It’s important to vet any contractor before you hire them, and looking for online reviews is key.
But for California homeowners, digging up official complaints against contractors is easier said than done.
As NBC Bay Area revealed, many such complaints end up hidden from view on California’s Contractors State License Board (CSLB)’s public database.
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Homeowner Steve Sonza and his wife are angry about the lack of transparency. When they hired Anchored Tiny Homes early last year, zero complaints showed up on the CSLB database.
But after the Sonzas put $200,000 down, Anchored Tiny Homes abandoned the project. Turns out hundreds of people had complained about similar situations to the CSLB. The Sonzas wish those complaints had surfaced on the website.
"There is no protection for the consumer," Steve Sonza said.
How California contractors wipe the public record clean
Last year, California revoked Anchored’s license after the CSLB received multiple complaints about the company taking clients’ money and then dropping projects.
Even at the time Anchored’s license was revoked, there were still only 10 complaints about the company that showed up on the CSLB’s public-facing record.
But NBC Bay Area discovered that the state license board had received 25 times that many complaints. The remaining 249 complaints were hidden from view.
“If multiple people are reporting it, multiple red flags, somebody has to be monitoring this and regulating this,” Steve Sonza’s wife said.
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Why hasn’t more been done? Former Anchored COO Chris Pace told NBC that contractors like Anchored Tiny Homes can keep complaints out of public view by getting upset customers to settle.
"It would just be taken off the books, and things would go back to normal,” Pace said.
When the CSLB receives a complaint against a contractor, it only becomes a matter of public record if the CSLB investigates the complaint.
Katherine White, Chief of Public Affairs at CSLB, said the board does not investigate any complaints in which a contractor settles with a customer for cash.
As she put it, the state will just "move on." But that means consumers remain in the dark.
And a lot is being kept in the dark.
NBC estimates that between 2020 and 2024, the CSLB closed at least 10,719 complaints without investigation — even when customers accused a contractor of breaking the law.
None of those complaints surfaced on the public-facing database.
White said the CSLB is also conducting a new audit to determine how to flag contractors with multiple complaints rather than just bury them when consumers settle.
How to avoid being cheated by a contractor
It’s still worth checking out complaints about contractors online, but as this story reveals, you may have to do a lot more digging.
In addition to checking your state’s licensing board website for red flags, see if there are complaints against a given contracting company on the Better Business Bureau’s website.
Google the contractor’s name to learn more about the type of work they do and their reputation. Don’t rely on the testimonials on their website. Ask to see their work in person and speak to fellow homeowners who have worked with the contractor.
Don’t just look at one contractor. Get multiple estimates. If one company’s price is really low, that could be a red flag.
If you decide to proceed with a contractor, don’t hand over any money until you sign a contract that clearly outlines the scope of work.
Also, read your contract carefully so you understand exactly what your money is buying you and what rights you have.
Never pay in full upfront. NBC notes that the maximum contractors can demand homeowners to pay upfront in California is $1,000. Withhold your final payment until work is done in full.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
