San Diego Contractor Hiring Checklist 2025

Every contractor performing work valued at $500 or more in California must be licensed by the Contractors State License Board (CSLB). Verification takes two minutes and is free at cslb.ca.gov using the "Check a License" tool.

What to Look For

• Active status: The license must show as "Active." Expired or suspended licenses offer no consumer protection.
• License classification: General Building contractors hold a Class B license. Specialty trades (electrical, plumbing, HVAC) require separate C-class licenses. Your GC should hold a B license and subcontract specialty work to licensed C-class tradespeople.
• Bond status: The record shows whether the contractor's bond is current. The minimum bond for a licensed contractor is $25,000.
• Workers' compensation: The record shows whether workers' comp is on file. This protects you if a worker is injured on your property.
• Complaint history: Look for any complaints, arbitration, or disciplinary actions. A single complaint in a long history may be acceptable; a pattern of complaints is not.

A CSLB license confirms the contractor met the state's requirements at the time of licensure. Current insurance is a separate verification you must conduct independently by requesting a certificate of insurance directly from the contractor or their insurance agent.

Call the insurance company listed on the certificate to confirm the policy is active before work begins. Certificates can be issued showing expired policies.

Request at least three references from projects completed within the past two years. Ask for references from projects similar in scope and value to yours — a reference from a small paint job doesn't tell you much about a $100,000 kitchen remodel.

Questions to ask each reference:

• Was the project completed on time and within the original budget?
• Were there unexpected costs, and how were they handled?
• How did the crew treat your home during construction?
• Were permits pulled and inspections passed without issues?
• Did the contractor communicate proactively when problems arose?
• Would you hire this contractor again for a future project?
• Were there any warranty issues after the project was complete, and how were they resolved?

Obtain a minimum of three bids for any project over $10,000. For major remodels, three to four bids provides a clearer picture of market pricing.

What a Proper Bid Must Include

• Itemized scope of work with specific materials (brand, model, grade)
• Separate line items for labor and materials
• Permit costs identified (who pulls permits, estimated permit fees)
• Proposed start date and estimated completion date
• Payment schedule with milestone triggers
• Exclusions stated clearly (what is not included)

California Business and Professions Code Section 7159 establishes specific requirements for home improvement contracts. A compliant contract must include all of the following:

• Contractor's name, physical address, phone number, and CSLB license number
• Start date and estimated completion date
• Detailed description of all work and materials to be provided
• Total contract price with itemized breakdown
• Payment schedule tied to completion milestones
• Notice of your right to cancel within 3 business days
• Preliminary lien notice disclosure (protecting you from mechanic's liens)
• Workers' compensation insurance disclosure
• Change order process clearly defined

Read the entire contract before signing. If anything is unclear, ask for clarification in writing. A legitimate contractor will welcome your questions.

California law caps the initial down payment on home improvement contracts at 10% of the total contract price or $1,000, whichever is less. After that, payments should be tied to milestones of completed work — not to calendar dates or the contractor's cash flow needs.

Example Payment Schedule for a Kitchen Remodel