Disaster Help Center

Rebuilding After the 2025 LA Wildfires: Important Contract and Payment Rules

If you are rebuilding your home after a wildfire or another declared disaster, the law treats rebuilding as a home improvement project. This means contractors must follow all home improvement contract and payment rules and not treat the work as new construction.

Contractors must use a fixed price contract. A fixed-price contract lists the full agreed upon price for the project. Contractors are not allowed to use “time and materials” or “cost plus” contracts for disaster related home improvement work.

Down payments should not be more than $1,000 or 10%. Contractors also cannot ask for or accept a down payment of more than $1,000 or 10 percent of the total contract price, whichever is less. Any other payments must be clearly listed in the contract. They must also be based on the actual value of work already completed or on materials that have been delivered to your home.

These rules apply to all home improvement projects, including residential solar installations and the construction of residential accessory dwelling units (ADUs).

Before agreeing to work with a contractor to rebuild your home after a declared disaster or perform other home improvement work, the Contractors State License Board (CSLB) reminds homeowners to:

Verify the contractor is licensed and in good standing. You can check a license here.
Make sure the contract is a fixed-price contract.
Agree to a total contract price that works for you and your contractor.
Make sure the down payment isn’t more than $1,000 or 10%, whichever is less.
Never sign any contract or change order that requires an advance payment larger than the value of the work completed.
Get any other payments clearly listed in the contract.
Seek other bids if a contractor can’t meet these requirements.

Report Unlawful Activity in a Disaster Zone

Do you have the address? Click HERE to report a contractor currently working at rebuild job site. The problem should relate to whether the contractor is validly licensed or has workers’ compensation insurance.

Did you hire the contractor? Click HERE to file a complaint against a contractor you hired for wildfire rebuilding (select “Licensed and Unlicensed Project Complaints”).

Is there a worker safety concern? Report unsafe work conditions to Department of Industrial Relations - Cal / OSHA. Here is 2025 Guidance from the Department of Industrial Relations with a page dedicated to clean up and rebuilding after a wildfire. Employers also need to ensure workers have the appropriate personal protective equipment. More details can be found in this Worker Safety flyer (English) and (Spanish).

Additional Resources

Consumers / Disaster Survivors
Unscrupulous, unlicensed contractors often prey on survivors of disasters. Learn how to protect yourself using CSLB’s resources, including the “Fast Facts: Rebuilding After a Disaster,” along with the “Find A Licensed Contractor” and “License Check” features. LEARN MORE
Contractors
Contractors must hold a valid California contractor license in the appropriate classification to perform most work on homes and other structures damaged or destroyed in disasters. LEARN MORE
Media
Resources for the media include press releases, educational materials, and videos.LEARN MORE