Contractor hiring tips

Before hiring a contractor, verify their license status.

Ask for the contractor’s license number and confirm it using the CSLB license check.

Make sure the license is active, the contractor has proper insurance, and there are no unresolved issues.

Ask friends, neighbors, relatives and co-workers for recommendations. You can also request referrals from hardware or building supply stores or a real estate professional.

Interview at least three contractors and obtain bids from each.

Once you confirm the contractor’s license is valid, check their references carefully.

Ask for a current client and the two most recent clients. This helps ensure the contractor is financially stable and not relying on new jobs to cover past work.

Consider asking the following questions:

1. Was the job started on time?
2. Was the job finished on time?
3. Were there any unexpected issues?
4. Was the job completed for the agreed-upon price?
5. Was the contractor easy to contact during the project?
6. Would you hire this contractor again?
7. How were changes to the original contract handled?

You may also ask for vendor references. Contact suppliers to ask about the contractor’s payment history. Contractors with good credit are typically reliable.

Insurance

Your contractor should carry two types of insurance to protect you during the project:

1. General liability insurance: Covers accidental damage or injury on your property.
2. Workers’ compensation insurance: Covers work-related injuries. California requires this for most employers. Special rules apply to sole operators—contact the CSLB for details.

Written contract

Always require a written contract. It should include product details such as brands, model numbers and specifications.

The contract should also include a completion date and a requirement for cleanup after the project is finished.

Include any special conditions you want in writing.

Contract changes

All changes must be in writing and signed by both you and the contractor. Do not rely on verbal agreements.

Contractor payments

• Make sure the contract includes a clear payment schedule.
• The down payment must not exceed $1,000 or 10% of the contract, whichever is less (California Business and Professions Code Section 7159).
• Only pay for work that has been completed. Never pay in advance for materials or labor.
• Payment schedules should be listed in dollar amounts, not percentages.

Subcontractors and suppliers

• Do not make a final payment until you have proof that all subcontractors and suppliers have been paid.
• If a contractor fails to pay others involved in the project, you may still be responsible and could face a mechanic’s lien on your property.