Legal Question in Business Law in California

payment for unlicenced contractor work

As an unlicenced contractor, how much money are you allowed to charge by law on any given job. Is there a limit if you are unlicenced? what are the legal ramifications for working without a licence, providing this fact was fully disclosed to the homeowner before work began?


Asked on 1/10/06, 12:42 am

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: payment for unlicenced contractor work

Total job price of $500 including labor and materials is the boundary between 'license required' and 'OK for unlicensed handyman.'

Disclosure to the homeowner isn't a defense; doing work without a license where one is required is absolutely illegal and the person who does such work not only cannot sue in California, they may be subject to criminal penalties.

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Answered on 1/10/06, 1:20 am
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: payment for unlicenced contractor work

As an unlicensed contractor, you can't collect or sue; you might be subject to being criminally charged; and God help you if one of your workers gets hurt on the job and you are illegally uninsured for workers' compensation. You will end up owing the state tens of thousands of dollars, forever.

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Answered on 1/10/06, 1:45 am
Carl Starrett Law Offices of Carl H. Starrett II

Re: payment for unlicenced contractor work

One final addition: if you do work without a license, you can also be sued for full disgorgement of whatever money WAS paid to you.

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Answered on 1/10/06, 1:52 am


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