Although most residential contractors are aware they must register with the Contractors’ Registration Board, most are unaware of the Contractors’ Registration Board’s many contract requirements and advertising restrictions. The best way to avoid any penalties and fines is to ensure full compliance from the start. In our experience, contractors found to be in violation of the Contractor’s Registration Board’s regulations had no idea that they were doing anything wrong. Here are some tips to ensure compliance with the regulations.
- Use a written contract for all work.
- Include an attorneys’ fee provision in the contract.
- Include an arbitration provision in the contract.
- Avoid using the term “license.”
- Include the contractor’s registration number in all advertisements (including on vehicles), contractors, proposals, and estimates.
- Use a change order form for all changes to the original contract.
- Include a cancellation notice in the contract and attach the notices required by law.
- Do not begin work on any project until the 3-day period for the homeowner to rescind has expired.
- Do not treat employees as subcontractors to avoid workers’ compensation and payroll taxes.
- Ensure all permits are obtained for work prior to beginning the work.
- Ensure all subcontractors are registered and insured prior to the subcontractors beginning the work.
- Consult with an experienced attorney.