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Hiring a contractor to rebuild after a fire in California: a checklist
After a disaster, demand for contractors spikes and so do scams. California has specific rules for rebuild contracts. Checking them takes an afternoon and protects the biggest check you may ever write.
Updated Oct 30, 2026 · General information with sources, not legal, insurance or engineering advice.
Before you sign
- Check the license on the CSLB site: active, the right classification (usually B, general building), bond and workers' comp. See how to check a license. Contracting without a license on disaster repairs in an emergency area carries tougher penalties (B&P Code 7028.16).
- Verify insurance with a certificate sent by the contractor's agent. See how to verify a certificate of insurance.
- Get several bids for the same written scope, and compare them line by line.
- Be wary of door-to-door offers, pressure to sign the same day, and requests for large cash payments up front.
What the contract must include
Rebuilding a home is home improvement work under B&P Code 7151, so the contract must meet B&P Code 7159. Among other things it must be in writing and include:
- The contractor's name, address and license number.
- A description of the work and materials, the contract price, and a payment schedule.
- Start and completion dates, and how change orders and extra work are handled.
- Required notices, including the commercial general liability insurance and workers' comp disclosures and your cancellation rights.
Money rules
- Down payment: no more than $1,000 or 10 percent of the contract price, whichever is less (B&P Code 7159.5).
- No payment ahead of the work: except for the down payment, payments can't get ahead of work done or materials delivered (B&P Code 7159.5).
- Lien releases: ask for a conditional release with each progress payment and an unconditional release once it clears, from the contractor and major suppliers and subcontractors (statutory forms in Civil Code 8132 to 8138).
- Price increases of more than 10 percent after a declared emergency are generally prohibited for a period (Penal Code 396).
Cancellation rights
Depending on how and where you sign, California gives a right to cancel within 3 business days, 5 business days if you are 65 or older, and 7 business days for some disaster-repair contracts (Civil Code 1689.5 to 1689.7 and 1689.14; B&P Code 7159(e)). The contract must explain your right in writing.
This is general information with sources, not legal advice. CSLB's disaster resources and a California attorney can help with a specific contract.
Quick answers
How much can a contractor ask as a down payment in California?
For a home improvement contract, including rebuilding after a disaster, the down payment can't exceed $1,000 or 10 percent of the contract price, whichever is less (B&P Code 7159.5).
How do I find a legitimate fire rebuild contractor?
Check the license, bond and workers' comp on the CSLB site, verify insurance with a certificate from the contractor's agent, get several bids for the same scope, and make sure the contract meets B&P Code 7159.
Can I cancel a rebuild contract after signing?
Often, yes, within a short window: 3 business days, 5 if you're 65 or older, and 7 for some disaster-repair contracts, depending on how the contract was signed (Civil Code 1689.5 to 1689.7 and 1689.14).
For homeowners rebuilding
Do this every month without the spreadsheet
Rebuild Tracker checks your contractor's CSLB record, searches your contract for the B&P 7159 items, and shows when payments get ahead of the work.