Who needs a license
A kitchen or bathroom remodel almost always needs a licensed contractor in California. Assembly Bill 2622, effective January 1, 2025, raised the “minor work” line from $500 to $1,000: an unlicensed person may do a job under $1,000 total only if it needs no building permit and they employ no workers. Remodels need permits, so the exception almost never applies.
| Job | License needed? |
|---|---|
| Total price $1,000 or more (labor, materials, everything) | Yes |
| Under $1,000 but needs a building permit | Yes |
| Under $1,000 but the person employs workers | Yes |
| Under $1,000, no permit, no workers | No; the person's ads must say they're not licensed |
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CSLB press release on AB 2622, December 30, 2024. Penalties for unlicensed contracting include administrative fines up to $15,000.
Checking a license
- Look up the license number at cslb.ca.gov or by phone at 800-321-2752
- Confirm it's active and the name matches the company on the bid
- Check the classification fits the job; a general building contractor (B) is common for remodels that span trades
- Ask for proof of workers' compensation if the contractor has employees, and of liability insurance
- Ask who will be on site and who pulls the permit
What the contract has to say
The CSLB says a written contract is required for home improvement projects over $500. It has to be legible, easy to understand and tell you about your right to cancel, and it should include:
- The contractor's name, business address and license number
- A detailed description of the work, products and materials
- A written payment schedule and the completion date
- Written direction on who gets the necessary permits
Deposits and payments
The down payment on a California home improvement contract can't exceed $1,000 or 10 percent of the contract price, whichever is less. On a $40,000 kitchen, that's $1,000. After that, progress payments can't exceed the value of the work performed, apart from the down payment.
| Contract price | 10% | Maximum down payment |
|---|---|---|
| $8,000 | $800 | $800 |
| $15,000 | $1,500 | $1,000 |
| $40,000 | $4,000 | $1,000 |
| $90,000 | $9,000 | $1,000 |
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Comparing bids
Same scope, line by line
Two bids are only comparable if they price the same work. Ask each bidder to list the same items: demolition, plumbing, electrical, the fan or hood, waterproofing, tile, cabinets, counters, fixtures, permit fees and the cleanup. The bathroom and kitchen cost pages list those line items with published Pasadena prices.
Permits named in writing
A low bid that leaves out the permit isn't cheaper. The Pasadena remodel permit guide shows which jobs need one.
After a disaster
In a declared disaster area, as the Eaton Fire area was in 2025, the CSLB is blunt: it is a felony to contract without a license there. Its advice is to see the license, get three bids, check references, take your time, use a written contract, avoid paying in cash and keep payments behind the work. See the smoke-damaged kitchen and bath rebuild page.