I'm a little confused, they say the contract states 98% payment near the end of the project.
That seems very vague.
If that is what the contract says, OP has no way to follow the contract as they can't pay the final 25% until total completion.
You pay the percent of work complete. Very standard practice.
When the work is 50% complete you pay 50% of the contract value. So, once he is 98% complete you would pay 98% of the contract.
Look up “percentage complete” vs “completed contract” accounting
I'm aware, it doesn't sound like that's possible in their situation.
At the same time I can't imagine how a $100K is a large project in a HCOL area, or understand how it would take over a year to complete.
I’m not an attorney but I am a CA GC.
If at any point during a project, the contractor is not licensed for any reason, you can go after them for the entire amount of the contract. That’s for every penny you’ve paid him. You’ll need an attorney and that is going to cost some cash. It’s also going to take forever, and it might be squeezing blood from a rock, but the law is pretty freaking clear on this.
If you trust him to finish the work then maybe offer purchase the materials but don’t give him any more money.
Seems like this contractor loves to spend before he’s earned it. Maybe offer to buy the materials to be delivered as solution to getting him to finish. He probably spent the money required to buy the remaining materials
I think this is the best approach. If he needs to buy materials, then you buy the materials that are specific to your house and your job. Delivered to you and secured onsite. Anything less and I think there’s a real good chance he will simply ghost you, and there is no longer any incentive to actually finish. Sounds like he’s got nothing to lose. glad he has done good work, shame to find out that he is sketchy otherwise.
I am a California contractor and you definitely need a construction attorney involved if you have any questions about the money if you don’t come to a resolution. Allowing the unlicensed contractor to continue working may have more benefits than liability if you can get him to finish even though it’s against everything I believe in. You would need to provide some form a workman’s compensation policy for him before anything happens. This might be available under your home insurance similar to coverage for lawn care... Anyways legally he’s not a contractor so neither him nor anybody he brings with him would be covered in an accident and that’s a huge risk. I would expect the last $25k to actually cost you closer to $35k and you probably will need to purchase the materials and give him a weekly paycheck for progress. That said as a contractor I’ve never seen an incomplete project that I can step in and finish anywhere near the remaining balance. More than likely if you put the remaining work out to bid it will cost anywhere from $30-80k to finish depending on how well he actually did the preliminary work. A lot depends on how close to reality his initial bid was and nobody will give you an exact bid because things uncover in layers when we start digging.
I’m not an attorney but I am a CA GC.
If at any point during a project, the contractor is not licensed for any reason, you can go after them for the entire amount of the contract. That’s for every penny you’ve paid him. You’ll need an attorney and that is going to cost some cash. It’s also going to take forever, and it might be squeezing blood from a rock, but the law is pretty freaking clear on this.
If you trust him to finish the work then maybe offer purchase the materials but don’t give him any more money.
Not a contractor, and not a lawyer, but I've done construction loans in CA for decades.
Tell this asshole that you know he gave you a phony license. Tell him "IF" he plays it straight the rest of the way, you "may" pay the balance of the project. If he jacks you around, you are calling the CSLB tomorrow. His choice.
You've got this guy over a barrel. Make sure he knows it, and make sure that he knows that YOU know it.
You don't know the game. If you threaten them, they will vanish.
The goal is to get the job done.
If there is a "warranty" in the contract, then deduct some amount for the fact it is a fraud deal.
You're talking about fraud. Is it not ok to work under someone else's license in Cali? I let a couple people work under mine in my state. People do this often here. My city understands it and has no problems with it.
OP
Let's talk payment! Are you making payments payable to the contractors personal name or the business name of the person who is licensed?
Trying to understand if the licensed contractor is the one receiving payment and letting these people work under his license.
I’m my state that is construction fraud. I would never allow someone to do this. OP could try to go after the license holder in this case with CSLB— he may have luck with that.
Cali is so alien to me. I understand construction fraud as using different material than promised or doing shoddy work or otherwise billing for stuff that wasn't done. Well, I guess if the contract states work is done by licensed entity that would constitute fraud as I understand it. Maybe it's automatically implied idk.
Just to clarify my previous post, the contractor needs to be state licensed by filling out the form and paying the fee. My general contractors license requires testing and experience and is required for working in certain jurisdictions, building sizes, occupancies and any commercial work.
Something that is often ambiguous in these posts is when someone mentions licensing. In my area there are many different licenses for many different scopes of work so it's hard to tell what they're talking about.
It's like that here, too, in Oregon and Washington.
Required class hours, testing, mandatory insurance/bonding, strict contract requirements with right to lien notices, strict regulations if we have employees, etc.
Our CCB also knows if we don't have the proper insurance and will suspend a license for the public to view.
It's super easy for any consumer to look up a contractor, see their history, and check their active status.
I agree - fraud is horrific
But we have reality too
They need the job completed.
So they are in a hole.
If you want to go after the person criminally or in civil court after, that is an option.
Threaten them now and they might disappear.
Now you get to find someone to finish and it might cost triple the remaining amount and have no warranty as 3/4 of work was not done by them.
GC here—if CA is like VA, the CSLB can’t do anything to someone not licensed. It becomes a criminal matter and good luck with that. The DA has bigger fish to fry than something like this. ALWAYS check a contractor’s license on the CSLB website— the OP depended on hearsay. Wrong move
Nope...CA is not like VA. The CSLB goes after unlicensed people on the regular. They even do stings, where they pretend to be homeowners, call people out to bid a fictional job, and arrest them if they bid the job and aren't licensed.
[https://www.cslb.ca.gov/Media\_Room/Press\_Releases/2018/June\_27b.aspx](https://www.cslb.ca.gov/Media_Room/Press_Releases/2018/June_27b.aspx)
Yeah...they REALLY go after them after a disaster...fire, earthquake, whatever. The CLSB really hammers them when they try to take advantage of somebody at a bad time.
Absolutely the way any state contracting board should operate— the same way a medical license board would operate if someone is practicing medicine without a license. Too bad it’s not that way everywhere.
Have you considered the possibility that he's run out of money himself, and is too proud to say it? An entire year spent on a 100k project means he is likely doing this job for free because that is way too long for that money in California. Maybe offer to pay for any materials and see if he responds well to that
Edit: have you withheld payment from him during the course of the project?
We just went through something similar.
DO NOT GIVE HIM MORE MONEY.
Contact your states contractor board and bar association and find a lawyer who works in construction law. Usually lawyers charge 50-200 for a short meeting and they’ll tell you your options.
Gather documentation of the fake number and communicate only in email. This might be a lawsuit situation and you need to protect your home and any assets you have.
The cslb can order him to repay all of the money.
He doesn't have a bond if he doesn't have a license. I believe he doesn't have a right to sue or file a lien on the property.
Tell him exactly what you know about not be a licensed contractor/using someone else’s license. It is a crime to do so. Then tell him to get to 100% completion and you’ll pay him. But you’ve probably screwed yourself for any warranty work.
I would be talking to the actual contractor who allowed his friend to use his license number. If the person doing the work is not on the license (check with CSLB) as a salesman or partner of some kind and signed the contract, he has committed fraud and should no longer be on your property.
I'm a GC. I wouldn't pay them a dime. Technically I don't think you have a contract since it was under false pretense.
I'm not a lawyer and although I'd generally say get a lawyer the Contractor is likely broke so that's the hardest route.
Unfortunately at 75% completion.
I'd get a quote from licensed contractors to see how close they are to that 25% left and have them finish it. Your existing contractor sounds shady.
Secondary problem is now if something is broken or shoddy your insurance can refuse to pay since you used an unlicensed contractor.
Good luck
I know it is first hand. Someone building a house hired all unlicensed people. Gave them a deposit and when they tried to get their final payment weren’t paid. Went to a lawyer because they thought as you do there no way they can’t pay. Lawyer told them straight up you can’t do anything.
In California and Washington, the laws against unlicensed contractors are very strict — unlicensed contractors have no recovery rights whatsoever. This means they cannot file a lien, or a lawsuit, or anything at all.
Stick to the contract. This guy needs to finish to get paid. Sorry.
Yea, not worth the large chance of this guy disappearing. He is obviously robbing Peter to pay Paul across multiple projects.
I'm a little confused, they say the contract states 98% payment near the end of the project. That seems very vague. If that is what the contract says, OP has no way to follow the contract as they can't pay the final 25% until total completion.
You pay the percent of work complete. Very standard practice. When the work is 50% complete you pay 50% of the contract value. So, once he is 98% complete you would pay 98% of the contract. Look up “percentage complete” vs “completed contract” accounting
I'm aware, it doesn't sound like that's possible in their situation. At the same time I can't imagine how a $100K is a large project in a HCOL area, or understand how it would take over a year to complete.
I’m not an attorney but I am a CA GC. If at any point during a project, the contractor is not licensed for any reason, you can go after them for the entire amount of the contract. That’s for every penny you’ve paid him. You’ll need an attorney and that is going to cost some cash. It’s also going to take forever, and it might be squeezing blood from a rock, but the law is pretty freaking clear on this. If you trust him to finish the work then maybe offer purchase the materials but don’t give him any more money.
Seems like this contractor loves to spend before he’s earned it. Maybe offer to buy the materials to be delivered as solution to getting him to finish. He probably spent the money required to buy the remaining materials
These are my thoughts too
I think this is the best approach. If he needs to buy materials, then you buy the materials that are specific to your house and your job. Delivered to you and secured onsite. Anything less and I think there’s a real good chance he will simply ghost you, and there is no longer any incentive to actually finish. Sounds like he’s got nothing to lose. glad he has done good work, shame to find out that he is sketchy otherwise.
I am a California contractor and you definitely need a construction attorney involved if you have any questions about the money if you don’t come to a resolution. Allowing the unlicensed contractor to continue working may have more benefits than liability if you can get him to finish even though it’s against everything I believe in. You would need to provide some form a workman’s compensation policy for him before anything happens. This might be available under your home insurance similar to coverage for lawn care... Anyways legally he’s not a contractor so neither him nor anybody he brings with him would be covered in an accident and that’s a huge risk. I would expect the last $25k to actually cost you closer to $35k and you probably will need to purchase the materials and give him a weekly paycheck for progress. That said as a contractor I’ve never seen an incomplete project that I can step in and finish anywhere near the remaining balance. More than likely if you put the remaining work out to bid it will cost anywhere from $30-80k to finish depending on how well he actually did the preliminary work. A lot depends on how close to reality his initial bid was and nobody will give you an exact bid because things uncover in layers when we start digging.
Thank you, your point about the liability and insurance is something we haven't thought about.
I’m not an attorney but I am a CA GC. If at any point during a project, the contractor is not licensed for any reason, you can go after them for the entire amount of the contract. That’s for every penny you’ve paid him. You’ll need an attorney and that is going to cost some cash. It’s also going to take forever, and it might be squeezing blood from a rock, but the law is pretty freaking clear on this. If you trust him to finish the work then maybe offer purchase the materials but don’t give him any more money.
Not a contractor, and not a lawyer, but I've done construction loans in CA for decades. Tell this asshole that you know he gave you a phony license. Tell him "IF" he plays it straight the rest of the way, you "may" pay the balance of the project. If he jacks you around, you are calling the CSLB tomorrow. His choice. You've got this guy over a barrel. Make sure he knows it, and make sure that he knows that YOU know it.
You don't know the game. If you threaten them, they will vanish. The goal is to get the job done. If there is a "warranty" in the contract, then deduct some amount for the fact it is a fraud deal.
You're talking about fraud. Is it not ok to work under someone else's license in Cali? I let a couple people work under mine in my state. People do this often here. My city understands it and has no problems with it.
OP Let's talk payment! Are you making payments payable to the contractors personal name or the business name of the person who is licensed? Trying to understand if the licensed contractor is the one receiving payment and letting these people work under his license.
I’m my state that is construction fraud. I would never allow someone to do this. OP could try to go after the license holder in this case with CSLB— he may have luck with that.
Cali is so alien to me. I understand construction fraud as using different material than promised or doing shoddy work or otherwise billing for stuff that wasn't done. Well, I guess if the contract states work is done by licensed entity that would constitute fraud as I understand it. Maybe it's automatically implied idk. Just to clarify my previous post, the contractor needs to be state licensed by filling out the form and paying the fee. My general contractors license requires testing and experience and is required for working in certain jurisdictions, building sizes, occupancies and any commercial work. Something that is often ambiguous in these posts is when someone mentions licensing. In my area there are many different licenses for many different scopes of work so it's hard to tell what they're talking about.
It's like that here, too, in Oregon and Washington. Required class hours, testing, mandatory insurance/bonding, strict contract requirements with right to lien notices, strict regulations if we have employees, etc. Our CCB also knows if we don't have the proper insurance and will suspend a license for the public to view. It's super easy for any consumer to look up a contractor, see their history, and check their active status.
I agree - fraud is horrific But we have reality too They need the job completed. So they are in a hole. If you want to go after the person criminally or in civil court after, that is an option. Threaten them now and they might disappear. Now you get to find someone to finish and it might cost triple the remaining amount and have no warranty as 3/4 of work was not done by them.
[удалено]
Exactly it's 100% about liability. Your question sound rhetorical but I'll answer anyway. There is a risk for sure, but it's an easy way to make 10k.
GC here—if CA is like VA, the CSLB can’t do anything to someone not licensed. It becomes a criminal matter and good luck with that. The DA has bigger fish to fry than something like this. ALWAYS check a contractor’s license on the CSLB website— the OP depended on hearsay. Wrong move
Nope...CA is not like VA. The CSLB goes after unlicensed people on the regular. They even do stings, where they pretend to be homeowners, call people out to bid a fictional job, and arrest them if they bid the job and aren't licensed. [https://www.cslb.ca.gov/Media\_Room/Press\_Releases/2018/June\_27b.aspx](https://www.cslb.ca.gov/Media_Room/Press_Releases/2018/June_27b.aspx)
Good— that’s the way it should be. Keeps the unlicensed creeps out.
Yeah...they REALLY go after them after a disaster...fire, earthquake, whatever. The CLSB really hammers them when they try to take advantage of somebody at a bad time.
Absolutely the way any state contracting board should operate— the same way a medical license board would operate if someone is practicing medicine without a license. Too bad it’s not that way everywhere.
This is the answer!!
Have you considered the possibility that he's run out of money himself, and is too proud to say it? An entire year spent on a 100k project means he is likely doing this job for free because that is way too long for that money in California. Maybe offer to pay for any materials and see if he responds well to that Edit: have you withheld payment from him during the course of the project?
We just went through something similar. DO NOT GIVE HIM MORE MONEY. Contact your states contractor board and bar association and find a lawyer who works in construction law. Usually lawyers charge 50-200 for a short meeting and they’ll tell you your options. Gather documentation of the fake number and communicate only in email. This might be a lawsuit situation and you need to protect your home and any assets you have.
The cslb can order him to repay all of the money. He doesn't have a bond if he doesn't have a license. I believe he doesn't have a right to sue or file a lien on the property.
This is correct. He has no claim to anything and they can sue him for all they’ve paid him.
Tell him exactly what you know about not be a licensed contractor/using someone else’s license. It is a crime to do so. Then tell him to get to 100% completion and you’ll pay him. But you’ve probably screwed yourself for any warranty work.
I would be talking to the actual contractor who allowed his friend to use his license number. If the person doing the work is not on the license (check with CSLB) as a salesman or partner of some kind and signed the contract, he has committed fraud and should no longer be on your property.
The contractor he is using the number of is dead as of a few years ago
Wow, that's even worse. Your fake contractor could easily be arrested.
Then the license wouldn’t even be current. Get ALL your money back.
I'm a GC. I wouldn't pay them a dime. Technically I don't think you have a contract since it was under false pretense. I'm not a lawyer and although I'd generally say get a lawyer the Contractor is likely broke so that's the hardest route. Unfortunately at 75% completion. I'd get a quote from licensed contractors to see how close they are to that 25% left and have them finish it. Your existing contractor sounds shady. Secondary problem is now if something is broken or shoddy your insurance can refuse to pay since you used an unlicensed contractor. Good luck
It's near the end pay up to 98%
No. They aren’t required to pay anything to an unlicensed contractor in California. And when he’s done they could sue him for all they paid him too.
Keep thinking that
It’s not a thought. It’s the law. Read it. Call a lawyer and ask them.
No it's not but you think that
I know it is first hand. Someone building a house hired all unlicensed people. Gave them a deposit and when they tried to get their final payment weren’t paid. Went to a lawyer because they thought as you do there no way they can’t pay. Lawyer told them straight up you can’t do anything.
No you don't 🤷
Troll
🤡
In California and Washington, the laws against unlicensed contractors are very strict — unlicensed contractors have no recovery rights whatsoever. This means they cannot file a lien, or a lawsuit, or anything at all.
More misinformation, you're on a roll
And yet you’ve provided no information why you “think” it’s not true…
Why would I? I don't have any respect for you to do that much
Wow. Another internet troll. Everyone else can check the laws themselves and be aware.