Hiring a contractor inCalifornia: what to check first

California gives homeowners more protection than most people use. The Contractors State License Board (CSLB) publishes every license record for free, and the Business and Professions Code spells out what a home improvement contract must contain and how much can be paid up front. Rebuilding a house after a declared disaster counts as home improvement under the law, so the same rules cover a fire rebuild. Here is what to check, in the order you will meet it, as the rules stood in late October 2026.

Look up the license

Anyone who contracts for a job of $1,000 or more, labor and materials together, needs a license. Smaller jobs are exempt only if they need no building permit and the person doing them employs no one. The $1,000 figure took effect on January 1, 2025; it used to be $500.

Every contractor has to put the license number on contracts, bids and all advertising, but the CSLB warns that seeing a number does not mean the license is valid. Look it up on the CSLB website and check:

• Status. An inactive license cannot be used to bid or contract.
• Classification. A "B" General Building contractor takes on projects that need at least two unrelated building trades. A B contractor must hand a roofing-only job to a licensed roofing (C-39) contractor.
• Bond. Licensed contractors must carry a $25,000 contractor's bond. The CSLB points out that it is often not enough to cover several complaints, or a project worth more than the bond.
• Workers' compensation. "Exempt" means the contractor has certified that it has no employees. If it hires someone, the exemption is no longer valid and it must get coverage.
• Legal actions. The record shows pending and prior legal actions within set periods. Complaints resolved in the contractor's favor are never disclosed.

Commercial general liability insurance is not required for most contractors. The CSLB's advice is to ask how damage to your property would be covered if the contractor does not carry it.

What the contract must say

Section 7159 of the Business and Professions Code applies to home improvement contracts over $500. Before any work starts, you get a copy signed and dated by both sides. The contract must include:

• the contractor's name, business address and license number, and the salesperson's name and registration number if one sold the job;
• the contract price, a description of the work and the significant materials;
• the approximate start and completion dates;
• a schedule of progress payments;
• a statement that you can require the contractor to have a performance and payment bond;
• notices about commercial general liability insurance, workers' compensation, the Mechanics Lien Warning, information about the CSLB, and your right to cancel.

Since January 1, 2026, the contract must also give the contractor's email address and phone number. If a home improvement salesperson approaches you, the CSLB suggests asking for their registration card along with photo ID.

Down payment and progress payments

A down payment can be no more than $1,000 or 10% of the contract price, whichever is less. After that, the contractor cannot ask for or accept payment for more than the value of the work done or the materials delivered. The contract's payment schedule has to say so in capital letters: it is against the law for a contractor to collect payment for work not yet completed. The few contractors approved to use a blanket performance and payment bond are exempt from these limits.

Your right to cancel

In most cases you can cancel a home improvement contract until midnight of the third business day after you receive the signed copy, or the fifth business day if you are 65 or older. Business days are every day except Sundays and certain holidays. Contracts to repair or restore a home damaged by an event under a declared state of emergency carry a right to cancel within seven business days. Since 2026 you can cancel by email at the address in the contract, and the contractor must return what you paid within 10 days.

Mechanics liens

Subcontractors, suppliers, equipment lessors and laborers who are not paid can record a mechanics lien on your property, even if you paid your contractor in full. Most of them must serve a preliminary notice within 20 days of first supplying work or materials, so a notice tells you who may claim a lien. To protect yourself:

• Ask for lien releases on the statutory forms. A conditional release takes effect once payment is made; an unconditional release binds the signer even if they have not been paid.
• You may hold back further payments until the releases arrive.
• The CSLB suggests joint checks made out to the contractor and the supplier or subcontractor, and asking for unconditional releases for the previous payment before making the next one.
• Recording a Notice of Completion when the job is done shortens the time to record a lien from 90 to 60 days for the contractor, and to 30 days for subcontractors and suppliers.

After the fires

The CSLB ran enforcement sweeps in the Palisades and Eaton fire areas during 2025, checking licenses, workers' compensation and permits, and it keeps a Disaster Help Center, with an online form to report a contractor at a rebuild site. Its advice for fire survivors also includes a simple rule: do not sign over payment checks from your insurance company.

CRG Construction works under CSLB license B #1159954, and you can check it on the CSLB website the same way. Estimates are free.

Rules and programmes change. We confirm the current requirements with the permitting office for every property; nothing here is legal advice.