Before you hire a licensed contractor in California for a mid-century remodel, it helps to know what state law already does for you. The Contractors State License Board (CSLB) licenses contractors, the Business and Professions Code sets what a home improvement contract must say, and the same code caps the down payment. A few minutes with those rules can save a project.
This guide covers the license check, matching the license to the work on a post-and-beam or Eichler-era house, the $1,000 minor-work limit, contract and payment rules, and the owner-builder permit. It's based on CSLB pages, the 2026 edition of CSLB's law book and the code sections themselves, read in November 2026.
Check the license before you sign
CSLB's brochure on hiring a contractor says anyone who contracts for or bids on a project valued at $1,000 or more in combined labor and materials must be licensed, and that any project needing a permit or workers requires a licensed contractor. Contractors must put their license number in their advertisements, but CSLB warns that seeing a number doesn't mean the license is valid.
Look it up. CSLB's Check A License page searches by license number, business name or personnel name. It also checks Home Improvement Salesperson registrations, which CSLB says salespeople must hold.
Confirm it's current and fits the job. CSLB says the check can confirm the license is current, active and unrestricted, and that the contractor is licensed for the specific type of work. Ask to see the pocket license and a photo ID.
Bond. CSLB says licensed contractors must carry a $25,000 contractor license bond.
Workers' compensation. Contractors with employees must carry it. CSLB says C-8 Concrete, C-20 Warm-Air Heating, Ventilating and Air-Conditioning, C-22 Asbestos Abatement, C-39 Roofing and D-49 Tree Service contractors must have a policy whether or not they have employees.
The stakes are real. Under Business and Professions Code 7031, an unlicensed contractor generally can't sue to collect for work that needs a license, and a person who used an unlicensed contractor may sue to recover all compensation paid. The CSLB notice required in every home improvement contract adds that if you use an unlicensed contractor, CSLB may not be able to help resolve a complaint, and you may be liable for injuries to that contractor or its employees.
Match the license to the work
CSLB issues general and specialty licenses, and a mid-century remodel often touches several trades at once.
B, General Building. Under section 7057, a B contractor can take a prime contract for work beyond framing or carpentry only if it involves at least two unrelated trades other than framing or carpentry, or if it holds the right specialty license or subcontracts that trade. CSLB's example is a kitchen remodel with plumbing, electrical and carpentry.
B-2, Residential Remodeling. Section 7057.5 covers improvements to an existing residential wood-frame structure using at least three unrelated trades in one contract. A B-2 contractor can't contract to make structural changes to load-bearing parts of the house, including footings, foundations, load-bearing walls and roof structures, so on a post-and-beam house, ask early whether moving any post or beam counts as structural work. It also can't install, replace or substantially alter electrical, mechanical or plumbing systems, or contract for C-22 Asbestos Abatement work, without the right license or a licensed subcontractor.
Specialty work. CSLB says specialty contractors are usually hired for a single job, such as roofing or plumbing. Its classifications include C-10 Electrical, C-36 Plumbing, C-39 Roofing and C-46 Solar.
Older houses add two more checks before demolition starts: asbestos, covered in our asbestos survey guide, and lead in older painted surfaces, covered in our lead paint guide.
The $1,000 minor-work limit
The $1,000 figure took effect January 1, 2025, under AB 2622; before that it was $500. As of November 2026, Business and Professions Code 7048 exempts work from the license law only when all of these are true:
The aggregate price for labor, materials and all other items on the project is less than $1,000.
The work is casual, minor or inconsequential.
It doesn't require a building permit.
It isn't part of a larger operation, and the job hasn't been split into smaller contracts to stay under the limit.
The person doesn't employ anyone to do or help with the work, and doesn't advertise in a way that suggests they're a contractor.
CSLB's December 2024 bulletin on the change put it simply: if the work needs a permit of any kind, or the unlicensed person hires help, a license is required even under $1,000. Under section 7027.2, an unlicensed person may advertise only for jobs under $1,000, and only if the ad says they aren't licensed.
What the home improvement contract must include
CSLB says a written contract is required for all home improvement projects over $500, a lower figure than the $1,000 license threshold. Under section 7159, as of November 2026, the contract and any change must be in writing and signed before the covered work starts, and you must get a signed, dated copy before any work begins. Look for:
The contractor's name, business address and license number, plus the salesperson's name and registration number if one sold the job.
A "Contract Price" heading with the amount in dollars and cents.
A description of the project and the significant materials and equipment. On a mid-century house, name the specific window, door, roofing or panel products.
Approximate start and completion dates, and what counts as substantial commencement of work.
If any payments are due before completion, a schedule of progress payments tied to specific phases of work.
A statement on whether subcontractors will be used. If so, the contractor must provide a list with license numbers and classifications on request.
Notices on commercial general liability insurance, workers' compensation, a Mechanics Lien Warning, CSLB contact information, and your right to require a performance and payment bond.
A Three-Day Right to Cancel notice, or a Five-Day notice for a senior citizen, which CSLB describes as 65 or older, unless the contract was negotiated at the contractor's place of business or another listed exception applies.
Extra work becomes part of the contract only through a written change order signed by both parties before that work starts. It must state the scope, the cost added or subtracted, and the effect on the payment schedule.
Down payments, progress payments and liens
Section 7159.5 sets the money rules, as of November 2026:
Down payment: no more than $1,000 or 10 percent of the contract amount, whichever is less. CSLB says there are no exceptions for special-order materials; the exemption is for a contractor with an approved blanket performance and payment bond or similar security, noted on its license detail page.
Progress payments: apart from the down payment, a contractor can't request or accept payment that exceeds the value of the work performed or material delivered.
Lien releases: after you pay, the contractor must provide an unconditional lien release for that portion if you ask, and you may withhold further payments until you get it.
The Mechanics Lien Warning explains why releases matter. Unpaid subcontractors and suppliers can record a lien even if you paid the contractor in full, and their Preliminary Notice can be sent up to 20 days after they start work or deliver material. The warning suggests getting a list of subcontractors and suppliers and paying with joint checks. CSLB's tips add: avoid paying in cash, keep a job file of every paper and payment, and hold the final payment until you're satisfied.
Thinking about an owner-builder permit?
Section 7044 lets an owner skip a license in three main cases: doing the work personally or with employees paid only wages, with nothing intended or offered for sale; contracting directly with licensed contractors for each trade, with a limit on houses intended or offered for sale; or improving a principal residence before selling it, after living there for the 12 months before the work is completed, subject to limits on repeat use. In an action under the license law, a sale or offer for sale within one year after completion creates a rebuttable presumption that the work was done for sale.
CSLB warns owners to be wary of unlicensed "consultants" who suggest the arrangement. Its owner-builder pages add that you assume full responsibility for all phases of the project, and that if you use anyone other than a licensed subcontractor, you may be considered an employer, with duties such as registering with the state and federal governments, withholding payroll taxes, carrying workers' compensation insurance and paying unemployment insurance contributions. Daly City's owner-builder form, one city's example of what you may be asked to initial, adds that your homeowner's insurance may not cover injured workers, and that if you sell, you may be liable to later owners for latent construction defects. Our permit history guide explains how a buyer will later read the permit you pull.
This is general information as of November 2026, not legal advice. For a specific contract or dispute, check with CSLB, your city's building department or an attorney.
Frequently asked questions
Can a handyman do small repairs without a license?
Only if the whole job is under $1,000 for labor and materials, needs no building permit, and the person works alone. A job split into smaller pieces doesn't qualify.
How much can a contractor ask for up front?
No more than $1,000 or 10 percent of the contract price, whichever is less, unless the contractor has an approved blanket bond. After that, payments can't get ahead of the work done or materials delivered.
Can I cancel a home improvement contract?
Usually, within three business days of receiving a signed copy, or five business days for a buyer 65 or older. CSLB notes that signing a service and repair contract, typically for emergency work you requested, waives that right.
Related reading
Post and Beam Repair: Inspecting and Refinishing Exposed Beams
Renovation Loan for an Older Home: Options for Mid-Century Houses
Mechanics Lien in California: A Homeowner's Guide to a Remodel
Sidewalk Repair Responsibility in California: Who Fixes What
More guides on this topic: Owning & Renovating a Mid-Century Modern Home
Planning a remodel on a mid-century home you own or are buying? Call or text the Boyenga Team at Compass at (408) 373-1660 or (650) 383-8606, or contact the Boyenga Team to talk through the project before you sign a contract.
