Targeting Illegal Operators In California

Through the California Contractors State License Board (CSLB), contractors in more than 40 construction-license classifications, including lawn and landscape contractors providing construction services, are required to obtain licenses to work in the state. For lawn and landscape contractors, performing construction projects totaling more than $500, tree planting and even pruning trees in excess of 15 feet tall are all jobs that require a contractor’s license in California, explained Rohlfes. The licensing requirements are part of a statewide law aimed at protecting consumers from unqualified contractors and lowering the amount of illegal construction activity in the state.

"The consumer has no recourse when they hire someone like an unlicensed contractor," said Rohlfes. "They frequently do shoddy work and there’s usually nothing that can be done when they don’t finish the job." Because of the poor work done by unlicensed contractors, Rohlfes said landscape contractors get a bad reputation. "In California, lowballing is really synonymous with unlicensed work. For the smaller jobs, we constantly get underbid, and we have to explain why we charge more. [Unlicensed contractors] are terrible for the consumer, and they’re bad for the legitimate industry as well."

CLCA has supported CSLB’s efforts to reduce unlicensed contractors by educating its members and lobbying on their behalf. One instance of successful lobbying that Rohlfes noted is a law passed in 1994 that requires contractors to provide a notice to consumers during the bid process that warns them about using unlicensed operators. "The theory behind that is that when a homeowner is interviewing people to do a landscape, they might interview two who are licensed and one who is not. So if you require that this notice be given out at the time of the estimate, the homeowner gets that information when they need it." Providing materials at the time a consumer is shopping for a contractor is important, Rohlfes noted, because a consumer may otherwise never know the potential problems with unlicensed work and fall prey to a possible project nightmare.

CLCA encourages its members to notify CSLB of any unlicensed contractors they spot working on a project. Proper notification can lead to fines or prosecution for those illegal operators (see Catching Illegal Operators below). "CLCA can’t do it all for our members," noted Rohlfes. "We can lobby and meet with the CSLB, but it really takes every licensed contractor to be proactive as well."

Rohlfes said illegal construction contractors are more prevalent when times are tough. He particularly noticed a rise in unlicensed contractors during the early 1990s. "A lot of construction firms and landscape maintenance firms had to lay people off, and those people who were laid off started their own businesses," he explained, noting that many of those new business owners did not apply for licenses. "During tough times, we notice it more. During the boom times, we’re too busy making money to worry about that, but when hard times come, you’re bidding all of the jobs and you want to keep working to keep your crews employed. You really notice it then when you come up against someone who’s unlicensed and you’re underbid by 50 percent."

The author is Internet Editor of Lawn & Landscape Online.