warrant (rain, snow, construction, etc.).
All lane changes must be signalled. Flashers should be used when stopped on a roadway or when traveling well below the posted speed limit.
Operation of any vehicle while under the influence of alcohol or drugs, including prescribed medication that impairs ability to drive, is strictly prohibited.
Courteous behavior should be maintained at all times.

Social Networking

1. Be distinctive.

A brightly-colored, hand-painted tie, an unusual necklace or other jewelry, a good (but not overpowering) cologne, even just impeccable grooming can all help you stand out in a good way. It’s not that you want to be remembered and identified for that, but anything that helps people separate you from the crowd helps them remember the rest of you. You don’t have to be outlandish — although some people work that quite well — just don’t blend in completely with the crowd.

2. Be fully present.

Be fully engaged and fully aware of the people you interact with. You can break this down into smaller, somewhat mechanical pieces — listen well, respond promptly, maintain eye contact, etc. — but if you are truly present in the moment, those things will happen naturally. Many people only seem to be “half there”, so being fully engaged helps you stand out.

3. Ask thought-provoking questions.

Networking expert Bob Burg has some good suggested questions in his book Endless Referrals: Network Your Everyday Contacts into Sales, such as “How did you get started?” or “What do you enjoy most about what you do?” But the very best questions can’t be communicated in a book because they’re specific to the person you’re interacting with and will arise in response to your initial conversation. Do #2 and this will flow naturally. As Dale Carnegie suggested, you must “take a genuine interest in other people”.

4. Reinforce your keywords.

People aren’t going to remember long descriptions of what you do, or likely even that 15-second intro that many experts teach you to make. People will at best remember a few key things about you:

•Your name
•Your company name
•Your business/industry (in three words or less)
•Your product
•Your location
What you want to do is find ways to unobtrusively increase the occurrence of these things in your conversation. For example, is there some kind of story behind your name? Have it ready to use if there’s an opportunity. Does your business have an unusual name? What’s the story behind it – what does it mean? Refer to your place of business when telling an incident that occurred (“I was driving down 17th Street leaving my store, when…”).
Anything you say that reinforces one of the five items above helps make you more memorable. And if they can remember just three of them — “Joe the barber from Soho” or “Maria the translator who wrote ‘Spanish in Six Weeks’” — you’re doing great.

5. Contribute to the group conversation.

Don’t hog it, and don’t say just anything in order to say something publicly, but saying one really smart thing at your table or in front of the whole group will make you much more memorable than half an hour of semi-conscious small talk. Create value for others and you create value for yourself.

When we look at brand strategy in marketing, one of the most important concepts is that a brand is not just a memorable name or logo — it’s an experience. A great brand communicates values and emotions that get called to mind whenever someone thinks of the name or logo.

Here we’re talking about your personal brand. Remember that you are your business. The impression that you make on people is the impression they will have of your business, so make it good and make it memorable.

http://entrepreneurs.about.com/od/businessnetworking/a/memorable.htm

In states that require licensing, hiring an unlicensed contractor is illegal. And if that’s not bad enough, did you know an unlicensed contractor who gets hurt on your property could sue you — and win? Unlicensed contractors are unlikely to carry proper insurance, so it has happened.

These are the extremes. But even the average experience with an unlicensed contractor can be devastating. Most consumers who call me for help complain that the unlicensed contractor did shoddy work. Others report the contractor made off with their money and did no work at all.

Elease W. saved for two years to build a ground floor bathroom in her home, because she has arthritis and stairs are hard for her. She paid a contractor $10,000 to do the work. Two years later it still wasn’t done right. For months, Elease and her daughters felt like prisoners in their home, because the contractor left gaping holes in the walls, so they didn’t dare leave. The water pipes were built outside the structure, and they froze in the winter. The foundation was unstable, and the siding immediately started peeling off. Of course the family didn’t check out the contractor until after everything went wrong. It turned out he was unlicensed and had a complaint record a mile long.

Paul H. needed a new roof. He got a couple of different estimates but felt he couldn’t afford them. Then he spotted an ad in one of those free neighborhood newspapers — promising the lowest roofing rates in town. Paul hired the man to reroof his home for $5,000.

The man demanded full payment in advance. The man climbed around on Paul’s roof for a few minutes, then said he was going to get supplies. He never returned. When I investigated, I learned the phone number in the ad actually belonged to an answering service. The address the man gave Paul didn’t even exist. And there were no licensed contractors by that name listed with the state.

Licenses are generally required for any work that affects the structural or electrical integrity of the building. I’ve done a couple different undercover investigations where we invited unlicensed contractors to give us estimates for roofing work. First of all, it was easy to find unlicensed contractors. We spotted their ads in local newspapers and found their business cards at home-improvement stores. Unlicensed contractors tend to use the cheapest possible means to market themselves.

When we confronted them, we heard every excuse. One man said he couldn’t afford a contractor’s license, even though the state where he worked only charges $300. Another man said he was working “under” somebody else’s license. That’s illegal. Only bonafide employees are allowed to work under the umbrella of a licensed contractor.

A third showed us a contractor’s license for another state. That doesn’t count. The contractor must be licensed in the state where the work is to be done. Several guys presented us with occupancy licenses, which are just business permits that anybody can buy. They don’t make a contractor legal.

If an unlicensed contractor nails you, you have next to no recourse. There’s no license that the state can yank to threaten his livelihood. If you complain about him, he’ll just change the name he does business under. You can’t tap into his insurance policy because he doesn’t have one. Even suing an unlicensed contractor — and winning — is often futile, because unlicensed contractors don’t have deep pockets.

To Be a Savvy Consumer, Know the Signs:
1. Unlicensed contractors often go door-to-door claiming they “just finished a job down the street.”

2. They may rush you and say, “If you act now, you’ll get a special price.”

3. Unlicensed contractors either neglect to pull construction permits or they ask you to do it for them. If you do, you are assuming liability for the project, including the contractor’s mistakes.

4. Some states require contractors to list their license numbers on their vehicles, their estimates and their advertising. If a contractor has not done that, it may be a bad sign.

5. If you see a license number in an ad, and it has a different number of letters, numerals and digits than all the other ads, it may be a fake license number.

6. Be wary if a contractor provides only a P.O. box or pager number. That may mean he doesn’t have roots in the community and plans to move on as soon as people start to complain.

7. Unlicensed contractors often ask for a lot of money up front. Try not to pay any money in advance. If you must, keep the amount minimal.

Do Your Homework:
1. Find out what the licensing requirements are for contractors in your state. Also check with your county. If you live in an area where contractors do not have to be licensed, you’re going to have to be extra vigilant about who you hire.

2. Try to find your contractor through word of mouth. A satisfied friend or neighbor is a much better source than a free newspaper.

3. Ask to see the contractor’s actual paper license. Unlicensed contractors often put fake license numbers in their advertisements.

4. Get the contractor’s full name, company name and license number, and double check all three with the county and state departments that license contractors.

5. Also ask those departments if the contractor has a history of complaints.

6. Don’t be fooled by “occupancy permits” or business licenses. These pieces of paper are worthless to you. Any business owner can get one. When I say licensed contractor, I’m talking about a person who has proved his skill in the field and been awarded a specialty license just for contractors. Hint: Ask the contractor if he had to take a test to get his license. He should have.

7. If the contractor is licensed in another state, but not the one where the work is to be done, that’s no protection. Some states do have reciprocal agreements, where a contractor with a license in one state can be “fast tracked” to get a license in another. Until he goes through that process, don’t do business with him.

8. Also make sure the contractor is licensed to perform the type of work that you need. A licensed electrician cannot do plumbing work, for example.

9.If you hire a general contractor, make sure the specialists he hires — like plumbers and electricians — are licensed too.

How to Complain
If you learn your contractor is unlicensed, contact the county and state departments that license legitimate contractors. They can advise you and possibly pursue criminal charges against the unlicensed con.

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