Before you hire a contractor

Beware of high-pressure door-to-door sales for expensive work on your home. If a contractor pressures you to sign a contract or pay quickly, federal law lets you cancel the sale in writing within 3 business days. 

Send written notice that you’re canceling within 3 business days by certified mail. Keep a copy and proof of delivery. Your contract may include a form or instructions for where to send your cancellation.

Registration. In Washington, a contractor must be registered with the Department of Labor & Industries (L&I or LNI). It’s a gross misdemeanor to work as an unregistered contractor. This includes advertising, bidding, and work without a license or with a suspended or expired registration. 

Written disclosures. For residential jobs costing $1,000 - $60,000, the contractor must give you a written disclosure called a Notice to Customer before starting work. It must say:

• The contractor is registered and bonded, and the amount of the bond (financial protection if something goes wrong)
• The bond may not fully protect you
• If workers or suppliers aren’t paid, the contractor could put a lien on your home 
• You may withhold part of the payment (retainage)
• You may ask for lien releases

A lien on your property means you must pay off what you owe the contractor before you can sell the property. Ordinarily, people who work on your home (contractors, subcontractors, suppliers) can file a mechanic’s lien if they’re not paid. A subcontractor or supplier can do this even if you already paid the contractor. A contractor who doesn’t give you this notice may lose the right to file a lien.

For projects costing more than $5,000, the contractor must post a notice at the job site throughout the project stating lien rights and participants. This pre-lien notice, called a Notice to Owner:

• Tells you who’s working on the project
• Warns you who may have lien rights if unpaid