February 4, 2004     Sunnyvale, California Since 1994
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Board sets up sting to nail unlicensed contractors
By Jason Goldman-Hall
Thirty-two unlicensed contractors were nabbed in a sting operation out of a Sunnyvale home Jan. 21 and 22.

Members of the California Contractors State License Board and the Santa Clara County District Attorney's Economic Crimes Unit posed as private homeowners looking to have a variety of projects done on their houses. When unlicensed contractors bid on the projects, they were cited, and they now face up to six months in jail and a fine of up to $15,000 each.

Robert Lux, deputy district attorney with the economic crimes unit, said this was the latest in a series of sting operations to identify unlicensed operators in the area.

The last operation, in November 2002, which took place out of a house in Saratoga, nailed some 25 unlicensed contractors.

Lux said that unlicensed contractors are a problem in the area because they do not go through the same strict licensing procedure as other contractors. The licensing process is in place to ensure a reliable, safe contract.

"By far the majority of people we get complaints about are unlicensed contractors," Lux said.

To lure the suspected contractors, Lux said the agencies contacted contractors they had received complaints about or contractors who did not list their license numbers in advertisements, as he said most contractors do.

To bid on a project of more than $500 is a misdemeanor, Lux said, but felony charges can be brought under some circumstances, including high losses to a client or use of a false license number.

In addition to the 32 citations for unlicensed contracting, Lux said nine of the contractors were also cited for not carrying workers compensation insurance for their employees.

The licensing process for contractors is a lengthy one, involving fees, experience criteria, proficiency exams and the posting of a $7,500 bond to cover potential financial losses to clients. All contractors with people working under them must also carry insurance for all workers.

"The California State License Board is really the quality-insurance agency for building contractors," Lux said. "If a contract is tendered, make sure the contractor has a state license, not a city business license, because a business license will not act as quality control like a state license."

Residents can confirm license numbers by calling the CSLB at 1.800.321.CSLB or by inputting the number on the CSLB website at http://www.cslb.ca.gov.

Also, state law prohibits licensed contractors from asking for more than 10 percent of a total project cost or $1,000, whichever is lower, as a deposit, so anything over those figures is an indication of unlawful conduct.

Because it is also illegal to use a license number belonging to another contractor, residents are encouraged to also check the contractor's identification to make sure the two match.

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