Looking for a cheap home remodel? Caution is in order.

A Civil Litigation Attorney Weighs In

Remodeling a home is a significant investment. Labor costs are soaring, building materials are more expensive than ever, and the market is tightening. With rising costs, you may assume contractors are slashing prices to compete for limited jobs. You might even be tempted to hire someone willing to cut corners—whether by reducing their profit margins or avoiding the overhead of a professional license. But before you jump at the chance for a cheaper remodel, consider the risks involved.

Back in 2018, Gary Redenbacher, a civil litigation attorney in Santa Cruz with 18 years of legal experience in home remodeling cases, wrote an article in the Press Banner, a small local newspaper, entitled “Psst – want a cheap remodel? Better think again”. The article was so well-written, and so on point that I cut it out and saved it all these years.  If it was online, I’d just link to it, but because it’s not, I will rephrase it for our readers here.  

The High Cost of Cutting Corners in Home Remodeling

According to Redenbacher, the number of cases where licensed contractors make mistakes pales in comparison to the problems caused by unlicensed contractors. And while licensed contractors are generally more accountable and willing to rectify errors, Redenbacher notes, “I cannot remember even one time when an unlicensed contractor either fixed a problem or was able to pay to fix a problem he had caused.”

Consider these cautionary tales from Gary’s files:

The $50,000 Roof That Never Happened

A client entrusted a long-time friend, unlicensed, with $50,000 upfront to roof his house—a sum far exceeding reasonable costs. Moreover, California law prohibits down payments exceeding 10% of the total cost or $1,000, whichever is less. The client neither saw a single shingle installed nor recovered his money. The unlicensed friend vanished, leaving no legal recourse.

The Deck Disaster 

Another client hired an unlicensed neighbor to design and build a deck. The result? The deck bounced like a trampoline due to over-spanned joists and began rotting after one winter because untreated Douglas fir was used instead of rot-resistant materials. The client was left with a hazardous structure and little hope of restitution.

Why Suing Won’t Solve the Problem

While legal action against unlicensed contractors is possible, recovering funds is unlikely. Unlicensed contractors often lack steady employment or assets, making judgments difficult to enforce. As Gary points out, “The money flows right through them, and there’s never anything to collect against.”

How to Find a Good Building Contractor

To avoid such nightmares, hiring a reputable, licensed contractor is crucial. Here’s how to ensure you’re making the right choice:

1. Verify the License: Use the California Contractors State License Board (CSLB) website at cslb.ca.gov to confirm your contractor’s credentials.
2. Check References: Speak with previous clients and ask to see examples of completed work.
3. Get It in Writing: Ensure all contracts outline the scope of work, payment terms, and a project timeline.
4. Avoid Large Down Payments: Adhere to California’s legal limits on upfront payments to protect yourself financially.
5. Assess Professionalism: Does the contractor appear professional? A dilapidated truck, for example, may suggest a lack of quality in their work.
6. Review Their Portfolio: Examine the contractor’s portfolio to evaluate the quality and scope of their previous projects.
7. Consult Vendors: Speak with suppliers like lumber yards to gauge the contractor’s reliability. Vendors can provide insights into a contractor’s organization and trustworthiness, such as whether they promptly pay their bills.
8. Analyze Bids Carefully: The highest bid doesn’t guarantee the best quality, and a substantially lower bid can be a red flag for inferior work. If a bid is significantly higher or lower than others, ask for detailed explanations. The contractor might include necessary work that others overlook or plan to add costs later.
9. Conduct an In-Person Consultation: Meet the contractor face-to-face. Do they arrive on time? Do they listen and understand your needs? Assess their professionalism and whether they offer creative solutions.

A Final Cautionary Tale

Gary shares another sobering example – 

A local client received a bid of $1.6 million—hundreds of thousands less than the next lowest bidder. Despite initial suspicions, the client checked references, even consulting a key vendor who endorsed the contractor without prior business dealings. 

After the contractor abandoned the project, it was discovered that the framing was badly out of square. Rectifying the work and completing the job cost over $2 million, in addition to the $1 million already paid to the faulty contractor. 

The silver lining was that the contractor was licensed, which allowed his client to sue and win.

 The moral? Even diligent homework can sometimes fail, but your chances of recovery are better with licensed professionals.

The Bottom Line

A cheap home remodel might seem like a smart financial decision, but the potential risks far outweigh the rewards. By choosing a licensed contractor and conducting thorough due diligence, you can avoid costly mistakes, protect your investment, and ensure your project is completed safely and professionally. 

Don’t gamble with your home—it’s just not worth it.