The Homeowner's 15-Point Contractor Vetting Checklist

Every contractor performing work valued at $500 or more in California must hold a valid CSLB license. Go to cslb.ca.gov and enter the contractor's name or license number. Confirm the license is active and in good standing. Understand the license classifications: Class A is General Engineering, Class B is General Building (the most common for residential remodels), and Class C covers specialty trades like electrical (C-10), plumbing (C-36), and HVAC (C-20). The license class must match the work you need done. A C-36 plumber cannot legally act as your general contractor on a full kitchen renovation.

Require a certificate of insurance (COI) showing a minimum $1,000,000 general liability policy. This protects your property if the contractor causes damage during construction—a broken water line, fire from welding, or structural damage from improper demolition. Ask to be named as an additional insured on the policy for the duration of your project. Call the insurance carrier directly to verify the policy is active. Do not accept a photocopy of an expired or forged certificate.

California law requires every contractor with employees to carry workers' compensation insurance. If a worker is injured on your property and the contractor lacks coverage, you face personal liability for medical bills and lost wages. Request the workers' comp certificate alongside the general liability COI. If the contractor claims to have no employees and uses only subcontractors, verify that each subcontractor carries their own workers' comp policy.

California requires all licensed contractors to maintain a $25,000 contractor's bond. This bond provides a financial safety net if the contractor violates the terms of your contract or fails to pay subcontractors and suppliers. Verify the bond is current through the CSLB license lookup tool—the bond status appears directly on the license detail page. An expired bond means the license is not in good standing, regardless of what the contractor tells you.

Ask for at least three references from recent projects similar in scope to yours. A contractor bidding on your $200,000 kitchen remodel should have references from $150,000+ kitchen projects, not $15,000 bathroom refreshes. Call every reference. Ask specific questions: Did the project finish on time? How did the contractor handle unexpected problems? Was the job site kept clean? Did final costs match the original estimate? Were punch list items completed promptly? Written reviews on Google and Yelp add context, but direct phone calls reveal the full story.

Photos on a website are curated and edited. They do not reveal finish quality, grout alignment, cabinet fit, or paint consistency the way a physical walkthrough does. Ask to visit a recently completed project—ideally one that was finished 6 to 12 months ago so you can see how the work has held up over time. Pay attention to details: Are cabinet doors aligned? Do drawers close smoothly? Are tile lines straight? Is caulking clean and consistent? These details separate a competent contractor from an excellent one.

A handshake deal is not a contract. Require a detailed written agreement that specifies the full scope of work, materials by brand and model number, start and completion dates, a milestone-based payment schedule, and procedures for handling disputes. California law (Business and Professions Code Section 7159) requires written contracts for any home improvement project over $500. The contract must include the contractor's license number, a notice of the three-day right to cancel, and a description of the work to be performed. If the contractor resists putting details in writing, that is a disqualifying red flag.

California law (Business and Professions Code Section 7159.5) caps upfront payments at 10% of the contract price or $1,000, whichever is less. Any contractor who asks for more upfront is either unfamiliar with the law or deliberately violating it. Structure all remaining payments around completed milestones: demolition complete, rough framing inspected, drywall finished, final walkthrough approved. Never pay ahead of work performed—this is the single most effective way to maintain leverage throughout your project.

Your contractor must pull all required building permits before work begins. Permits ensure that structural, electrical, plumbing, and mechanical work meets current California building code. In Orange County, permit fees range from $2,000 for a bathroom remodel to $15,000+ for a major addition or ADU. If a contractor suggests skipping permits to save money, walk away immediately. Unpermitted work creates inspection failures, insurance coverage gaps, and devastating resale consequences. When you sell your home, unpermitted square footage or modifications must be disclosed and will reduce your property's market value.

Changes happen on every construction project. What matters is how those changes are documented. Establish a written change order process before the first day of work. Every modification to scope, material, or timeline must be documented in a signed change order that includes the updated price, the impact on the schedule, and approval from both parties before additional work proceeds. Verbal approvals for changes lead to billing disputes and are the number one source of contractor-homeowner conflict in residential construction.

A mechanic's lien allows unpaid subcontractors and material suppliers to place a legal claim against your property—even if you already paid the general contractor. Protect yourself by requiring unconditional lien waivers from every subcontractor and supplier with each payment you make. California Civil Code Sections 8132–8138 define the specific waiver forms required. Your general contractor should provide these waivers proactively. If they do not understand what a lien waiver is or refuse to provide them, that indicates a serious problem with their business practices.

Ask for written warranty terms covering a minimum of one year on all workmanship. The best contractors in Southern California offer two-year workmanship warranties because they stand behind their quality. Separate from the workmanship warranty, verify that manufacturer warranties on materials—appliances, roofing, windows, cabinetry—are properly registered and transferred to you as the homeowner. Keep all warranty documents organized in a project binder. A one-year workmanship warranty is the industry minimum; anything less signals a contractor who does not expect their work to last.

Communication breakdowns cause more homeowner frustration than any other issue during construction. Before you sign, ask the contractor: How do you communicate with clients? How often will I receive progress updates? Who is my daily point of contact on site? Will I receive weekly written summaries or photo updates? Set these expectations in writing as part of your contract. A contractor who is slow to return calls and vague about schedules during the sales process will be worse once they have your deposit.

Most general contractors rely on subcontractors for electrical, plumbing, HVAC, tile, and other specialty trades. Ask who their regular subcontractors are and how long they have worked together. Established relationships between a GC and their subs produce better coordination, fewer scheduling conflicts, and higher-quality work. Verify that subcontractors are licensed and insured. Ask who supervises the job site daily—a project manager or superintendent should be present every day work is being performed, not just the general contractor dropping by occasionally.

If something feels off during the vetting process, it will be worse during construction. Trust the feeling. Red flags include: pressure to sign a contract immediately, requests for cash-only payment, no physical office or business address, reluctance to provide references, and evasive answers about insurance or licensing. A reputable contractor welcomes scrutiny because they have nothing to hide. You are about to trust this person with your home and your money—do not override your judgment because of a low bid or a charming sales pitch.