Real Estate & Property Law

Must One Use Licensed Contractors in HOAs and Condos?

Here is a question about licensed contractors:

"I have been told of a new law that prohibits HOA & condo associations from hiring non-licensed construction help ( I refuse to use the term 'Contractor' when referring to non-licensed people). Can you provide any details?"

There is no law that dictates who an HOA or Condo board can hire. They can legally hire non-licensed contractors but should definitely refrain from doing so. In fact, HOAs and Condo boards should definitely use licensed and insured contractors for any work that requires a license. There are some exceptions for small jobs, but the risk is always large if an HOA or Condo uses an uninsured contractor. That is because the HOA/Condo would be considered the employer if the contractor does not carry workers comp insurance and the contractor or subcontractor is hurt on the job. (Example, hire handyman to change out some outlets, job costs less than $50, handyman is electrocuted and can never work again ... watch out!)

It's easy to check licenses and to see if a contractor who has workers carries workers comp insurance. Go to www.cslb.ca.gov. (Contractors State License Board)

Full post as published by California Condo & HOA Law on March 09, 2011 (boomark / email).