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Hiring a Contractor

What to ask a contractor before you sign

Most lists of questions to ask a contractor are guesswork. This one is mostly just reading back what the law already entitles you to.

By , licensed CA General B #1112902 · Updated September 2026

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Short answer

Verify the licence, confirm the classification covers your work, get the insurance certificate from the carrier, and read the payment schedule before the scope. Then use what changed on 1 January 2026: under SB 517 your contract must now state whether subcontractors will be used, and on request you are entitled to their names, contact information, licence numbers and classifications. Under AB 1327 the contract must carry the contractor's email and phone, the general liability carrier's phone number, and notice that you may cancel by email.

The four checks that take twenty minutes

  1. Verify the licence yourself, on the CSLB site

    Do not accept a number on a business card. Search the CSLB licence registry and confirm the status is active, the bond is in place, and workers' compensation is current. Ours is #1112902.

  2. Confirm the classification covers your work

    A licence is not general permission, it is a specific classification. We hold a General B, which is exactly why we will not quote you standalone roofing — that needs a C-39 and we do not have one. A contractor working outside their classification is taking a risk with your permit, not only with their own licence.

  3. Get the certificate of insurance from the carrier, not from the contractor

    General liability and workers' compensation. If somebody is injured on your property and the contractor carries no workers' compensation, that exposure can land on you. As of 2026 the contract itself must carry the GL carrier's phone number, so you can call and confirm.

  4. Read the payment schedule before you read the scope

    The down payment on a home improvement contract is capped at $1,000 in California. After that, payment should trail completed and verifiable work rather than lead it. This section predicts how the job will go better than the scope description does.

What is new in a 2026 California contract

Three laws that took effect 1 January 2026
LawWhat it requiresWhat you should do with it
SB 517 (amends B&P §7159)The contract must state, in yes/no form, whether subcontractors will be used. If yes, it must carry the disclaimer that a list of subcontractors — names, contact information, licence number and classification — is available on requestAsk for the list. Then verify those licences the same way you verified the general contractor's
AB 1327The contract must include the contractor's email address and phone number, the general liability insurer's phone number, and a statement that cancellation by email is permittedCall the insurer's number. Confirm the policy is real and current
AB 1002The Attorney General may bring civil actions seeking licence suspension or revocation against contractors with unpaid wage judgments or violations, on 30 days' notice to CSLBNothing to do, but it is a reason the CSLB record is worth checking rather than assumed
The subcontractor list is the underused one

Most residential work involves subs, and that is completely normal — it is how a plumbing or electrical scope gets done by somebody who does it every day. What matters is whether they are licensed and insured, because an uninsured sub on your property is your exposure. As of this year you have a statutory route to ask. Use it.

The questions worth asking out loud

  • Who is on site every day, and who do I call? You want one name, not a structure. Vagueness here predicts vagueness later.
  • Which parts are your own crew and which are subbed? Neither answer is wrong. Not knowing the answer is.
  • What is excluded? Ask it directly rather than inferring it from what the proposal does not mention.
  • Have you done a load calculation on my panel? On any kitchen, ADU or whole-home job that adds electrical load. Found before you sign it is a line item; found after demolition it is a stopped job and a change order. It runs $7,000–$10,000.
  • What happens when you find something unexpected? You are listening for a process — stop, document, price it, get it approved in writing — not for reassurance that nothing will be found.
  • How will I see progress without asking for it? Photos, schedule and selections should be visible to you continuously.
  • How long is the workmanship warranty? Ours is one year, and it is written into the contract rather than promised in conversation.

The three answers that should end the conversation

A deposit over $1,000. It is over the statutory cap on a home improvement contract, on a job of any size.

Cash only, or a cheque made out to a person rather than a company. No paper trail, and frequently no licence or insurance behind it either.

Pressure to sign today. A real bid is still a real bid next week. Urgency at the signature stage is a sales technique, and it is the one that most reliably precedes a bad job.

We are aware that publishing this makes our own sales process slower. It also means the people who do sign with us have checked, which is the only kind of client relationship worth having on a project that will live in someone's house for six months.

Common questions

What must a California home improvement contract include in 2026?
In addition to the existing requirements of Business and Professions Code section 7159, two new laws apply from 1 January 2026. SB 517 requires the contract to state whether subcontractors will be used and to disclose that their names, contact information, licence numbers and classifications are available on request. AB 1327 requires the contractor's email address and phone number, the general liability insurer's phone number, and a statement that cancellation by email is permitted.
Can I ask my contractor for a list of their subcontractors?
Yes. Under SB 517, effective 1 January 2026, a home improvement contract that indicates subcontractors will be used must disclose that a list is available on request, including each subcontractor's name, contact information, licence number and classification.
How do I check a California contractor's licence?
Search the CSLB licence registry at cslb.ca.gov by name or licence number. Confirm the status is active, that the classification covers the work you are hiring for, and that the bond and workers' compensation are current.
How much deposit can a contractor ask for in California?
On a home improvement contract, the down payment is capped at $1,000 or 10 percent of the contract price, whichever is less. On any substantial project that means $1,000.
Is it a bad sign if a contractor uses subcontractors?
No. Most residential projects involve subcontracted trades and that is normal. What matters is whether they are licensed and insured, because an uninsured subcontractor working on your property can become your exposure. Ask for the list and verify the licences.

Where to go next

Written by the team at Elusive Construction, a licensed California general contractor (B #1112902) building in Santa Clara and San Mateo counties. General information about how residential construction works — not legal advice. For your specific contract, talk to an attorney.

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