The Contractors State License Board (CSLB) recommends several steps homeowners should take before beginning an accessory dwelling unit (ADU) project to avoid scams and costly mistakes. The guidance emphasizes hiring licensed contractors, verifying credentials, getting multiple bids, and using detailed written contracts.

CSLB guidance says licensed contractors typically undergo background checks and carry insurance, and homeowners should confirm a contractor’s license number is active and in good standing before hiring. "Licensed contractors undergo a background check, carry insurance, and have experience in their trade," the presenter said. The guidance points listeners to CSLB’s online resources — including its Find a Licensed Contractor and Check a License tools — for verification and license status checks.

Homeowners are advised to obtain at least three bids and compare what each estimate includes instead of automatically choosing the lowest price. "Make sure to get at least 3 bids," the presenter said. The guidance warns that bids that appear unusually low "usually are" too good to be true.

On payment terms, CSLB guidance sets a clear consumer-protection limit: "Do not pay more than a thousand dollars for a down payment," the presenter said. It adds that additional payments should be tied to work completed or supplies delivered and that a detailed payment schedule helps homeowners track progress and payments.

The guidance also stresses written contracts and permit checks. Homeowners should get a contract that spells out scope, timeline, payment schedule, and how change orders or disputes will be handled and should not sign until they fully understand it. The presenter urged homeowners to contact their local building or planning department to determine which permits and zoning requirements apply, noting that "every city has different rules when it comes to ADUs."

Practical tips include asking previous clients about how a contractor handled changes and delays; visiting past job sites where possible; and paying an architect directly or confirming an architect has been paid before paying a contractor for building plans. "Avoid paying the contractor for building plans until you've confirmed that the architect has been paid first," the presenter said.

The guidance closes with a consumer-protection reminder: avoid high-pressure tactics and take time to ask questions. "High pressure tactics are a huge red flag," the presenter said. For more information, CSLB’s ADU Fast Facts publication is available at cslb.ca.gov/adufastfacts.

The guidance is advisory and aimed at reducing consumer risk; it does not prescribe local permit timelines or replace city or county zoning requirements. Homeowners should consult their local building or planning department for project-specific permit details.