How to Hire a Contractor in California (2026 Complete Guide)
How to verify licenses, what your contract must include, 7 red flags that cost Californians millions every year, and the exact questions to ask before signing anything.
Written by Gilad Segev, Founder & Licensed General Contractor, Oria Builders · CSLB #1029255
Quick Answer
To hire a contractor in California safely: verify their CSLB license at cslb.ca.gov, get 3 bids, insist on a written contract, and never pay more than 10% or $1,000 down (whichever is less — it's the law). Biggest red flags: no license, large cash upfront, suggesting you skip permits.
Step 1: Verify the CSLB License (Takes 2 Minutes)
Visit cslb.ca.gov → "Check a License" and confirm:
- License status is "Active"
- License classification includes "B" (General Building) for most remodeling work
- Bond and workers' compensation are current
- No disciplinary actions or complaints on record
Oria Builders holds CSLB #1029255 — verify it at cslb.ca.gov.
7 Red Flags That Should Make You Walk Away
- No CSLB license or expired license — Any contractor doing work over $500 in CA must be CSLB licensed.
- Demands cash only or more than 10% upfront — California law caps down payments at 10% or $1,000.
- No physical business address or unmarked vehicle — Legitimate contractors have real offices and company signage.
- Won't pull permits — Suggesting you avoid permits is a huge red flag and creates serious liability.
- Pressures you to decide immediately — High-pressure tactics, not professional business practices.
- Vague contracts or verbal agreements only — California requires written contracts for work over $500.
- Can't provide recent references with permit numbers — Verifiable at your city's building department.
What Your Contract Must Include (California Law)
- Contractor's CSLB license number
- Detailed scope of work — specific materials, brands, and quantities
- Payment schedule tied to milestones (not contractor's cash flow)
- Project start date and estimated completion date
- Change order process in writing
- Lien release requirement for each payment milestone
- 3-Day right of rescission notice (required by CA law)
The 10% Down Payment Rule
California law limits contractor down payments to 10% of the contract price or $1,000 — whichever is less. Any contractor demanding more is violating California Business and Professions Code §7159.5.
Frequently Asked Questions — Hiring a Contractor in California
- How do I verify a contractor's license in California?
- Check cslb.ca.gov → "Check a License." Enter the contractor's license number or name to see license status, classification, bond, and disciplinary actions.
- What is the maximum down payment a contractor can legally request in California?
- California law limits down payments to 10% of the total contract price or $1,000 — whichever is less. Be very wary of any contractor demanding more.
- Do I need a permit for my remodeling project in California?
- Most structural, electrical, plumbing, and mechanical work requires a permit. Unpermitted work can prevent home sales and void homeowner's insurance.
- What is a lien release and why does it matter?
- A lien release is a document from your contractor stating they have been paid and waive their right to file a mechanics lien against your property. Always require these before making progress payments.