Hiring a contractor in California: a checklist
By Contractor Lookout · Updated November 3, 2026
Before you hire a California contractor, confirm the license is active and covers your type of work, verify the bond and workers’ comp, and get a written contract with a down payment of no more than $1,000 or 10% of the price. Then tie every later payment to work that’s actually done.
Print this list or keep it open while you collect bids.
Before you collect bids
- Decide whether you need a licensed contractor. If the total price is $1,000 or more, the work needs a permit, or the worker will bring a helper, you do. See the minor work exemption.
- Work out which license class fits the job. Electrical work needs a C-10, plumbing a C-36, roofing a C-39. A whole-house remodel or ADU usually points to a B General Building contractor. Our A vs B vs C guide explains the differences.
- Find licensed candidates. Browse our counties and cities index or use search.
Check each contractor’s license
- Get the license number and look it up on CSLB’s Instant License Check. Our data is CSLB’s weekly file, so confirm the live record.
- Primary status is Clear. Any suspension means the license isn’t valid for contracting. See what each status means.
- No warning in the secondary status. Look for notes such as pending case or citation or bond payment pending.
- The classification matches your job. A B contractor can’t take a prime contract for a single specialty trade other than framing or carpentry unless it holds that specialty license or subcontracts to a licensed specialty contractor (BPC 7057).
- The expiration date is after your project ends, or the contractor has a plan to renew.
- Match the pocket license and photo ID to the record and to the name on the bid.
Bond and workers’ comp
- A $25,000 contractor’s bond is on file. Call the surety to confirm. See contractor bonds explained.
- Workers’ comp shows a policy or a valid exemption. Call the insurer to confirm a policy. If the record says exempt and a crew shows up, ask about it. C-8, C-20, C-22, C-39 and C-61/D-49 contractors must carry it even with no employees. See how to check workers’ comp.
The salesperson
- If someone other than the contractor sells you the job, check their HIS registration. A home improvement salesperson who sells, negotiates or signs contracts for a contractor must be registered with CSLB. You can search HIS names and registration numbers on Instant License Check. See HIS registration explained.
The contract
- Get it in writing. Home improvement contracts over $500 must be written (BPC 7159).
- The contract includes the down payment notice: “THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.”
- The down payment is within the limit. It can’t be more than $1,000 or 10% of the price, whichever is less, unless the license shows a blanket performance and payment bond. See the down payment guide.
- The payment schedule is tied to stages of work. Under BPC 7159.5, payments can’t exceed the value of the work performed.
- The license number on the contract matches the license you checked.
- Your right to cancel is in the contract. You generally have 3 business days, 5 if you’re 65 or older, and 7 for disaster repairs (Civil Code 1689.6).
Permits
- Ask who pulls the permits. Permits come from your city or county. For a manufactured ADU, CSLB notes that HCD may issue them.
- Don’t let work start before a required permit is issued. Ask to see it.
During the job
- Pay only for completed work. Inspect each stage before the next payment.
- Keep records: the contract, change orders, receipts, photos and all messages.
- Recheck the license on a long job. A bond or workers’ comp policy can lapse partway through. If it does, see what to do if a license is suspended mid-job.
If something goes wrong
- Raise it with the contractor in writing first.
- File a complaint with CSLB if you can’t resolve it. Keep the time limits in mind. See how to file a complaint with CSLB.
Quick reference
| Rule | Figure | Law |
|---|---|---|
| Minor work exemption | Less than $1,000, no permit, no employees | BPC 7048 |
| Written contract required | Home improvement over $500 | BPC 7159 |
| Maximum down payment | $1,000 or 10%, whichever is less | BPC 7159.5 |
| Contractor’s bond | $25,000 | BPC 7071.6 |
| Right to cancel | 3 business days; 5 if 65+; 7 for disaster repairs | Civil Code 1689.6 |
| License term | 2 years | BPC 7140 |
For more detail on each check, read how to check a contractor license.
This is general information, not legal advice.
Sources
- CSLB Instant License Check: https://www.cslb.ca.gov/OnlineServices/CheckLicenseII/CheckLicense.aspx
- BPC 7159: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=7159
- BPC 7159.5: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=7159.5
- Civil Code 1689.6: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=1689.6
- BPC 7152: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=7152
- BPC 7057: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=7057
- BPC 7048: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=7048
- BPC 7071.6: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=7071.6
- BPC 7140: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=7140
- CSLB workers’ comp requirements: https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx
- CSLB ADU Fast Facts: https://www.cslb.ca.gov/Resources/GuidesAndPublications/2025/FastFacts_ADU.pdf