It has always been the goal of Central Coast Waterproofing to be unwavering in honesty and fairness and to follow the laws of the State of California and the Contractors State License Board (CSLB).
In some of our recent interactions with clients, we have meet a few who have also received bids from DeckTech, Inc. of Grover Beach.
In three cases where we were able to review a contract/proposal from DeckTech, we were troubled by several items lacking in their contact and how much money they ask for as a deposit, and so we wish to issue the following advisory.
It is state law that contracts have several required provisions incorporated in them to help protect consumers from unsavory contractors.
Among them are
- Initial deposits-when signing a contract there are limits on how much of a down payment a contractor can collect before beginning any work; to $1,000.00 or 10% of the contract amount, whichever is LESS. So if your contract is for $20,000.00, a contractor can only take $1,000.00 as a down payment when you first sign the contract. If your contract is for $8,000.00, the contractor can only take $800.00 maximum as a down payment. In all three cases where we reviewed DeckTech contracts, the deposit amounts appeared to violate CSLB laws by requiring 50% of the contract amount up front before any work began to “lock in” your start date.
- Residential consumer contracts are required to have a 72 hour “cooling off” provision. This gives you up to 3 business days to re-consider, and without penalty, cancel your contract. This helps you when pushy salespeople may have pressured you into signing a contract. We have not seen this required clause in any of the three contracts of DeckTech’s that we reviewed with homeowners. Be sure to get the required language in your contract.
- Workers Compensation Insurance. By law, licensed contractors who employ workers must have workers compensation insurance. According to the website at www.cslb.ca.gov, DeckTech (lic # 796956) has certified that they have no employees. Yet clients have affirmed that uniformed persons wearing DeckTech attire have worked on their property. Make sure you get a current copy of DeckTech’s workers compensation insurance certificate. If the named insured isn’t DeckTech, do not sign anything until you have determined through the CSLB whether that is acceptable or not. You may put your self at great persoanl financial risk if there are uninsured or misclassified workers performing labor on your property. There are strict definitions too on who qualifies as an independent contractor, so be sure to have approriate language in your contract regarding any workers and required insurances.
Central Coast Waterproofing has taken the appropriate actions to follow CSLB and state law to ensure our contract meets the requirements of the law.
Down Payments-Our policy is to ask for a deposit of no more than 10% or a $1,000.00. Usually we don’t take a deposit at all for jobs under $2,500.00 and typically our deposit is not for more than $500.00, even when the contract value is for far more. We may ask for progress payments when we complete a certain percentage of the work or for money when special order items are necessary for your job-copper flashings for example will be invoiced for upon time of delivery to the job. Typically we will allow you to withhold 10% of the total contract amount until you have accepted and approved of the work and all punch list items are done. This is your guarantee that we’ll come back and finish what we promised.
Cancellation Policy-We have a 72 hour cancellation clause in accordance with state law. Unless you direct us to begin work immediately and waive your rights to our cooling off policy, we honor and obey the law.
Workers Compensation-our policy is located at our website in the Articles and Doc’s section. You can view our current and past policy’s ACORD forms anytime you need to verify coverage. Ask us to name you as additional insureds at no additional charge. Protect yourself, protect your property. You can also verify our workers compensation at CSLB’s website by clicking here. Our license number is 890269.
General Liability-Central Coast Waterproofing names our clients as additional insured under our General Liability policy upon request. Please be sure to request that we name you on our policy before beginning work, all at no additional cost.
These tips below are brought to you by the CSLB.
10 Tips for Making Sure Your Contractor Measures Up…
- Hire only licensed contractors.
- Check a contractor’s license number online at www.cslb.ca.gov or by calling (800) 321-CSLB (2752).
- Get at least three bids.
- Get three references from each bidder and review past work in person.
- Make sure all project expectations are in writing and only sign the contract if you completely understand the terms.
- Confirm that the contractor has workers’ compensation insurance for employees.
- Never pay more than 10% down of $1,000, whichever is less. Don’t pay in cash.
- Don’t let payments get ahead of the work.
- Keep a job file of all papers relating to your project, including all payments.
- Don’t make the final payment until you’re satisfied with the job.
OTHER HELPFUL LINKS TO CSLB
What should I look for in contract and binding agreements? This step helps you understand contract and binding agreements with your contractor.
File a Complaint This section provides a step-by-step process to file a complaint online or by mail.