Written by a licensed California contractor, including the checks most homeowners skip — how to verify a license in two minutes, the warning signs that should end a conversation, and how to read a bid so you compare like with like.
Last updated August 13, 2026. Figures reflect real project pricing across Sonoma, Napa, Marin and Solano counties and are reviewed each season.
California's Contractors State License Board maintains a free public lookup. Search the license number or business name at cslb.ca.gov and confirm all of the following:
| Check | What you want to see |
|---|---|
| Status | Active. Not expired, suspended or inactive. |
| Classification | Class B for general building. Specialty classes (C-10 electrical, C-36 plumbing) for trade-specific work. |
| Bond | Contractor bond on file, currently $25,000 minimum. |
| Workers' compensation | On file, or a valid exemption if they have no employees. |
| Name match | The licensed entity matches the name on your contract exactly. |
| History | Any citations, judgments or prior suspensions. |
The $500 rule: anyone performing work in California where labor and materials total $500 or more must hold a valid license. Below that threshold they must state in writing that they are unlicensed. Hiring an unlicensed contractor for larger work leaves you exposed on liability, workmanship and insurance — and many homeowner policies will not respond to a claim arising from unlicensed work.
You are not looking for perfect answers. You are looking for specific ones. A contractor who has genuinely thought about your project answers concretely; one who has not answers in generalities.
A proper bid should contain all of the following. If any are missing, ask for them before comparing:
Build a simple side-by-side table. For each bid, record: total price, tile allowance, fixture allowance, cabinet specification, whether permits are included, whether painting is included, contingency amount, and stated duration. The apparent gaps usually collapse once everything is on the same basis — and the remaining differences are the ones actually worth discussing.
A bid is a communication document, not just a price. How clearly a contractor writes down what they intend to do is the single best early predictor of how clearly they will communicate once work begins.
A home improvement contract in California must be in writing and must include:
If your contractor fails to pay a subcontractor or supplier, that party can place a mechanics lien on your home, even though you paid the contractor in full. You can end up paying twice.
The protection is straightforward: request unconditional lien releases from every subcontractor and material supplier with each progress payment. A contractor accustomed to working properly will not be surprised by the request — it is routine on commercial work and entirely reasonable on residential.
Search the contractor's license number or business name at cslb.ca.gov, the Contractors State License Board's free public lookup. Confirm the status is active, the classification matches your work, the bond and workers' compensation are on file, and the licensed entity name matches the name on your contract exactly. The check takes about two minutes.
California law caps the down payment on a home improvement contract at $1,000 or 10 percent of the contract price, whichever is less. A contractor requesting 30 or 50 percent upfront to buy materials is operating outside the law, and this is one of the most reliable warning signs available to a homeowner with no construction knowledge.
You take on significant exposure. If a worker is injured on your property and there is no workers' compensation, you can be held liable. Your homeowner's insurance may decline claims arising from unlicensed work, unpermitted work can surface and cause problems at resale, and you have far less recourse for defective workmanship. California requires a license for any job where labor and materials total $500 or more.
A mechanics lien is a legal claim a subcontractor or material supplier can place on your property if they were not paid, even if you already paid your general contractor in full, which can mean paying twice for the same work. Protect yourself by requesting unconditional lien releases from every subcontractor and supplier with each progress payment.
Not automatically. A dramatically low bid usually reflects omitted scope rather than efficiency, and a contractor with no margin tends to recover it through change orders or reduced quality. Normalize the bids by lining up allowances, exclusions and specified materials, then compare. Often the apparent savings disappear entirely once the bids are on the same basis.
Your licensed contractor should pull the permit. If a contractor asks you to pull an owner-builder permit instead, that shifts legal responsibility for the work onto you, and it often indicates the contractor is unlicensed or unwilling to have the work inspected under their own license. Treat the request as a serious warning sign.
Philip Howard is a licensed Class B general contractor, CSLB #836369, building in Sonoma and Napa County since 2000. Verify us at cslb.ca.gov before you call — we'd rather you did.
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