This is the same vetting process a careful homeowner follows before handing over a deposit. Tap each item to check it off as you confirm it. Your progress saves on this device, and you can share your checklist with a partner or co-owner using the share button.
The goal is simple: confirm the contractor is licensed, insured, and accountable in writing before any money changes hands.
In California, any contractor doing home-improvement work where labor and materials total $500 or more must be licensed by the Contractors State License Board (CSLB). Start here, before you discuss the project, because everything else depends on it.
On cslb.ca.gov
License status is Active, not suspended or expired
Search the contractor's license number or business name in the License Check tool. An inactive or expired license means they cannot legally contract the work.
License issue date lines up with the years in business they claim
The record shows when the license was first issued. If a contractor advertises decades of experience but the license (and their earliest reviews) are only a year or two old, ask about the gap.
License classification matches the work you need
Class B is the General Building Contractor classification, used for projects involving two or more trades. Class C licenses are individual specialty trades. For a whole-home remodel, ADU, addition, or new build, you want a Class B.
Workers' Compensation insurance is current
If the contractor has employees, workers' comp is required by California law. Without it, you can be exposed to liability if someone is injured on your property. Ask for a certificate of insurance that names you as the certificate holder.
A contractor's bond is in place
CSLB requires licensed contractors to carry a bond. The bond status shows on the same license record.
No pattern of complaints or disciplinary actionsWatch for
The CSLB record includes complaint history, accusations, and disciplinary actions. A single resolved issue is not always a dealbreaker, but a pattern is worth a direct conversation before you go further.
Cross-check the reputation
Yelp: read the ratio of positive to negative reviews, and the date of the first review
If one in five reviews is a one or two star, your odds of disappointment are roughly one in five. Also check the first review date. A company may advertise many years in business, but if the first review is recent, the actual operating history may be shorter.
BBB: check the rating and any open or closed complaints from the last three years
The Better Business Bureau shows how a company handles complaints over time. How issues were resolved tells you more than the rating alone.
Verify us too. Ground Up Builders holds CSLB License No. 911849. You can confirm our status, classification, bond, and workers' comp directly at cslb.ca.gov before we ever meet.
The best lead is a contractor someone you trust has already worked with. Build a short list of two or three real candidates before you start comparing.
Ask a neighbor or friend who recently completed a similar project
Ask specifically about communication, whether it came in on budget, and whether they would hire the same contractor again. A trusted referral is more useful than any number of cold listings.
Check Houzz Pro and Google Maps reviews for your specific neighborhood
Local knowledge matters in LA. A contractor who works regularly in your area knows the permit offices, the soil, and the common issues for homes like yours.
Ask your architect or designer for contractors they have worked with
If you are working with a designer, they usually have a short list of contractors they trust on real projects.
Use the CSLB "Find a Contractor" tool to search licensed contractors by zip code
Be wary of anyone who approaches you unsolicitedWatch for
Door-knocking and unsolicited flyers, particularly after a storm or fire, are a recognized warning sign. Disaster-chasing solicitation is rarely the way reputable contractors find work.
A proposal is a written document you can compare, not a number quoted over the phone. The lowest bid is rarely the best value, and a low number usually means something has been left out.
Get at least three written proposals for any project over $30,000
More proposals are not always better. What matters is that each one is complete and detailed, and that all three quote the same scope. One bid from a referral you trust beats three from contractors you know nothing about.
Each proposal includes a line-by-line scope of work, not a paragraph summary
Look for material specifications or allowances stated clearly, permit fees included in the total (not listed as a future add-on), a payment schedule tied to construction milestones, a projected start date and phased timeline, and the license number and proof of insurance.
Confirm all three are quoting the same scope and material tier
A lower number often means something is excluded: a permit, a specific trade, or a cheaper grade of materials. Line the proposals up side by side before you compare prices.
Have each contractor walk you through their proposal line by lineWatch for
A contractor who cannot clearly explain every line item on their own proposal is a concern.
Check that none of these apply to the contractor you are considering. Any one of them is reason to slow down and ask more questions.
No physical business address or verifiable local presence
A legitimate contractor has an office, a mailing address, or at minimum a presence you can confirm.
A deposit larger than the legal limitRed flag
California law caps the deposit on a home-improvement contract at the lesser of $1,000 or 10 percent of the total contract price. Any contractor asking for more than that before work begins is operating outside the law.
Pressure to start immediately or sign quickly
Reputable contractors are busy, but they do not manufacture urgency to close a deal.
No written contract, or a contract that is vague on scope, materials, and payment
Suggesting you pull your own permits to save money
This shifts legal liability for code compliance onto you, can complicate insurance claims, and can create problems at resale. Permit management should be part of the contractor's scope.
No local references from completed projects
Ask for three references from finished projects in Los Angeles, ideally in your neighborhood or a comparable one.
The deposit rule, plainly: on a California home-improvement contract, the most a contractor can collect upfront is $1,000 or 10 percent of the contract price, whichever is less. This is set by the Contractors State License Law.
When you call a reference, ask these five questions. Pay attention to how specific the answers are. Detailed answers, positive or negative, are far more reliable than vague praise.
Did the project come in within budget, and if not, by how much and why?
How did the contractor handle problems when they came up?
Was the site clean and organized during construction?
How was communication throughout the project?
Would you hire them again for a larger project?
Read the contract in full before you sign, and never sign under time pressure. A complete California residential construction contract should include every item below.
Full scope of work in writing
Total contract price and a payment schedule tied to milestones
Start date and estimated completion date
Change-order procedure: all changes written and signed before work proceeds
This is the single clause that prevents the most disputes. If a change is not in writing, treat it as not agreed.
A dispute resolution process
License number, insurance certificate, and bond information
A three-day right to cancel notice
California law gives you three business days to cancel a home-improvement contract signed at your residence. The contract must include this notice.
You have read it in full, with no pressure to sign on the spotWatch for
Take the contract home. Any contractor who will not give you time to read it is telling you something.
Ask every contractor on your short list the same questions. Their answers, and how readily they give them, will tell you who runs an organized operation.
Who are your licensed subcontractors for plumbing, electrical, and framing, and can I verify their license numbers?
Will you be on site regularly, or does a project supervisor handle the day to day?
How do you handle change orders and scope additions?
What is your process for end-of-day cleanup?
What is your punch list and final walkthrough process?
How we measure up
You just built your vetting checklist. Here is how we clear it.
Run Ground Up Builders through every box you just checked. We built this guide because we are happy to be held to it.
CSLB
Fully licensed, bonded, and insured in California. License No. 911849, verifiable on cslb.ca.gov.
Yelp
A long, consistent review history with LA homeowners going back well over a decade, not a recent listing.
BBB
A+ rated, with a track record of resolving any issue rather than ignoring it.
Energy Upgrade California
A program participant since 2014, among a small group of contractors serving SCE and SoCalGas customers.
Ready when you are.
Free estimate and a full written scope, with no obligation and no pressure.
Request a Free Estimate
Ground Up Builders · Serving Greater Los Angeles, Orange & Ventura Counties · CSLB License No. 911849 · (844) 247-6863.
This checklist is provided as general guidance for California homeowners and is not legal advice. Verify current requirements at cslb.ca.gov.
This checklist is provided as general guidance for California homeowners and is not legal advice. Verify current requirements at cslb.ca.gov.