Red flags when hiring a contractor
Warning signs that a contractor might not be trustworthy: no license on estimate, asking for large deposits, no written contract, pressure to start immediately.
What are the biggest red flags with contractors?
The top red flags are: (1) No license number on their estimate or contract - required by law in California. (2) Asking for more than $1,000 or 10% deposit - this violates California B&P Code 7159.5. (3) No written contract - verbal agreements are almost impossible to enforce. (4) Pressuring you to decide today or offering a 'special deal' that expires. (5) Wanting to pull permits in your name instead of theirs - this shifts liability to you. (6) No workers compensation insurance - you could be liable if a worker is injured on your property. (7) Only accepting cash with no receipts. (8) No physical address or only a P.O. box.
Should I worry if a contractor doesn't have a website?
Not necessarily. Many excellent contractors - especially smaller operations and specialty trades - don't have websites. What matters more: a valid CSLB license, current insurance, references you can call, and a detailed written estimate. However, if a contractor has no website, no business cards, no Google listing, and no online presence at all, combined with other red flags, that's concerning.
Is it a red flag if they want cash only?
Yes, this is a significant red flag. Legitimate contractors accept checks, credit cards, or bank transfers and provide receipts for every payment. Cash-only requests often indicate: they're trying to avoid taxes, they don't have a proper business setup, or they want to avoid a paper trail. Always pay by check or electronic transfer so you have proof of payment. California law requires contractors to provide receipts, and you should always get a lien waiver with each payment.
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Related guides in Hiring a Contractor
Every contractor working on projects over $500 in California must hold a valid CSLB license. Here's how to check and what to look for.
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