Hiring a contractor in California: checklist and contract rules

Updated Nov 9, 2026.

California law protects homeowners with a few clear rules. Knowing them before you sign avoids most problems.

Before you choose

• Get at least three written bids, and do not automatically take the lowest one.
• Check each license on the CSLB site (see how to check a license).
• Ask for personal recommendations, verify the business address and phone, and ask about workers' comp and liability insurance.
• Look at real work history: Browse licensed contractors with permit history.

The contract

• Home improvement work over $500 in labor and materials needs a written contract.
• Never sign a blank or partly blank contract.
• Any change to the work or price goes on a written change order that you both sign.
• The contract should say when payments will be made.

Down payment limit

On a home improvement project the down payment can be no more than 10% of the contract price or $1,000, whichever is less. The only exception is a contractor with a blanket performance and payment bond on file with CSLB.

Right to cancel

If the contract was not negotiated at the contractor's place of business (for example, it was signed at your home), you usually have three days to cancel; homeowners 65 and older have five days. The cancellation must be sent before midnight of the last day. Some service and repair contracts are exceptions.

Sources: CSLB — Finding the right contractor; CSLB — Contracts; CSLB — Warnings and exceptions. General information, not legal advice; rules can change, so check CSLB before you sign.