Before you sign anything, ask these questions. A contractor who gets defensive, vague, or rushes you past them is telling you something important. A contractor who answers them clearly, with documentation to back it up, is the one worth hiring. These 15 questions work for new construction, additions, kitchen remodels, and most other residential or commercial projects in California.
Licensing, Insurance, and Legal Standing
These questions aren’t optional. In California, any contractor performing work valued at $500 or more in combined labor and materials is required to hold a valid license from the Contractors State License Board (CSLB). That license is searchable at cslb.ca.gov, look it up yourself, not just at the number they hand you.
1. Are you licensed in California, and can I verify your license number? Get the number in writing. Check it on the CSLB site before the meeting ends. Confirm the license is active, the classification matches your project type (Class B for general contracting), and there are no disciplinary actions on record.
2. Do you carry general liability insurance, and what are the coverage limits? Ask for a certificate of insurance naming you as an additional insured for the duration of the project. A policy that lapses mid-job leaves you exposed if a subcontractor damages a neighbor’s property or a worker is injured on your site.
3. Do you carry workers’ compensation insurance for your crew? This is separate from general liability. If a worker is injured on your property and the contractor has no workers’ comp, you may be liable. California law requires it for any contractor with employees.
4. Will subcontractors be used, and are they licensed and insured as well? Many general contractors subcontract electrical, plumbing, HVAC, and specialty work. That’s normal. What matters is whether those subs are properly licensed for their trade and covered by their own insurance, or by the GC’s policy.
The Contract Itself
A verbal agreement is not a contract. In California, any home improvement contract over $500 must be in writing. But a written contract can still be vague, one-sided, or missing critical protections. These questions help you read between the lines.
5. What exactly is included in the scope of work? The scope should be specific enough that a stranger could read it and know what’s being built. “Kitchen remodel” is not a scope. “Demo existing cabinets and flooring, install client-supplied cabinets, install contractor-supplied LVP flooring per attached specification sheet” is a scope. Ask for line-item detail.
6. What is explicitly excluded? Exclusions matter as much as inclusions. If the contract doesn’t mention who handles permit fees, debris hauling, or temporary utilities, those costs can surface as change orders later. Ask the contractor to walk you through what they are not responsible for.
7. How are change orders handled? Change orders are written amendments to the original contract. Ask whether every change, even small ones, requires a signed change order before work proceeds. A contractor who says “we’ll just settle up at the end” is describing how disputes start.
8. What is the payment schedule, and is a large upfront deposit required? California law caps the initial deposit on home improvement contracts at 10% of the total price or $1,000, whichever is less. If a contractor asks for 30–50% upfront, that’s a red flag. Legitimate payment schedules are tied to project milestones, not arbitrary dates.
Timeline, Permits, and Project Management
A project that runs three months over schedule costs you more than money, it disrupts your home, your tenants, or your business operations. These questions surface how organized a contractor actually is before work begins.
9. Who pulls the permits, and who is responsible for passing inspections? In Sacramento, most structural, electrical, plumbing, and mechanical work requires permits from Sacramento County or the City of Sacramento’s Community Development Department, depending on your address. The contractor should pull permits in their name, not ask you to pull them as an owner-builder. If they suggest you pull the permits, walk away.
10. What is the realistic project timeline, and what could cause it to extend? Ask for a written schedule with start date, major milestones, and projected completion. Then ask what the top three reasons a project like yours typically runs long, material lead times, inspection scheduling, weather. A contractor who says “nothing should go wrong” hasn’t done many projects.
11. Who will be my day-to-day point of contact? On larger jobs, the person who sold you the project may not be the person running it. Find out who the project manager or site supervisor is, how to reach them, and how quickly they respond to questions. Ask what happens to your project if that person leaves the company.
12. How do you handle material selections and allowances? Allowances are budget placeholders for items not yet selected, tile, fixtures, appliances. They’re common and not inherently problematic, but if the allowance is unrealistically low, you’ll pay the difference in change orders. Ask what the allowance is based on and whether the contractor can show you comparable materials at that price point.
References, Track Record, and Fit
Past performance is the best available predictor of future behavior. These questions help you evaluate it without relying on cherry-picked testimonials.
13. Can you provide references from projects similar to mine, completed in the last two years? Ask for three references and actually call them. Ask each one: Did the project finish on time? Was the final cost close to the original bid? How did the contractor handle problems when they came up? Would you hire them again?
14. Have you had any complaints filed with the CSLB or been involved in construction-related litigation? A single resolved complaint doesn’t disqualify a contractor. A pattern of complaints, or an unwillingness to answer the question, does. The CSLB database is public, you can check it yourself at cslb.ca.gov.
15. What is your warranty on workmanship, and what does it cover? California law provides implied warranties on construction work, but written warranties are clearer and easier to enforce. Ask what defects are covered, for how long, and what the process is for making a warranty claim after the project closes out.
Before You Sign
Take the contract home. Read it in full. If something is unclear, ask for it in plain language, and if the clarification doesn’t make it into the document, it doesn’t count. A contractor who pressures you to sign at the table is a contractor who benefits from you not reading carefully.
If you’re working on a general contracting project in the Sacramento area and want to talk through scope, timeline, or what a realistic contract should look like, TDI USA, Inc. is available at (877) 688-0866. There’s no obligation in asking questions, that’s true whether you’re asking us or any other contractor on your list.