Know the Law:

According to the Washington State Department of Labor and Industries, in Washington, all contractors who perform work or who advertise or submit bids in this state must be registered with the Department of Labor & Industries (L&I, post a bond and carry genertal liability insurance coverage.

• A general contractor must maintain a $12,000 bond. A specialty contractor, such as a painter, must maintain a $6,000 bond. An electrical contractor must maintain a $4,000 bond. Dissatisfied consumers may pursue restitution by taking civil action in Superior Court against a contractor's bond.
• All registered contractors must carry general liability insurance coverage in the amount of $50,000 property damage and $200,000 public liability or $250,000 combined single limit. (Note: This requirement does not pertain to electrical contractors. Telecommunications contractors must carry $170,000 in general liability insurance.
• A contractor must have a current business license, and if the contractor has employees, he or she must have worker's compensation coverage.
• A contractor must provide a "Notice to Customer" disclosure statement to you for any residential project with a projected cost of $1,000 or more, and any commercial project of $1,000 to $60,000.

Except for the licensing of electricians and certifcation of plumbers, there isn't a competency test to become a contractor in Washington State.

The above reprinted with the permission of the Department of Labor and Industries

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Shop Smart

While the law provides some protection from faudulent or incompetent contractors, it doesn't guarantee honest transactions or perfect performance. Protect your investment by being an informed, cautious consumer.

Generally, work that "adds to or subtracts from real estate" must be done by a registered contractor. Contractor registration is also required for anyone who provides construction consultation, develops residential property or "flips" houses.

Businesses that provide services such as gutter cleaning, pruning, lawn care or window washing do not need to be registered.

The above reprinted with the permission of the Department of Labor and Industries

We will be adding additional information frequently so check back often.

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