The $50,000 Mistake You Can Avoid Today
Every year, Los Angeles business owners lose tens of thousands of dollars by ignoring warning signs during contractor selection. After 25 years in LA commercial construction, Build Solutions has seen every contractor mistake—and the pattern is always the same: the red flags were there from the beginning.
This guide reveals 7 critical warning signs that separate professional contractors from those who will cost you dearly. Spot even one? Walk away immediately.
Need a systematic approach? Use our 12-point contractor evaluation checklist to compare options objectively.
Red Flag #2: "We Don't Need Permits"
Warning Sign: Contractor suggests skipping permits or calls them "unnecessary paperwork."
The Danger: Unpermitted commercial work in Los Angeles causes LADBS stop-work orders, fines from $500-$5,000+, required demolition, insurance denial, property devaluation, personal liability, and lease violations.
California Law: Commercial construction requires permits, inspections, and licensed contractors per the California Building Code.
Build Solutions: We handle all LADBS permitting and maintain inspector relationships. Zero permit violations in 25 years.
Action: If anyone suggests avoiding permits, end the conversation immediately.
Red Flag #3: Excessive Upfront Deposits
Warning Sign: Demands for 30-50%+ upfront or cash-only payments.
California Law: For contracts under $30,000, deposits cannot exceed $1,000 OR 10% (whichever is less) per California Business Code Section 7159.
What This Indicates: Cash flow problems, no vendor credit, possible abandonment, or inability to complete work.
Build Solutions: We follow California payment laws and structure payments around project milestones—not arbitrary demands.
Action: Never exceed legal deposit limits. Report violations to CSLB.
Red Flag #4: No License Number or "Being Renewed"
Warning Sign: Avoids providing license number or becomes defensive.
Why This Disqualifies: California requires B-General Building Contractor licenses. Operating without one means zero legal recourse, no $25,000 bond protection, your personal injury liability, no permit access, and no warranties.
Build Solutions: License #1047137 is displayed on our website, cards, and contracts. Verify it here.
Action: Check every license at CSLB.ca.gov before discussions begin.
Red Flag #5: Vague Contracts or Verbal Deals
Warning Sign: Resists written contracts, provides vague scope, suggests "handshake deals."
The Problem: Without detailed contracts specifying scope, timeline, materials, and payment schedule, you have no legal protection, no recourse for poor work, and no cost clarity.
Professional Contracts Include:
- Detailed scope (every task itemized)
- Specific materials with brands
- Timeline with milestones
- Change order procedures
- Warranty terms
Build Solutions: Every project gets comprehensive written contracts reviewed before signing. We specify everything with no ambiguity.
Action: Never start without detailed written contracts.
Red Flag #6: No Verifiable References
Warning Sign: Cannot provide recent references or shows only internet photos.
Why This Matters: Legitimate contractors have satisfied clients willing to discuss their work. No references suggest no experience, dissatisfied clients, incomplete projects, or stolen photos.
Verify References By Asking:
- Finished on time and on budget?
- How were problems handled?
- Would you hire them again?
- Can I see the completed work?
Build Solutions: We provide multiple references for every project type. Our portfolio shows actual completed projects with verifiable addresses.
Action: Require 3+ recent references. Actually call them.
Red Flag #7: Dramatically Lower Bids (30%+ Below Others)
Warning Sign: One bid is 30-50% lower than all competitors.
Why This Backfires: Construction costs are consistent across legitimate contractors. Low bids mean missing scope (permits, inspections), inferior materials, planned upcharges, or inexperience.
The Reality: "Great deals" become nightmares. Final costs often exceed higher bids after "extras" are added.
Build Solutions: Our estimates are detailed, accurate, and transparent with complete itemization.
Action: If dramatically lower, demand detailed explanations. Compare line items. Lowest price ≠ , best value.
Already Hired a Problem Contractor?
Immediate Actions: Stop work if no permits exist, document everything with photos, verify license status, review exit clauses, and consult an attorney.
Legal Options: California's 3-day cancellation right, CSLB complaint process, small claims, or civil court.
Recovery: Contact Build Solutions for a free consultation. We've helped numerous clients recover from bad situations, complete abandoned projects, and fix substandard work.
How Build Solutions Eliminates Every Red Flag
After 25+ years serving Los Angeles:
- Physical Office: 1901 Avenue Of The Stars, Los Angeles
- Licensed & Bonded: License #1047137 verified and insured
- Certified: DBE, ACDBE, WBE, WBENC, SBE certified
- 100% Permitted: Zero violations in 25 years
- Transparent Pricing: Detailed estimates, no hidden fees
- Written Contracts: Comprehensive protection
- Verified Portfolio: Real projects, real results
Specializing in: Retail & restaurant buildouts, office tenant improvements, healthcare facilities, core & shell, ground-up construction.
Don't Let Red Flags Cost You $50,000+
These warning signs exist because they've caused real disasters for real business owners. Now you're equipped to avoid them.
📞 Work With a Contractor Who Gets It Right
Phone: (424) 234-1881
Email: natalia@buildsolutionsgc.com
Office: 1901 Avenue Of The Stars Ste 200, Los Angeles, CA 90067
📥 Download Free Contractor Checklist
🏢 View Our Project Portfolio
📋 Request Free Consultation
Related Articles:
- How to Choose a Commercial Contractor in Los Angeles - 12-point vetting guide
- Commercial Construction Costs in LA (2026 Guide) - Transparent pricing
- Core & Shell vs. Tenant Improvements - Project comparison
- Why Tenant Improvement Matters
Resources:
Related News
.svg){kind=icon}