Contractor licensing
Before you sign, check who is actually allowed to do the work.
Contractor licensing is administered by each state, not the federal government, so a license from one state does not carry over to another. Before signing a capital project contract, verify the contractor's license and complaint history through your state's licensing board, such as California's CSLB or Florida's DBPR, not a business card.
Why licensing exists
A contractor's license is not a formality. State licensing boards exist to screen who is allowed to build, and to give the public a way to check that screening before money changes hands.
"Protects consumers by regulating the construction industry through policies that promote the health, safety, and general welfare of the public in matters relating to construction, including home improvement."
Source: About Us, California Contractors State License Board
That consumer protection purpose is why the check matters for a board specifically. A capital project is one of the largest contracts your association will sign, and the license check is the cheapest due diligence step available before signing it.
How to verify a license
Do not accept a license number typed on a proposal as proof. Look the contractor up directly on the state's own tool, which shows current status and any complaint history on file, not just whether a number was once issued.
"Look up a contractor license or Home Improvement Salesperson (HIS) registration to verify information, including complaint disclosure."
Source: Check a License tool, California Contractors State License Board
| State | Licensing board | What the lookup shows |
|---|---|---|
| California | Contractors State License Board | License status and complaint disclosure |
| Florida | Construction Industry Licensing Board (DBPR) | Public license and complaint records |
These are two examples of what a state licensing board provides, not the only two states that offer one. Find your own state's equivalent lookup tool and check it before you sign, since the agency name and web address are different in every state.
What a license check does not confirm
Licensing is state by state, with no single national contractor license. A contractor licensed in a neighboring state is not automatically licensed in yours, and an active license does not by itself mean the contractor has never had a complaint filed against them, which is why the complaint history on the lookup tool matters as much as the status field.
Whether your state requires a license at all for a project of this size or type, and what happens if a board hires an unlicensed contractor, both vary by state. Confirm the answer with your own state's licensing board rather than assuming your state works the way a neighboring one does.
Check yourself
Answer before you read the explanation, recalling it is what makes it stick.
A neighbor recommends a contractor for a roof replacement. Before the board signs, what should it do?
A board member says, "The contractor is licensed in New York, so they must be licensed everywhere." What is wrong with that statement?
The board looks up a contractor and finds an active license with three unresolved complaints on file. What should this tell the board?
Sources
- About Us, California Contractors State License Board
- Check a License tool, California Contractors State License Board
- Construction Industry Licensing Board, public records lookup, Florida Department of Business and Professional Regulation
Capital Projects
Once you have confirmed a contractor is licensed, the next step is checking their track record. See References.
Whether a license is required for your project size, which agency issues it, and what the lookup tool shows all vary by state. Check your own state's licensing board, not a neighboring state's rule.