How to Avoid Contractor Scams in California: Red Flags to Watch For

Unfortunately, the home improvement industry attracts some bad actors along with the many honest, hardworking professionals. California's Contractors State License Board (CSLB) receives thousands of complaints annually about fraudulent or substandard contractor practices. Here's how to protect yourself.

The Most Common Contractor Scams

The Door Knocker A "contractor" shows up uninvited saying they were working in the neighborhood and noticed your roof/driveway/siding needs work. They offer a special deal because they have leftover materials. This is almost always a scam. Legitimate contractors don't cold-call by knocking on doors.

The Cash-Only Operator Contractors who insist on cash-only payments and no written contracts are likely unlicensed and uninsured. They avoid paper trails to evade taxes and accountability. If something goes wrong, you have no recourse.

The Lowball Specialist An unusually low bid gets you excited, but then "unexpected" issues arise requiring expensive change orders. By the time the project is done, you've paid more than the honest bidders quoted. Get detailed written bids and be skeptical of prices significantly below market rate.

The Permit Dodger "You don't need a permit for this work" or "Pulling a permit will just slow things down and cost more." Unpermitted work can result in fines, require teardown and rebuilding, create problems selling your home, and void your insurance. Never let a contractor skip required permits.

The Disappearing Down Payment You pay a large deposit (illegally above 10% or $1,000), and the contractor either disappears or delays the start date indefinitely while using your money on other projects.

Storm Chaser Roofers After a major storm, out-of-area roofers flood Sacramento offering to file insurance claims for roof damage. They may inflate damage estimates, perform substandard work, or disappear after collecting insurance payments. Work with established local roofing contractors instead.

Red Flags to Watch For

Immediate Warning Signs - **No contractor's license number** — they can't or won't provide it - **Pressure to sign immediately** — "This price is only good today" - **Demands large upfront payment** — more than 10% or $1,000 - **Cash only, no contract** — no paper trail means no protection - **No physical business address** — just a PO box or cell phone - **Unsolicited contact** — they found you, not the other way around

During the Bidding Process - **Vague or verbal-only estimates** — professionals provide detailed written bids - **Price significantly below other bids** — usually means corners will be cut - **Won't provide references** — every established contractor has satisfied clients - **No proof of insurance** — or insurance documents that look altered - **Asks you to get the building permit** — licensed contractors pull their own permits

During the Project - **Demands payment ahead of schedule** — before work is completed - **Frequent change orders** — adds costs for things that should have been in the original scope - **Uses different materials** than specified without your approval - **Substandard or sloppy work** — visible quality issues - **Workers seem inexperienced** — proper training matters for safety and quality

How to Protect Yourself

Before Hiring 1. **Verify the license** at cslb.ca.gov — check status, classification, bond, and complaints 2. **Verify insurance** — call the insurance company directly with the policy number 3. **Get 3+ written bids** from licensed contractors 4. **Check reviews** on Google, Yelp, BBB, and Angi 5. **Call references** — actually speak with past clients 6. **Never pay more than 10% or $1,000 down** — it's California law (Business and Professions Code 7159)

During the Project 7. **Get a detailed written contract** — required by law for projects over $500 8. **Insist on permits** for any work that requires them 9. **Document everything** — photos, communications, payments 10. **Pay by check or card** — never cash, and never make checks out to an individual (use the business name) 11. **Don't make the final payment** until all work passes inspection and you're satisfied

If Something Goes Wrong 12. **Try to resolve directly** — communication sometimes breaks down but can be repaired 13. **File a complaint with the CSLB** — they investigate and can take action against the contractor's license 14. **Contact your local District Attorney's** consumer protection division 15. **Consider small claims court** for amounts under $10,000 16. **Check if the contractor's bond** can cover your losses

The CSLB Is Your Friend

California's Contractors State License Board exists to protect consumers. Their website (cslb.ca.gov) allows you to:

• Verify any contractor's license
• Check for complaints and disciplinary actions
• File complaints against contractors
• Access the Contractor's Bond for recovery of damages
• Report unlicensed activity

The CSLB also conducts sting operations targeting unlicensed contractors and runs a Senior Scam Stopper program to protect vulnerable homeowners.

Bottom Line

The vast majority of Sacramento contractors are honest professionals who take pride in their work. By doing basic due diligence — verifying licenses, getting written contracts, and following the guidelines above — you'll virtually eliminate your risk of falling victim to a scam. Trust your instincts, take your time, and never let anyone pressure you into a hasty decision.