How to Vet a Contractor for a Home Renovation in Los Angeles
Vetting a contractor means verifying their license, insurance, financial stability, and past work — then evaluating their communication and transparency on pricing. Never hire based on a referral alone. Even trusted referrals require independent verification.
Step 1: Verify the License (5 Minutes, Always Required)
All general contractors in California must hold an active license from the Contractors State License Board (CSLB). Verify at cslb.ca.gov before any further evaluation. Check that: the license is Active; the classification matches your work type (B = General Building, C-10 = Electrical, C-36 = Plumbing); there are no disciplinary actions; and the bond is active.
Red flag: Any contractor who gives you a license number that doesn't match CSLB records, or claims they're "in the process of renewing" — do not proceed.
Step 2: Verify Insurance (Ask for Certificates)
Request certificates of insurance directly from their insurance broker — not from the contractor. Two policies are required:
General Liability Insurance: Minimum $1,000,000 per occurrence / $2,000,000 aggregate. You should be named as Additional Insured.
Workers' Compensation Insurance: Required if the contractor has any employees. Without workers' comp, an injured worker on your property may be your liability.
Keystone Connect uses TrustLayer for automated insurance verification on all contractors in our network — eliminating the risk of expired or falsified certificates.
Step 3: Review Financial Stability
Signals of financial instability: requires a large upfront deposit (above 10%), outstanding judgments or liens on CSLB record, can't provide trade references from suppliers, pushes urgency around cash, or cannot describe their cash flow management across multiple projects.
Reference Check Questions (Call Every Reference)
- "Was the project completed on time? If not, what caused delays?"
- "Was the final cost within 10% of the original bid? If not, why?"
- "How did the contractor handle problems or surprises mid-project?"
- "How was communication throughout? Did they respond promptly?"
- "Were there any warranty issues after completion? How did they handle them?"
- "Would you hire this contractor again?"
- "Is there anything you wish you'd known before hiring them?"
- "Can you give me an example of a contractor who's worked on a problem that went poorly? How did you handle it?"
The Contractor Vetting Scorecard
| Category | Criterion |
|---|---|
| Legal | CSLB license active and in good standing |
| Legal | No disciplinary history on CSLB |
| Legal | General liability insurance verified and current |
| Legal | Workers' comp verified (or legitimately exempt) |
| Experience | Has completed 3+ projects similar to yours |
| Experience | Los Angeles local knowledge (permits, jurisdictions) |
| Experience | References confirm on-budget performance |
| Experience | References confirm on-schedule performance |
| Transparency | Provides line-item bid (not just total) |
| Transparency | Can explain pricing when asked |
| Communication | Responds to calls and emails within 24 hours |
| Financial | No unusual cash flow pressure signals |
Red Flag Checklist
Verification flags: License not verifiable on CSLB; insurance certificate provided by contractor, not their broker; license classification doesn't match your scope; has active complaints or disciplinary actions.
Bidding flags: Bid is a single lump sum with no line items; allowances are far below market rates; cannot explain pricing; bid dropped dramatically when you pushed back on price.
Behavior flags: Pressures you to sign quickly; discourages other bids; refuses to put verbal commitments in writing; requests cash or a large check before work begins.
Financial flags: Requests more than 10% deposit (violates CA law); cannot provide trade references; has liens or judgments on public record.
Want a second opinion before you sign anything?
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