There is no immunity in this economy for any company right now. The only protection you have is to check the license at the cslb and DO NOT pay any front load monies. Pay only for what has been done. If this company is sound, and who knows anymore, they will have a solid credit line at their supplier and will have no issue with you saying you are paying for equipment until it is on your property with a materials lien release. This is one area where people get screwed regularly as builders take money from one to pay the other quite frequently.

I see Pac Sun on the road everyday but you never know what's up. In the Temecula Valley, just about every builder has left their office space and there is little construction. It's been that way for a long time. As winter approaches and business grinds to a halt in many areas, the industry is pretty nervous. I think the feeling is if we can make it through the off season, there may be hope. From manufacturing to the local pool guy, 2008 was pretty much given over in January to being a year of negative growth and one of the hardest we were going to see in 20 years. It has proven to be just that. What that means is that you need to be careful dropping any amount of money into contracting as companies are running on limited funds and cutting expenses. Odds are very high that insurance may not be paid, workers comp premiums have not been paid, etc. Ask any insurance agent right now about cancellations. There are a tremendous amount of people driving w/o insurance right now as the option is to pay the mortgage or the insurance.

I don't mean to scare you at a time when you are excited to get going but this is reality. Our industry is suffering as there is no equity in California and won't be for some time. Yes, those who have moved into these foreclosed homes have a few bucks to spend but not a lot. Contractors are really on the hunt for work now and will do a lot and say a lot but cannot deliver in most cases. It may not be the prime contractor you have an issue with, it may be a sub. The boom of construction brought a lot of new builders and in bad times, these guys give us a bad reputation. They will fall away but you have to admit, we are seeing far greater names falling right now all over and in all industries. It is much worse than people want to believe right now. San Diego has seen its fair share of builder failures but it's all part of the cycle we need to live through to get to the other side.

Begin you process at their suppliers. Ask them for names and then call. If you need a number, e-mail me and I'll get it for you. There are only a couple in the area that they would use. If a supplier says they are on good terms, that is a huge start.

sdkath,
DITTO repair guy!
Check CSLB. Ask your builder for a certificate of insurance. This will show where their coverage is placed and for how much. It will list liability, auto, and work comp insurance. PB's should willing provide this info.
There are no guaranties. All you can do is make a few phone calls. Most PB's won't ask for up front money. If anyone asks for 50% up front...run from them. In California, a contractor can only collect money proportional to the work he has performed. Good luck.

We are just finishing a pool in SD area, so if you want a name a smaller builder that worked out great for us even in this economy, email me.

- jeff