How to hire a contractor in California: licenses, contracts and payments

1. Check the license (it takes one minute)

In California, any job of $1,000 or more in labor and materials must be done by a contractor licensed by the Contractors State License Board (CSLB). Look up the license number at cslb.ca.gov: confirm the name matches, the license is active, the classification fits the work (for example C-36 for plumbing or C-10 for electrical), and that workers' compensation and bond information is on file.

An unlicensed handyman can only take jobs under $1,000 that don't need a building permit and where they work without employees. Splitting a bigger job into small pieces to get under the limit isn't allowed.

2. Get a written contract

California requires a written contract for home improvement jobs over $500. It should include:

• The contractor's name, address and license number
• A clear description of the work and the materials
• The total price and a payment schedule tied to finished work
• Start and completion dates
• Who gets the permits
• How changes (change orders) are priced and approved, in writing

3. Keep the down payment small

For home improvement work, California limits the down payment to 10% of the contract price or $1,000, whichever is less. After that, pay as work is completed, never far ahead of it.

4. Know your right to cancel

A home improvement contract must tell you about your right to cancel. Read that section before you sign, especially if you're signing at your kitchen table the same day you got the quote. Questions? Call CSLB at (800) 321-2752.

5. Permits and the paperwork at the end

• Ask who pulls the permit, and make sure the final inspection is signed off.
• Subcontractors and suppliers who aren't paid can place a mechanics lien on your home. On bigger jobs, ask for lien releases with each payment.
• Keep the contract, receipts, permits and warranties together. SVHN's check-ins help you keep a record of the job.