7 Questions to Ask Before Hiring a General Contractor in the Bay Area

Hiring the wrong contractor is the biggest risk in any construction project. Before you sign anything, here are seven questions worth asking every builder you talk to. For each one we explain what a good answer sounds like, what should worry you, and how we answer it ourselves.

California law on home improvement contracts changes, so confirm current rules with the state’s Contractors State License Board (CSLB).

1. Is your license active, and what insurance do you carry?

Why it matters: An unlicensed or uninsured contractor puts your money and your home at risk.

A good answer: A license number you can verify yourself at the CSLB website, plus proof of general liability and workers’ compensation insurance.

What to know: Contractors in California must carry a license bond, which is currently $25,000. That amount covers all of a contractor’s jobs together, not each one, so on a large Bay Area project “bonded” gives you very little protection. Insurance certificates tell you much more.

Red flag: Hesitation to share a license number, or “insured” with no certificate to show.

How we answer: Our license number is on every contract, and you can verify it at CSLB. We carry general liability and workers’ compensation insurance and provide certificates on request.

2. Who will I deal with day to day?

Why it matters: Some companies sell the job with an experienced principal and then hand it to a rotating cast of people you’ve never met.

A good answer: One named person who owns the relationship from start to finish.

Red flag: A vague answer, or a different contact for every question.

How we answer: You work with Pritesh day to day.

3. How do you plan around permits and inspections?

Why it matters: On a major project, permitting takes 6 to 12 months and construction depends on at least 15 city inspections, each of which can take 3 days to 3 weeks to schedule. Much of the construction schedule is spent waiting on the city. See our guide to how long a remodel takes.

A good answer: Specific tactics, such as scheduling inspections in advance and keeping other work moving while one is pending.

Red flag: A confident promised end date with no explanation of how it accounts for permits and inspections.

How we answer: We prepare and submit the permit package, schedule inspections in advance, even before the work is finished, and run trades in parallel, such as electrical, plumbing, and HVAC together, or roofing and exterior finishes together. You also get a detailed project timeline with the dates materials and decisions are due.

4. How is the contract priced, and what’s included?

Why it matters: Two bids that look different may cover different work.

A good answer: A written scope, a clear price, and a clear list of allowances and exclusions.

Red flag: A low price with a vague scope, or “we’ll figure it out as we go.”

How we answer: Our initial contract is fixed price. For finishes, we can estimate with allowances at a standard, high, or luxury level, or you can buy materials yourself from suppliers you choose. We recommend suppliers we trust. See how a construction budget works.

5. How do you handle changes and the unexpected?

Why it matters: Change orders are inevitable. What matters is the process, and whether the builder is honest about setting aside money for surprises.

A good answer: Changes in writing, priced before the work is done, with the schedule effect stated, and a recommendation to keep a cushion.

Red flag: A builder who says you won’t need any extra budget.

How we answer: Every change order is in writing. Cost and time depend on the size of the change and how far along the project is. We recommend setting aside 10 to 15 percent above the contract price and not using it in the first half of the project. Our decision calendar shows when decisions need to be made to avoid costly changes.

6. What is your payment schedule?

Why it matters: Payments are where homeowners are most exposed.

A good answer: Payments tied to completed work, and lien releases as you pay.

What to know: According to CSLB guidance, a down payment on a home improvement contract generally can’t exceed 10 percent of the price or $1,000, whichever is less, and payments can’t exceed the value of the work performed. A written contract should state the work, the price, the payment schedule, who pulls the permits, and start and end dates, and you generally have three business days to cancel a contract signed at your home.

Red flag: A large deposit, or payments that run ahead of the work.

How we answer: Our payment terms are milestone-based, and we provide lien releases as we are paid.

7. How will I stay informed?

Why it matters: Communication is often the difference between a smooth project and a stressful one.

A good answer: A regular, specific update you can count on, in a format you choose.

Red flag: “We’ll call you if there’s a problem.”

How we answer: You get a weekly update in whatever form you prefer: an in-depth status report with photos, an in-person walkthrough, or both.

Bonus: ask to see the work

Ask to visit a recent project or speak to past clients. A confident builder will make this easy.

How we answer: Clients can visit a project and speak with past clients.

If you’re evaluating contractors for a remodel, addition, or new home in the Bay Area, we’re happy to answer all seven of these directly. Get in touch.