Choosing an HVAC contractor is a bigger decision than choosing a brand. The equipment can be excellent and still fail early if it is sized wrong or installed badly. The good news is that California gives homeowners strong tools for vetting a contractor, and most of them take ten minutes.
1. Check the license
In California, HVAC work is covered by the C-20 Warm-Air Heating, Ventilating and Air-Conditioning classification from the Contractors State License Board. Look up the license number on the CSLB website or call 800-321-CSLB. Confirm:
- The license is active, not expired or suspended
- The classification includes C-20
- The business name and address match the company you are dealing with
- The contractor bond and workers compensation are on file
Ask every contractor for their license number, including us. A real contractor gives it without hesitation.
2. Know when a license is required
Since January 1, 2025, California requires a contractor’s license for work that costs $1,000 or more in labor and materials combined. The exemption below that amount does not apply when a permit is required or workers are hired, and a job cannot be split into smaller pieces to avoid the rule. Replacing a furnace, air conditioner or heat pump needs a permit, so it needs a licensed contractor. See our guide on replacing HVAC yourself in California.
3. Check insurance and bond
- Contractor bond: California licensed contractors carry a $25,000 contractor bond.
- Workers compensation: a C-20 contractor must carry workers compensation, or an exemption from CSLB, even with no employees.
This protects you if a worker is hurt on your property. The CSLB license page shows whether both are in place.
4. Get a written contract
CSLB says a home improvement contract is required for work over $500. It must include:
- A description of the work
- The total price
- The payment schedule
- Start and finish dates
- Who obtains the permits
Look for the exact equipment brand, model numbers and warranty terms. A vague line like “new AC system” makes it impossible to compare bids.
5. Watch the down payment
A down payment on a home improvement contract is limited to $1,000 or 10 percent of the contract price, whichever is less. The contract must state this, and payments should follow a schedule of progress. Asking for half the price on day one is a warning sign. Never pay in cash with no receipt, and do not make the final payment until the work is finished and inspected.
6. Know your right to cancel
You generally have three business days to cancel a home improvement contract, or five if you are 65 or older. If you start an emergency repair yourself, you can waive this right in writing, so read before you sign. The FTC’s Cooling-Off Rule gives three business days if you sign somewhere other than the contractor’s permanent place of business.
7. Red flags
CSLB and the FTC both warn about the same patterns:
- Pressure to decide today, or a price that expires tonight
- Door-to-door offers of a discount or a free inspection that finds problems
- Requests for large cash payments before work starts
- No written contract, or a contract with blank lines
- A salesperson who will not show a Home Improvement Salesperson registration
- Financing arranged by the contractor on forms you are told to sign blank
8. Compare apples to apples
Get at least three bids, as CSLB advises. Ask each contractor how they size the system. A proper job starts with a load calculation, which ACCA’s Manual J sets out as the national standard, instead of matching the size of your old unit. Compare the equipment model, the scope, the warranty and who handles the permit. Our guides on how to compare HVAC quotes and new HVAC system cost explain what is reasonable.
What to ask before you hire
- What is your CSLB license number?
- Will you do a load calculation, and may I see it?
- Who pulls the permit and schedules the inspection?
- What exactly does the warranty cover, and does it include labor?
- When will the work start, and how long will it take?
We serve Roseville, Rocklin, Folsom, Elk Grove and the rest of the Sacramento area. Our diagnostic is a flat $69, credited toward the repair. Read about our installation and replacement services or contact us.
Frequently asked questions
What license does an HVAC contractor need in California?
A C-20 Warm-Air Heating, Ventilating and Air-Conditioning license from the Contractors State License Board (CSLB). It covers installing, servicing and repairing heating and cooling systems and their ducts and controls. You can verify any license on the CSLB website.
How much can a contractor ask for as a down payment?
In California, a down payment on a home improvement contract is limited to $1,000 or 10 percent of the contract price, whichever is less. A contractor who asks for half the job up front is breaking the rule and is a red flag.
Can I cancel an HVAC contract after I sign it?
For most home improvement contracts you have three business days to cancel, or five if you are 65 or older. Emergency repairs that you start yourself can waive that right, so read the contract before signing.
Do I need a licensed contractor for a small HVAC job?
California requires a license for work that totals $1,000 or more in labor and materials, and the exemption below that does not apply when a permit is required. Replacing a furnace or air conditioner needs a permit, so it needs a licensed contractor.
Should I get more than one estimate?
Yes. CSLB advises getting at least three bids and checking references. Compare scope, equipment model numbers and warranty terms, not only the total.