How to hire a licensed contractor in California

Most contractor problems start before any work does: an unlicensed crew, a big down payment, or a contract that leaves you exposed to liens. This checklist covers what California law gives you and what to ask for.

1. Check the license, and check it fits the job

In California, anyone who takes on a construction job worth $1,000 or more in labor and materials must hold a license from the Contractors State License Board (CSLB). Search the contractor's name or license number here, then confirm it on the state's own CSLB license check. Look for three things:

2. Look at the flags and the history

Each license card here shows flags from the state's file, such as a pending case or citation, a probationary license, a disciplinary bond, or a suspension that will take effect unless something is fixed. For the full disciplinary history (citations and accusations), follow the link on the card to the license's page on CSLB.ca.gov. Ask the contractor about anything you see. A good contractor will explain it.

3. Keep the down payment small

For a home improvement contract, California law limits the down payment to $1,000 or 10% of the contract price, whichever is less. For a swimming pool, the limit is $200 or 2%, whichever is less. After that, payments shouldn't get ahead of the work actually done. A contractor who asks for half up front is asking you to break the rule along with them. Pay by check or card, never cash, and get a receipt.

4. Get a written contract, and know your right to cancel

The contract should show the license number, a description of the work and materials, the total price, a payment schedule tied to the work, and start and finish dates. For most home improvement contracts signed at your home you have three business days to cancel, and homeowners 65 and older have five. The contract has to tell you how.

5. Check the bond and workers' comp

Every active California license must carry a $25,000 contractor's bond, and this site shows the bonding company on each card. A bond is not insurance for your project, but you can make a claim against it in some cases. Workers' comp matters because an uninsured worker hurt at your home can become your problem. An "exempt" license has certified that it has no employees; if a crew shows up, ask who employs them. Roofing contractors must carry workers' comp even without employees.

6. Make sure the permits are pulled

Most structural, roofing, electrical, plumbing and mechanical work needs a permit from your city or county building department, in the licensed contractor's name. Ask for the permit number and check it. Be wary of anyone who suggests skipping the permit or asks you to pull it as the owner.

7. Protect yourself from liens

Subcontractors and suppliers who aren't paid by your contractor can record a mechanics lien on your home, even if you paid the contractor in full. Keep any preliminary notices you receive (often called 20-day notices). Before each payment, and especially the final one, get signed lien releases (conditional and unconditional waivers on the state's forms) from the contractor and from everyone who sent you a notice.

After a fire or other disaster

Unlicensed operators follow disasters door to door. In California, contracting without a license in a declared emergency area is a felony. Don't sign on the spot, don't pay large sums up front, and check the license before anyone starts work. Talk to your insurer before signing anything that hands them your claim.

If something goes wrong

Try to settle it with the contractor in writing first. If that fails, you can file a complaint with the CSLB, which investigates licensed contractors and unlicensed activity and offers mediation and arbitration for some disputes. For money disputes you may also need small claims court or an attorney. This guide is general information, not legal advice.