Hiring a general contractor for a remodel, an addition or structural work is mostly a matter of checking a few public records and reading the bids closely. This note walks through the license lookup, insurance and bonds, comparing bids, California's payment rules and the questions worth asking. We are a licensed general contractor based in Long Beach, taking work in both LA and Ventura Counties, and we would rather you check us the same way you check anyone else.
How to look up a license on the CSLB site
The Contractors State License Board (CSLB) licenses contractors in California. Its website has a free license lookup where you can search by license number, business name or personal name. A contractor who will not give you a license number is the first warning sign.
When you find the record, check:
- Status. It should say the license is active. Suspended, expired or revoked licenses show on the record.
- Classification. A general building contractor holds a "B" license. Specialty work has its own letters, such as C-10 for electrical. For a remodel that involves several trades, the B license is what you want to see.
- Business name. It should match the name on the bid and the contract.
- Bond and workers' compensation. The record shows the contractor's bond and whether workers' compensation insurance is on file, or an exemption if the contractor has no employees.
- Complaint and disciplinary history. The record lists public complaints and legal actions where they exist.
Home improvement salespeople who sell for a contractor must also be registered with the CSLB, and you can look those registrations up too.
Bonds, workers' comp and liability insurance
Three kinds of coverage come up, and they protect different things.
- The license bond is required for every licensed contractor. It is a fixed amount set by law, and it is there for consumers harmed by violations of contractor law. It is not meant to cover the cost of finishing a large project.
- Workers' compensation covers people injured on the job. If a contractor has employees and no coverage, an injured worker could make a claim that reaches you as the property owner. Confirm the policy on the CSLB record and ask for a certificate.
- General liability insurance covers damage the contractor causes to your property or a neighbor's. California does not require it for every contractor, so ask for a certificate naming the policy limits and the dates.
Comparing bids line by line
Bids are hard to compare when one is a single number and another runs to several pages. Put them on the same footing before you look at the totals.
- Write your own scope list. List what you want done: every room, every wall that moves, every fixture, every structural item. Send the same list to each contractor.
- Check what each bid includes. Does it include permits and plan check fees? Engineering? Demolition and hauling? Restoring drywall, stucco and flooring after structural work?
- Look at the structural items on their own. For a remodel, beams, footings, shear walls and seismic work should be named and described, with the engineer's role stated. A bid that leaves them vague is pricing a different job.
- Read the allowances. An allowance is a placeholder amount for items you have not picked yet, such as tile or fixtures. Set an allowance too low and the bid looks cheaper than the real total.
- Check the schedule and payment plan. Payments should follow completed work, which the next section covers.
When two bids differ a lot, the difference is usually in scope. Ask each contractor to explain the items the other one includes.
Down payment and progress payment rules in California
California sets firm rules for home improvement contracts, and the CSLB publishes them.
- The down payment is capped at one thousand dollars or 10 percent of the contract price, whichever is lower. The limited exception applies to contractors with a special blanket bond on file, which shows on their CSLB record.
- Progress payments should match the work completed. You should not pay ahead of the work.
- The contract must be in writing and include the contractor's name, address and license number, a description of the work, the start and completion dates, the payment schedule and the required notices, including your right to cancel within three business days in most home improvement contracts.
A contractor who asks for a large deposit to "lock in" materials or a start date is asking for something the law does not allow.
Questions to ask
Before signing, ask each contractor:
- Who runs the crew day to day, and who answers my questions?
- Which parts of the work will be done by subcontractors, and are they licensed?
- Who prepares the permit drawings and who submits them?
- What happens if you find something unexpected, such as rot or a damaged footing?
- How will changes to the scope be priced and approved?
- What does the final walk-through and sign-off look like?
Clear, written answers to these are worth more than a lower total. Once you have compared the bids, you can read about our structural work or full home remodeling services and ask us for a bid to set beside the others. We check the structure in Long Beach and every city we serve before we write the scope.