Check the license in two minutes
Every contractor who takes jobs over $1,000 in California must hold a Contractors State License Board license, and the board lets you check it free online by number, business name or personnel. The record shows whether the license is active, the classifications held, the bond, and the workers' compensation status. Swell Contracting holds CSLB B #970145 (general building) and Tidal Flooring holds C-15 #1002910 (flooring and floor covering); both are on the Trust Center.
Since January 1, 2025, the exemption for unlicensed work covers only jobs under $1,000 in total labor and materials, with no employees hired and no permit required. A kitchen, bath or flooring project is never inside that exemption.
The down payment rule
California caps the down payment on a home-improvement contract at $1,000 or 10 percent of the contract price, whichever is less, and the contract must say so in bold 12-point type. After that, a contractor can only be paid for work actually completed or materials actually delivered, following a schedule of progress payments written into the contract. A contractor who asks for half up front is asking you to break the rule.
The practical effect is that your money follows the work. Cabinets ordered and delivered to the site can be billed; cabinets not yet made cannot.
What the written contract must include
The CSLB publishes the required contents. The contract and any change orders must be in writing and signed by both parties, and you must receive a signed copy before work starts. It must carry the contractor's name, address and license number, describe the project and its significant materials (the board's own example: name the cabinet manufacturer and model rather than writing 'install kitchen cabinets'), state the price and the payment schedule, and include the mandatory notices.
- ◆The down payment and progress payment statements in bold.
- ◆A three-day right to cancel for most contracts signed somewhere other than the contractor's office.
- ◆The workers' compensation statement (carries it, or exempt with no employees) and the general liability statement.
- ◆The mechanics' lien warning, explaining the 20-day preliminary notice and why unpaid subcontractors or suppliers could record a lien even after you have paid the contractor.
- ◆Change orders in writing, signed, before the extra work starts.
Bond, insurance and lien releases
Every licensed California contractor posts a $25,000 license bond with the CSLB. It exists for consumer protection, and a homeowner can file a claim with the surety if the contractor fails to perform. The bond is not insurance for the project, so ask for a current certificate of general liability insurance and confirm workers' compensation covers the crew on your site.
Mechanics' liens are the other protection to understand. Suppliers and subcontractors can send you a 20-day preliminary notice; it is routine, not a sign of trouble. Ask for conditional and unconditional lien releases with each progress payment so the people who were paid cannot later lien the house.
Comparing bids fairly
Two bids with the same bottom line can describe different jobs. Line them up by scope: demolition, framing, plumbing, electrical, waterproofing, cabinets by brand and line, counters by material and thickness, tile allowances, fixtures, glass, paint, permits, dump fees and cleanup. The common exclusions are design, permit fees, appliances and change orders. A design-build firm writes the scope and the drawings before pricing, which is why its number tends to hold.
Common guidance is to hold a 10 to 20 percent contingency for what the walls reveal, and to hold it yourself rather than letting the bid absorb it.