The clearest signs of a bad contractor are no license or insurance, a bid far below the others, a demand for a large payment upfront, no written contract or a vague one, and pressure to decide quickly. Once work has started, the signs change: crews that stop showing up, defective work they will not correct, and calls from subcontractors who have not been paid. Here is the full list, split into what you can catch before you sign and what shows up after.
At GreatBuildz, a free service that connects homeowners in California with reliable general contractors, we speak with homeowners every day who are either trying to avoid a bad contractor or already stuck with one. The signs below come from those conversations.
Key Takeaways
- Most bad contractors are identifiable before you sign. License, insurance, the bid, the contract, and how they communicate during bidding tell you nearly everything.
- The lowest bid is the most expensive warning sign. A bid far below the others usually means something was left out, and it comes back as change orders.
- In California a contractor cannot legally ask for more than $1,000 or 10% of the contract price upfront, whichever is less. A larger demand is both a red flag and a violation.
- After work starts, the signs are different. Missed days, defective work they will not correct, and unpaid subcontractors are the ones that matter.
- Unpaid subcontractors are the most urgent sign of all. They can place a claim against your property even if you paid your contractor in full.
Signs of a Bad Contractor Before You Hire
These are the ones worth the most, because catching them costs you nothing but a conversation.
No license, or a license that does not check out. Look them up on the CSLB license check tool before anything else. Confirm the license is active, in the right classification for your work, and in the name of the business you are actually hiring. Here is why we tell homeowners to never hire an unlicensed contractor.
No general liability insurance, or no workers’ compensation. Ask for certificates, not assurances. If a worker is injured on your property and the contractor has no workers’ compensation, that can become your problem.
A bid far below the others. The most reliable single predictor of a difficult project. A bid 30% under the rest usually means the scope was thinned, the allowances are fantasy, or the plan is to make the margin back through change orders. Our guide on why contractor estimates vary so much explains what a legitimate spread looks like.
A demand for a large payment upfront. California law caps the down payment on a home improvement contract at $1,000 or 10% of the contract price, whichever is less, under Business and Professions Code section 7159.5. A contractor asking for 30% or half upfront is either unaware of the law or counting on you being unaware of it.
No written contract, or a vague one. A one-page quote with a total and a start date is not a contract. It should describe the scope in detail, list a payment schedule in dollars and cents tied to specific work, and cover change orders. Our construction contract guide covers what belongs in one.
Pressure to sign now. Discounts that expire today, a crew that is “available this week only,” a price that goes up if you think about it. Good contractors are booked and do not need to close you on the spot.
They are hard to reach before you have even hired them. If it takes a week to get a callback or an estimate during the stage where they are trying to win your business, that is the best version of their communication you will ever see.
Vague answers about their own history. Ask how long the company has operated and how long they have held the license. Some contractors restart under new business names to leave bad history behind. If the two numbers do not match, ask why.
No references, or references you cannot reach. Call at least three, and ask specifically whether the job finished near the original budget and schedule, and how fast the contractor returned calls.
Cash only, or a discount for paying cash. Sometimes it is tax avoidance. Sometimes it means there is no real business behind the truck. Either way you lose your paper trail.
They will not put change-order pricing in writing upfront. Ask how extras get priced and approved before you sign. A contractor unwilling to commit to a method is telling you something.
Something feels off. This is not a throwaway. Homeowners who end up in disputes often say they had a bad feeling at the bid stage and talked themselves out of it.
Signs of a Bad Contractor After Work Has Started
Different list. By this point you are looking at behaviour rather than paperwork.
Crews stop showing up. Missed days with excuses, then missed weeks. Some delay is normal on any remodel, but there is a line. Part 2 on contractor delays covers where it sits and what to do.
They go quiet. Unanswered calls and texts, no schedule, no updates. Part 5 covers the escalation ladder for an unresponsive contractor.
The work is defective and they will not correct it. Especially when they promise to fix something and then move on to the next phase instead of going back. Once bad work is covered by the next layer, correcting it means tearing out both. Part 3 on poor workmanship covers how to raise it.
Extras keep appearing. A steady drip of change orders that were never mentioned in the bid, or charges for work that was clearly in the original scope. Part 4 on overcharging covers how to test whether a change order is fair.
They ask for money ahead of the work. After the deposit, no payment should exceed the value of work already performed or materials already delivered. A contractor asking to be paid ahead of progress is usually covering a shortfall somewhere else.
Subcontractors or suppliers contact you about money. The most urgent sign on this list. It means your payments went somewhere other than the people doing the work, and those parties can record a mechanics lien against your property even though you paid your general contractor in full.
Work is happening without permits. Unpermitted structural, electrical, plumbing, or mechanical work becomes your problem when you sell, refinance, or file an insurance claim.
They get defensive when you raise a concern. How a contractor responds the first time you question something predicts the rest of the project accurately.
Why It Is So Hard To Tell
There is an imbalance built into this relationship that most homeowners do not think about before they are in it. The contractor knows a great deal about construction and you probably know very little. That gap makes it genuinely difficult to judge whether the work is good, whether a price is fair, or whether a problem behind the wall is real.
The gap is closable, and it does not take much. A home inspector, a retired contractor, or an independent project manager will look at the work and give you an unbiased opinion for a few hundred dollars, often with a short written report. If you ever reach the point of feeling you are being told a story, that is money well spent.
This is also most of the reason we built GreatBuildz the way we did. Every contractor passes a 10-point vetting process before they enter the network, and we stay involved through the project instead of handing you a list and disappearing. Here is what the vetting covers.
What To Do If You Already Hired a Bad Contractor
Work down in this order rather than jumping to the end.
- Have one direct conversation. In person, specific, calm, firm. How they respond tells you most of what you need.
- Get an unbiased opinion in writing. A home inspector or retired contractor turns “I think this is bad” into evidence.
- Send a warning letter. Part 3 has templates for quality problems, Part 2 for schedule problems, Part 4 for money.
- If nothing changes, consider terminating. Part 6 on firing your contractor covers the notice to cure, the termination steps, lien releases, permits, and what you actually owe.
One thing worth being honest about at this stage. If your priority is getting the contractor out and a replacement started quickly, paying somewhat more than you think is fair can be the right call, and it is not losing. If your priority is not paying for work you did not get, that is equally legitimate, and it commits you to a license board complaint and a process measured in months. Both are defensible. The mistake is not choosing.
Frequently Asked Questions
What are the warning signs of a bad contractor?
Before you hire, the clearest signs are no license or insurance, a bid far below the others, a demand for a large payment upfront, no written contract or a vague one, poor communication during bidding, and pressure to sign quickly. After work starts, watch for crews that stop showing up, defective work they will not correct, extras that were never mentioned in the bid, and calls from subcontractors who have not been paid.
How much should a contractor ask for upfront?
In California a contractor’s down payment is limited to $1,000 or 10% of the contract price, whichever is less. Every payment after that cannot exceed the value of work already performed or materials already delivered, and the contract must include a payment schedule in dollars and cents. A contractor demanding a large deposit or full payment upfront is a serious warning sign.
How do I check whether a contractor is legitimate?
Look up the license on the Contractors State License Board website and confirm it is active, in the right classification, and in the name of the business you are hiring. Ask for certificates of general liability insurance and workers’ compensation. Call at least three recent references and ask whether the job finished near budget and on schedule. Then get everything in a detailed written contract.
Is the lowest bid always a bad sign?
Not always, but a bid far below the others is the most reliable warning sign there is. It usually means the scope was thinned, allowances were set unrealistically low, or the contractor intends to recover the margin through change orders once you are committed. Ask any unusually low bidder to walk you through what is included line by line.
What should I do if I already hired a bad contractor?
Start with a direct conversation, then get an unbiased written opinion from a home inspector or retired contractor, then send a warning letter. If none of that works, review your contract’s termination clause and consider firing them. Whatever you do, keep everything in writing, because that record is what a license board complaint or a claim will rest on.
Can subcontractors put a lien on my house if I paid my contractor?
Yes. If your general contractor collected your money and did not pay the subcontractors or suppliers, those parties can record a mechanics lien against your property even though you paid in full. This is why calls from unpaid subs are the most urgent warning sign on the list. Protect yourself by getting signed unconditional waivers and releases of lien rights from everyone who worked on the job.
The Full Bad Contractor Series
- Part 1 – Signs of a Bad Contractor (this guide)
- Part 2 – Dealing With Contractor Delays
- Part 3 – Contractor’s Poor Workmanship: How to Deal With It
- Part 4 – How to Deal With Contractors Overcharging You
- Part 5 – What To Do When Your Contractor Stops Responding
- Part 6 – So, You Want To Fire Your Remodeling Contractor
When it comes to finding a reputable contractor for your project, GreatBuildz is simplifying the contractor search in California. GreatBuildz is a free service that connects homeowners with reliable, thoroughly screened general contractors and provides project support from start to finish. Call now (818.317.3567) to chat with a real person about your next renovation project or visit our website for more information: www.greatbuildz.com
