Hiring a Contractor

or Remodeler:

What you should know

PUBLICATION

F625-084-000 [11-2006]

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While the law provides some protection from fraudulent or incompetent

contractors, it doesn’t guarantee honest transactions or perfect performance.

Informed, cautious consumers can better protect their financial investment.

Generally, work that “adds to or subtracts from real estate” requires a

registered contractor. Businesses that provide services such as gutter cleaning,

pruning, lawn care or window washing do not need to be registered.

What does the law require?

In Washington, all contractors who perform work, advertise or submit bids or proposals

in this state must be registered with the Department of Labor and Industries, post a

bond and carry general liability insurance coverage.

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A general contractor must maintain a $12,000 bond. A specialty contractor,

such as a painter, must maintain a $6,000 bond. Dissatisfied consumers may

pursue restitution with civil action in Superior Court against a contractor’s bond.

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All registered contractors must carry general liability insurance coverage ($50,000

property damage and $200,000 public liability or $250,000 combined single limit).

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Contractors are also required to have a current business license. If the contractor has

employees, he or she must have industrial insurance.

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A contractor is required to provide a disclosure statement (“Notice to Customer”) to the

consumer/property owner for a residential project with a projected cost of $1,000 or

more, and a commercial project of $1,000 to $60,000.

Except for the licensing of electricians and certification of plumbers, there isn’t a competency

test to become a contractor in Washington State.

Are you planning to hire someone to work on your home or

property? Do your homework.