California requires a written contract for any home improvement project over $500 in combined labor and materials. The down payment on a home improvement or swimming pool contract cannot be more than $1,000 or 10% of the contract price, whichever is less.

When you need a written contract

CSLB says "there must be a written contract for all home improvement projects over $500 in combined labor and materials costs" (CSLB contracts). Note the difference from the license rule: a person can do certain jobs under $1,000 without a license, but any home improvement job over $500 still needs a written contract.

The down payment limit

CSLB: "The down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less" (CSLB). On a $30,000 kitchen, that is $1,000. On a $6,000 job, it is $600.

A contractor who asks for half up front on a home improvement job is asking for more than the law allows.

Before you sign

• Check the license and classification with CSLB's Check a License tool.
• Get more than one bid and check references, as CSLB advises.
• Get the contract in writing for anything over $500.
• Keep the down payment within the $1,000 or 10% limit.

If a dispute comes up, CSLB takes complaints up to four years from the date of the act (CSLB complaints). More on licenses: how to check a California contractor license.

FAQ

How much down payment can a California contractor ask for? No more than $1,000 or 10% of the contract price, whichever is less, on home improvement and swimming pool contracts.

When does a California home improvement job need a written contract? When the combined labor and materials cost is over $500, according to CSLB.

Is a handyman job under $1,000 exempt from the contract rule? No. The $1,000 figure is about the license. CSLB says home improvement projects over $500 need a written contract.

Sources: CSLB contracts and binding agreements, CSLB what is a contract, CSLB Check a License, CSLB Filing a Complaint.

California licenses contractors through the Contractors State License Board (CSLB). Each license carries a classification, such as B for general building or C-36 for plumbing. Look the license up on CSLB's site and check that the classification matches the work.

Classifications to know

CSLB's classification list includes:

• (B) General Building Contractor
• (B-2) Residential Remodeling Contractor
• (C-10) Electrical Contractor
• (C-20) Warm-Air Heating, Ventilating and Air-Conditioning Contractor
• (C-36) Plumbing Contractor

How do I check a license?

Use CSLB's Check a License tool. CSLB says to "Enter the contractor license number to check the status of their license." You can also search by business name or personnel name, or look up a Home Improvement Salesperson (HIS) registration (CSLB Hire a Contractor).

When is no license needed?

CSLB says no license is needed only when the job needs no building permit, uses no employee labor, and "the combined value of labor, materials, and all other costs on one or more contracts is less than $1,000," and the person does not advertise as a licensed contractor (CSLB). A larger project "may not be broken down to smaller amounts of less than $1,000."

CSLB's own tips

CSLB tells homeowners: "Hire only licensed contractors and ask to see the license," and "Get three bids, check references, and get a written contract." Its phone line is (800) 321-CSLB (2752) (CSLB).

Filing a complaint

CSLB takes complaints online (Filing a Complaint) and addresses violations "for up to four years from the date of the act." Notify the contractor in writing first. CSLB says its investigation is not meant to get you restitution, and points to small claims court or an attorney for money. Contract and down payment rules are in California home improvement contracts and down payments.

FAQ

Who licenses contractors in California? The Contractors State License Board (CSLB).

What license does a California plumber need? A plumbing contractor holds a C-36 classification. Electrical contractors hold C-10, and HVAC contractors hold C-20.

Can a handyman work without a license in California? Only on jobs under $1,000 in total labor and materials that need no building permit and use no employees, and only without advertising as licensed, according to CSLB.

Will CSLB get my money back? CSLB says the purpose of its investigation is not restitution. It points consumers to small claims court or an attorney.

Sources: CSLB classifications, CSLB Check a License, CSLB Hire a Contractor, CSLB before applying for a license, CSLB disaster information, CSLB Filing a Complaint.