When Should You Use a Contractor Instead of a Handyman?
Updated October 2026 to reflect California’s current $1,000 handyperson limit, which took effect January 1, 2025.
Knowing the contractor vs. handyman line is not always obvious, and getting it wrong on a Hermosa Beach or Manhattan Beach project can leave you exposed to real liability. As a CSLB-licensed general contractor and broker at Levine Homes Real Estate and Construction, I hear this question from South Bay homeowners constantly, especially on older beach-close properties where a small repair turns into a bigger job once a wall opens up.
The difference comes down to California law. Since January 1, 2025, an unlicensed handyperson can only take a job that totals $1,000 or less, labor and materials combined. Before that date, the limit was $500. If the total project cost exceeds $1,000, the person doing the work needs a contractor’s license.
The $1,000 limit comes with conditions. Under Assembly Bill 2622, the exemption applies only to small projects where the person does not hire workers and no building permit is needed. Penalties for unlicensed contracting include administrative fines of up to $15,000, jail time of up to six months, and fines of up to $5,000, according to the Contractors State License Board. A job that needs a building permit belongs with a licensed contractor, even when the price is low.
What a Handyman Can Legally Do
A handyperson is a good fit for small, self-contained jobs that stay under $1,000 in total, need no permit, and involve no hired help. Typical examples:
- Patching and painting drywall
- Replacing cabinet hardware, towel bars, and door knobs
- Re-caulking a tub or sink backsplash
- Hanging shelves, mirrors, and artwork
- Swapping a faucet or toilet fill valve with no change to the plumbing
- Adjusting doors and minor trim repair
Anything that needs a permit is off the table for a handyman, regardless of price. That includes new electrical circuits, moving plumbing, water heater replacement, structural changes, windows that change an opening, and most work on the building envelope.
Why We Recommend a Licensed Contractor Even for Some Small Jobs
Being legally allowed to do a job is not the same as being the right person for it. I often tell homeowners to use a licensed contractor even for work a handyman could legally take on, for a few reasons:
- Small jobs uncover big problems. In older South Bay homes, a “simple” fix often reveals water damage, rot, or old wiring. A contractor can recognize it and handle it properly. A handyman has to stop at $1,000 or keep going illegally.
- Waterproofing is unforgiving. Caulking a shower or replacing a window trim near the beach looks easy. Done wrong, it lets water into the wall and the repair costs many times the original job.
- Insurance and accountability. A licensed contractor carries liability insurance and, with employees, workers’ comp. Many handypersons carry neither. If something goes wrong, you want a license and a bond behind the work.
- Resale. As a broker, I see unpermitted or amateur work come up in buyer inspections all the time. It costs sellers in repair credits and sometimes in price.
A good rule: if the work touches water, electricity, structure, or the exterior of the house, call a licensed contractor.
Once you are past that $1,000 threshold, hiring a contractor is not the end of the diligence. You still need to confirm the contractor is qualified for your specific job and properly insured. Here are the three things to check before you hire anyone to work on your Hermosa Beach, Manhattan Beach, or Redondo Beach home.
License Type and Status
Contractor licenses are specific to trade. Electrical work requires a C-10, plumbing requires a C-36, and a full renovation or new build typically calls for a General Contractor (B) or General Engineering Contractor (A) license. You can look up which classification your project needs through the Contractor License Classifications page, and verify any contractor’s license status directly through the CSLB license check tool. Confirm the license is current and active before signing anything.
Liability Insurance
Liability insurance limits your exposure if something goes wrong on the job, and coastal South Bay properties come with their own risks: tight lot lines, shared walls, and older plumbing or electrical systems that do not always behave the way plans suggest. Ask for a copy of the contractor’s insurance certificate and check the policy dates before work starts. If the project is at your home, ask to be added as an additional insured and have the insurance company send a certificate confirming it.
If anyone besides the business owner will be on your property, workers’ compensation insurance is not optional; it is the single most important thing to verify. Construction carries real injury risk, and if a worker is hurt on your property and the contractor lacks proper coverage, that liability can fall on you as the homeowner.
You can check workers’ comp status using the Contractor License Check tool: enter the license number and scroll down to see whether the contractor is exempt or carries coverage. A contractor is only exempt if they have no employees. Here is our own Levine Homes Construction license as an example of what a current, active license with proper coverage looks like.
Payment and Contract Rules
California limits how much a home improvement contractor can ask you to pay up front. The down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less. Other payments should be listed in the contract and tied to work completed or materials delivered, according to the Contractors State License Board. These rules cover home improvement projects, including residential accessory dwelling units. If a contractor asks for a large deposit before starting, treat it as a warning sign.
Is All of This Necessary?
Most South Bay homeowners skip this checklist and never run into a problem. But the projects that go wrong, especially anything involving a ladder, scaffolding, or structural work, are exactly the ones where a few minutes of verification would have mattered. As both a broker and a CSLB-licensed general contractor, I have seen both sides of this: the transaction risk and the construction risk. Checking license, insurance, and workers’ comp before hiring takes ten minutes and can save you a much bigger headache later.
Common Questions
How much can a handyman charge without a license in California?
A handyperson can take jobs totaling $1,000 or less, labor and materials combined. The limit was $500 before January 1, 2025. The exemption requires that the person not hire workers and that no building permit be needed.
What happens if an unlicensed contractor works over the limit?
The Contractors State License Board lists administrative fines of up to $15,000, jail time of up to six months, and fines of up to $5,000. You can also file a complaint with the board.
How do I check a contractor’s license?
Use the CSLB license check tool. Enter the license number to confirm the license is current and to see whether the contractor carries workers’ compensation coverage or is exempt.
How much of a deposit can a contractor ask for?
For home improvement work, no more than $1,000 or 10 percent of the contract price, whichever is less.
If you have questions about a specific Hermosa Beach, Manhattan Beach, or Redondo Beach project and who should be doing the work, contact us anytime. You can also learn how our design-build process works. We are happy to help.
Planning to build in Hermosa Beach? See our custom home builder in Hermosa Beach page and recent projects.
