10 Essential Questions for Your Los Angeles Contractor

Hiring a general contractor in Los Angeles isn’t just a transaction; it’s the beginning of a long-term partnership that will shape your home and your finances for years to come. In a city with complex regulations, high property values, and a vast range of contractors, making the right choice is critical. Hiring the wrong team can lead to disastrous consequences: blown budgets, endless delays, legal nightmares with the city, and substandard work that costs thousands to fix.

The difference between a seamless renovation and a costly failure often comes down to asking the right questions before you sign a contract. A reputable, professional contractor will not only have answers to these questions but will welcome them as an opportunity to demonstrate their expertise and transparency.

As one of Los Angeles’s premier general contractors, we at AGGCG believe an informed client is the best client. We’ve built our reputation on transparency and expertise, from complex ADU constructions to detailed SB 721 compliance inspections.

Use this guide as your vetting checklist. If a potential contractor balks, hesitates, or can’t provide clear answers, consider it a major red flag.

1. Are You Licensed, Bonded, and Insured in California?

This is the most important question. It’s a non-negotiable “yes or no” qualifier.

Why It’s Critical: In California, anyone performing contracting work valued at $500 or more (labor and materials) must be licensed by the Contractors State License Board (CSLB).

• License (CSLB): This proves they have met the state’s minimum requirements for experience and passed competency exams. An unlicensed contractor is working illegally.
• Bonded: A contractor’s bond provides a small amount of financial protection (typically $25,000 for a General B license) for homeowners if the contractor fails to complete the job, pay subcontractors, or breaks certain laws.
• Insurance (General Liability): This protects your property. If they damage your home (e.g., break a pipe that floods your living room), their liability insurance covers the repair.
• Insurance (Workers’ Compensation): This is legally required if they have any employees. It protects you from liability if one of their workers is injured on your property. If they don’t have it, you could be sued for medical bills.

The “Good” Answer: “Absolutely. Our CSLB license number is [Number]. We are fully bonded, carry $2 million in general liability insurance, and all our employees and subcontractors are covered by our workers’ compensation policy. We will provide you with a certificate of insurance (COI) listing you as an additional insured before we begin.”

Red Flags: “We don’t need a license for this job.” (Yes, they do.) “A license just adds cost; we can give you a better deal in cash.” (This means you have zero protection.) “My cousin’s company has the insurance.” (The insurance must be for the specific entity you are contracting with.)

Pro-Tip: Don’t just take their word for it. You can instantly check any contractor’s license status, bond, and workers’ comp information on the CSLB’s website.

2. Can I See Your Portfolio and Speak to Your Last Three Clients?

Past performance is the best predictor of future success.

Why It’s Critical: A portfolio shows you the quality of their work, but references tell you about the experience. You need to know if they completed projects on time, handled problems professionally, and were respectful of the client’s home.

The “Good” Answer: “Of course. You can see a wide range of our completed projects on our portfolio page. We’ve completed several kitchen remodels and bathroom renovations in areas just like yours, from Encino to Beverly Hills. I can also provide you with the contact information for our last three clients whose projects were similar in scope to yours.”

Red Flags: “My clients are very private; I can’t give out their information.” (While some clients desire privacy, a good contractor will have at least a few recent clients who are happy to sing their praises.) “You can just look at the pictures on my website.” (Pictures can be stock photos or hide poor craftsmanship. You must talk to real people.)

Pro-Tip: When you call references, ask specific questions:

• Did they finish on time and on budget?
• How did they handle unexpected problems (and there are always unexpected problems)?
• Was the communication clear and consistent?
• Would you hire them again?

3. Who will be our main audience and how will we communicate?

Clear, consistent communication is the lifeblood of a successful renovation.

Why It’s Critical: You need to know who is responsible for your project. Is it the owner you’re speaking with now? A dedicated project manager? A site foreman? Miscommunication is the #1 cause of frustration, leading to mistakes, delays, and stress.

The “Good” Answer: “You will be assigned a dedicated Project Manager who will be your single point of contact from demolition to final walkthrough. They will be on-site daily and available to you via phone, text, and email. We also use [Project Management Software, e.g., CoConstruct, Buildertrend] so you can track the schedule, see daily logs, approve selections, and view photos of the progress 24/7.”

Red Flags: “Just call the office, and someone will help you.” “I’ll be here most of the time, but all the guys know what they’re doing.” “We just talk when we need to.” (This is a recipe for disaster.)

4. How Do You Handle Project Timelines and Potential Delays?

“How long will this take?” is a simple question with a complex answer.

Why It’s Critical: A vague timeline is a sign of inexperience. A professional contractor should be able to provide a detailed project schedule with clear milestones (e.g., Week 1: Demo/Framing; Week 2: Rough-In Electrical/Plumbing; Week 3: Inspection; Week 4: Drywall). More importantly, you need to know how they handle delays, which are inevitable in LA due to permitting, supply chain issues, or discovering hidden problems (like mold or termite damage).

The “Good” Answer: “We will provide you with a detailed, week-by-week project schedule before we begin. This schedule has built-in buffers for common LA-specific delays, like LADBS (Los Angeles Department of Building and Safety) inspection scheduling. If an unexpected delay occurs, such as a back-ordered material, we will notify you immediately, explain the impact on the timeline, and present you with all available solutions to mitigate the delay.”

Red Flags: “Oh, this should take about 6-8 weeks.” (Without a detailed breakdown, this is just a guess.) “We’ll be done before you know it.” “Delays don’t happen with us.” (This is a lie.)

5. Who is Responsible for Pulling Permits and Managing Inspections?

In Los Angeles, “permit” is not a dirty word—it’s your protection.

Why It’s Critical: Working without required permits is illegal and dangerous. It can result in city-mandated stop-work orders, fines, having to tear out completed work, and major problems when you try to sell your home. A general contractor, not the homeowner, should be responsible for the entire permitting process, as their license is on the line. This includes navigating complex local codes, such as SB 721 balcony inspections for multi-family properties or Title 24 energy requirements.

The “Good” Answer: “We handle 100% of the permitting process. We have an in-house draftsman and long-standing relationships with architects and engineers. We will prepare and submit all plans to the appropriate city department (like LADBS or Santa Monica Building and Safety), manage all revisions, and schedule and attend every single required inspection, from foundation to final.”

Red Flags: “You can save a lot of money if we just do this without a permit.” (RUN.) “The city makes it too hard; we don’t bother with them.” “Can you pull the permit as an ‘owner-builder’?” (This is a huge red flag. It means they are likely unlicensed or uninsured and are trying to place all legal liability on you.)

6. Do You Use Subcontractors or In-House Employees?

You need to know exactly who will be working in your home.

Why It’s Critical: Most general contractors use a mix of both. An in-house team for key trades like carpentry or painting can mean more control over quality and scheduling. However, specialized subcontractors (like electricians, plumbers, and HVAC) are standard. The critical part is that the GC manages them and, most importantly, vets them.

The “Good” Answer: “We have a core team of in-house project managers, carpenters, and painters who handle the daily work. For specialized trades like plumbing and electrical, we use a small, dedicated group of licensed and insured subcontractors whom we have worked with for over 10 years. We manage them completely, and they are all covered under our liability and workers’ compensation insurance. You will never have to manage or pay a subcontractor directly.”

Red Flags: “We just hire guys as we need them.” (This implies they are using day laborers who are likely uninsured and unvetted.) “You’ll need to hire your own plumber and electrician.” (This means they are a “paper contractor,” not a real GC.)

7. What Is Your Process for Change Orders?

“Scope creep” is the #1 reason projects go over budget.

Why It’s Critical: A change order is any work that falls outside the original, agreed-upon contract. This can be initiated by you (e.g., “I’d like to add recessed lighting here”) or by the contractor (e.g., “We opened the wall and found significant rot that must be replaced”). A clear process for documenting and approving these changes in writing is essential to protect your budget.

The “Good” Answer: “No additional work will ever be performed without a formal, written change order. If you request a change or we discover a necessary one, we will immediately provide you with a document that clearly outlines the new scope of work, the exact cost for the change, and any impact it will have on the project timeline. Work only proceeds after you have reviewed and signed off on it.”

Red Flags: “We’re flexible; we can just add it to the final bill.” (This is how you get a final bill that is 50% higher than you expected.) “We’ll just handle it with a handshake.”

8. What Does Your Payment Schedule Look Like?

How and when you pay is just as important as how much you pay.

Why It’s Critical: In California, there are strict laws protecting homeowners. A contractor cannot legally ask for a down payment of more than 10% of the total contract price or $1,000, whichever is less. Anyone asking for 30% or 50% upfront is breaking the law and is a major flight risk. The payment schedule should be tied to completed project milestones, not arbitrary dates.

The “Good” Answer: “We follow all CSLB guidelines. The initial deposit is only $1,000 or 10%, whichever is less. After that, you will receive a detailed schedule of payments tied directly to verifiable project milestones. For example, a payment will be due after ‘Rough-In Inspections Passed,’ another after ‘Drywall and Paint Complete,’ and so on. The final 10-15% is not due until the project is 100% complete, all punch-list items are finished, and you are completely satisfied.”

Red Flags: “We need 50% upfront to buy materials.” (This is illegal and a sign they don’t have the financial stability or credit to run their business.) “Just pay me every Friday.” (This is “pay-as-you-go” and gives you no leverage if the work is slow or poor.)

9. What Kind of Warranty or Guarantee Do You Offer on Your Work?

The project isn’t over when the last truck leaves.

Why It’s Critical: A professional contractor stands behind their work. You need to know what happens if a cabinet door warps, a tile comes loose, or a paint job starts to peel six months after completion. This should be explicitly stated in your contract.

The “Good” Answer: “We offer a comprehensive [e.g., Two-Year] warranty on all of our craftsmanship, in addition to the manufacturers’ warranties on all materials we install. If anything related to our installation or workmanship fails within that period, we will come back and fix it, no questions asked. It’s all detailed in our contract.”

Red Flags: “Don’t worry, my work is so good you’ll never have a problem.” “The materials are all covered by the manufacturer.” (This is a deflection. The manufacturer doesn’t cover faulty installation.)

10. What Does Your Standard Contract Include?

The contract is your single most important legal protection.

Why It’s Critical: A vague, one-page “estimate” is not a contract. A legal contract should be many pages long and detail everything:

• The full names and license numbers of all parties.
• A highly detailed scope of work (e.g., “Install 300 sq ft of 3/4″ white oak hardwood flooring” not just “Install wood floors”).
• A list of all materials, brands, and model numbers.
• The total fixed price.
• The payment schedule.
• The project timeline.
• The change order process.
• The warranty information.
• Lien release procedures.
• A “Notice to Owner” as required by California law.

The “Good” Answer: “We use a comprehensive CSLB-compliant contract that details every aspect of your project. It will include a fully itemized scope of work, a ‘specification sheet’ listing all your selected materials, the payment schedule, timeline, our warranty, and all legally required notices. We will review it with you line-by-line and are happy to have your attorney review it as well. We believe a strong contract is the foundation of a great project.”

Red Flags: “Let’s just sign this estimate to get started.” “A contract just complicates things. My word is my bond.”

FAQ

Your Los Angeles Renovation Starts with Trust

Choosing a general contractor in Los Angeles is a decision with massive implications. By asking these ten questions, you move beyond the sales pitch and into the critical details of professionalism, accountability, and expertise.

At AGGCG, we aren’t just builders; we are your partners in a complex process. Our reputation is built on answering these questions with confidence and transparency before you sign. We are a full-service, licensed, and insured general contractor dedicated to delivering high-quality custom homes, ADUs, remodels, and compliance solutions across Los Angeles.

Are you ready to discuss your project with a team that values transparency as much as you do?

Contact AGGCG today to schedule your no-obligation, comprehensive project consultation. Let’s build your vision the right way.