What to Do If a Contractor Is Unlicensed in Washington

Short Answer: First confirm the contractor really is unregistered by searching name and number variations on L&I Verify. If confirmed, stop payments, document the work, report it to L&I and get advice on recovering your money.

Quick Facts

Discovering that your contractor is not registered is unsettling. The protections you assumed, a bond and liability insurance, may not exist. Here is a calm, practical plan. It is general information, not legal advice.

Step 1: Make Sure

Before acting, confirm:

1. Ask the contractor for its registration number in writing.
2. Search the number and the business name, including variations and the owner’s name, on L&I Verify and in the Washington Contractor License Lookup.
3. Check whether a newer record exists for a renamed or restructured business.

“No result” can be a typo. If the contractor’s record exists but shows EXPIRED or SUSPENDED, follow What to Do If Your Contractor’s License Expired instead.

Step 2: Stop Payments

Once you are confident there is no current registration, pause further payments. Notify the contractor in writing that you have been unable to verify a registration and that you are pausing payment until you receive proof.

Step 3: Document Everything

• The contract, quotes and any Notice to Customer.
• Receipts and payment records.
• Photos and video of the work, dated.
• Messages, texts and emails.
• Names of anyone who worked on site.

Step 4: Understand the Legal Position

Washington law is firm on unregistered contracting:

• RCW 18.27.020 makes it a gross misdemeanor to advertise, bid or perform contracting work without registration, and makes it illegal for a registered contractor to use an unregistered subcontractor.
• RCW 18.27.200 makes the same conduct an infraction, with each day and each worksite a separate infraction.
• RCW 18.27.080 generally prevents a contractor from suing to collect payment for work requiring registration unless it proves it was registered when it contracted.

That last point can shift leverage in a payment dispute, but how it applies to your case is a question for a lawyer.

Step 5: Assess the Work

If work has been done, have it inspected:

• Check whether permits were pulled. Call your city or county building department.
• Get an independent registered contractor to assess quality and safety.
• If electrical or plumbing work was involved, those trades have their own licensing; unlicensed work may need inspection or correction.

Step 6: Decide Whether to Continue

Continuing with an unregistered contractor means continuing without a bond or required insurance, and the contractor continuing illegally. Most homeowners end the arrangement and hire a registered contractor to finish.

Step 7: Report It

You can report suspected unregistered contracting to L&I:

• online through the Report a Contractor tool,
• by phone at 1-888-811-5974.

Reports can be anonymous, and you receive a referral number. L&I can investigate and issue infractions. For deceptive business practices, you can also complain to the Washington Attorney General; see How to File a Complaint Against a Contractor in Washington.

Watch out: L&I enforcement does not recover your money. Pursue your own claim separately if you have losses.

Step 8: Pursue Your Losses

Without a bond or the Homeowner Recovery Fund, options include:

• negotiating a refund or completion in writing,
• small claims court for smaller amounts,
• a civil lawsuit, potentially including Consumer Protection Act claims, with an attorney,
• your homeowner’s insurer, for sudden damage caused by the work.

Step 9: Protect Against Liens

If the contractor bought materials on credit or used workers, suppliers or workers may claim liens. Watch for any Notice to Owner, and ask for lien releases for anything you have paid for. See Lien Release Explained for Washington Homeowners.

Step 10: Hire Properly to Finish

When you hire someone to complete the job, verify registration, bond and insurance first, and get a detailed contract. Tell the new contractor what was done before, so they can price corrections fairly.

Why This Happens

Unregistered contractors are often cheaper because they avoid bond, insurance and workers’ comp costs. The risks are covered in Risks of Hiring an Unregistered Contractor in Washington.

A Sample Message to the Contractor

Tip: “Hi, I searched L&I Verify for your business name and the number you gave me and could not find a current registration. Please send me your registration number and proof of your bond and insurance. I am pausing payments and work until I receive it.”

Keep it short and factual. You are not accusing anyone; you are asking for documents that any registered contractor can produce in minutes.

What Not to Do

• Do not make threats in writing; stick to facts and requests.
• Do not destroy or hide evidence of the work, even if you want it fixed quickly. Photograph it first.
• Do not let the contractor keep working while you sort things out, especially on electrical, plumbing or structural work.
• Do not post accusations online that you cannot support. If you write a review, describe facts you can prove.
• Do not pay more money in exchange for a promise to register “soon”.

Talking to Your Insurer

If the work caused damage, or you are worried about safety, tell your homeowner’s insurer. Ask how the claim process works and whether they need an inspection. Your policy wording will decide what is covered, and the insurer can tell you what documents they need.

When to Get a Lawyer

Consider legal advice when the amount at stake is significant, when a supplier or worker has threatened a lien, when someone was injured, or when the contractor is threatening to sue you. Many Washington attorneys offer an initial consultation, and local bar associations run lawyer referral services.

Helping Someone Else

If you suspect a parent or neighbour has hired an unregistered contractor, offer to help them check the record and gather documents rather than confronting the contractor yourself. Keep notes of what they paid and when.

Bottom Line

Confirm carefully, stop paying, document everything, report it and get advice on your losses. Then finish the project with a verified, registered contractor.