What to Check Before Hiring a Contractor in California
Before you hire a contractor in California, confirm six things: an Active CSLB license, the classification that matches your project, the $25,000 contractor bond on file, workers' compensation coverage, proof of general liability insurance, and a written contract with a clear scope and payment schedule. Start with the license — it's free to verify and rules out most problems.
Verified against CSLB on · reflects current CSLB rules and California law.
Summary — key takeaways
- Confirm an Active CSLB license in the classification that matches your job.
- Check the $25,000 contractor bond (§7071.6) and workers' comp are on file.
- Ask for a current general liability insurance certificate — CSLB doesn't track it.
- Get a written contract with scope, price, and a milestone payment schedule.
- Check references and that permits will be pulled in the contractor's name.
1. License status and classification
Start with the license. On the CSLB "Check a License" tool or in this directory, confirm it reads Active and that the classification covers your project — a C-39 for roofing, a C-20 for HVAC, and so on. The license number should appear on every bid and on the contract.
Match the license to the exact business you're hiring; names and DBAs change, license numbers don't.
2. Bond, workers' comp, and insurance
California licensees must keep a $25,000 contractor bond on file (Business & Professions Code §7071.6), shown on the CSLB record. Confirm workers' compensation too: any contractor with employees must carry it, and C-39 roofing, C-8, C-20, C-22, and D-49 contractors must carry it regardless of employees under Senate Bill 216.
General liability insurance — which covers property damage and injuries — is not tracked by CSLB, so ask the contractor for a current certificate of insurance directly from their insurer.
3. A written contract and payment schedule
California home-improvement work requires a written contract (Business & Professions Code §7159). It should name the contractor and license number, the scope, the total price, and a payment schedule tied to milestones.
The down payment is capped at 10% of the price or $1,000, whichever is less. Confirm permits will be pulled in the contractor's name, and keep records of every payment.
4. References, reviews, and disciplinary history
Ask for references and examples of recent, similar work. Check the contractor's disciplinary record on CSLB's license-detail page, which lists resolved actions such as citations, suspensions, and revocations.
A suspended or revoked status — or a license that doesn't match the business — is a reason to pause before you sign.
Frequently asked questions
What should I check before hiring a contractor in California?
An Active CSLB license, the right classification, the $25,000 bond, workers' compensation, proof of general liability insurance, and a written contract with a milestone payment schedule. Check the license first.
How do I verify a contractor's license and bond?
Use the CSLB "Check a License" tool or this directory. The CSLB record shows the license status, classification, contractor bond, and workers' compensation. Confirm the status is Active.
Should a contractor have insurance and workers' comp?
Yes. Contractors with employees must carry workers' compensation (and several classifications must carry it regardless of employees). Ask separately for a current general liability insurance certificate, which CSLB doesn't track.
Do I need a written contract with a contractor in California?
Yes, for home-improvement work. Business & Professions Code §7159 requires a written contract that includes the contractor and license number, the scope, the price, and the payment schedule, with the down payment capped at 10% or $1,000, whichever is less.
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