Most failed remodels weren’t bad projects — they were bad hires. The contractor selection happens in the first week, but its consequences play out for the next 18 months. Here are the seven hiring mistakes we see most often when homeowners come to us mid-disaster, and what to do instead.

Mistake 1: Not Verifying the CSLB License

Every California contractor working on jobs over $500 must hold a Contractors State License Board license. Verifying it takes 60 seconds at cslb.ca.gov. The license check tells you:

• Active vs expired vs suspended vs revoked status
• Workers comp insurance status (required if they have employees)
• Surety bond (required for all)
• Complaint and disciplinary history
• Specific classifications they’re licensed for (B General, C-39 Roofing, C-13 Fencing, etc.)

Hiring an unlicensed contractor for work over $500 is illegal for both parties. If something goes wrong, you have no recourse through CSLB, your insurance may deny related claims, and any lien they file will be unenforceable.

Mistake 2: Letting the Contractor Pull the Permit in Your Name

When you (the homeowner) pull the permit instead of the contractor, you become the legal “Owner-Builder” — the contractor of record. This means:

• You’re responsible for code compliance, not the contractor
• You’re liable for any subcontractor injuries (workers comp claims can be filed against you)
• If the contractor’s work fails inspection, the permit is on you to resolve
• You may inherit liability for any subcontractor liens

Some contractors push this on homeowners because their license is suspended, they don’t want to pay their portion of permit liability insurance, or they simply don’t want the regulatory exposure. Run. A licensed contractor pulls the permit as part of normal scope.

Mistake 3: Big Up-Front Deposits

California law (Business and Professions Code §7159) caps the contractor deposit on home improvement contracts at 10% of the contract price or $1,000, whichever is less. Period.

Contractors who demand 25%, 50%, or 100% up front are violating the law and almost always doing one of three things: (1) using your money to finish the previous client’s job, (2) buying materials for somebody else’s project, (3) preparing to disappear with the deposit.

Subsequent payments should be tied to completed milestones (rough plumbing inspected, drywall hung, cabinets set), not calendar dates.

Mistake 4: No Written Change Order Process

Mid-project scope changes are normal. The “wait, can we move that wall?” or “let’s upgrade the countertop” conversations happen on every remodel. The mistake isn’t making changes — it’s making them verbally.

Without written change orders:

• You and the contractor remember the discussion differently
• The cost impact gets argued at the end of the project, not at the time of the change
• Timeline impacts get hidden until the job runs over
• The original contract terms (warranty, payment schedule) become unclear

Insist on written change orders, signed by both parties, with cost and timeline impact documented before the work proceeds.

Mistake 5: Single-Bid Shopping

One bid tells you nothing about market pricing. Two bids tells you a little. Three bids gives you real information: scope completeness, price ranges, contractor approach, communication style.

Get three line-item bids from licensed contractors. Compare on:

• Materials by manufacturer/grade (a “cabinet allowance” of $8,000 with no brand specified is a red flag)
• Labor scope (what’s included vs not)
• Cleanup and disposal
• Permit handling
• Warranty terms

If two bids are $42,000 and one is $26,000, the $26,000 bid is missing scope. Ask the lowball bidder specifically what’s not included — they’ll usually tell you.

Mistake 6: Skipping the References Call

Online reviews are gameable. Direct phone references aren’t. Ask every shortlisted contractor for 3-5 names of clients who finished projects in the last 12 months. Call them.

Useful questions:

• Did the project finish on the original timeline? If not, why and how was it handled?
• Did the final cost match the contract, or were there surprises?
• How was the cleanup at the end of each day?
• Were there warranty issues after completion, and how were they handled?
• Would you hire them again?

Drive by 2-3 of their completed projects if possible. Detail tells you everything about a contractor’s standards.

Mistake 7: Ignoring Mechanic’s Lien Risk

California mechanic’s lien law lets unpaid subcontractors and material suppliers file a lien against your property — even if you paid the general contractor in full. If the GC doesn’t pay them, the supplier can come after you.

Protections:

• Preliminary 20-day notice. Subcontractors and suppliers must serve a 20-day Preliminary Notice to retain lien rights. Keep every notice you receive.
• Conditional and unconditional lien releases. Require lien releases from the GC and all subs/suppliers before each progress payment. The release should reference the specific dollar amount being released.
• Joint checks. For large material purchases, write the check jointly to the GC and the supplier. Both must endorse it, ensuring the supplier gets paid.
• Final lien release. Before final payment, get unconditional lien releases from every party that filed a Preliminary Notice.

ADC Construction provides lien releases as standard practice with every progress payment.

Frequently Asked Questions

How do I check a contractor’s license in California?

Go to cslb.ca.gov, click “Check a License,” enter the license number or business name. The page shows status, license classifications, complaint history, bond, and workers comp coverage. Always verify before signing.

What’s the maximum legal deposit for a home improvement contract?

10% of the contract price or $1,000, whichever is less. California Business and Professions Code §7159. Any contractor demanding more is violating state law.

How do I know if a contractor is properly insured?

Ask for a Certificate of Insurance directly from their carrier (not a copy from the contractor — those can be doctored). Verify general liability coverage of at least $1M and workers comp coverage if they have employees.

What should be in a remodeling contract?

Scope of work (line-item), materials (manufacturer/grade), price, payment schedule tied to milestones, start and substantial completion dates, change order process, warranty terms, dispute resolution mechanism, and the CSLB-mandated 3-day right to cancel.

What is a 3-day right to cancel?

California law gives homeowners 3 business days to cancel any home improvement contract signed at their home (not at the contractor’s office). The contract must include this notice in specific bold language. Use it if you have second thoughts.

Can a contractor lien my home if I pay in full?

A general contractor cannot lien if they’ve been paid in full. Subcontractors or material suppliers can if they weren’t paid by the GC. Lien releases on each payment protect you.

How do I file a complaint against a contractor?

CSLB.ca.gov has an online complaint form. CSLB investigates, can mediate disputes, and has authority to suspend licenses. For unlicensed contractors, file a complaint with both CSLB and your local district attorney’s office.

Serving Lodi, CA and the San Joaquin County area. Learn more about our services, browse our recent project gallery, or read about our team.