Before you sign anything, verify three things: that the contractor’s CSLB license number is active and carries the right classification, that a $25,000 contractor’s bond and current liability and workers’ compensation coverage are on file, and that the entire job — scope, price, start and finish dates and a payment schedule — is in a written contract. In California your down payment cannot exceed $1,000 or 10% of the contract price, whichever is less. If any of those three checks fails, keep looking.
Los Angeles has thousands of qualified remodeling contractors and no shortage of unlicensed operators working alongside them. The checklist below is the sequence we would use ourselves, in order, and every item reflects California law or Los Angeles permitting practice rather than general advice.
The 12-point checklist
1. Verify the CSLB license number at cslb.ca.gov
Every contractor performing work of $500 or more in labor and materials must hold a license from the Contractors State License Board. Search the number on the CSLB "Check a License" page and confirm the status is active, not expired or suspended. For a whole-room remodel, an addition or an ADU, the classification you want is B – General Building; specialty C classifications cover single trades such as roofing (C-39) or plumbing (C-36).
2. Confirm the $25,000 contractor’s bond is on file
California requires licensed contractors to maintain a $25,000 contractor’s bond, and the bond and its surety appear on the public CSLB record. The bond is not insurance for your project, but a lapsed bond is a fast way to spot a license that is not being maintained. Check the bond history along with the license status while you are on the page.
3. Ask for the liability certificate and workers’ compensation
Request a certificate of general liability insurance issued directly by the insurer or broker, not a photocopy. Then check workers’ compensation: contractors with employees must carry it, and the CSLB record shows either an active policy or a filed exemption for a contractor with no employees. If crews will be on your roof or inside your walls, you want that coverage confirmed before demolition day.
4. Get the contract in writing — California requires it
Home improvement contracts in California must be in writing and signed before work begins. The document should state the full scope, the total price, the approximate start and completion dates, and the payment schedule, plus the contractor’s name, address and license number. Verbal agreements and one-page "proposals" with a single lump-sum figure are not a substitute.
5. Keep the down payment within the legal limit
On a home improvement contract, the down payment may not exceed $1,000 or 10% of the contract price, whichever is less. A contractor asking for a third or half of the job before mobilizing is either unfamiliar with the rule or using your money to finish someone else’s project. Either answer is a reason to stop.
6. Tie every payment to completed work
The payment schedule should follow verifiable milestones — rough plumbing signed off, drywall complete, cabinets set — and the money should never get ahead of the work in place. Hold a meaningful final payment until the punch list is closed and the final inspection has passed. That structure protects both sides and keeps the schedule honest.
7. Permits pulled under the contractor’s license, in the right jurisdiction
The licensed contractor should pull the permits, not you. An owner-builder permit shifts liability and responsibility for the work onto the homeowner. In the City of Los Angeles — which includes Sherman Oaks, Encino, Van Nuys, Studio City, Tarzana and Woodland Hills — permits are issued by LADBS. Burbank, Glendale, Pasadena and Calabasas run their own building departments, and unincorporated pockets go through Los Angeles County. Rules change, so confirm current requirements with the department that has jurisdiction over your address.
8. Put every change order in writing
Once walls open, discoveries happen: old galvanized pipe, a bearing wall where the plans showed a partition, knob-and-tube wiring. Each change should be documented with its own scope, price and schedule impact and signed before the work proceeds. Verbal change orders are the single most common source of end-of-project disputes.
9. Collect lien releases with every payment
Subcontractors and material suppliers can record a mechanics lien against your property if they are not paid, even when you have already paid your contractor. Ask for a conditional lien release when you issue a progress payment and an unconditional release once that payment clears, from the general contractor and from the major subs and suppliers. It is routine paperwork for a well-run company.
10. Ask for recent, comparable references
Ask for references from projects similar in scope and completed within the last two years, and at least one you can visit in person or see documented in photographs from start to finish. Call them and ask about communication, schedule accuracy, how surprises were handled and whether the final number matched the contract. A remodel that looks good in a listing photo may have run months late.
11. Check the public record: BBB, Google, Yelp and CSLB complaints
Read reviews across more than one platform and look for patterns rather than isolated complaints — repeated mentions of abandoned jobs, unreturned calls or surprise charges matter far more than a single unhappy client. The CSLB record itself shows disclosed complaints and any disciplinary actions, which no review site can tell you.
12. Know your right to cancel, and the red flags
California gives consumers three business days to cancel a home-solicitation contract signed somewhere other than the contractor’s place of business — which covers most contracts signed at your kitchen table — and the notice of that right must be part of the contract. Walk away from cash-only demands, advertising with no license number, pressure to sign today, and anyone who tells you the work does not need a permit when it plainly does.
Questions to ask at the first meeting
- What is your CSLB license number and classification, and who is the responsible managing officer on the license?
- Who pulls the permits, and which building department has jurisdiction over my address?
- Who will be on site day to day, and who is my single point of contact?
- Which parts of the work are self-performed and which go to subcontractors?
- What does the payment schedule look like, and what triggers each payment?
- How are change orders priced and documented?
- What is a realistic start date and duration for a project of this scope?
- How are allowances for tile, fixtures and cabinetry set, and what happens if I go over?
- What warranty is offered, and what does it cover?
- Can I see two recent projects like mine and speak to those homeowners?
The answers matter less than the manner. A contractor who is precise about permits, payments and paperwork before you are a client will be precise once you are one.
Read our guide to choosing a Valley general contractor
How to avoid contractor scams in Los Angeles
Match the checklist to your project
Different projects raise different questions. A kitchen turns on cabinetry lead times, electrical load and layout changes; an ADU turns on setbacks, utilities and plan check; an addition turns on foundation, structure and roof tie-in. Read the specifics for your scope before your first walkthrough.
Kitchen remodeling in Los Angeles
ADU construction and permitting
Room additions and second stories
Contractor serving Sherman Oaks
Working with American Reliable
American Reliable Construction & Remodeling, Inc. holds California license CSLB #1155602 (B – General Building), is bonded and insured, and is a BBB Accredited Business with an A- rating. We are based at 15260 Ventura Blvd #1200 in Sherman Oaks and work throughout the San Fernando Valley and nearby Los Angeles communities. Permits and inspections are handled under our license, and every project starts with a free in-home estimate delivered in writing and itemized so you can compare it line by line. Warranty available. Call for details.
Run this checklist on us the same way you would run it on anyone else — then call (877) 702-6180 to schedule your free in-home estimate.
