By MATT MAURY

"LICENSED AND BONDED CONTRACTOR" the advertising states in bold print, along with the official number that has been issued by the State of Washington. To many homeowners, this advertisement would imply that the contractor is reputable and has met certain state requirements. There is a feeling of assurance that the State has said "This contractor is OK."

WRONG! WRONG! WRONG! The State, in issuing a license to a contractor, only has issued a license to do business in Washington. There is no general statement of competency nor any assurance of financial soundness. True, there are special test requirements to be a plumber or an electrician, but anyone can be a painter, roofer or general contractor.

Step 1 is becoming bonded - this is, having an insurance company guarantee claims of up to $6,000. Generally, if an individual or a firm has a reasonable financial statement, a bond can be issued quickly. If the financial statement shows a low or negative net worth, there may be a deposit required before the bond will be written. The important thing to realize is that, in most areas of home repair and remodeling, the bonding company does not require the contractor to provide any evidence of competency as a condition to be bonded.

Step 2 is becoming licensed - this is, having the State issue a permit to do business as a contractor in Washington. This requires only the proofs of bonding, insurance and registration with the other State agencies to assure that workman's compensation insurance, business and occupation taxes, sales taxes, etc., should be paid. As with bonding, competency is not a condition for licensing.

So, OK, you may be thinking, but even if there is a problem, the homeowner will be protected by the bond. Well, maybe. It's not just a matter of making a list and sending the claim to the bonding company. First, you have to get a legal judgement against the contractor and the bonding company in superior court. Generally, that will require a lawyer to sue for the claimed amount. After a judgement is given in favor of the homeowner, the claim and court documents must be submitted to the Contractors Licensing Division of the Department of Labor & Industries in Olympia. It will then be sent to the bonding company for payment. If, as is frequently the case, the bonding company has more claims than the value of the bond, the homeowner will only receive a pro-rated share of the damages, if anything. Hopefully, it will be enough to pay the legal fees.

Homeowners should be aware that they need to take on the responsibility of screening contractors that do work on their residences. They cannot rely on bonding agents or the State of Washington. Things to consider in selecting a contractor should include years of experience, banking references and, of course, job references. In today's environment, when most competent contractors have lengthy order files, homeowners should be particularly wary of anyone coming door-to-door who can begin work immediately.