How to Choose a General Contractor in Los Angeles: 10 Must-Ask Questions

Key Takeaways:

1. Unlicensed contractors in California face up to $15,000 fines and three years in prison—and homeowners hiring them have zero legal recourse.
2. Hiring unlicensed contractors costs homeowners an average of $45,000, while missing written contracts adds another $28,000 in disputes.
3. Licensed contractors score 1-2 on risk across all categories while unlicensed operators score 8-10—the difference is catastrophic liability versus legal protection.
4. Los Angeles building codes exceed state minimums—contractors unfamiliar with LADBS permitting create expensive delays and failed inspections.
5. The lowest bid typically costs the most by completion—contractors recover profit through change orders on underestimated scope.

Choosing a general contractor in Los Angeles isn’t just about finding someone to build or remodel. It’s about navigating California’s strictest building codes, avoiding costly permit delays, and protecting yourself from unlicensed operators. This guide shows you exactly what to verify, what to ask, and what to avoid before signing any contract.

Why Choosing a General Contractor in Los Angeles Requires Extra Care

Los Angeles presents unique challenges that don’t exist elsewhere. The city enforces building codes that exceed state minimums. Permitting processes are complex and jurisdiction-specific. And the financial stakes are high.

CSLB estimates 13,000+ unlicensed contractors operate in Southern California. These operators cost California $8.5 billion annually in lost tax revenue. CSLB investigates over 20,000 complaints each year, and 60% involve unlicensed contractors. Geographic size, regulatory density, and project complexity create massive risk exposure for homeowners who don’t know what to verify.

What a General Contractor Actually Does on Your Project

General contractors coordinate all aspects of construction. They hire and supervise subcontractors. They pull permits and schedule inspections. They source materials, manage timelines, and ensure code compliance. They’re legally responsible for quality, safety, and project completion.

The complexity varies dramatically by project type. Commercial projects score 9-10 on complexity across codes, regulations, scale, equipment, timelines, liability, inspections, and documentation. Residential projects score 4-6 across the same areas. This gap explains why experienced general contractors specialize by project type and invest heavily in regulatory expertise.

What Responsibilities Fall Under a California General Contractor License

California law is specific. Projects exceeding $1,000 in combined labor and materials require a licensed contractor. That threshold changed January 1, 2025—it was previously $500. Licensed contractors must carry a $25,000 contractor license bond. Workers’ compensation insurance is mandatory for all contractors with employees. General liability insurance is required to protect homeowners from property damage and contractor negligence.

These aren’t optional expenses. They’re legal requirements that separate legitimate businesses from underground operators. Contractors who skip these protections expose homeowners to catastrophic liability.

What Remains the Contractor’s Accountability Even When Subcontracted

Subcontractors handle specialized trades—electrical, plumbing, HVAC, roofing. But your general contractor remains legally accountable for their work. If an electrician cuts corners or a plumber violates code, the general contractor answers to you and to building inspectors.

This accountability is why licensed contractors carefully vet their subcontractors. They verify licenses, insurance, and work quality. They supervise installation and inspect finished work. When contractors delegate without oversight, projects fail inspections, deadlines slip, and costs spiral.

What Must Be Verified Before Requesting Bids

Don’t waste time collecting estimates from unqualified contractors. Three verifications eliminate most risk: active license status, proper insurance coverage, and Los Angeles permit experience. Each takes minutes to confirm and prevents months of problems.

An Active California Contractor License Is Non-Negotiable

California prosecutes unlicensed contracting aggressively. Criminal penalties include fines up to $10,000-$15,000, up to three years in state prison, or up to one year in county jail. Civil penalties and administrative fines can exceed $200,000 in enforcement actions. Unlicensed contractors cannot enforce contracts or collect payment in California courts.

Homeowners hiring unlicensed contractors have no access to the CSLB complaint recovery fund. Unlicensed contractors score 8-10 on all eight risk categories: legal, financial, quality, safety, warranty, recourse, insurance, and code compliance. Licensed contractors score 1-2 on those same categories. Verify license status at CSLB.ca.gov before requesting any bid.

Insurance Coverage Protects Homeowners From Six-Figure Liability

Homeowners are personally liable for worker injuries when hiring unlicensed contractors without workers’ compensation coverage. Homeowners bear responsibility for property damage when contractors lack general liability insurance. A single serious injury on your property can generate six-figure liability claims.

Request certificates of insurance directly from the contractor’s insurance carrier. Don’t accept photocopies or outdated documents. Verify coverage amounts meet or exceed standard industry requirements. Workers’ compensation and general liability are essential—not optional.

How Los Angeles Permits, Inspections, and Codes Affect Contractor Selection

Los Angeles building codes are among the nation’s strictest. Seismic requirements, fire safety standards, and environmental regulations exceed state minimums. Contractors unfamiliar with local codes generate permit delays, failed inspections, and expensive corrections.

Contractors Must Pull Permits and Schedule Inspections

Your contractor is responsible for pulling permits and scheduling all required inspections. This includes initial plan review, rough inspections during construction, and final inspection before occupancy. Contractors who suggest skipping permits are exposing you to serious consequences.

Verify your contractor’s experience with the Los Angeles Department of Building and Safety (LADBS). Ask how many permits they’ve pulled in the past year. Request examples of recently completed projects with final inspection approvals. Quality control systems ensure compliance at every phase.

Work Without Approved Permits Triggers Expensive Consequences

Projects without permits face immediate project stoppage orders. Unpermitted work creates code violations requiring expensive corrections—often complete demolition and rebuild of affected areas. Homeowners cannot obtain final inspections or certificates of occupancy for unpermitted work.

Unpermitted construction affects property value and future sales. Title companies flag unpermitted additions during escrow. Buyers demand price reductions or walk away. Insurance companies may deny claims for damage involving unpermitted work. The cost of fixing unpermitted work almost always exceeds the cost of doing it right initially.

Why General Contractor Estimates Vary Significantly in Los Angeles

Estimate variation reflects differences in scope, materials, labor costs, and overhead. Geographic location within Los Angeles affects pricing—coastal areas cost more than inland areas. Project complexity drives labor hours. Material selections impact both cost and timeline.

Location, Scope, and Project Type Influence Pricing

High-end residential remodels in Santa Monica cost more than comparable projects in the San Fernando Valley. Commercial tenant improvements downtown carry different pricing than suburban retail buildouts. Contractors price risk, complexity, and opportunity cost into every estimate.

Experienced contractors provide detailed line-item estimates. These break down labor, materials, permits, insurance, and contingencies. Vague lump-sum bids hide assumptions and create disputes when actual costs emerge. Detailed estimates let you compare contractors fairly and understand where your money goes.

Low Bids Often Signal Future Cost Increases

The lowest bid frequently costs the most by project completion. Contractors submit low bids to win work, then recover profit through change orders. They underestimate labor hours or material quantities. They exclude necessary work from the scope.

Realistic pricing reflects actual project requirements. Contractors who invest in thorough estimating—site visits, detailed measurements, subcontractor quotes—produce accurate numbers. Their bids may be higher initially but rarely increase during construction. Contractors offering comprehensive services price scope completely upfront.

Ten Questions Homeowners Must Ask Before Hiring a General Contractor

These questions separate qualified contractors from amateurs. They verify credentials, establish expectations, and reveal how contractors handle problems. Ask every contractor the same questions. Compare answers side by side.

1. Are You Licensed, Bonded, and Insured to Work in Los Angeles?

This question should generate immediate documentation. Contractors invest $450 for the original CSLB application and exam. Initial license fees are $200 for sole owners or $350 for non-sole owners. These costs demonstrate commitment to operating legally and professionally.

Request the contractor’s license number and verify it yourself on CSLB.ca.gov. Check for complaints, disciplinary actions, and bond status. Request current certificates of insurance for workers’ compensation and general liability. Any hesitation answering this question is immediate disqualification.

2. What Experience Do You Have With Projects Similar to Mine?

Residential remodels differ from room additions. Custom homes require different expertise than commercial tenant improvements. Contractors who specialize deliver better results than generalists who take any job.

Ask for examples of three recently completed projects matching your scope. Request client references for those projects. Visit completed projects if possible. Contractors confident in their work eagerly share examples and connect you with satisfied clients.

3. Who Will Manage My Project Daily?

Some contractors run multiple projects simultaneously. They delegate daily management to project managers or lead carpenters. Others personally supervise every job. Neither approach is wrong, but you need to know who you’ll actually work with.

Meet the person managing your project before signing any contract. Verify they have authority to make decisions. Confirm their availability and communication style. The best contractor relationship means nothing if you can’t reach anyone when problems arise.

4. How Do You Handle Permits, Inspections, and Local Code Compliance?

Detailed answers demonstrate competence. Contractors should explain exactly which permits your project requires. They should describe the inspection schedule and inspection criteria. They should identify potential code compliance challenges specific to your property.

Vague answers suggest limited permit experience. Contractors suggesting permits are optional or unnecessary are exposing you to enforcement actions. Contractors offering to pull permits “as needed” lack planning discipline. Competent contractors build permit acquisition and inspection scheduling into project timelines from day one.

5. What Is Included—and Excluded—in This Estimate?

Line-item estimates prevent disputes. Every estimate should specify labor costs, material costs, permit fees, engineering costs, and allowances for owner-selected items. Exclusions should be equally clear—site preparation, utility connections, landscaping, or appliance installation.

Lump-sum estimates hide assumptions. When estimates say “kitchen remodel – $75,000,” you don’t know what’s included. Does it include plumbing relocation? Electrical panel upgrades? New windows? Vague estimates generate change orders when actual work begins.

6. How Are Changes Handled Once Construction Begins?

Change orders are inevitable. You’ll want to modify something. Contractors will encounter unexpected conditions. The process for approving and pricing changes determines whether changes are manageable or catastrophic.

Established contractors use written change order forms. These document the change description, cost impact, and timeline impact. Both parties sign before work proceeds. This prevents disputes about what was agreed and what it cost. Contractors handling changes verbally create expensive misunderstandings.

7. What Timeline Should I Realistically Expect for This Project?

Realistic timelines account for permit processing, material lead times, inspection schedules, and weather delays. Contractors promising unrealistic completion dates either don’t understand the process or are telling you what you want to hear.

Detailed project schedules show major milestones—permit approval, demolition completion, rough inspections, finish work, final inspection. Schedules should identify dependencies—what must finish before the next phase begins. Minimizing disruption requires careful sequencing and coordination.

8. How Do You Select, Schedule, and Supervise Subcontractors?

General contractors are only as good as their subcontractors. Contractors working with established trade partners deliver consistent quality. Contractors hiring whoever’s available that week produce inconsistent results.

Ask how long contractors have worked with their primary subcontractors. Ask how they verify subcontractor licenses and insurance. Ask how they handle subcontractor performance problems. Contractors with strong answers maintain long-term relationships with reliable trades.

9. What Workmanship Warranties or Guarantees Apply After Completion?

California law requires contractors to repair defective work. But warranty terms vary significantly. Some contractors provide one-year warranties on all work. Others offer extended warranties on specific systems—roofing, waterproofing, structural elements.

Written warranties specify exactly what’s covered and for how long. They explain the claims process and response timeframes. Verbal promises aren’t enforceable. Contractors confident in their work document their commitments in writing.

10. How Will Communication Work Throughout the Project?

Communication determines project success as much as technical skill. Contractors should explain their communication protocols—weekly meetings, daily email updates, text message availability, or project management software access.

Agree on communication expectations before starting. Establish who you’ll contact for different issues. Confirm response time expectations. Determine how emergencies are handled. Clear communication protocols prevent frustration and build trust.

What Red Flags Indicate a Contractor Will Cause Problems

Some warning signs appear before work begins. Others emerge during conversations. All predict future problems. Recognizing red flags saves money and stress.

These Behaviors Consistently Lead to Delays, Disputes, and Cost Overruns

Hiring unlicensed contractors creates $45,000 average financial impact with 12% frequency among homeowners. No written contract generates $28,000 average financial impact with 28% frequency. Accepting the lowest bid only is the most common mistake at 42% frequency. Research identifies ten common contractor hiring mistakes with varying financial impacts.

Contractors demanding large upfront payments—more than 10% or $1,000—raise immediate concerns. Contractors without physical business addresses operate under the radar. Contractors refusing to provide references hide problem histories. Contractors pressuring immediate decisions prevent due diligence.

Vague Answers and Verbal Promises Create Expensive Misunderstandings

Contractors who answer questions vaguely lack either knowledge or honesty. Contractors making verbal promises without written documentation will deny those promises when disputes arise. Contractors who can’t explain their processes don’t have processes.

Pay attention to how contractors answer questions. Specific, detailed answers demonstrate expertise. Evasive or general answers suggest problems. Contractors who defer questions to “figure out later” create chaos during construction.

How to Review a General Contractor Agreement Before Signing

The contract governs your entire relationship. It defines scope, payment terms, timeline, warranties, and dispute resolution. Never sign without thorough review.

These Contract Terms Protect Homeowners Most Effectively

Detailed scope of work prevents disputes about what’s included. Fixed price or not-to-exceed pricing limits exposure to cost overruns. Payment schedules tied to completion milestones protect your deposit. Change order procedures ensure changes are documented and priced fairly.

Contractors may offer Blanket Performance and Payment Bonds allowing upfront payments exceeding 10% or $1,000. These bonds protect you if the contractor abandons the project. Proper contract clauses prevent disputes that generate the $28,000 average cost associated with missing written agreements.

Typical Los Angeles Payment Schedules Protect Both Parties

Standard payment schedules include a small deposit—typically 10% or $1,000, whichever is less. Subsequent payments are tied to completion phases—30% after demolition and rough framing, 30% after rough inspections, 25% after finishing work, and final 5-15% after final inspection and punch list completion.

Never pay the full contract amount before project completion. Retain at least 10% until final inspection approval and punch list completion. This retention ensures contractors complete all work and correct any deficiencies. Payment schedules should be written into your contract with specific milestone descriptions.

How Past Work and References Confirm Contractor Reliability

Documentation beats marketing. Completed projects demonstrate capability. Client references reveal how contractors handle problems.

These Reviews Provide the Most Useful Insight

Online reviews show patterns. Single negative reviews happen to everyone. Multiple reviews describing similar problems—communication failures, cost overruns, incomplete work—indicate systemic issues. Look for detailed reviews describing specific experiences rather than generic praise.

CSLB complaint records show enforcement actions and disciplinary history. Multiple complaints or license suspensions are disqualifying red flags. Check CSLB.ca.gov for complete complaint and disciplinary history.

Completed Projects Should Be Verified Before Hiring

Request addresses of three recently completed projects similar to yours. Drive by those properties. Look for quality finish details—clean trim work, straight lines, professional appearance. Contractors comfortable sharing recent work locations demonstrate confidence in their results.

Contact client references directly. Ask specific questions: Did the contractor stay on budget? Meet the timeline? Communicate effectively? Handle problems professionally? Would you hire them again? References who hesitate or provide lukewarm recommendations are warning signs.

How to Move Forward Confidently After Choosing Your Contractor

Verification creates confidence. Once you’ve confirmed license status, insurance coverage, references, and contract terms, you’re ready to proceed.

Active license renewal fees are $450 for sole owners or $700 for non-sole owners. Delinquent renewal fees jump to $675 for sole owners or $1,050 for non-sole owners. Verify contractors maintain current licenses—delinquent renewals suggest financial or organizational problems.

Schedule a final pre-construction meeting to review the contract, timeline, communication protocols, and payment schedule. Ensure all parties understand expectations. Document everything in writing. Then begin construction knowing you’ve protected yourself through thorough due diligence.

Start Your Project With a Contractor You Can Trust

You now know exactly what to verify, what to ask, and what to avoid when hiring a general contractor in Los Angeles. The next step is working with professionals who answer every question on this list with documentation, experience, and transparency. Joel & Co. Construction brings decades of Los Angeles construction expertise, full licensing and insurance, and a proven track record of on-time, on-budget project delivery.

Skip the guesswork and start with confidence. Contact Joel & Co. Construction today for a detailed consultation and discover why Los Angeles homeowners trust us with their most important projects.

Joel Portillo

As a second-generation general contractor with a passion for construction and design I bring a unique blend of experience, expertise, and innovation to every project. Having grown up in the world of construction, I’ve been immersed in the craft from an early age, learning the nuances of the industry from my father. My background in construction brings a deep respect for the craftsmanship that goes into every project, as well as an understanding of the practical challenges and intricacies involved in every phase of construction. With a wealth of hands-on knowledge passed down through the generations, every project is built to last while meeting the aesthetic and functional demands of today’s world.