I know that without a contractor's license it is illegal to do work on someones house for more than $500 but

Question

...but what if the homeowner knows and accepts that I am not licensed yet wants me to do a lot of work like installing skylights, bath fans, ceiling fan, rewire electrical boxes -- all amounting to some thousands of dollars. Technically, can I be fined...even if it isn't the homeowner but just a neighbor that reports me?

Answer 1

If you are in CA (and I assume you are because of the $500 "magic number" you mention in your question), it is a misdemeanor for an unlicensed contractor to work on a project where the value of the ENTIRE PROJECT (labor and materials) exceeds $500. This law cannot be "waived" by the customer. (California Business & Professions Code sections 7028 & 7048)



CA law also allows a homeowner to recover ALL money paid to an unlicensed contractor for work performed illegally. The unlicensed contractor is, technically, not entitled to a DIME for his work (you end up working for free if the customer decides to 1) refuse to pay, or 2) sue to recover the money he already paid to you as an unlicensed contractor). (Business & Professions Code sections 7029 & 2031, and MW Erectors, Inc. v. Neiderhauser - links below)



Another thing to consider are permits, which are issued and approved by local officials (city or county, depending on where the property is located). In most cases, permits may only be issued to either a licensed contractor, or an "owner/builder" who certifies that he is doing the work himself or he subcontracting it out to licensed contractors.

Answer 2

In my state/county it is incumbent upon the homeowner to make sure the work is up to code and a permit was pulled, etc. You aren't supposed to be doing unlicensed work, but then again, he's probably not supposed to be hiring you. Maybe the way around it is to submit bids for each individual job in the house so that each part of it comes under that amount and you have proof of small multiple jobs instead of one big one.

Answer 3

This is not a national law or even a law in most states. It is a local law. I have never heard of the deciding factor being the amount of money you charge.



In my area if you are doing more than very simple plumbing work or more than very simple electrical work you need a license. We don't have licensees for contractors at all.



You do have to get permits from city hall for almost everything and show them your plans.



However you are caught the city could punish you under the law.

Answer 4

Technically, you cannot be fined for something that is not a crime. Commando's answer emphasizes CA BPC §§ 7028 & 7048. However, those appear to only apply to acting contractors engaged in contracted work. I am the homeowner and you're my employee. A government attempting to apply its limits within the sovereignty of my own personal property will be a government that quickly finds itself relieved of power.



"7044. This chapter does not apply to any of the following:

(a) An owner of property, building or improving structures thereon, or appurtenances thereto, who does the work himself or herself or through his or her own employees with wages as their sole compensation, provided none of the structures, with or without the appurtenances thereto, are intended or offered for sale..."



"7053. Except as provided in Article 10 (commencing with Section 7150), this chapter does not apply to any person who engages in the activities herein regulated as an employee who receives wages as his or her sole compensation, does not customarily engage in an independently established business, and does not have the right to control or discretion as to the manner of performance so as to determine the final results of the work performed."



*/End of Line.

Answer 5

Draw up a contract that shows that the homeowner knows that you aren't a licensed contractor in any of these fields. Make sure it is signed and dated by both of you, and that you both keep copies of it. Remember that any work that you do has to be inspected before it is sealed off.

Answer 6

if you do not possess a valid contractors license, electricians license, plumbers license etc, you can face large fines and the home owner can be forced to hire licensed professionals to re-do the work you did, costing the home owned thousands of dollars

Answer 7

Yes!!! If you are doing contracting work without a license, you can most certainly be fined.