Check a California Contractor License and Read the Contract
Two checks, done before any work starts, protect most homeowners: the license, and the contract. Both take minutes.
Part one: the license
California requires contractors to show their license number in advertising and on contracts. Look the contractor up on the state license board's free lookup, and read the detail page rather than just confirming the number exists.
- Status. It should be current and active, not expired, suspended or cancelled.
- Business name. It should match the name on the contract and in the advertising.
- Classification. A Class B General Building license covers work that combines two or more trades. Plumbing, electrical or heating and cooling need their own license or a licensed subcontractor, so ask who does those trades.
- Bond. The page shows the contractor's bond and the company that issued it.
- Workers' compensation. The page shows coverage or a certified exemption. An exemption means the contractor has no employees.
The license board is also the place to read about complaints and how to file one.
Part two: the contract
In California, home improvement work needs a written contract. The license board's contract guide explains what it must contain, including your right to cancel, and its consumer guide covers payment schedules.
- Description of the work. What will be done, with materials identified.
- Price and payment schedule. Progress payments should follow the work completed, not run ahead of it.
- Down payment. California generally limits the down payment on a home-improvement contract to 10 percent of the price or $1,000, whichever is less. Confirm the current rule with the license board.
- Start and completion. A schedule, and what could change it.
- Right to cancel. The contract should include the required notice, and the cancellation period is explained in the license board's guide.
- Changes. How additional work is priced and approved, in writing, before it is done.
Insurance
The license lookup shows the bond and workers' compensation status (coverage or a certified exemption), but not general liability insurance. If a contractor says they are insured, ask for a certificate of insurance.
Our details, as an example
AAA Construction Pros Inc holds California Contractor License #1086487, Class B (General Building). Look it up and compare it with what we tell you. To see how we write a scope, request a visit.
Sources
- California Contractors State License Board: Check a license
- California Contractors State License Board: What is a home improvement contract?
- California Contractors State License Board: Contracting for Success