Contractor Problems · Checklist · Reviewed July 14, 2026
Contractor license, contract, and complaint check
Check the papers before hiring or after work goes wrong. Use the same path when a payment or mechanics-lien notice arrives.
The short version
Check the license before the price, and the papers before the work
The license question comes first. A California contractor generally needs a CSLB license when the job needs a permit, uses workers, or costs $1,000 or more for labor and materials. The paperwork rules follow. A home-improvement job over $500 needs a written contract. The usual down payment limit is $1,000 or 10 percent of the contract price, whichever is less.
What changes the answer: The under-$1,000 exception is narrow. It does not work when a permit or worker is involved, and a larger project cannot be split into smaller deals to avoid the license rule.
Each project paper has its own job. Start with the contract and permit file. Then check the contractor's exact license record.
How it works
The license record should match the person and the work
Search the exact name and license number on the contract. Check that the license is active and that its class covers the kind of work being sold. Also look at the bond, workers' compensation entry, and any public actions on the record.
An active license is a starting check, not a promise about the job. The bid, permit plan, references, insurance, payment terms, and work history still matter. A salesperson's name or company nickname may not be the legal name that holds the license.
A home-improvement contract is the map for the job
For a home-improvement project over $500, California requires a written contract. It should name the contractor, describe the work and materials, show start and finish dates, say who gets permits, and include a payment schedule.
The usual down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less. CSLB says there is no special-order-material exception to that limit. Later payments should not run ahead of the value of work done or materials supplied.
Changes belong in writing before the changed work starts
A conversation at the door or a quick text can be easy to read two ways. Put each added task, removed task, price change, and time change in a written change order. The owner and contractor should sign it before that work begins.
Keep one job file with the contract, change orders, permits, inspection notes, invoices, payment records, photos, and messages. Take dated photos before work is covered. A simple dated list of promises, visits, defects, and payments can make a later complaint much easier to follow.
A CSLB complaint and a money claim do different jobs
CSLB can review licensing, contract, workmanship, and conduct issues within its reach. It may mediate or investigate. That process may help the parties reach a fix, but it does not replace a bond claim, insurance claim, card dispute, demand letter, or court case.
File a clear complaint with the shortest useful record: who was hired, what was promised, what was paid, what happened, what result you asked for, and the papers that back it up. Keep every other deadline moving while CSLB reviews the file.
A preliminary notice is not a lien, but it should not be ignored
A subcontractor or supplier may send a Preliminary Notice to preserve possible lien rights. It does not mean a lien has already been recorded. It does tell the owner who is working or supplying materials and who may need to be covered by a payment release.
Use the right lien release as payments move. If a mechanics lien, stop notice, or foreclosure paper arrives, read its dates at once. Paying the main contractor or filing a CSLB complaint does not by itself clear another party's lien claim.
First moves
- 1
Write down the address, contractor's legal name, and license number. Add the price, dates, amount paid, and what is still disputed.
- 2
Check the CSLB record. Look at status, license class, bond, workers' compensation, and listed actions. Match the name and number to the contract.
- 3
A contractor generally needs a license in any of three cases. The job needs a permit, uses workers, or costs $1,000 or more for labor and materials.
- 4
For a home job over $500, keep the written contract. It should cover dates, the work, payments, permits, and signed changes.
- 5
The usual down payment cannot exceed $1,000 or 10 percent, whichever is less. Later payments should track work or materials already supplied.
- 6
Save bids, advertisements, permits, inspection notes, photos, invoices, payments, texts, emails, and a dated list of promises and defects.
- 7
If it is safe and useful, send one calm written request describing the correction, documents, or money requested and a reasonable response date.
- 8
File a CSLB complaint with the key records. Include the license, contract, payment proof, photos, and timeline. Keep the confirmation.
- 9
A Preliminary Notice or mechanics lien has its own clock. A CSLB complaint does not remove a lien. It does not stop a foreclosure deadline.
Watch for
- 1
The under-$1,000 exception is narrow. It does not apply when the job needs a permit or uses workers. A larger job cannot be split to avoid the license rule.
- 2
An active license is only one check. The license class, bond, insurance record, permits, references, work, and payment terms still matter.
- 3
Verbal promises are hard to document. Put changes in a signed written change order before the extra work begins.
- 4
A three-day cancellation right can apply to many home-solicitation contracts, with exceptions. Older adults and disaster repairs can have different rules. Read the contract notice and current CSLB source.
- 5
A subcontractor or supplier may keep lien rights even when the owner paid the main contractor. Use the right lien release as each payment moves.
- 6
CSLB can review license and work issues. It may help with a resolution. Court, insurance, lender, and lien paths are separate.
- 7
Stop and get qualified help promptly if a lien, foreclosure notice, injury, abandoned permit, major structural defect, bankruptcy, threat, or large loss is involved.
Official sources
Where to confirm this
Use the source that matches the step you are on. Current forms, fees, deadlines, and agency decisions can change after this page is reviewed.
Use this as a map. It does not decide your rights, tell you what to file, or say someone broke the law. If a deadline, denial, eviction, firing, injury, tax bill, permit fight, or insurance dispute is on the line, use the official source or a licensed professional.