The 27-point contractor
hiring checklist.
Every point we verify before signing — and every clause we put in our own contracts. Published so Puget Sound homeowners can hold any contractor (including us) to the same standard. Citations are real RCW chapters and L&I rules, not opinions.
Verify before you call back.
Pull the L&I license record
Search by company name at the WA L&I verify portal. Confirm status is ACTIVE, license type is GENERAL, and the registration is at least 5 years old with no LAPSED periods. A contractor without an active GENERAL registration cannot legally pull a structural permit in Washington (RCW 18.27.020).
L&I Contractor Lookup ↗Verify the surety bond
WA general contractors must carry a $12,000 surety bond per RCW 18.27.040. Confirm the bond number on the L&I record matches what the contractor names in the contract. A lapsed bond is the single most common red flag in the field.
Confirm liability insurance limits
Minimum $200K property / $50K public liability per RCW 18.27.050 — but for ADU and structural work, demand at least $1M general liability and $1M umbrella. Ask for a Certificate of Insurance (COI) listing you as additional insured for the duration of the project.
Check L&I infraction & lawsuit history
The L&I detail page shows infractions, citations, and known unpaid claims against the bond. Two or more bond claims in 24 months is a hard pass. Search Washington Courts case search for civil suits filed against the company.
WA Courts Case Search ↗Workers' Comp (L&I) account
If the contractor uses W-2 employees, they must hold an L&I workers' comp account in good standing. If they only use subs, confirm each sub carries their own L&I account — otherwise you (the homeowner) can be assessed unpaid premiums.
City business license
Seattle, Bellevue, Tacoma, and most Puget Sound cities require a separate city business license for any contractor pulling a permit inside city limits. Ask for the license number; verify on the city portal.
The contract is the project.
Fixed-price scope (not T&M with allowances)
Time-and-materials contracts with 'allowances' transfer cost risk to you. Demand a fixed price with itemized inclusions and a written exclusions list. Allowances are acceptable ONLY for finishes you have not yet selected — never for structural, mechanical, or permit work.
Draw schedule tied to milestones — not time
Payments should release on inspection sign-offs (foundation, framing, mechanical rough-in, drywall, final), not weekly. Cap the deposit at 10% of contract value or $1,000 — whichever is less — per RCW 18.27.114 best practice. Final payment of at least 5% withheld until punch list and lien releases are delivered.
Change-order procedure in writing
Every change order signed by both parties before work begins, with a fixed dollar impact and a schedule impact in days. A verbal 'we'll figure it out at the end' is the #1 cause of disputes — it always favors the contractor.
Permit responsibility named
Contract must state who pulls the permit. If the homeowner pulls it as an owner-builder, you assume liability for code compliance and L&I worker's comp exposure. For ADUs and structural work, ALWAYS require the contractor to be permit applicant of record.
Lien release at every draw
Demand a conditional lien waiver (RCW 60.04.181 Form A) with every progress payment and an unconditional waiver (Form B) after each payment clears. Require the same from every subcontractor and material supplier on the project. This is the only protection against a sub filing a mechanic's lien on your property for non-payment by the GC.
RCW 60.04 — Mechanics' Liens ↗Written warranty
Washington implied warranty of habitability lasts roughly 1 year. Demand a written warranty of at least 2 years on workmanship, 5 years on systems (HVAC, plumbing, electrical), and 10 years on structural elements. Anything shorter is sub-industry.
Substantial completion definition
Define 'substantial completion' explicitly: Certificate of Occupancy issued + punch list under $500 of remaining work. Without this clause, the contractor can claim completion at 90% done and demand final payment.
Dispute resolution clause
Prefer mediation through the WA Dept. of Commerce or AAA arbitration in King/Pierce/Snohomish/Thurston counties. Avoid clauses forcing out-of-state arbitration — those are designed to make small claims uneconomic to pursue.
Schedule with float days
Total calendar days from permit issuance to final inspection, with weather contingency (Puget Sound: assume 25 rain delay days per year on exterior work) and material lead times stated. Without a schedule, you cannot enforce a delay claim.
14 red flags.
- 01No physical office address — only a P.O. box or cell number
- 02License under 2 years old AND scope over $50K
- 03Cash-only or 'discount for paying cash' (signals tax avoidance and zero recourse)
- 04Deposit demand over 33% of contract value before any work begins
- 05Refusal to provide COI listing you as additional insured
- 06Refusal to name the bond company or provide bond number
- 07Pressure to sign 'today only' or with a discount that expires in 24 hours
- 08Won't show 3+ projects of similar scope and budget you can visit or call references on
- 09No portfolio of permitted work — only 'handyman-style' before/afters
- 10Subs paid out of cash from your draws instead of company AP
- 11Vague exclusions list ('standard exclusions apply')
- 12Owner has been principal of 2+ prior LLCs that dissolved (check WA Sec. of State)
- 13Multiple complaints on L&I record or BBB rating below B
- 14Will not put the warranty in writing
Verify what's in this checklist
- Source ↗WA L&I contractor license lookupVerify Golden State ADU Builders Inc · GOLDNAB882L2
- Source ↗Washington State Building Code CouncilStatewide adopted codes (IRC, IBC, WSEC)
- Source ↗WSEC 2021 Residential Energy CodeEnvelope, HVAC, hot-water and air-sealing requirements
- Source ↗WA HB 1110 — Middle housing lawStatewide middle-housing zoning preemption
- Source ↗WA HB 1337 — ADU statewide rulesTwo-ADU baseline, no owner occupancy, parking limits
- Source ↗WA Dept. of Commerce — ADU resources
Frequently asked
Is it legal for a contractor in Washington to ask for a large deposit?
There is no statutory cap on deposit size in Washington, but best practice (and what reputable contractors offer) is 0–10% at signing, with the balance tied to milestone draws. Any deposit over one-third of contract value should be considered a red flag — it usually means the contractor is using your money to pay for their last job.
What's the difference between General and Specialty contractor registration?
GENERAL contractors can pull permits for any scope including structural. SPECIALTY contractors (electrical, plumbing, HVAC, roofing, etc.) are limited to their declared trade. For an ADU, kitchen remodel with wall removal, addition, or any work touching framing, you need a GENERAL contractor — not a handyman or specialty-only license.
What is a mechanic's lien and why does it matter to me?
Under RCW 60.04, any subcontractor or material supplier who is not paid by your GC can file a lien against YOUR property — even if you already paid the GC in full. The lien clouds your title and can force a foreclosure sale. The only defense is collecting signed lien waivers (RCW 60.04.181 Form A or B) at every payment. Demand them.
Do I need the contractor to pull the permit, or can I do it as an owner-builder?
Owner-builder permits are legal in Washington but transfer significant liability to you: L&I worker's comp exposure if anyone is injured on site, sole responsibility for code compliance, and disqualification from L&I bond claims if work is defective. For ADUs and any structural permit, always require the contractor to be the applicant of record.
How long is the contractor liable for defects after substantial completion?
Washington's statute of repose for construction defects is 6 years from substantial completion (RCW 4.16.310) for the right to file suit, with the statute of limitations running 3 years from discovery. Written warranties can extend this for specific systems. Verbal promises generally are not enforceable past 1 year under implied warranty.
What if the contractor's bond is too small to cover my loss?
WA's $12,000 bond is woefully inadequate for ADU-scale work. It is the floor, not a guarantee. Real protection comes from: (1) a contractor with $1M+ liability insurance, (2) lien waivers at every draw, (3) milestone-based payments so your maximum exposure is one draw cycle, and (4) a properly insured GC who pays subs directly — not from cash advances.
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Want this checklist applied to a quote you've received?
Send your contract and scope to office@golden-adu.com — we'll return a one-page review against this checklist within two business days. No obligation, no sales pressure.