Red Flags When Hiring a General Contractor in California

A builder’s honest guide for hiring a general contractor.

By a licensed general contractor with roots in commercial construction and a passion for building homes people actually love living in.


I grew up watching my dad work in the trades. Before I could drive, I was helping with home renovations, learning the basics the same way I learned to build with Legos — by doing it, breaking it, and doing it better the next time. That childhood love for turning ideas into something real never left me.

After spending years working for McCarthy Building Companies — one of the largest private commercial building firms in the country — I learned construction from the inside out. Architectural drafts, engineering, permitting, scheduling, estimating, construction management, site work, framing, MEPs, quality control, inspections. I’ve done it all.

After a while I decided to walk away from building for corporations to build for real people. Watching someone’s vision come to life and actually use and love the home they live in? Now that’s what building is supposed to feel like, purpose built for genuine people not board rooms.

Which is also why I’ve had enough clients come to me after a bad contractor experience to write this blog post. Here’s what to watch for.


1. They Can’t Show You Their Work

This one sounds obvious, but you’d be surprised how many people skip it.

Any contractor worth hiring should be able to show you a portfolio of completed projects — not stock photos, not AI-generated renders, but real work they’ve done for real clients. Ask for it upfront. If they hesitate, change the subject, or show you vague “inspiration” imagery, that’s your first red flag.

And don’t just look at photos. Call their past clients directly. Ask: Did they finish on time? Did the final number match the estimate? Would you hire them again? A confident, reputable contractor will hand you that list without blinking.

One important note: in today’s world, a big online presence doesn’t mean a great builder. AI and marketing can make any company look polished and successful. Some of the best craftsmen I know have minimal websites and zero social media. Don’t let a flashy Instagram account substitute for a real conversation with someone whose bathroom they actually tiled.


2. They’re Licensed — But That’s It

In California and most states, getting a contractor’s license is the floor, not the ceiling. It’s the bare minimum required to legally do the work. What it doesn’t tell you is whether someone actually knows what they’re doing.

Ask about their experience specifically with your type of project. Ask what complications typically arise and how they handle them. A knowledgeable contractor will answer those questions easily — and honestly. An under-experienced one will give you vague reassurances.

Speaking of which…


3. Everything Sounds Too Good to Be True

If a contractor is promising you a quick turnaround, an unusually low price, and zero complications — run.

Construction is complicated. There are always variables: permit timelines, material availability, what’s hiding behind your walls. Any builder who doesn’t bring this up isn’t experienced enough, or they’re telling you what you want to hear to close the deal. Neither is someone you want managing a project that might be the biggest investment you make outside of buying your home in the first place.

A trustworthy contractor gives you the full picture — best case, worst case, and everything in between — so you can make an informed decision. Transparency isn’t a sales tactic. It’s a professional obligation.


4. They Want a Large Deposit Before Anything Begins

Deposits are legitimate. Contractors work behind the scenes before a single nail is driven — mobilization, scheduling, material ordering, renders, management planning. It’s reasonable to hold a date with a deposit.

What’s not reasonable is handing over 30%, 40%, or 50% of a multi-month project budget before a single thing happens on site.

In California, the law is clear: a contractor cannot legally request more than 10% of the total project cost or $1,000 — whichever is less — as an initial deposit. If someone asks for more than that before work begins, they’re either uninformed about the law or counting on you to be.

For larger projects, payments should be tied to progress markers: demo completion, framing, MEP rough-in, insulation, drywall, inspections, and so on. This protects you and keeps the contractor motivated to move forward. If someone can’t articulate a payment schedule tied to milestones, that’s a serious red flag.


5. You Get a Verbal Agreement, a Handshake, and a Start Date

These are big transactions. They need to be documented like it.

A proper contract should include a detailed scope of work, material specifications, a payment schedule tied to milestones, a change order process, and a clear explanation of both parties’ rights. If a contractor is pushing you to move fast without a fully reviewed and signed agreement, slow down.

Change orders deserve special attention. Projects evolve — clients change their minds, materials become unavailable, unforeseen conditions arise. None of that has to become a disaster if there’s a process for it. A well-run contractor logs every decision, gets sign-off on changes, and keeps the project together because they’re tracking everything in writing, not despite it.


6. They Ask Fewer Questions Than You Do

This is my personal non-negotiable — and most homeowners don’t think about it until it’s too late.

When I meet a potential client, I ask a lot of questions. What do you use this space for now? What’s not working about it? What would you like it to be? What’s most important — timeline, budget, or outcome? What are you most worried about?

A contractor who shows up, takes a quick measurement, and hands you a number hasn’t done their job yet. They don’t know enough about your project to price it accurately, let alone build it the way you’re imagining.

The flip side is also true. Some clients don’t know exactly what they want — and that’s okay. A good contractor reads the room. Instead of overwhelming you with options, they ask questions designed to uncover the problem you’re trying to solve, then help you find the solution. That’s scope creep prevention. That’s a builder who’s paying attention.


The Bigger Picture

I’ve noticed a pattern in clients who come to me after a bad experience: they chose based on price, or speed, or how professional someone’s website looked.

The builders who prioritize quantity over quality will always be able to underbid the ones who don’t. They move faster because they’re not sweating the details. They look bigger because they have a marketing budget.

If you want a home built with attention, with craft, with someone who treats your project like it’s their own house — you want a smaller build firm owned by an actual builder, not a boardroom.

Ask who will physically be on your job site. Ask if the person you’re talking to will be the person making decisions during construction. Ask what happens when something goes wrong.

Those questions tell you everything.


Have questions about your next project or want to talk through what you’re planning?

Don’t hesitate to contact us!

Alejandro Ruiz
Licensed General Contractor & Founder, Ruiz Builders Inc.
CSLB Licensed | BBB Accredited | San Fernando Valley, CA

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