Before you hire a contractor in California

This is the checklist I'd want a friend to use. It follows the Contractors State License Board's consumer guidance. It's general information, not legal advice. For anything big or unusual, read CSLB's consumer pages or talk to a lawyer.

1. Make sure the job needs, and gets, a licensed contractor

Since January 1, 2025, California requires a CSLB license for construction work of $1,000 or more in combined labor and materials. A license is also required, whatever the price, for any job that needs a building permit or where the person doing it hires anyone to help (AB 2622). Splitting a bigger job into smaller contracts to get under the limit isn't allowed.

2. Look up the license yourself

Get the license number (it has to appear on contractors' ads, bids and contracts) and check it at CSLB's Instant License Check, or in my license lookup. Confirm:

• The status is active, not expired or suspended.
• The business name and address match the person you're talking to.
• CSLB's own page lists any legal actions. Read them.

3. Match the license class to the job

Each license has one or more classifications. A roof replacement calls for a C-39 Roofing license, plumbing for C-36, electrical for C-10, HVAC for C-20. A B General Building contractor can take on projects that involve two or more unrelated trades, like an addition, an ADU or a full remodel. A B contractor can't take a single-trade job such as a stand-alone roof or plumbing repair unless they also hold that specialty license or subcontract the work to someone who does. (Framing and carpentry jobs are an exception for B licensees.)

4. Check workers' compensation

If a contractor has employees, they must carry workers' comp insurance. CSLB requires some classes to carry it even with no employees: concrete (C-8), HVAC (C-20), asbestos abatement (C-22), roofing (C-39) and tree service (D-49). The CSLB record shows whether a policy is on file or the licensee has certified they're exempt. An uninsured worker who gets hurt on your property can become your problem.

5. Know what the bond does, and ask about liability insurance

Active licensees must carry a $25,000 contractor's bond. A bond is limited and won't necessarily cover all of your losses. CSLB records don't show general liability insurance, so ask for a certificate of insurance and call the insurer to confirm it. Contractors licensed as LLCs are required to carry liability insurance.

6. Get it in writing

In California, home improvement contracts over $500 must be in writing. The contract has to include specific information and notices, including the contractor's name, address and license number, a description of the work and materials, the price and payment schedule, start and completion dates, and a notice about mechanics liens. Don't sign a contract with blanks in it, and keep a copy.

7. Keep the down payment small and payments behind the work

• For home improvement contracts, the down payment can't be more than 10% of the contract price or $1,000, whichever is less.
• For swimming pools, the limit is 2% or $200, whichever is less.
• After the down payment, don't let progress payments get ahead of the work that's actually been done.
• Don't pay in cash. Keep records of every payment.

8. Know your right to cancel

Unless you negotiated the contract at the contractor's place of business, you generally have three business days to cancel. If you're 65 or older, it's five business days. The contract must include a notice explaining this right.

9. Protect yourself from liens

Subcontractors and suppliers who don't get paid can record a mechanics lien against your property, even if you paid your contractor in full. Watch for preliminary notices, and ask for lien releases from the contractor, subs and suppliers as payments are made.

10. Ask who pulls the permit, and who's selling

Your contractor should normally pull the permits for the work. Be careful if a contractor asks you to pull an owner-builder permit yourself. That can make you responsible as the employer and builder. Salespeople who sell home improvement work for a contractor must hold their own CSLB Home Improvement Salesperson (HIS) registration. Ask to see it.

11. After a disaster, slow down

Unlicensed contractors and scammers show up after fires, floods and storms. In a declared emergency area, contracting without a license is a felony. Check every license before you pay anyone.

12. If something goes wrong

Talk to the contractor first, in writing. If that doesn't work, you can file a complaint with CSLB, which also takes reports of unlicensed activity.