Hiring the wrong contractor can cost you far more than money. As a family-owned San Jose builder, we'd rather you know how to vet anyone you hire, including us. Here's a plain, no-spin checklist.
- Verify any contractor's license free at cslb.ca.gov before you sign or pay a cent — confirm it's active, correctly classified, and bonded.
- As of January 1, 2025, a contractor's license is required for home-improvement work of $1,000 or more (a written contract is required over $500).
- California caps the down payment at 10% of the contract or $1,000, whichever is less — anyone demanding more is a red flag.
- Active contractors must carry a $25,000 license bond, plus workers' comp if they have employees.
Start by verifying the CSLB license
In California, a contractor's license from the Contractors State License Board (CSLB) is required for home improvement work valued at $1,000 or more in combined labor and materials. (As of January 1, 2025, that threshold rose from the old $500 figure, though a written contract is still required once a job tops $500.) Before you sign anything or hand over a dollar, look the contractor up.
The CSLB runs a free "Check a License" tool at cslb.ca.gov. Enter the license number or business name and you'll see the classification, current status, expiration date, bond status, workers' compensation filing, and any disciplinary history. You want a status that reads active, a classification that matches your project, and a clean record.
Our own license is CSLB #1050108, and we encourage every homeowner to confirm it. You can read more about how we keep ours current on our credentials page.
Confirm the bond and insurance
A valid license isn't the whole picture. California requires every active contractor to carry a $25,000 contractor license bond, filed with the CSLB. The bond gives you a measure of financial protection if work is left incomplete or defective.
If a contractor has employees, they must also carry workers' compensation insurance. This matters to you directly: if an uninsured worker is hurt on your property, you could be on the hook. General liability coverage isn't mandated by the state, but any reputable remodeler carries it. Ask for current certificates and verify the workers' comp filing on the CSLB lookup.
Know the red flags before you sign
- A large upfront deposit. California law caps the down payment on a home improvement contract at 10% of the price or $1,000, whichever is less. On a $40,000 kitchen remodel, the legal maximum deposit is $1,000, not $4,000. Anyone demanding thousands before work begins is operating outside the law.
- No written contract. Home improvement work over $500 requires a written contract that spells out the scope, total price, payment schedule, and start and completion dates.
- Cash-only demands. Insisting on cash, especially the full amount, is a classic sign of someone avoiding a paper trail.
- No license number, or reluctance to share it. A legitimate contractor puts the number on bids, contracts, and business cards.
- Pressure to skip permits. "We can save time without a permit" leaves you with unpermitted work that can fail inspection and complicate a future home sale.
Why unlicensed work is a real risk
An unlicensed contractor might quote less, but the exposure is serious. Unlicensed work can void your homeowners insurance, fail to pass inspection, and leave you with little legal recourse if the job goes wrong. You may also become liable as the de facto employer for injuries on the job. The discount is rarely worth it.
How to actually check references
Any contractor with real experience can give you three to five references from recent projects similar to yours. Don't just collect names, call them. Ask:
- Did the project finish on schedule and on budget?
- How were changes and surprises handled?
- Was the crew respectful of your home and clean at the end of each day?
- Would you hire them again?
It also helps to ask how the contractor runs a job from start to finish; you can see how we do it on our process page, and what's covered after the work is done on our warranty page.
A quick pre-hire checklist
- Verified active CSLB license with the right classification
- $25,000 bond on file, plus current insurance certificates
- A detailed written contract with a clear payment schedule
- A deposit within the legal 10%-or-$1,000 limit
- Several reachable references you've actually called