Rebuilding the Palisades Newsletter

Choosing the Right Contractor During the Palisades Rebuild

Protecting Yourself, Your Budget, and Your Home

By Kambiz Kamdar

Rebuilding after a disaster is overwhelming, and choosing the wrong contractor can set families back months — or hundreds of thousands of dollars. As the Palisades rebuild accelerates, many homeowners are facing confusing advice, high-pressure sales tactics, and contract structures they don’t fully understand. This guide explains how to vet contractors properly, understand contract models, and avoid common mistakes during the wildfire rebuilding process.

How to Vet Contractors During the Rebuilding Process

With so many alliances, community groups, and social-media campaigns promoting builders in the Palisades, it is easy to assume that a contractor mentioned online has been vetted. In reality, visibility is not verification.

Even as a licensed contractor myself, I can recommend people — but no one can fully vet a builder for you. True vetting requires your own due diligence.

What Proper Contractor Vetting Looks Like

To protect yourself and ensure a successful rebuild, make sure you:

• Review completed projects the builder has actually delivered
• Speak directly with multiple past clients, not just the ones offered
• Verify license status, general liability insurance, workers’ compensation, and complaint history
• Compare bids from multiple contractors and confirm scopes match

Do not rely solely on architect referrals, alliances, or community groups. Even reputable professionals sometimes have financial incentives or longstanding relationships that unintentionally influence their recommendations.

Understanding Contract Types: Cost-Plus vs. GMP and More

Choosing the wrong contract is one of the most common — and most expensive — mistakes homeowners make during the rebuild process. There is no single structure that works for everyone, but knowing the risks and protections can prevent major issues.

1. Cost-Plus Contract

Pros

• Provides transparency when executed correctly
• Homeowner can review trade bids
• Offers flexibility for materials and finish choices

Cons

• Unscrupulous contractors can inflate bids and still collect a fee percentage
• Minimal incentive for the contractor to control costs
• Requires significant oversight by the homeowner or a construction manager

2. Cost-Plus With a Maximum Price (Hybrid GMP)

Pros

• Includes some transparency
• Limits financial exposure by setting a maximum price
• Still allows homeowners to track trade pricing

Cons

• Contractors may inflate numbers to meet — or reach — the cap
• Homeowners must still monitor bids carefully

3. Guaranteed Maximum Price (GMP)

Pros

• Provides a firm total cost
• Reduces financial surprises
• Less day-to-day management required

Cons

• If a contractor underestimates, they may cut corners or walk away
• Homeowners do not benefit from cost savings — any savings go to the contractor

Why Some Homeowners Are Getting Burned During the Palisades Rebuild

Palisadians are generous, trusting, and eager to return home quickly. Unfortunately, that urgency is being exploited by a small number of contractors pushing overpriced bids, risky contracts, or misleading timelines.

Even if your architect recommends a contractor, you should still obtain two to three additional bids. It costs nothing and gives you essential clarity on pricing and scope.

A Personal Message to the Community

I’ve lived and built in the Palisades for many years, and I understand the emotional drive to rebuild quickly. This is an extraordinary community, and everyone wants to get home.

But rushing leads to mistakes — and too many families are being steered into contracts or builder relationships that do not serve their best interests.

Final Takeaway for Homeowners

Before signing with any contractor:

• Ask questions
• Get multiple bids
• Review every contract structure carefully
• Verify every license, insurance certificate, and scope

This may be the largest investment you make in your lifetime. You deserve clarity, protection, and control throughout the rebuild journey.