Washington State requires all construction contractors to register with L&I. To register as a contractor, you will need to purchase: Your bond and insurance must use your exact business name, and L&I must be listed as a certificate holder for your liability insurance. Surety bonds are available through a bonding company or insurance agency. Contractors often ask for a deposit or down payment of up to a third of the total project cost. Your bond amount cannot be reduced for 2 years if you switch from a general to a specialty contractor. Under these prompt payment statutes, owners and contractors . Before you complete your renewal, use our Verify a Contractor, Tradesperson, or Business tool to make sure that your: To renew online, you will need the following information: Review the information on the contractor registration renewal card you received in the mail. Enter a zip below and get matched to top-rated pros near you. In some cases, meal periods may also be considered hours worked. Nor can they choose, or be required by their employer, to work off the clock.. State law also requires construction contractors to be bonded and insured to protect the public. If you are setting up a sole proprietor or partnership, decide on your business name, or if you already have registered your business and have a Uniform Business Identifier (UBI), proceed to step 2. Employers may also offer to pay employees using debit or prepaid payroll cards. Does not collect retail sales tax on the sale of the property. If you are a new construction contractor, or thinking about getting registered, watch the Contractor Overview module, to better understand the requirements. According to the U.S. Electronic Code of Federal Regulations, homeowners have the right of rescission, meaning theyre allowed three business days to decide if they want to buy the contracted goods or services from a home improvement contractor. Applying for Your Washington Business License: A Step-by-Step Guide, Verify a Contractor, Tradesperson, or Business, Model Disclosure Statement Notice to Customer, safety of your employees and sub-contractors. Employers are not required to give employees pay raises, unless the employee is paid minimum wage and the minimum wage is increased. If you are unsure how to purchase your surety bond and insurance, contact a licensed insurance agent. When we suspend a registration, we will notify you by both certified and first-class mail within 2 days of the suspension. You may post the required amount in the form of cash, a certificate of deposit, time deposit, or money market account in a bank, savings and loan association or credit union with a branch in Washington. What does this mean? General contractors must post a $12,000 bond, and specialty contractors, such aspainters or landscapers, a $6,000 bond. Completed applications submitted by mail are currently taking 3-4 weeks after receipt to process and activate your registration. Visit the Solution Center to Explore Articles. You have decided to move into your own apartment. Review a contractors license history for previous lawsuits or license violations. Construction. This rate can be an hourly wage, salary, flat rate, piece rate, commission, etc. An employer may require employees to sign up for direct deposit, as long as this does not impose a cost on the employee. (2) In the event of a good faith dispute over all or any portion of the amount due on a payment from the state or a municipality to the prime contractor, or from the prime contractor or subcontractor to a subcontractor, then the state or the municipality, or the prime contractor or subcontractor, may withhold no more than one hundred fifty percent of the disputed amount. Laws and rules on construction activities. Contact the Washington State Dept. The rental agreement should be in writing. Severance, personal holidays, and vacation time are voluntary benefits. We cannot accept a copy of your application. Employees who do not receive all wages due for work performed may file a Workplace Rights Complaint. Employers are required to pay employees at least once per month on a regular, scheduled payday. If the landlord decides to keep all or part of the deposit, he/she must explain why. On-call wages paid to employees who are not called to duty are not subject to minimum wage laws or overtime and are not considered hours worked. If an employee is called back to duty, their regular or agreed-upon wage (e.g., on-call premiums, shift differentials, etc.) Get a surety bond or an assignment of savings. The taxability of performing construction activities within the state of Washington is discussed in the following laws and rules: Revised Code of Washington References (RCW) Washington Administrative Code References (WAC) Printer-friendly version Laws and rules on construction activities You can pay by cash, check, money order, or credit/debit card. The taxability of performing construction activities within the state of Washington is discussed in the following laws and rules: Espaol|||Tagalog|Ting Vit|, Subscribe to receive notifications|Taxpayer Rights and Responsibilities. ., and has posted with the state a bond or deposit of . Employers have many options to pay employees - by check, cash, direct deposit, or even pre-paid payroll or debit cards, as long as there is no cost to the . Prevailing wage, debarred contractor list. If use of privately owned automobile is authorized or if no Government-furnished automobile is available. As you enter the building to sign a contract your new landlord asks you for a $500 deposit and a $500 fee. Sales tax is collected and due on the total contract price. Usually, there may be information or fine print about the return of deposit conditions on the back. Registration required Prohibited acts Criminal penalty Monitoring program. Purchase a general liability insurance policy. If you need to make changes or update your business information, see the instructions below. All rights reserved. Prior: 1989 c 20 18; 1989 c 14 . Who directs or controls their own work, or the work of their employees. Verify the contractor has an active license. Violations Consumer Protection Act. The name of your business on the certificate must be exactly the same as the one on file with L&I. Only actual hours worked must be paid. You may reinstate your registration online or in person. As you enter the building to sign a contract your new landlord asks you for a $500 deposit and a $500 fee. You found the perfect spot for just the right amount of rent. How to Use this Verify Tool to Check Out a Contractor. Workers compensation insurance (also known as Industrial Insurance) provides wage replacement and medical benefits to workers injured on the job. What is required by law? Bring your renewal card to your nearest local L&I office. Your continuous contractor surety bond or assignment of savings. Employers cannot withhold a final paycheck if the employee does not turn in keys, uniforms, tools, equipment, etc. Those not a party to a dispute are entitled to full and prompt payment of their portion of a draw, progress payment, final payment, or released retainage. Contracts for the installation of new Swimming pools, for example . You need to contact your contractors insurer directly to make your claim. (7) The department shall produce model disclosure statements, and public service announcements detailing the information needed to assist contractors and contractors' customers to comply under this section. Complete the cards with your registration information, print them, and provide a card when submitting a bid. Confidently handle unfinished contract work even when its unexpected. A deposit is an amount of money that a tenant must pay before or at the time he/she moves in. This includes business cards, Yellow Page ads, newspaper ads, internet ads, estimates and bid proposals. If the contractor you hire does a poor-quality job or doesnt finish the work both parties agreed upon at the beginning of the project, you can ask them for a refund or partial refund as applicable. The disclosure statement gives you information about your rights, responsibilities, and how to protect yourself. Contractor pays sales/use tax on all materials consumed by him (tools, sandpaper, etc.) The contractor is required to provide you with further information about lien release documents if you request it. The bond must be the original, uncorrected document, not a photocopy. This publication is a guide to help those engaged in construction activities determine their state tax liability. Employees who work unauthorized hours or overtime without the employers permission must be paid for their hours worked, though they can be subject to discipline for doing so. A Washington Continuous Contractor Surety Bond in the amount of: A general liability insurance policy in the amount of: $200,000 in public liability and $50,000 property damage, or. Note: Include your registration renewal card with your paperwork. Understand your responsibilities for the safety of your employees and sub-contractors. If you run into serious issues with your contractor, remodeler or handyman, the following L&I resources can help you to decide what to do. If there are fees for using these cards, the employer must provide an alternative that allows employees to access their wages without any fees or costs associated when withdrawing funds. This can include constructing, remodeling, repairing and demolishing buildings, roads and other real property. . Related Resources Facts About Construction Liens (216 KB) What to Do if You Want to File Suit Against Your Construction Contractor (128 KB) Your project may cost thousands of dollars, so choosing a qualified contractor is very important. Nevertheless, prior to 1972 it also seems clear that the state of Washington and other eligible creditors could execute thereunder upon a contractor's security deposit or surety bond only by obtaining an inrem judgment. Note: Unreimbursed expenses paid by an employee may be tax deductible contact a tax adviser for more information. This will help us quickly process your renewal. As necessary, the department shall periodically update these education materials. The tenant must be informed in writing where the landlord has placed the deposit. If you are unable to resolve serious problems with a contractor, you can file suit against their bond. 18.27.050. No B&O tax due on sales of property. $50,000 property damage policy and $200,000 public liability policy, or. The first step is to check the fine print on the original proposal. You receive a notice of intent to lien. $1.74. Your certificate of general liability insurance. There are two classifications of construction contractors in the state: Working without registering as a contractor in Washington carries substantial penalties and fines. Small Claims Court. These specialties include roofing, painting, HVAC, tree removal, mobile home set-up, and dozens more. The bond or deposit is intended to pay valid claims up to . The minimum wage is adjusted each year for inflation. Your 12-digit Contractor Registration number. You can protect yourself by paying the deposit via credit card or check. . But although the language in specific contract clauses is typically negotiable, Washington has certain rules that govern what the agreement must include and what is prohibited. Find pros To avoid unnecessary delays, you will need to have the following: You can mail your completed, signed, and notarized Application for Contractor Registration (F625-001-000) to the address below along with: Contractor RegistrationP.O. Get at least 3 written bids and compare them carefully. Provide your 12 character Contractor Registration Number, email address, and phone number. Roads for the state of Washington are subject to sales tax. Washingtons minimum wage is $15.74 as of Jan. 1, 2023. This way, if any disputes arise down the line, your credit card company or bank can help you navigate the situation. THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT. Contractor is defined by law as the consumer and must pay sales/use tax on all materials used, applied, or installed by him. (3) In addition to all other remedies, any person from whom funds have been withheld in violation of this section shall be entitled to receive from the person wrongfully withholding the funds, for every month and portion thereof that payment including retainage is not made, interest at the highest rate allowed under RCW. When an employee is paid hourly, they must be paid for all hours worked. Check if a contractor is registered online, or call the contractor information line at 1-800-647-0982. It is important to note that state law primarily recognizes these disputes as contractual issues best resolved through private legal action. The letter will tell you what you need to do to reinstate your registration. Protect yourself Consider requesting a performance bond for larger projects. Employees must be paid for all work perform at the rate agreed upon with their employer. To register with L&I as a contractor, you must: The order you complete these steps can affect how quickly you can complete the registration process. Get a surety bond or an assignment of savings. The contractor must keep a copy on file for 3 years, you should also request a copy for your records. [ 2021 c 201 3; 2012 c 117 174. Not all types of cancelable contracts have been included. Report a fraudulent or unregistered contractor online, or call the Report-a-Fraud line at 1-888-811-5974. The alternative to a bond is an assigned bank account. If you read over a contract youre given to sign and it doesnt contain these elements, you may want to reconsider hiring the contractor who gave it to you and browse around for other options. If a retail installment sale contract is used for the sale of a vehicle by a motor vehicle dealer at a place other than the dealer's address, the dealer must disclose to the purchaser or lessee in writing that there is no right to cancel the contract under RCW 63.14.154. Filing a suit against an electrical contractor, Verify a Contractor, Tradesperson or Business webpage, Verify a Contractor, Tradesperson or Business, Check if a contractor is registered online, Report a fraudulent or unregistered contractor online, What to Do if You Want to File Suit Against Your Construction Contractor. However, if you decide to go in a different direction with your project or dont want to continue altogether, can you get your deposit money back? Check the fine print on your contract for details on deposit refund conditions. If youve tried various tactics to get your money back and the contractor still wont agree, it may be worth hiring an attorney for help for larger, more pricey projects like a home renovation or addition. It is important that you understand your workers compensation and safety requirements. Before hiring any contractor, its a good idea to look at reviews, get a few different quotes, check on their qualifications, and ask plenty of informed questions before you commit to signing a contract. Employers must pay employees an agreed-upon wage on a regular, scheduled payday and pay them at least once per month. The landlord and the tenant will sign the checklist. If your contract exceeds $1,000, get a disclosure statement from your contractor. (1) Any contractor agreeing to perform any contracting project: (a) For the repair, alteration, or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more; or (b) for the repair, alteration, or construction of a commercial building whe. Ask your bank or credit union how they make sure a contractor is paying their bills. Paid sick leave balances have separate requirements that employers must follow. Consumers can face serious issues if anything goes wrong on a job. Logging road contractor: Builds logging roads in conjunction with logging parcels of land. Contractor Registration line at (800) 647-0982 or the LNI Contractor Information Website. Bond or other security required Actions against Suspension of registration upon impairment Work group. Time for putting on and taking off uniforms or personal protective equipment (PPE). Enter a zip below and get matched to top-rated pros near you. Read this before you make any payments or sign any contracts. What You Should Know About Hiring a Contractor, Remodeler, or Handyman. Make sure you are aware of the law, and don't put yourself in a position where you may lose hard earned cash.
