Why Choosing the Right Plumbing Contractor Could Save You Thousands—And Keep You Out of Legal Trouble
When your pipes burst at 2 AM or your water heater suddenly fails, the temptation to hire the cheapest available help can be overwhelming. But in Northern California, that decision could cost you far more than you bargained for—both financially and legally. You’ll probably end up paying more in the long run when you cut corners on plumbing credentials.
The $500 Rule That Changes Everything
In California, any plumbing project exceeding $500 requires a state-issued license. This isn’t just a suggestion—it’s the law. It is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more in combined labor and material costs. What many homeowners don’t realize is that it’s also illegal to hire an unlicensed contractor in the state of California.
The financial implications are staggering. If an unlicensed contractor tries to sue someone who hired him/her for unpaid work, no California court will enforce payment. Even more shocking, an unlicensed contractor may be required to disgorge any compensation it has previously been paid for performing work requiring a license. In one case, the Court of Appeal affirmed disgorgement by an unlicensed contractor of the entire amount paid to him under his contract – a whopping $751,995.
The Hidden Costs of Going Unlicensed
Unlicensed contractors are often able to charge much less than their licensed counterparts because they don’t have many of the overhead fees that come along with working as a licensed contractor. However, when you consider the financial risks you are taking by using an unlicensed contractor vs. a licensed contractor who has no workers compensation or liability coverage, you may find that if something goes wrong, it isn’t cheaper at all in the long run.
The risks extend far beyond money. Unlicensed individuals pose a risk to you and your family’s financial security if a worker is injured while on your property, your property is damaged, or if the work is incomplete and/or faulty. Few, if any, unlicensed individuals have a bond or workers’ compensation insurance.
Insurance and Legal Complications
Some home insurance policies will not cover damage caused by work done by an unlicensed plumber, putting you at greater financial risk. Additionally, if an unlicensed plumber fails to meet building codes, you could face fines or be required to redo the work. In some cases, you may even need to obtain a permit retroactively, which can be a hassle.
Homeowners will be held liable for any injury that occurs on the property, even if the homeowner did not know the contractor was unlicensed. This liability can result in devastating financial consequences for families who thought they were saving money.
Quality and Accountability Differences
The quality of their work usually doesn’t compare to that of a licensed contractor. Licensed plumbers must meet strict requirements: The CSLB requires applicants to have four years of work as a journeyperson plumber or four years in a relevant role such as foreman or supervisor.
Licensed plumbers are held to a higher standard of professionalism. If something goes wrong, you have recourse through the CSLB to file a complaint or seek resolution. In contrast, if something goes wrong with an unlicensed plumber, you may have little to no recourse. They’re not regulated by the CSLB, so filing a complaint or seeking compensation can be challenging.
Enforcement is Real and Growing
California authorities take unlicensed contracting seriously. California state authorities will often conduct sting operations to catch unlicensed contractors. A typical sting will involve soliciting bids for construction or handyman work and then arresting everyone who is unlicensed and puts in a bid over $500.
In the past year, the CSLB received over 1,200 complaints about unlicensed plumbing, and more than half resulted in fines or work shut-downs. The first-time penalty can hit $5,000 plus possible jail time if the infraction is serious.
What Licensed Contractors Provide
Hiring a licensed plumber ensures you’re getting quality workmanship, compliance with building codes, and protection for your home and wallet. Licensed contractors offer several key advantages:
- Licensed plumbers have the training and experience to tackle a wide range of plumbing issues. Whether it’s a simple repair or a major installation, they know how to get the job done right the first time
- Licensed plumbers are well-versed in local building codes and will ensure your project is up to standard
- During the warranty period, if something breaks, leaks, or doesn’t function as it should, the plumber or plumbing company takes care of repairs at no additional cost. A licensed plumber may offer an extended warranty
- Public liability insurance is mandatory for licensed plumbers in California. This protects against property damage and personal injury claims
Finding the Right Licensed Professional
Before hiring a plumber, it’s important to verify their license. In California, you can check a plumber’s license status through the CSLB website. Simply enter their license number or business name to confirm they’re in good standing.
For Northern California residents, companies like CG Plumbing demonstrate what proper licensing looks like in practice. CG Plumbing provides expert repairs and installations across El Dorado, Sacramento, Placer, Nevada, and Amador County. They’re licensed, insured, and know the specific plumbing challenges that come with the region’s mix of established and newer homes. When you work with a licensed Plumbing Contractor like CG Plumbing, you’re working with professionals who live and work in this community. They’re not a franchise or a big corporate operation – they’re local plumbers who care about their reputation and the quality of their work.
The Bottom Line
When it comes to your home’s plumbing, cutting corners simply isn’t worth it. Hiring a licensed plumber ensures you’re getting quality workmanship, compliance with building codes, and protection for your home and wallet. While unlicensed plumbers might offer lower rates, the risks far outweigh the potential savings.
The cost of plumbing repairs from an unlicensed plumber might look like a good deal, but in the long run, you’re taking what could be an expensive risk. From structural damage to your home, denied insurance claims, and health risks, hiring an unlicensed plumber can cost you much more than the total on the final invoice.
In Northern California’s competitive market, the small upfront savings from hiring unlicensed contractors pale in comparison to the potential thousands in damages, legal fees, and remediation costs. Protect your investment, your family, and your peace of mind by choosing properly licensed professionals who stand behind their work with insurance, warranties, and accountability.
