Red Flags When Hiring a San Diego General Contractor

Verify Contractor Licenses and Credentials

One of the first things to check for any general contractor you’re considering for your San Diego home project is proper licensure.

California requires all general contractors to hold a valid contractors license issued by the Contractors State License Board (CSLB). This involves passing a written exam and demonstrating the required experience. Licensed contractors have met state requirements and passed background checks. 

Fail to verify a contractor’s license, and you risk hiring unqualified or fraudulent contractors, void warranties, and have no recourse if things go wrong. Always enter a contractor’s license number into the CSLB database to validate status, expiration date, and any disciplinary actions against the license.

A general building contractor license is required for most residential construction and remodeling work. Specialty trade contractor classifications may be needed for specific types of jobs. When interviewing a San Diego general contractor, ask to see a copy of their actual license card as well. A license in good standing is a basic requirement you should screen for.

Watch for Verbal Agreements

Reputable San Diego general contractors will not ask you to enter into a verbal agreement. They will insist on a comprehensive, written contract detailing all project costs, materials, timelines, work duties, warranties, and other terms before work begins. Verbal agreements make it much harder to hold the contractor accountable and resolve disputes that arise. Don’t let eagerness or high-pressure tactics sway you into accepting just a handshake deal. Protect yourself legally with a proper written contract.

Beware Big Down Payments

While it’s reasonable for a general contractor to ask for a deposit ranging from 10% to 25% upfront, excessively large down payments can be a red flag. Ethical contractors will not ask for more than what is required to cover material costs to launch the project. Large down payments beyond 25% of the total project estimate may indicate the contractor is just seeking funds rather than committed to doing the work. Tying up too much money at risk can leave you in the lurch if things go south.

Double Check Insurance Coverage

Hire a general contractor in San Diego only after verifying they carry adequate general liability insurance, workers compensation insurance, and builders risk insurance for construction projects. Liability coverage protects you if the contractor damages your property, workers get injured on site, or third parties are injured due to negligence. Builder’s risk covers materials and the structure itself during construction. Ask contractors for proof of insurance certificates showing adequate coverage limits and that policies are active, not expired. Lack of insurance puts you at substantial risk.

Watch for High Pressure Tactics

Quality San Diego contractors will allow you sufficient time to evaluate bids, compare qualifications, check references, and make an informed hiring decision. High-pressure tactics like demanding an immediate decision or deposit are concerning. So are contractors who show up unannounced at your home insisting they can start work immediately. Avoid letting pushy contractors rush you into making quick decisions you may regret. Take time to thoroughly vet each bidder.

Ask for References

Be sure to ask each general contractor bidder for multiple references from past clients in the San Diego area. Reach out to these references and ask how satisfied they were with the contractor’s work and professionalism. Confirm that projects were completed on time and within budget. While every contractor will have a few complaints, look for consistent positive feedback indicating they deliver quality work and have a good reputation. A lack of references may be a red flag.

Review Online Reputation

In addition to checking client references, spend time reviewing the online reputation of any San Diego general contractor you are considering hiring. Research ratings and reviews on Google, Yelp, and other third-party review platforms. Look for patterns of positive feedback. While no contractor is perfect, be wary of those with predominantly negative reviews and complaints about poor work quality, communication issues, unfinished projects, and billing disputes.

By watching out for these common red flags during your hiring process, you can avoid contractors who lack proper credentials, use questionable business practices, or may not have the skills to complete your project successfully. Take time to carefully evaluate each bidder’s qualifications, portfolio, references, insurance coverage, and contract terms.

Questions to Ask Contractors to Assess Credibility

When evaluating general contractor candidates for your San Diego home renovation or construction project, asking the right questions is key. Here are some important questions that can help you gauge the credibility and qualifications of each bidder:

• Are you licensed in California for general contracting work? Verify license type and status.
• Do you carry general liability insurance and workers compensation? Review policy limits.
• How long have you been a general contractor and owned your company? Look for 5+ years ideally.
• Have you completed similar whole home or bathroom/kitchen projects before? Request photos of past work.
• May I have a list of recent client references I can contact? Reach out to 3-5 references.
• Will you provide a detailed written contract spelling out all project terms? A must!
• What systems do you use for managing budgets and schedules? Look for robust processes.
• How do you communicate with clients and address concerns during projects? Ask for regular progress updates.
• How will you handle change orders or delays that impact the budget or timeline? Look for reasonable change order markup policies.

By probing on these aspects of each potential contractor’s experience, expertise, business operations, and communications practices, you will gain important insights into which contractor is the best fit for successfully managing your upcoming construction project.

Carefully Checking References of Contractors

Speaking with recent clients of prospective San Diego general contractor candidates provides crucial third-party feedback. Here are key questions to ask client references:

• How would you rate the contractor’s quality of work on a scale of 1 to 10? Look for consistently high ratings.
• Was the project completed on time based on the original timeline? On budget? Get specifics.
• How did the contractor handle communication and addressing any concerns? Were they responsive?
• Were there any surprises, delays, or changes that came up? How were they handled? Ask for examples.
• Did you feel the contractor was honest, professional, and fun to work with?
• Would you hire this contractor again for future projects? A must.

Checking a potential contractor’s references takes extra time upfront but can help you avoid hiring contractors with a history of poor workmanship, budget issues, or communication challenges.

By investigating these types of red flags when vetting general contracting candidates, you can feel confident you have selected a truly qualified, experienced, and credible San Diego general contractor to successfully execute your construction project and provide a smooth client experience.

By proactively fostering positive contractor-client relations centered on openness, adaptability and mutual respect, you will be satisfied with the team you have assembled and the outcome of your important construction project.

Conclusion…

If you are looking for reliable general contractor in San Diego, Octo Property Services is here to assist you. With our expertise and dedication to quality, we can help you enhance the value of your properties. To learn more about our services and discuss your specific needs, please fill out the contact form on our website, and our team will be in touch with you promptly!