Before you hire any contractor in California, here's what to check.
The right builder makes a remodel feel calm instead of risky. These eight checks are free, most take a few minutes, and they let you sign with confidence because you've seen the facts for yourself.
- 01The license is current and active, and it fits your job.
- 02Liability insurance is real, and you've seen proof.
- 03The down payment is no more than $1,000 or 10% of the price, whichever is less.
- 04The contract is in writing, with payments tied to finished work.
- 05Every change is written and signed before the work starts.
- 06The permit is pulled by the contractor and closed out with a final inspection.
- 07You get lien releases as you pay.
- 08The warranty is in writing.
Look up the license
Every contractor in California who takes on a job of $1,000 or more (labor and materials together), or any job that needs a building permit, must hold a license from the Contractors State License Board (CSLB). Looking one up is free and takes about a minute.
How to do it
- Go to cslb.ca.gov and choose "Check a License." CheckTheLicenseFirst.com takes you to the same place.
- Type in the license number. It's only digits, and it should be printed on the contractor's bid, contract and business card.
- No number yet? You can also search by business name or by the name of a person on the license.
What each part of the record tells you
- Business information
- The name and address should match the bid and the contract in front of you.
- License status
- You want to read "This license is current and active." If it says expired, suspended or inactive, pause and ask why before you go further.
- Classification
- This is the kind of work the license covers. "B - General Building" is for projects that involve several trades, like a remodel or an addition. A "C" license, such as C-10 Electrical, covers one specialty trade. Make sure the classification fits your project.
- Bonding
- California requires every active license to carry a $25,000 contractor's bond. It's good to see one on file. Keep in mind it's a small safety net, and it won't cover the cost of a whole project.
- Workers' compensation
- You'll see either an insurance company and policy dates, or "exempt." Exempt means the contractor has certified to the state that they have no employees. That's normal for a small firm that hires licensed subcontractors, and those subcontractors should carry their own coverage. If the crew on your property works directly for the contractor, the record should show a policy instead.
- Complaints and legal actions
- Some complaints, citations and construction judgments appear here. State law limits what CSLB can show, so a clean record is a good sign, but it can't tell you everything. Keep going through the rest of this list.
Sources: Business and Professions Code 7048 and 7071.6; CSLB license lookup.
See proof of liability insurance
A license and insurance are two different things. General liability insurance covers injuries and property damage to people who aren't the contractor's employees, like a neighbor or a visitor. A California home improvement contract has to say whether the contractor carries it. If they do, it has to name the insurance company and give you its phone number so you can confirm the coverage.
Ask for a certificate of insurance, then call that number. For a plain-language look at every coverage a remodel calls for, see What You're Protected From.
Source: Business and Professions Code 7159(e).
Keep the down payment small
On a home improvement contract, a down payment can be no more than $1,000 or 10% of the contract price, whichever is less. After that, a contractor can't ask for or accept more than the value of the work done or the materials delivered.
So is it normal to pay half up front? On a California home improvement job, it isn't. The one exception is a contractor who has filed a special performance and payment bond approved by the state, which protects you in a different way. If someone asks for a large payment before work begins, ask them to show you that bond.
Source: Business and Professions Code 7159.5(a)(3), (a)(5) and (a)(8).
Get a written contract and a payment schedule
Any home improvement job over $500 needs a written contract that both of you sign before work starts. It should list the total price in dollars and cents. If you'll pay in stages, it needs a "Schedule of Progress Payments" that ties each payment to a specific piece of work or materials. A detailed cost breakdown isn't required by law, but a contractor you can trust will gladly walk you through one.
You also have time to think it over. In most cases you can cancel within three business days after you receive your signed copy, and senior citizens get five. The contract has to include a written notice that explains how.
Sources: Business and Professions Code 7159 and 7159.5(a)(1), (a)(4).
Put every change in writing first
Plans change, and that's fine. The law simply asks that every change happen on paper first. A change order becomes part of your contract only when it's written and signed by both of you before that work begins. It should say what's changing, how much it adds to or takes off the price, and how it affects the payment schedule. This is the easiest way to make sure the final bill matches what you agreed to.
Source: Business and Professions Code 7159(c)(5) and (d)(13).
Make sure the permit is pulled and closed
Ask who will pull the building permit. The contractor should. If you're asked to sign for the permit yourself as an "owner-builder," the city will hand you a notice explaining that you become the responsible party of record, and that you can protect yourself by hiring a licensed contractor and having the permit filed in their name instead.
A permit protects you only when it's finished. Before the last payment, ask to see the final inspection signed off (often called "finaled"), and keep a copy with your house papers.
Source: Health and Safety Code 19825.
Understand mechanics liens and lien releases
Anyone who helps improve your home and isn't paid can record a mechanics lien on it. That includes subcontractors, suppliers and laborers. A lien is a claim against your property, like a mortgage. It can mean paying twice for the same work, and it can affect your credit, even if you've already paid your contractor in full.
To protect yourself:
- Watch for Preliminary Notices. Subcontractors and suppliers send them to keep their lien rights. A notice isn't a lien. It tells you who is working on your home, and it can arrive up to 20 days after they start.
- Ask for a lien release with each payment. California uses four official forms (Civil Code sections 8132 to 8138). A conditional release takes effect once the payment actually clears. An unconditional release says the payment has been received. After each payment, the law lets you ask the contractor for a full, unconditional release covering the work you've paid for, from anyone who could claim a lien on it. You can hold further payments until you get it.
- Consider joint checks. When a subcontractor or supplier has sent you a Preliminary Notice, you can pay with a check made out to both the contractor and that sub or supplier.
Sources: Business and Professions Code 7159(e)(4) (Mechanics Lien Warning) and 7159.5(a)(6); Civil Code 8132 to 8138.
Get the warranty in writing
Ask what's covered, for how long, and who you call when something needs attention. When it's written down, you both know exactly what was promised. You can read ours as an example: KDB Warranty.
Check us, too.
We wrote this guide because we'd rather you hire with confidence than hope for the best. Run every check on this page on us. Our license number is CSLB #1071136.
- Our down payment never goes over the legal limit, and every payment after it matches work that's done.
- Every change is a written change order you sign before the work starts.
- Your warranty is in writing.
- Business
- Keely Design Build Inc, Orange, CA
- Status
- Current and active
- Classification
- B - General Building
- Bond
- $25,000 contractor's bond on file
- Workers' comp
- Insured with State Compensation Insurance Fund. Our subcontractors carry their own coverage too, and we keep their insurance certificates on file.