Red flags when hiring a general contractor

The red flags when hiring a general contractor fall into four groups: an estimate that does not say what you are buying, a contract that is missing or vague, a payment request that runs ahead of the work, and behavior that tells you how problems will be handled. Any one can be innocent. Two or three together usually mean you should keep looking. This page covers the warning signs only. For the full checklist of what to verify, see how to choose a remodeler in Brentwood.

Red flags in the estimate

An estimate is the first piece of paper a contractor gives you, and it shows how they think. Watch for these.

• One number and no description of the work
• No mention of demolition, disposal, drywall repair or paint, which are the items that get left out
• "Allowances" for tile, fixtures or cabinets with no stated amount, so the real price is unknown
• A figure far below the others, with no explanation of why
• An estimate that arrives without anyone having looked at the room

The last one matters more than it seems. Nobody can price a bathroom from a text message. Water damage behind a tub, a wall that has to be opened to move a drain, an electrical panel that cannot take the load: these only show up when someone looks. A contractor who prices blind is guessing, and you pay when the guess is wrong.

Red flags in the license and the paperwork

California requires a license for work of $1,000 or more in labor and materials, and for any job that needs a permit or employees at any price. So a contractor with no license number on the estimate, the truck or the ad is already a problem. Look them up with the CSLB License Check. A license that is not active, or that belongs to a different name, is a stop sign. CSLB advises a licensed B general building contractor when a job involves more than two kinds of work on a building, and gives a kitchen remodel as the example.

Insurance is the next check. CSLB says California law requires employers, including construction employers, to carry workers' compensation insurance, even with one employee. A contractor who dodges the question of coverage, or says it is not needed because "my guys are all subs," needs a direct answer in writing. The guide to verifying a contractor's insurance covers how.

Red flags in the contract

• No written contract. California requires one for home improvement work above a small threshold, signed and dated by both sides before work begins.
• A contract that is hard to read. The law calls for legible text in a minimum type size. Tiny print is a warning in itself.
• No scope. If the work and materials are not described, you have nothing to hold anyone to.
• No permit language. The contract should say who pulls permits.
• Missing cancellation notice. Most home improvement contracts carry a three business day right to cancel (five for seniors), and the contract has to say so.
• Verbal changes. Changes should be written down and priced before the work happens.

Red flags in how they ask for money

The down payment cannot exceed $1,000 or 10 percent of the contract price, whichever is less. The exception CSLB notes is for contractors with a blanket performance and payment bond on file with CSLB. A contractor asking for a third of the job up front, or for cash only, is asking for something the law does not allow in the ordinary case.

After the down payment, payments should follow a written schedule tied to specific work and materials. CSLB says payments to the contractor cannot exceed the value of the work performed, and advises paying only as work is completed. Be wary of "we need more now to order materials" when the schedule says otherwise. Pay by a traceable method and keep every receipt.

Red flags in how they communicate

These show up before the contract and predict what happens during the job.

• Pressure to sign today, or a price that is only good this week
• Slow or no replies when they are trying to win your work
• Vague answers about who will be on site, or a promise that "the boss" will be there with no name
• No references, or photos that are clearly stock images
• Blaming past customers for every problem on past jobs
• Dropping by unannounced after storms or offering a "leftover materials" deal

Every remodel hits surprises. What you want to see is a contractor who talks about them plainly. Ask about a past job that went wrong and listen to what they say they did about it.

Red flags about permits and the work itself

Be cautious of anyone who suggests skipping a permit. Building offices in this area, including Brentwood's Development Services Division, say permits are needed for almost all construction that touches structure, plumbing or electrical. Unpermitted work can surface at resale or when you file an insurance claim. On site, watch for a crew that is never the same two days running, a job left open for days with nobody working, and materials that do not match what the contract says.

What to do when you see one

Ask about it, in writing. A good contractor will explain an allowance, fix a contract gap or show you their license and insurance without fuss. A contractor who gets defensive is answering your question another way. You can compare an estimate against this list at any time, and N. Abeyta Remodels offers free estimates if you want a second look at one you already have. Our general contractor page explains how we run a project, and the questions to ask a renovation contractor give you the other side of the conversation.

Red flags when hiring a general contractor: questions