On a custom home, addition or whole-home remodel, the contractor you choose decides whether the project finishes on budget or turns into a dispute. California gives homeowners strong protections, but only if you use them before the contract is signed.
1. Verify the license yourself
Every California contractor license can be checked on the Contractors State License Board website. Confirm the license is active, the business name matches the contract, the classification fits the work (a B General Building license for multi-trade residential projects), and that workers' compensation and bond information are on file. You can see how that looks with our own record: CSLB license #1105082.
Since January 1, 2025, work totaling $1,000 or more in labor and materials, or any work that needs a permit, requires a licensed contractor, according to CSLB's AB 2622 bulletin. Any real remodel, addition or new build is well past that line.
2. Get a written, itemized scope
A one-line bid (“remodel kitchen — $X”) is how projects end up in change-order fights. Ask for a scope that names the work by phase: demolition, structural, rough mechanical, insulation, drywall, finishes, and who pulls the permits. Allowances for fixtures and finishes should be listed with dollar amounts so you know what is included.
3. Know the down payment limit
For a home improvement contract, CSLB states the down payment cannot exceed $1,000 or 10 percent of the contract price, whichever is less, and there are no exceptions for special-order materials. A contractor asking for a third of the job up front is a red flag.
4. Tie progress payments to completed work
After the down payment, payments should follow work that is actually done and verifiable: foundation poured, framing inspected, rough-in signed off. Never pay ahead of the work.
5. Understand your right to cancel
For most home improvement contracts signed outside the contractor's place of business, the buyer has three business days to cancel, or five business days if the buyer is 65 or older, per the CSLB consumer guide.
6. Insist on documented change orders
Conditions change once walls open up. The protection is a written change order, signed before the extra work proceeds, stating the added scope, price and schedule effect. That is how we run every project.
Planning a project like this?
On Point Design Construction Inc. is a California licensed general contractor (CSLB #1105082) serving the Central Valley and Sierra foothills. Send the project details or call and you will get a written scope and an itemized estimate.