Los Angeles has no shortage of contractors — but it also has no shortage of unlicensed operators, permit avoiders, and crews who take deposits and disappear. Knowing how to vet a contractor properly is one of the most valuable things a homeowner can learn. Here's what actually matters.

Verify the License — Don't Just Ask for It

Any contractor working on projects over $500 in California must hold a valid CSLB (Contractors State License Board) license. Don't just ask if they're licensed — look them up yourself at the CSLB website (cslb.ca.gov). The lookup takes 30 seconds and tells you whether the license is active, what classification it covers, and whether there are any complaints or disciplinary actions on record.

For most residential projects, you want a Class B General Building Contractor or the appropriate specialty license (C-8 for concrete, C-29 for masonry). A Class B license means the contractor can manage multiple trades on a project, not just one specialty.

Check Insurance

Ask for a certificate of general liability insurance and workers' compensation coverage. Do not accept verbal confirmation — ask for the certificate and verify it's current. If a worker is injured on your property and the contractor doesn't have workers' comp, you can be held liable. This is not theoretical — it happens in California regularly.

Get Everything in Writing

California law requires written contracts for home improvement projects over $500. A proper contract should include:

The 10% / $1,000 Rule

California law limits down payments for home improvement contracts to 10% of the contract price or $1,000, whichever is less. Any contractor demanding a large upfront payment before work begins is either ignorant of the law or operating illegally. Both are red flags.

The biggest red flag of all: "I can do it cheaper if we don't pull permits." This tells you exactly who you're dealing with. Unpermitted work creates problems when you sell, voids insurance claims, and means no inspection to verify the work was done correctly. Walk away.

Get Multiple Bids — But Don't Just Take the Lowest

Three bids is a reasonable baseline for most projects. When comparing, make sure each bid is specifying the same scope, materials, and quality standards. A bid that's significantly lower than the others is almost always cutting something — materials quality, reinforcement, base prep, or permit costs. Ask each contractor to explain their bid line by line.

Check Reviews — and How They Respond to Them

Google reviews are the most reliable source. Look at the pattern of reviews over time, not just the star rating. Pay particular attention to how the contractor responds to negative reviews — a professional response tells you more about the business than the complaint itself.

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