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28 FOUR SEASONS BREEZE | NOVEMBER 2023 Why does the ARC recommend that homeowners only use licensed contractors? It's really very simple. ARC is trying to protect the interests of the community and its homeowners. California state law allows unlicensed contractors to perform services if the total of the work is below $500 for labor and materials combined. That means if the material used, regardless of who supplies it, and the amount charged by the worker(s) exceeds $500, the person doing the work is required to have a contractor's license. For example, if a homeowner is remodeling their kitchen and the total cost of the project is $6,000, a license is required. If the homeowner chooses to sublet the flooring installation for a cost that is less than $500, the flooring installer will still need a license since the total project exceeds $500. This requirement also applies if the homeowner purchases the material, and the labor cost is less than $500, the contractor will still need a license. Many homeowners hire someone to perform work without knowing if the contractor is licensed or not. Often unlicensed contractors charge lower prices for the same project. There are significant risks to hiring an unlicensed contractor. These include the property owner being liable for injuries the unlicensed contractor and their workers may incur if the unlicensed contractor does not have workers' insurance. Use of an unlicensed contractor may result in denial of insurance claim(s) for later damage to the home. For example, a homeowner used an unlicensed contractor to install a shower as part of a bathroom remodel. Years later the homeowner was replacing the carpet in an adjoining room and discovered that the shower drain had been leaking for several years causing damage to the walls and the foundation. The insurance company denied the claim because the contractor who installed the shower was not licensed. Unlicensed contractors are unable to obtain building permits and typically perform unpermitted work. The homeowner has no assurance that the work done complies with building codes or is safe. California law requires sellers to disclose unpermitted work to future buyers. While this information is rarely provided by the sellers to the buyers, should the buyer later discover the unpermitted work the seller could be sued for fraud and other damages. Recently a California court found that a home that was sold for $950,000 had several unpermitted building projects. The court found that the value of the house at the time of the sale was $150,000 and required the seller to refund $700,000 to the buyer. Are you willing to take these risks to save a few dollars? Obtaining a contractor license is not difficult. It requires proof of experience, passing a written examination and providing proof of insurance and a performance bond. Any contractor who is required to have a license and does not have one is violating the law. Do you want someone who refuses to comply with the law working on your home and putting you at risk for substantial financial and emotional loss? You can ensure that any contractor you hire is licensed and has state mandated insurance by looking up the contractor or company on the Contractor State License Board website www,cslb.ca.gov. The website not only verifies the possession of contractor's license it lists the workers compensation insurance and liability insurance carrier. It also lists the issuer of the required performance bond. The website also lists any complaints made against the contractor and if they have been resolved. An unlicensed handyman can do work that does not permanently attach to a dwelling, change the plumbing or electrical systems, or change the structure of the dwelling. Typical handyman work includes hanging framed pictures, changing batteries in smoke detectors, flushing water heaters, installing shelves, maintaining existing landscaping (mowing), and simple repairs. While you are responsible for any work performed on your own home and property, the HOA has the same responsibility to protect your investment in the common areas of the community. The Board of Directors takes this responsibility very seriously. FirstService Residential, the management company hired to perform the day- to-day tasks under the supervision of the Board, uses a third-party company to ensure that every contractor who performs work on the common areas in the community is licensed, insured, and bonded. This company also ensures that the licenses and other required items are current at the time any work is done. In conclusion, ARC continues to urge you to only use licensed contractors to perform work in your home and on your property. It is for your own protection. Please consider attending an ARC meeting to see what we do. We meet the first and third Wednesday of each month in the RNC Conference Room at 8:30 am. ~ Steve Cooley, (801) 815-5302, cooleyaudit@gmail.com Architectural Review Committee

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