Beware of Contractor Scams: Lessons from a Southern California ADU Project

Beware of Contractor Scams: Lessons from a Southern California ADU Project

A recent case in Southern California highlights the growing risk of contractor scams targeting homeowners. A woman lost $18,500 after hiring someone she believed was a licensed contractor to build an accessory dwelling unit (ADU). The individual gained her trust by speaking her language and coming through a recommendation, but ultimately turned out to be unlicensed — disappearing with the money before work began.

The Contractors State License Board (CSLB) stresses the importance of taking precautions before starting any home project:

  • Verify the license of every contractor on the CSLB’s website.

  • Limit upfront payments to no more than $1,000 or 10% of the total project cost.

  • Insist on a written contract that outlines scope of work, timeline, and payment schedule.

With the popularity of ADUs continuing to rise across California, the demand for qualified contractors is at an all-time high — which makes homeowners more vulnerable to fraudulent actors. Protect yourself, your home, and your finances by doing thorough checks before signing or paying for any project.

📌 Takeaway: A little due diligence can save thousands of dollars and months of stress.

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