How to hire an electrical contractor in California

Start with the license, not the price

Every contractor ad, bid and contract in California must show the contractor’s license number. Seeing a number does not mean it is valid, so look it up. CSLB, the state licensing board, runs a free lookup by license number or business name. The record shows the status, the class, the bond, workers’ compensation and any discipline.

For electrical work the class is C-10 Electrical. CSLB describes it as placing, installing, erecting or connecting electrical wires, fixtures, appliances, raceways and conduits. When the contractor visits, ask to see the pocket license and a photo ID. Make sure the person at your door is the person on the license. Salespeople must also be registered with CSLB.

The license check guide walks through the lookup screen by screen.

Bond and insurance

Licensed contractors must hold a contractor license bond of $25,000. CSLB says that bond is often not enough if a project is worth more than the bond or if there are several complaints against it, so treat it as a minimum, not a safety net.

Workers’ compensation is required when a contractor has employees. CSLB warns that if a worker is hurt on your property and the contractor has no coverage, you could be on the hook for the injury costs. The license record shows the workers’ comp status. A contractor with no employees can be exempt, and the contract has to say which case applies.

Commercial general liability insurance is not required by CSLB. It covers damage to your property. If a contractor does not carry it, ask how a loss would be paid.

Get three written bids

CSLB advises at least three written bids built on the same plans, specifications and scope. Do not take the lowest by default. A bid far below the others may leave out work the others priced.

Give each bidder the same facts: the panel size, photos, the circuits you want and the access to the work area. The quote checklist lists the twelve lines to compare, and the visit prep guide shows what to gather first.

What the contract must say

For home improvement work over $500, Business and Professions Code 7159 requires a signed written contract before work starts. It must include:

• The contractor’s name, business address and license number
• The contract price in dollars and cents
• A description of the project and the significant materials and equipment
• An approximate start date and an approximate completion date
• A schedule of progress payments, if you pay before the job ends
• A note on extra work: change orders must be written and signed before the extra work begins
• Notices about workers’ compensation, general liability insurance and mechanics liens
• A three-day right to cancel notice in most cases, unless the contract was negotiated at the contractor’s place of business

You are entitled to a completely filled in, signed copy before any work starts. A verbal promise that is not on paper is hard to enforce. CSLB’s consumer guide says to get anything promised written into the contract.

Down payment and progress payments

The down payment cannot top $1,000 or 10 percent of the contract price, whichever is less. That cap sits in Business and Professions Code 7159.5(a)(3), and the contract has to print it. There is a narrow exception for contractors with a blanket performance and payment bond on file with CSLB, which CSLB says only about two dozen licensees hold.

After the down payment, a contractor may not ask for or accept more than the value of the work done or materials delivered. Each progress payment should be listed in dollars and tied to a phase of work. Be wary of a request for cash, or for a large sum before work starts.

Liens and lien releases

Subcontractors and suppliers who are not paid can record a mechanics lien on your home, even if you paid your contractor in full. The contract carries a lien warning for this reason. Under 7159.5, after any payment you can ask the contractor for a full and unconditional lien release for the work paid for, and you may hold back further payments until you get it. CSLB suggests having subcontractors sign releases when their part of the job is done.

Permit and inspection

Most panel, circuit and charger work needs a city permit, and the city inspects it. CSLB says skipping a permit can lead to fines and even removal of work that does not meet code. Ask who pulls the permit and whether the fee is in the price. Read the permit guide for how it works in SoCal cities.

When the contractor pulls the permit, the city asks for a signed statement of the license number. If you pull it yourself as an owner-builder, you sign a statement of the exemption instead. A false statement carries a civil penalty of up to $500 under Business and Professions Code 7031.5.

Owner-builder risks

An owner can do work on their own property without a license, but only under limits in Business and Professions Code 7044. The work cannot be meant for sale. You must do it yourself, or use employees paid only in wages, or hire licensed trade contractors directly. Hiring an unlicensed person to do the work for you does not fit the exemption. Think hard before you take on a panel job. Live service equipment is the part of the house that harms people most.

Red flags

• No license number on the bid, truck or contract
• A license that is expired, suspended, or in another trade class
• A bid far below the rest, with a short scope
• Pressure to sign today
• A big down payment, or a request for cash
• No written contract, or a contract with blanks
• A request that you pull the permit under your name
• No answer about who handles the inspection

Unlicensed contracting is a misdemeanor for the unlicensed person, with a first-offense fine up to $5,000 and up to six months in county jail. For you, the practical risk is the missing paper trail: no license to check, no bond to claim on, and a harder path to a permit sign-off.

If a problem starts

Keep the contract, change orders, receipts and photos together. Complaints about licensed contractors go to CSLB. For help choosing a licensed electrician and starting a quote, see the residential electrician page and the how prices are shown page.