ADU Contractor Checklist — 12 Questions to Ask Before You Pay

I built a faster, easier-to-read license lookup right here — verify any contractor’s license instantly. Enter the license number and get status, bond, workers’ comp, complaints, and classification in plain English. Or go directly to cslb.ca.gov. Confirm four things: license is active, bond is current, workers’ comp is on file, and the classification matches ADU work (Class B — General Building, or the relevant specialty class). Takes 30 seconds. Do this before everything else — it eliminates 90% of bad contractors instantly.

This would have caught: Nothing — all three companies passed this check. That’s the problem. That’s why there are 11 more steps.

Look at the license issue date. Less than 2 years of operating history means there’s no track record to verify — no completed projects to visit, no long-term client reviews, no proof they can manage cash flow across multiple jobs. Multitaskr lasted 3 years. Nonna lasted 3 years. Anchored lasted 4. All collapsed after rapid growth they couldn’t sustain.

This would have caught: Extra scrutiny on all three. Nonna was founded in 2022 and collapsed by early 2026. Anchored was founded in 2020, made the Inc. 5000 list at #224, and filed bankruptcy in 2024.

Use the VerifiedADU license lookup or go to the CSLB license detail page. Click through every complaint — not just the count. CSLB only publicly displays complaints where enforcement staff found a probable violation. Non-legal complaints are purged after 2 years. A “clean” record might just mean complaints haven’t reached the disclosure threshold yet. Anchored had 55 complaints filed — only 10 were visible on the CSLB lookup page.

This would have caught: Nonna — 15+ complaints were visible before they collapsed. But Anchored? 45 of 55 complaints were hidden from public view.

A new company name doesn’t erase a bad track record. Google the person behind the license — the qualifier, the CEO, the managing member. After Nonna Homes collapsed, its principals resurfaced: Ray Guanill at Blueprint One Developments, David Simmons listed as CEO of Strata-X-Development. Neither entity showed up in Secretary of State records when ABC10 checked. Read the full breakdown: how Nonna Homes got away with it.

This would have caught: Any homeowner Googling Nonna’s principals after January 2026 would find the ABC10 investigation.

Go to bizfileonline.sos.ca.gov. Search the company name. Confirm the entity is active and in good standing. A company showing “Suspended” or “Forfeited” may still hold an active CSLB license — the two systems don’t sync in real-time. If the entity isn’t registered at all, they have no business taking your money.

This would have caught: Blueprint One and Strata-X — neither was registered with the Secretary of State when ABC10 investigated.

Not renderings. Not testimonials. Three finished, permitted, inspected ADUs you can drive to. A legitimate contractor can name three in 30 seconds. If they stall or send photos instead of addresses — end the call. Anchored Tiny Homes had $100 million in signed contracts and a showroom. They also had 450+ families with nothing to show for their deposits.

Comparing contractors? Start with builders who’ve already passed our verification: browse verified ADU builders by city.

This would have caught: Anchored — they had marketing materials and a model unit but couldn’t point to hundreds of completed builds matching their claimed volume.

Get written estimates from at least 3 contractors. Compare line by line — not just the bottom number. If one bid is 25%+ below the others, ask why. “No payments for 12 months” and “100% financing through us” are marketing hooks, not signs of a good deal. Multitaskr and Nonna both used easy-money pitches to lock in deposits fast.

Run a contractor through the Red Flag Checker — it flags the patterns from all three cases.

This would have caught: Multitaskr’s “100% financing” offer would have stood out against two conventional bids.

California Business & Professions Code §7159.5: the maximum legal deposit is $1,000 or 10% of the contract price, whichever is LESS. Any contractor asking for more upfront is breaking state law. The Johnsons paid Nonna Homes $193,706.25 on a $275,000 contract — over 70% of the total — before any physical work began.

This would have caught: Nonna — every payment the Johnsons made after $1,000 was a violation.

California law (BPC §7159) requires a written home improvement contract before any work begins. It must include: total price, detailed scope with materials, start and estimated completion dates, the deposit cap in 12-point boldface, a progress payment schedule tied to completed phases — not calendar dates, and a Mechanics Lien Warning. You also have a 3-day right of rescission if you signed anywhere other than the contractor’s place of business.

This would have caught: Progress payments tied to completed work would have prevented Nonna from collecting $83,706.25 over nine months with zero physical work.

If a contractor offers financing through “their” lender — slow down. Verify the lender is independently licensed at dfpi.ca.gov. This was the core of the Multitaskr playbook: $15 million in loans disbursed directly to the contractor, little to no work completed for ~100 families. Some families are still paying $4,000/month on loans for ADUs that were never built. Arrange your own financing through your bank or credit union.

This would have caught: Multitaskr — every dollar. The entire scheme depended on homeowners trusting the contractor’s financing.

If your general contractor doesn’t pay the subs, those subs can file mechanics liens against YOUR property — even after you’ve paid the GC in full (California Civil Code §8200-8494). You could pay 100% of your contract and still owe money. Nonna Homes owed subcontractors tens of thousands while still collecting deposits from new homeowners.

This would have caught: Nonna — subcontractors were going unpaid while Nonna collected new deposits.

A lien release is a signed document from every subcontractor and material supplier confirming they’ve been paid. California Civil Code §8132-8138 defines four types. Collect a conditional lien release from every sub with each progress payment. Before you issue the next payment, collect unconditional releases for the previous one. If the contractor refuses, walk away. This single step would have protected more families than any other item on this list.

This would have caught: Nonna and Anchored — both collected homeowner payments while not paying subcontractors. No releases = no next payment = no $193,706.25 gone.