Choosing a contractor is the most important decision in any building project. California has strong consumer protections for homeowners, and knowing them makes it easy to spot a professional and avoid a bad experience. Here is a checklist you can use with anyone you are considering, including us.
1. Verify the license
In California, work over $500 in combined labor and materials requires a contractor licensed by the Contractors State License Board (CSLB). Look up the license number at cslb.ca.gov and confirm that it is active, that the name matches the company you are talking to, and that the classification fits your job.
2. Check bonding and workers' compensation
The CSLB lookup also shows the contractor's bond and whether workers' compensation insurance is on file. If someone is hurt on your property and the contractor has employees without coverage, you could be exposed.
3. Get a written contract
California requires a written contract for home improvement projects over $500. It should describe the work, the price, the payment schedule, who is responsible for permits, the start and completion dates, and the contractor's name, address, and license number.
4. Know the down payment limit
For home improvement work, the down payment should not exceed 10 percent of the contract price or $1,000, whichever is less. The rare exception is a contractor with a special blanket bond on file with CSLB. A request for a large deposit up front is a red flag.
5. Keep payments in line with progress
Tie payments to completed stages of work, such as foundation, framing, and rough inspections. Avoid paying far ahead of what has been built.
6. Know your right to cancel
For many home improvement contracts, you can cancel within three days of signing, in writing. The contract should explain this right.
7. Put every change in writing
Changes happen on almost every project. Each one should be a signed written change order that states the added work and the price before the work is done.
8. Confirm the permits
Ask which permits your project needs and who will pull them. Be cautious if a contractor suggests skipping permits to save time or money. Unpermitted work can cause problems with insurance, resale, and safety.
9. Talk about communication
Ask who your point of contact will be, how often you will get updates, and how questions are handled. Clear communication prevents most of the conflicts that happen on construction projects.
Red flags to watch for
Pressure to sign today, cash only deals, a large deposit up front, no written contract, a license number that does not match the company, or a suggestion to skip permits.
Common questions
How do I look up a contractor's license in California?
Use the license search on the CSLB website at cslb.ca.gov. You can search by license number, business name, or personal name and see the license status, bond, and workers' compensation information.
How many bids should I get?
Two or three detailed bids for the same scope is common. Compare what is included, not just the total price, since the lowest bid often leaves things out.
Is a verbal agreement enough for a small job?
For work over $500, California requires a written contract. Even for smaller jobs, getting the scope and price in writing avoids misunderstandings.
This guide is general information for homeowners. Every house is different, so an on site evaluation is the only way to know what your home needs.