After the January 2025 Palisades fire, hundreds of contractors flooded into the area looking for rebuild work. Some of them are excellent. Many have never built in the California Coastal Zone, have never navigated an LADBS plan check for a hillside lot, and will not be around in three years when a warranty issue surfaces.
Choosing the wrong contractor doesn’t just mean a bad experience. In a project this size, it can mean a failed permit, a stalled build, and hundreds of thousands of dollars in unexpected costs. Here are seven questions to ask any contractor before you sign anything.
1. Have You Built in California’s Coastal Zone Before?
Most of Pacific Palisades falls within the California Coastal Zone, which means any new construction requires a Coastal Development Permit from the California Coastal Commission — in addition to standard LADBS permits. This is a completely different process from a standard building permit, and it requires specific experience.
If a contractor says yes, follow up: what was the most recent CDP project you permitted? What type of project — new construction, addition, wildfire rebuild? Who was the Coastal Commission planner you worked with? A contractor who has genuinely done this can answer these questions specifically and quickly. One who hasn’t will be vague.
2. Do You Offer a Fixed-Price Contract?
A fixed-price contract means the number you sign is the number you pay — unless you change the scope. A time-and-materials or cost-plus contract leaves you exposed to cost overruns with no ceiling.
Fixed-price contracts require the contractor to actually know what they’re doing. You can’t price a project accurately if you don’t have deep subcontractor relationships, proven cost controls, and experience with the specific permit and construction conditions in the area. If a contractor won’t offer a fixed price, ask why specifically.
A fixed-price contract also matters for your insurance claim. A signed contract from a licensed builder is the strongest evidence you can present to your adjuster of what the rebuild actually costs.
3. Can You Connect Me With Three Past Clients I Can Call Directly?
Not a testimonial on a website. Not a reference the contractor hands you with a pre-arranged introduction. Ask for three names and phone numbers, then call them yourself — unannounced if possible — and ask: Did the project finish on time? Did the price hold? What was the hardest part of working with them? Would you hire them again?
If a contractor hesitates, that tells you something.
4. Who Will Be My Day-to-Day Contact?
Many larger contractors assign a salesperson to close the deal and then hand the project to a project manager you’ve never met. Find out exactly who will be responsible for your build from permit through construction — and whether you’ll have their direct number when something comes up. One project manager, one phone number, from start to finish, is what accountability looks like in practice.
5. How Do You Manage the Permit Process?
Ask specifically: who on your team handles LADBS submissions? Do you manage permit applications in-house or outsource them? How quickly do you respond to correction letters? Have you worked with the California Coastal Commission recently, and on what type of project?
A contractor who manages permits in-house, has a track record with LADBS correction rounds, and has filed a CDP in the past 18 months is in a fundamentally different position than one who subcontracts permit management or is new to the Coastal Zone. Permit delays are the leading cause of stalled rebuilds in the Palisades. This is not a secondary concern.
6. How Long Have You Been Building in Los Angeles?
Not how long the company has existed on paper. How long have they been actively building in Los Angeles, and specifically on the West Side? LA has its own inspection culture, its own subcontractor ecosystem, and its own permit process nuances that take years to learn and relationships that take years to build. A contractor who entered this market after the January 2025 fire doesn’t have those relationships.
This matters practically: established subcontractors book their schedules months out. A contractor without deep relationships in the local market will struggle to hold their project timeline.
7. What Happens If Material or Labor Costs Increase During the Build?
This question separates fixed-price contractors from everyone else. On a properly structured fixed-price contract, cost increases are the contractor’s problem to manage — not yours. On a time-and-materials job, you absorb them. Ask this question directly and watch how they answer.
Red Flags to Watch For
- Pressure to sign quickly before you’ve had time to compare bids
- No written, itemized estimate — only a verbal quote or single-line total
- No CSLB license number visible on their paperwork (verify at cslb.ca.gov)
- Vague or evasive answers about who manages permits
- Unwillingness to connect you with past clients directly
- A contract that doesn’t specify a completion date or define what constitutes completion
- No experience with the California Coastal Commission
The rebuild process is long. It involves a significant amount of trust, a substantial amount of money, and a lot of decisions made under stress. Choose someone who can answer hard questions directly, someone you can call when something goes sideways — because something always does on a construction project, and how a contractor handles problems is the difference between a good outcome and a very expensive one.
