Planning a Home Repair? Five Checks Before You Pay a Contractor

Why check before the work starts?

A family wants to fix a leaking roof before the rainy season. A contractor knocks on the door, promises to start that week, and asks for a large deposit to buy materials. If the family only looks at a flyer, it may not know whether the license is active, who will obtain permits, or what happens if the scope changes.

The California Contractors State License Board, or CSLB, licenses contractors in the state. CSLB advises consumers to check a license and read a contract carefully before signing. Permit rules depend on the project and local building department.

Step 1: Check the license and the person offering the bid

Enter a license number or business name in CSLB’s lookup tool. The result shows license status and some public complaint information. If an ad does not show a license number, CSLB says consumers can search by business or contractor name.

Compare the person giving the bid with the license record. If a salesperson represents the contractor, ask to see the Home Improvement Salesperson registration card. Some small jobs may have different licensing rules.

Step 2: Get at least three comparable bids

CSLB recommends getting at least three written bids. Compare the same work, materials, and items. A bid far below the others is not automatically the best choice; it may leave out work or materials.

Ask whether the contractor carries workers’ compensation insurance for employees. CSLB says contractors with employees must carry this coverage. Commercial general-liability insurance is not required in every case, but it may cover property damage. Ask the contractor and your homeowner-insurance carrier what protection applies.

Step 3: Read the contract and understand the deposit limit

CSLB says home-improvement projects priced over $500 require a written contract. The contract should describe the work and materials, list start and completion dates, set a payment schedule, identify who obtains permits, and explain how changes will be documented.

For home-improvement work, CSLB’s usual deposit limit is $1,000 or 10% of the contract price, whichever is less. Special-order materials do not create an exception under CSLB’s guidance. The agency lists a narrow exception when a contractor has a qualifying Blanket Performance and Payment Bond on file.

For example, 10% of an $8,000 project is $800. Under the usual limit, the deposit would be no more than $800. This example follows CSLB’s general rule; it is not legal advice about a specific contract.

Step 4: Ask about permits before work begins

Permit requirements are not the same for every repair. CSLB directs consumers to local building departments and notes that requirements vary by city and county. Ask the building department where the property is located whether the project needs a permit, who will apply, whether fees are included, and what inspections may be required.

For Westminster, Garden Grove, and Fountain Valley, start with CSLB’s directory of building departments and then open the city’s official page.

Step 5: Put every change in writing

If the contractor finds additional damage or proposes different materials, do not rely only on a conversation. CSLB says a change to price or scope should be documented in a written change order signed by the customer and contractor before the added work starts. Keep the contract, invoices, progress photos, and payment records.

Before signing, ask yourself:
- Have I checked the contractor’s license status?
- Have I called at least three references?
- Does the contract say who will get permits?
- Are payments tied to completed work?
- Do I understand the cancellation terms?

This guide does not evaluate a contractor or guarantee a repair outcome. If someone pressures you to pay immediately, refuses a written contract, or will not allow time to check a license, pause and contact CSLB or the local building department.