Legal Question in Construction Law in California

Trying to support family please help!

I�m planning to pressure wash and apply concrete stain on driveways to supplement my income. I would charge between $500 and $1,500 per driveway depending on size, and plan on doing one or two a month. I�ve heard landscapers aren�t required to be licensed and do this type of work, some people get paid in installments of less than $300 a day, while others use a friends license.

I am currently on probation for the next three years and want to be careful. I currently own a home, have a job and my freedom, and want to keep it that way.

My questions are this:

1. If I advertised with business cards, got paid with a personal check and went to their bank to cash would that be legal? If not what could the D.A. do? Fraud, grand theft by trickery or deception, misrepresentation, conspiracy? What would be a likely outcome? What could the homeowner do?

2. What type of license and how much insurance is needed, is it expensive?

3. If I were to do this without a lic. and ins. could I just be upfront and honest with the homeowner and have them sign a release explaining that the concrete stain only changes color and does not fill cracks etc. etc. to limit my liability?


Asked on 12/11/04, 1:19 pm

1 Answer from Attorneys
Gary Redenbacher Redenbacher & Brown, LLP

Re: Trying to support family please help!

The rumor that you can "borrow" a license has landed more people into trouble. It is unequivocally NOT true. Nor is it true that landscapers don't have to be licensed. ANY project that improves real estate in virtually any manner requires a license. There is an exception if the work is for less than $500. Before January 1, in order for this exception to apply, you had to tell people you weren't licensed. As of January 1, this requirement has been dropped and the basic rule is that any project for which you charge less than $500 doesn't require a license. Don't even think of trying to get around this requirement by splitting the project into mini-projects. That won't work. Nor can a homeowner waive or release you from the requirement to have a license. Working without a license is a crime. Don't take the chance. Just go take the darn license test. Which classification is a good question. Pressure washing and staining suggests a painting license. I've no idea how much it costs to take the test, call the CSLB or check out their website.

You don't have to have insurance to be a contractor. Liability insurance right now is frighteningly expensive. You do have to have a license bond, which, last time I looked, costs about $175/year. If you get paid in cash this doesn't excuse the obligation to pay taxes on the income. We all know the penalties for failing to pay taxes. That's how Al Capone finally got nailed.

I have this observation for people that get paid in cash and try to avoid taxes versus the contractors that do things by the book: Invariably, the guys who do things under the table are constantly struggling to get by while the legitimate contractors make a better living, drive nicer trucks, etc. I can't tell you why this is, only that I have observed it in my 13 years of doing construction law and over 20 years in the construction industry. One theory I have is that people who hire unlicensed contractors are looking for the cheapest job possible so the unlicensed guys end up cutting their prices too low just to get the job. Even if they don't pay taxes on the job, it's still too little money for the effort expended. Guys who go by the book recognize that cheapskates aren't good clients and let that client go.

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Answered on 12/12/04, 3:53 pm


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