How to Hire a General Contractor in California: A Step-by-Step Guide

Hiring a general contractor in California is a crucial step in ensuring your construction or renovation project is completed on time, within budget, and up to code. Whether you’re planning a home remodel, tenant improvement, or commercial build-out, the right contractor will ensure quality workmanship and compliance with California’s building regulations.

This guide will walk you through the process of hiring a general contractor in California, with a checklist at the end of each step to keep you on track.

Step 1: Define Your Project Scope and Budget

Before reaching out to contractors, have a clear understanding of your project needs. Consider the type of work, materials, and budget constraints. In California, project costs vary significantly depending on location, labor costs, and permit requirements.

✅ Checklist:
✔️ Determine if your project is a remodel, addition, or new construction.
✔️ Identify must-have features and preferred materials.
✔️ Set a realistic budget, including a 10-20% contingency for unexpected expenses.
✔️ Research California-specific building codes and permit requirements.

Step 2: Research and Shortlist Licensed Contractors

In California, general contractors must be licensed by the Contractors State License Board (CSLB) if the project is valued at $500 or more. Unlicensed contractors pose a major risk and could lead to legal or financial complications.

✅ Checklist:
✔️ Verify contractor licensing at the CSLB website (www.cslb.ca.gov).
✔️ Check online reviews on Google, Yelp, and the Better Business Bureau (BBB).
✔️ Ask for referrals from friends, neighbors, or real estate professionals.
✔️ Review their website and portfolio of past projects.

Step 3: Interview Contractors and Request Bids

After shortlisting a few contractors, schedule consultations to discuss your project. Ask about their experience, process, and estimated timeline.

✅ Checklist:
✔️ Contact at least three licensed contractors for interviews.
✔️ Ask about their experience with California building codes and inspections.
✔️ Request a detailed written estimate, including labor, materials, and permit fees.
✔️ Discuss how they handle delays, permits, and unforeseen costs.

Step 4: Verify Credentials, Insurance & References

California law requires licensed general contractors to carry liability insurance and workers' compensation if they have employees. This protects homeowners from potential liabilities.

✅ Checklist:
✔️ Confirm that the contractor holds a valid CSLB license.
✔️ Verify they have general liability insurance ($1M coverage recommended).
✔️ Ensure they have workers' compensation insurance if they have employees.
✔️ Ask for and call at least three references from past clients.

Step 5: Compare Estimates and Avoid Red Flags

California contractors are required to provide a written estimate. Be cautious of extremely low bids, as they often indicate hidden costs or poor quality work.

✅ Checklist:
✔️ Compare bids to ensure they cover labor, materials, permits, and timelines.
✔️ Beware of low-ball estimates—they could lead to poor-quality work or additional fees.
✔️ Ask for clarification on payment schedules and any fine print.
✔️ Confirm that permits and inspections are included in the bid.

Step 6: Sign a Legally Binding Contract

California law requires that any contract over $500 must be in writing. The contract should clearly define the scope of work, payment terms, timeline, and warranties.

✅ Checklist:
✔️ Ensure the contract includes:
🔹 Contractor’s CSLB license number
🔹 Project scope and timeline
🔹 Payment schedule (never pay full amount upfront!)
🔹 Change order process
🔹 Warranties on labor and materials
✔️ Verify that the contractor will obtain necessary permits for the project.
✔️ Make sure you understand cancellation policies before signing.

Step 7: Monitor the Project & Communicate Regularly

Once work begins, stay actively involved. California law requires certain inspections at various stages of construction, and your contractor should coordinate these with local authorities.

✅ Checklist:
✔️ Schedule regular check-ins with the contractor.
✔️ Keep records of invoices, payments, and change orders.
✔️ Ensure that necessary inspections and permits are completed on time.
✔️ Conduct a final walkthrough before making the last payment.

Final Thoughts

Hiring a general contractor in California requires due diligence, but following this guide will help you make an informed decision. By ensuring they are licensed, insured, and experienced, you can protect yourself from costly mistakes and ensure a successful project.

If you need a licensed and experienced contractor in California, contact ALS Builders Inc. today!

📞 Call: (209) 936-9160
📍 Serving Stockton, CA, and surrounding areas

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