How to Hire a Contractor in Los Angeles: 10-Step Checklist

California has more unlicensed contractor complaints than any other state. Hiring wrong can cost you tens of thousands of dollars and leave your home in worse shape than before. This checklist is based on what we've seen go wrong — and what protects homeowners every time.

The 10-Step Contractor Hiring Checklist

Step 1: Verify the CSLB License

Every contractor in California must be licensed by the Contractors State License Board (CSLB). Check their license number at cslb.ca.gov. Verify:

• License is active (not suspended or expired)
• License class matches the work (Class B = General Building, Class C = specialty trades)
• No disciplinary actions on record

Red flag: Any contractor who can't provide their CSLB number immediately is unlicensed.

Step 2: Verify Insurance

Ask for a Certificate of Insurance (COI) showing:

• General liability insurance: Minimum $1 million per occurrence
• Workers' compensation insurance: Required if they have employees

Request to be listed as an additional insured on the policy for the duration of your project. If a worker is injured on your property and the contractor doesn't have workers' comp, you may be liable.

Step 3: Get a Written Contract

California law (Business & Professions Code §7159) requires a written contract for any home improvement project over $500. Your contract must include:

• Contractor's name, address, and CSLB license number
• Detailed description of work to be performed
• Materials to be used (brand, grade, quantity)
• Project start and completion dates
• Total contract price
• Payment schedule

Step 4: Know Your Deposit Rights

California law limits the down payment on home improvement contracts to $1,000 or 10% of the contract price, whichever is less. Any contractor asking for more than this upfront is either uninformed or trying to take advantage of you. This is a hard legal limit — not a guideline.

Step 5: Get 3 Bids

Always get at least 3 written bids for any project over $5,000. Compare:

• Scope — are they pricing the same work?
• Materials — same quality/brand?
• Timeline — realistic or suspiciously fast?

Caution: The lowest bid is often low because it's missing scope, using inferior materials, or from someone who won't be in business when you have a warranty claim.

Step 6: Check References (and Actually Call Them)

Ask for 3–5 references from projects in your area within the last 2 years. Ask:

• Did they finish on time?
• Was the final price close to the estimate?
• Would you hire them again?
• Did they clean up every day?

Step 7: Confirm Who Does the Actual Work

Some contractors sub out all the labor to the cheapest bidder. Ask directly: "Will your employees be doing this work, or will you sub it out?" Subcontracting isn't inherently bad — but you should know who's on your property and verify those subs are also licensed and insured.

Step 8: Understand the Permit Process

Any project requiring a permit (pools, additions, decks, roofing over a certain scope) should be pulled by the contractor — in their name. If a contractor asks you to pull the permit yourself ("it's easier"), that's a red flag — they may not be licensed to do the work, and you'd be taking on liability.

Step 9: Review the Lien Release Process

Subcontractors and suppliers can file mechanic's liens against your property if your general contractor doesn't pay them — even if you've paid your contractor in full. For large projects, require conditional lien releases from all major subs before final payment.

Step 10: Document Everything

Keep a project file with: signed contract, all change orders (in writing), all payments (check/wire — avoid cash), inspection records, and final permit card. Photograph work in progress. This protects you if disputes arise during or after the project.