Risks Working with unlicensed contractor

[Hanlin Li]

Newbie here, I’m remodeling my first house in CA (Water, electricity, furnace etc). And this contractor my friend recommended is not licensed but will get all the permits through his boss’s license. His boss will also come to check on the project. My friend says the guy is very reliable and experienced. The issue is that I will sign a contract with him not his boss. I’m trying to understand what kind of risks I will have for working with him? Thanks!

[Cassi Justiz]

California is wild about their construction requirements. I'd tread with caution. 
You'll want to dig into whether the license (and insurance) the boss has covers this guy's work. It's not uncommon in my area to have a contractor supervise guys that aren't licensed, but the actual contractor is the one pulling permits, overseeing the job site/work and carrying the insurance policy on both the workers and the work being done. The red flag to me is that you are signing the contract with the unlicensed guy and not the licensed supervisor. If something goes wrong, the licensed supervisor is not on the contract and can deny that he had anything to do with this project.