Hiring a contractor in California: check, red flags, complaints

Red flags when hiring

• No license number on the ad, business card, bid or contract. California requires it. (source: CSLB: Finding the right contractor (opens in a new tab))
• Their photo ID does not match the pocket license. (source: CSLB: Finding the right contractor (opens in a new tab))
• No fixed business address ("they work out of the back of a pickup truck"). (source: CSLB: Finding the right contractor (opens in a new tab))
• They have employees but no workers' comp. (source: CSLB: Finding the right contractor (opens in a new tab))
• A bid that is much lower than the others. (source: CSLB: Finding the right contractor (opens in a new tab))
• Asking for a down payment of more than 10% of the price or $1,000, whichever is less. (source: CSLB: Contracts and binding agreements (opens in a new tab))

Full checklist: how to check a contractor before you hire

Home Improvement Salespeople

• Anyone who sells or negotiates home improvement contracts for a licensed contractor must register as a Home Improvement Salesperson (HIS), whatever the dollar amount. (source: CSLB: Before applying for HIS registration (opens in a new tab), source: Business and Professions Code 7152 (opens in a new tab))
• Exceptions include listed officers, partners and qualifiers, buyer-initiated sales in retail stores, appointment setters and service repairpersons. (source: CSLB: Before applying for HIS registration (opens in a new tab))
• Ask to see the HIS registration card and photo ID. (source: CSLB: Finding the right contractor (opens in a new tab))

Penalties for unlicensed work

• Unlicensed contracting is a misdemeanor. First conviction: up to a $5,000 fine and/or 6 months in county jail. (source: Business and Professions Code 7028 (opens in a new tab))
• Second conviction: a fine of $5,000 or 20% of the contract price, whichever is greater, and at least 90 days in jail. (source: Business and Professions Code 7028 (opens in a new tab))
• Third or later: a fine from $5,000 up to the greater of $10,000 or 20% of the contract price, and 90 days to 1 year in jail. (source: Business and Professions Code 7028 (opens in a new tab))
• CSLB can cite unlicensed people up to $15,000 or refer them to the district attorney, but it cannot force them to fix your project. (source: CSLB: After you file your complaint (opens in a new tab))

How to file a complaint

• CSLB has forms for a general complaint, a lead referral for an active job site, advertising complaints, building-permit violations and solar complaints. (source: CSLB: Filing a complaint (opens in a new tab))
• File within 4 years of the problem (up to 10 years for some hidden structural defects). (source: CSLB: Filing a complaint (opens in a new tab), source: CSLB: After you file your complaint (opens in a new tab))
• Tell the contractor about the problem in writing first. (source: CSLB: Filing a complaint (opens in a new tab), source: CSLB: After you file your complaint (opens in a new tab))
• CSLB does not guarantee you get money back. For that, use small claims or another court. (source: CSLB: Filing a complaint (opens in a new tab), source: CSLB: After you file your complaint (opens in a new tab))

More ways to check

• The license detail page shows bond history and workers' comp information. (source: CSLB: Bond basics (opens in a new tab), source: CSLB: Finding the right contractor (opens in a new tab))
• Ask to see the pocket license and photo ID. The person must match the license. (source: CSLB: Finding the right contractor (opens in a new tab))
• Get 3 or more written bids for the same scope of work. (source: CSLB: Finding the right contractor (opens in a new tab))
• Type only the first 10 to 15 letters of a name. Results show 50 at a time. (source: CSLB Check a License (opens in a new tab))

Consumer protections

Down payment limit

• A down payment can be no more than 10% of the contract price or $1,000, whichever is less. (source: CSLB: Contracts and binding agreements (opens in a new tab))