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Your ADU Company Closed. What Now?

Last updated November 3, 2026

Several California ADU companies have closed or stopped selling to homeowners in the last few years, some with customers partway through a project. If yours is one of them, the steps below are the ones that protect your money and your project. Start with the records, because claims and a new builder both depend on them.

Companies Reported Closed Or Sold

These come from Renology's prefab ADU guide, which says its facts were checked in September 2026, and from the news reports linked in the first two rows. Check the current status of any company yourself.

If your company was sold rather than closed, the same guide's advice applies: confirm in writing who now holds your contract and your deposit.

1. Gather Your Records Now

• The signed contract and every change order
• Proof of every payment, with dates and amounts
• Emails and messages with the company
• Plans, engineering, soils reports, and energy calculations you received
• Permit numbers and any inspection records
• Photos of the site and any work done

Download anything stored in the company's customer portal before it goes offline.

2. Look Up The License And The Bond

Search the company on the Contractors State License Board license lookup. The record shows the license status and the surety company that wrote its bond. The Contractors State License Board bond guide says every licensed contractor must post a $25,000 bond or cashier's check, and that a homeowner damaged by a contractor who violated state license laws may file a claim. You file it with the surety company, not with the board, and the board says claims must be filed within set time frames. The guide says that if the license was revoked, you have up to two years from the license's original expiration date to act.

The bond is capped, and several customers may claim against the same one, so do this early.

3. File A Complaint And A Creditor Claim

• Complaint. You can file a complaint with the Contractors State License Board. The board says its investigations are not meant to get restitution, but a complaint puts the problem on the record.
• Creditor claim. When a company closes through an assignment for the benefit of creditors or a bankruptcy, someone is appointed to sell its assets and pay creditors. Find out who that is and ask how to file a claim for your deposit.
• Payment dispute. If you paid by credit card, ask your card issuer whether a dispute is still possible.
• Court. The bond guide says small claims court handles amounts up to $10,000, and larger claims go to superior court. For larger amounts, talk to a lawyer.

4. Protect Your Plans And Permit

• Read your contract for who owns the plans and engineering. Some companies keep the rights to their designs, and a new builder may need new drawings.
• Call your building department. Ask whether your permit is still active, when it expires, and what it takes to change the contractor on it.
• If a factory-built unit was never delivered, ask the building department what a different unit or a site-built design would need.

5. Get A Builder To Finish

A builder taking over someone else's project will want to see the records from step 1 and walk the site. Expect them to price what is there, not what the old contract promised. Ask the questions in Questions To Ask An ADU Builder, and keep the next deposit small: California caps a home improvement down payment, so ask the Contractors State License Board what the current limit is.

If you want, tell us about your project and choose "Finishing A Project After A Builder Closed". We introduce you to one licensed builder in your area and tell you who it is before they contact you.

Related guides: Questions To Ask An ADU Builder, Prefab Versus Site-Built, Permits And Timeline.