How to Hire a Contractor in Los Angeles

Business and Professions Code §7159 sets what a home improvement contract must contain. CSLB publishes a sample contract that shows each item. Look for:

• the contractor's name, business address and license number, and the salesperson's registration number if a salesperson signs;
• the approximate start and completion dates, and what counts as starting the work;
• the total contract price and any finance charge;
• the down payment, with the notice in bold that it can't exceed $1,000 or 10% of the price;
• a schedule of progress payments that names the work each payment covers;
• a description of the work and the main materials and equipment, by brand and model where it matters;
• whether subcontractors will be used;
• the Mechanics Lien Warning;
• notices about the contractor's general liability insurance and workers' compensation;
• the notice of your right to cancel, and a note that you can require a performance and payment bond;
• the rule that change orders must be in writing, with the price and schedule change, before the extra work starts.

A written contract is required for any home improvement job over $500 in labor and materials (CSLB consumer guide). Don't sign a blank or partly blank contract, and keep a signed copy.

Usually, for a short time. If you sign anywhere other than the contractor's place of business, you can cancel in writing within three business days of receiving the signed contract. The window is five business days if you're 65 or older, and seven business days for a contract to repair a home damaged in a declared disaster, such as the January 2025 fires. The contractor has to return your payments within 10 days of getting the notice (CSLB, Civil Code 1689.10). If you are rebuilding after the Palisades Fire, see how to choose a Palisades rebuild contractor, which covers the seven-day rule and the City's other requirements.

One exception: a service and repair contract under $750 that you asked for on short notice loses the right to cancel once the work starts.

Anyone who works on your home or supplies materials and isn't paid can record a mechanics lien on the property, even if you paid your contractor in full. If the lien is valid, a court can make you pay twice or order the home sold to pay it (CSLB).

Preliminary notices

Subcontractors and suppliers keep their lien rights by sending you a Preliminary Notice, up to 20 days after they start work or deliver materials. Save each one and note the date.

Conditional and unconditional releases

• Conditional release: signed before you pay. It only takes effect once the claimant is actually paid.
• Unconditional release: signed after the claimant has been paid. Get one from each subcontractor and supplier the payment covers.
• The forms have to follow Civil Code §§8132, 8134, 8136 and 8138. CSLB publishes all four.
• By law, you can hold the next payment until you have the unconditional releases for the previous one.

Other protections

• Pay a subcontractor or supplier who sent a Preliminary Notice with a joint check made out to them and the contractor.
• Record a Notice of Completion with the county recorder within 15 days after the work is done. It cuts the time to record a lien from 90 to 60 days for the contractor and from 90 to 30 days for subcontractors and suppliers (CSLB).