The Ultimate 15-Point Checklist Before Hiring Any Contractor | Expert Guide

Hiring a contractor without doing your homework is like buying a car without test-driving it — sure, it might work out, but the risks are enormous. This 15-point checklist covers everything you need to verify, ask, and document before signing on the dotted line.

Print this out, bookmark it, or save it to your phone. Go through every single point for every contractor you're considering. It takes time, but it's infinitely cheaper than fixing a botched project.

✅ 1. Verify the CSLB License

This is non-negotiable. Go to cslb.ca.gov and look up the contractor's license number. Confirm the following:

License status is **Active**
License classification matches your project type
The license has not been suspended or revoked
The qualifying individual is still associated with the license

Any contractor who can't or won't provide a license number should be immediately disqualified. California law requires licensing for any project over $500 (labor + materials combined). No exceptions.

Read our detailed license verification guide for step-by-step instructions.

✅ 2. Confirm Bond Status

Check that the contractor's $25,000 surety bond is current on the CSLB website. The bond provides financial protection if the contractor fails to fulfill their contractual obligations. No bond = no protection for you.

✅ 3. Verify Workers' Compensation Insurance

If the contractor has employees (including subcontractors' workers on your property), workers' comp insurance is legally required. Without it, you could be liable for injuries on your property.

Check the CSLB site for insurance status, but also ask the contractor for a Certificate of Insurance and call the insurance company directly to verify coverage is active.

✅ 4. Confirm General Liability Insurance

Beyond workers' comp, your contractor should carry general liability insurance ($1 million minimum is standard). This covers damage to your property caused by the contractor's work. Ask for the certificate and verify it.

✅ 5. Get at Least Three Written Bids

Never hire the first contractor you talk to, and never rely on verbal estimates. Get detailed written bids from at least three licensed contractors. Compare:

Total project cost
Scope of work (line-by-line)
Materials specified (brand, grade, model)
Timeline (start date, completion date)
Payment schedule
Warranty terms

The lowest bid isn't always the best value. Unusually low bids often indicate corners will be cut, unlicensed workers will be used, or the contractor underestimated the scope (leading to expensive change orders later).

✅ 6. Check References — Actually Call Them

Ask each contractor for three references from recent, similar projects. Then actually call them. Ask:

Was the project completed on time?
Was it completed on or under budget?
How did the contractor handle problems or unexpected issues?
Was the work site kept clean and organized?
Would you hire them again?

If a contractor can't provide references, or the references seem coached or fake, move on.

✅ 7. Read Online Reviews (Multiple Sources)

Check reviews on Google, Yelp, BBB, Angi, and any other platforms. Look for:

**Patterns** — One bad review is an outlier. Five complaints about the same issue is a pattern.
**Recency** — Reviews from 5 years ago may not reflect current performance.
**Responses** — Does the contractor respond professionally to negative reviews, or get defensive?
**Specificity** — Detailed reviews (positive or negative) are more reliable than vague ones.

✅ 8. Verify Business Registration

Check that the business is registered with the California Secretary of State (if it's an LLC, corporation, or LP). This confirms the business is legally formed and in good standing. You can search at bizfileonline.sos.ca.gov.

✅ 9. Confirm They'll Pull Permits

For any project that requires building permits (most significant work does), confirm that the contractor will handle the entire permit process. This includes:

Applying for permits
Scheduling inspections
Ensuring all work passes inspection
Obtaining final sign-off

If a contractor suggests skipping permits or asks you to pull the permit yourself, find another contractor. Unpermitted work can result in fines, create problems selling your home, and void insurance coverage.

✅ 10. Get a Detailed Written Contract

California law requires a written contract for any home improvement project over $500. Your contract should include:

Detailed scope of work
Specific materials and specifications
Start date and estimated completion date
Total contract price
Payment schedule (remember: max 10% or $1,000 down)
Change order process
Warranty terms (workmanship and materials)
Permit responsibilities
Cleanup expectations
Dispute resolution process
Cancellation rights (3 business days in California)

Read the entire contract before signing. If anything is unclear, ask questions. If the contractor won't put something in writing, consider it a promise that won't be kept.

✅ 11. Verify the Payment Schedule Is Legal

California law (Business and Professions Code 7159) limits the down payment to 10% of the total contract price or $1,000, whichever is less. No legitimate contractor will demand more upfront.

A standard payment schedule ties payments to milestones:

Initial payment (10% or $1,000 max) at contract signing
Progress payments at defined milestones (materials delivered, framing complete, etc.)
Final payment (10-20%) upon completion and your satisfaction

Never pay the full amount before work is complete. Retain enough to ensure any punch list items get addressed.

✅ 12. Confirm Who Will Be on Site Daily

Ask the contractor:

Will you personally be on site daily?
Who is my daily point of contact?
Will you use subcontractors? If so, are they licensed?
How many workers will be on site?

Knowing who's actually doing the work and who to contact with questions or concerns is essential for a smooth project.

✅ 13. Discuss the Change Order Process

Changes during construction are almost inevitable. Before the project starts, understand:

How changes will be documented
How additional costs will be calculated and communicated
Whether you must approve changes in writing before work proceeds
How changes affect the timeline

A clear change order process prevents misunderstandings and surprise bills.

✅ 14. Review the Warranty Terms

Understand what's covered and for how long:

**Workmanship warranty:** Typically 1-5 years. Covers defects in the contractor's work.
**Materials warranty:** Provided by manufacturers. Varies widely by product.
**What's excluded:** Normal wear and tear, damage from misuse, issues caused by others.

Get warranty terms in writing as part of the contract.

✅ 15. Trust Your Gut

After all the objective checks, pay attention to your instincts:

Does the contractor communicate clearly and promptly?
Do they answer questions directly or deflect?
Are they professional in appearance and manner?
Do they show up on time for appointments?
Do they pressure you to sign quickly?
Do they seem genuinely interested in your project?

The best contractors are professional, communicative, and patient. If someone makes you uncomfortable or seems evasive, trust that feeling and keep looking.

Printable Summary

1. ✅ CSLB license verified (active, correct classification) 2. ✅ Bond confirmed current 3. ✅ Workers' comp insurance verified 4. ✅ General liability insurance verified 5. ✅ Three written bids obtained and compared 6. ✅ References called (3 per contractor) 7. ✅ Online reviews checked (multiple platforms) 8. ✅ Business registration confirmed 9. ✅ Contractor will pull all permits 10. ✅ Detailed written contract reviewed and signed 11. ✅ Payment schedule is legal (10%/$1,000 max down) 12. ✅ Daily site contact identified 13. ✅ Change order process agreed upon 14. ✅ Warranty terms documented 15. ✅ Gut check passed

Complete all 15 points and you'll dramatically reduce your risk of contractor problems. It's the best investment of time you'll make in your entire project.