Following the examination, successful applicants will be informed of what requirements must be met for issuance of a license. These will include an issuance fee of $150, a contractor’s bond or cash deposit of $7,500, evidence of workers’ compensation insurance coverage, and an asbestos open-book exam. Those applying as a C-53 swimming pool contractor must file a $10,000 bond or cash deposit.
Additional bonds are required for some applicants. If additional bonds are required for your application, you will be notified.
Examinees who fail one or both parts of the examination or who do not appear as scheduled for the examination will be informed of the requirements for retesting.
Usually about 5 weeks after the issuance documents are received by the board, if all necessary items are completed, the license number will be issued. The new licensee will receive a wall certificate within 2 weeks after the documents are processed, and later will be sent a credit card-sized plastic pocket license. New licenses will not need to be renewed for 2 years.
1. Who can become a licensed contractor?
A licensed contractor is a person 18 years of age or older who has the experience and skills necessary to manage the daily activities of a construction business, including field supervision, or, who is represented by someone else with the necessary experience and skills who serves as the qualifying individual.
The contractor or other person who will act as the qualifying individual must have had, within the ten years immediately before the filing of the application, at least four full years of experience as a journeyman, foreman, supervisor, or contractor in the classification for which he or she is applying. A Certificate in Support of Experience Qualifications must be submitted with the application.
2. Who must be licensed as a contractor?
All businesses or individuals who construct or alter any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the California Contractors State License Board (CSLB) if the total cost (labor and materials) of one or more contracts on the project is $300 or more. Contractors, including subcontractors, specialty contractors, and persons engaged in the business of home improvement (with the exception of joint ventures and projects involving federal funding) must be licensed before submitting bids. Licenses may be issued to individuals, partnerships, corporations, or joint ventures.
3. Is anyone exempt from the requirement to be licensed?
Yes. Here are some of the exemptions:
- Work on a project for which the combined value of labor, materials, and all other items on one or more contracts is less than $300 falls within the minor work exemption; work which is part of a larger or major project, whether undertaken by the same or different contractors, may not be divided into amounts less than $300 in an attempt to meet the $300 exemption;
- An employee who is paid wages, who does not usually work in an independently established business, or who does not have direction or control over the performance of work, or who does not determine the final results of the work or project;
- Public personnel working on public projects;
- Officers of a court acting within the scope of their office;
- Public utilities working under specified conditions;
- Contractors operating on federally owned property;
- Oil and gas operations performed by an owner or lessee;
- Owner-builders who build or improve existing structures on their own property if they either do the work themselves or use their own employees (paid in wages) to do the work. This exemption is only valid if the structure is not intended or offered for sale within one year of completion;
- Owner-builders who build or improve existing structures on their own property if they contract for the construction with a licensed contractor or contractors;
- Owner-builders who improve their main place of residence, have actually resided there for one year prior to completion of the work, and who complete the work prior to sale. (This exemption is limited to two structures within a three-year period);
- Sale or installation of finished products that do not become a fixed part of the structure. (This exemption applies to a seller of installed carpets who holds a retail furniture dealer’s license but who contracts for installation of the carpet with a licensed carpet installer. This exemption does not apply to material suppliers or manufacturers who install or contract for installation of products, nor does it apply to those who install mobile homes or mobile home accessory structures);
- Security alarm company operators (licensed by the Bureau of Security and Investigative Services) who install, maintain, monitor, sell, alter, or service alarm systems (fire alarm company operators must be licensed by the CSLB); and,
- Persons whose activities consist only of installing satellite antenna systems on residential structures or property. These persons must be registered with the Bureau of Electronic and Appliance Repair.
4. Do I need to reside in California to receive and keep a contractor’s license?
No.
5. Does California recognize contractors’ licenses issued by other states or countries?
No. However, California does have reciprocal agreements with some states that recognize the experience qualifications for certain trades. It is only after the registrar of contractors has entered into a reciprocal agreement with the other state and under certain conditions that the registrar may waive the written trade examination for a contractor licensed in another state. Applicants must still qualify by taking and passing the Law and Business Examination. If you have trade experience or a contractor’s license issued by another state or country and you want to contract for work in California, this experience may be acceptable. In any case, you must apply for and be issued a license by the California Contractors State License Board.
6. What happens if I contract without a license?
A contractor’s license is not necessary as long as you advertise yourself as a non licensed contractor and never contract for jobs costing more than $500 (including labor and materials).
The Contractors State License Board has established the statewide Underground Economy Enforcement Units that focuses on the non licensed contractor and the underground economy. These units, working out of the Board’s regional offices, conduct stings and sweeps to curtail illegal contracting.
Contracting without a license is a misdemeanor. Non licensed contractors face potential sentences of up to one year in county jail and/or fines of from $200 to $15,000. The CSLB filed more than 2,000 citations and brought 700 criminal actions against non licensed contractors during the 1995-1996 fiscal year. That is more than one non licensed contractor caught every working hour. Stings and sweeps are routinely publicized to ensure maximum consumer education.
7. What kind of experience is required for a contractor’s license?
At least four years of experience is required to qualify for the exam. Credit for experience is given only for experience as a journeyman, foreman, supervising employee, contractor, or owner-builder. These are defined as follows:
- A journeyman has completed an apprenticeship program or is an experienced worker, not a trainee, and is fully qualified and able to perform the trade without supervision.
- A foreman or supervisor has the knowledge and skills of a journeyman and directly supervises physical construction.
- A contractor manages the daily activities of a construction business, including field supervision.
- An owner-builder has the knowledge and skills of a journeyman and performs work on his or her own property.
All experience claims must be verified by a qualified and responsible person, such as a homeowner, an employer, fellow employee, other journeyman, contractor, union representative, building inspector, architect, or engineer. The person verifying your claim must have first-hand knowledge of your experience. That is, he or she must have observed the work that you have done.
8. Are there education requirements for a license?
No. You do not have to meet any education requirements in order to qualify for a contractor’s license. However, many community colleges and private schools offer instruction in vocational education. For more information, contact :
Chancellor’s Office
1107 9th Street Sacramento, CA 95814
(916) 445-8752
OR
Council for Private Postsecondary and
California Community Colleges Vocational Education
1027 10th St., 4th floor Sacramento, CA 95814
(916) 445-3427
(NOTE: This office will not make referrals or recommendations regarding license preparation schools.)
9. May I substitute any education, technical training or apprenticeship training for the required experience?
You may receive credit for technical training, apprenticeship training, or education instead of a portion of the required four years of practical experience. At least one year must be practical experience. You must provide written documentation of any training or education claimed in place of experience. Acceptable documentation includes copies of apprenticeship certificates and college transcripts.
10. How much credit will I receive for technical training, the completion of an approved apprenticeship program, or related college or university education?
The CSLB may credit training, apprenticeship, or education as follows:
A maximum of 1-1/2 years upon submission of transcripts of the following:
- AA degree from an accredited school or college in building or construction management;
A maximum of 2 years upon submission of transcripts of any of the following:
- A four-year degree from an accredited college or university in the fields of accounting, business, economics, mathematics, physics, or areas related to the specific trade or craft for which application is being made;
- A professional degree in law; or
- Substantial college or university course work in accounting, architecture, business, construction technology, drafting, economics, engineering, mathematics, or physics.
A maximum of 3 years upon submission of any of the following:
- A Certificate of Completion of Apprenticeship from an accredited apprenticeship program or a certified statement of completion of apprenticeship training from a union in the classification for which application is being made;
- Submission of transcripts for a four-year degree from an accredited college or university in architecture, construction technology, or any field of engineering that is directly related to the classification for which application is being made; or
- Submission of transcripts for a four-year degree from an accredited college or university in the field of horticulture or landscape horticulture for the Landscaping (C-27) classification
21. Is there an examination requirement for a contractor’s license?
The qualifying individual for a contractor’s license is required to pass written law and trade examinations unless he or she meets the requirements for a waiver.
22. Under what circumstances is a waiver of an examination granted?
There is no examination requirement if the qualifying individual meets the following conditions:
- The person is currently the qualifying individual for a license in good standing in the same classification for which he or she is applying; or
- The person has been a qualifying individual within the past five years for a license in good standing in the same classification for which he or she is applying; or
- Within the last five years, the person has passed both the Law and Business examination and the Trade examination in the same classification for which he or she is applying.
23. Are there any additional circumstances under which a waiver of an examination may be requested?
Yes, if the qualifying individual meets either of the two following criteria:
- For at least five years within the immediately preceding seven year period, the qualifying individual must have been a member of the official personnel listed on the CSLB’s records for any license that was active and in good standing, in the same classification for which application is made. He or she must have been actively engaged in that licensee’s construction activities during those five years.
OR
- The qualifying individual is a member of the immediate family of a licensee whose individual license was active and in good standing for five of the seven years immediately preceding the application. The qualifying individual must have been actively engaged in the licensee’s business for five of the previous seven years, must be applying in the same classification, and the license must be required in order to continue the operations of an existing family business in the event of the absence or death of the licensee.
24. If I think I am eligible for a waiver, do I complete the experience section of the application?
Even if you think that you are eligible for an examination waiver, you must complete the experience section of the application to document a minimum of five years of journey-level experience.
All experience claims must be verified by a qualified and responsible person, such as an employer, fellow employee, other journeyman, contractor, union representative, building inspector, architect, or engineer. The person verifying your claim must have first-hand knowledge of your experience; that is, he or she must have observed the work that you have done.
Exceptions:
- You are not required to document your experience if any of the following conditions exist:
- You are currently a qualifier on a license in good standing in the same classification(s) for which you are applying;
- You have been a qualifier within the past five years on a license in good standing in the same classification (s) for which you are applying; or
- Within the last five years, you have passed both the Law and Business examination and the trade examination in the same classification for which you are applying, and the license for which you took the examinations was not denied due to lack of work experience.
25. How will I find out if I need to take the examination?
If you need to take the examination, you will be sent a Notice to Appear for Examination.
If you qualify for a waiver, you will be sent a notice requesting the required documents and fees be submitted.
26. How soon after filing my application will I receive my Notice to Appear for Examination?
Once CSLB has received your complete application, you will be scheduled for the examination. It generally takes four to six weeks to process an application and send the notice to appear. You should receive your examination notice at least three weeks prior to the examination date.
27. Where are the examinations given?
The CSLB has exam sites in eight cities: San Diego, San Bernardino, Buena Park, Inglewood, Ventura, Oakland, Sacramento and Fresno. (The Fresno testing site is operational one week a month.) To make the examination procedures more convenient for applicants, testing centers have been set up at numerous locations throughout the state. Through the use of zip codes, applicants are assigned to the testing center nearest their business address.
The Notice to Appear for Examination mailed to the applicant will state where you will take your examination, what identification is required, and directions on how to get to the examination site.
28. Of what does the examination consist?
There are two parts to the examination process. All qualifying individuals must pass the standard Law and Business examination. In addition, qualifying individuals must pass a second test covering the specific trade or certification area for which they are applying.
29. What does the Law and Business examination cover?
The Law and Business examination consists of approximately 100 multiple choice questions related to business management and construction law. The examination is divided into ten major sections:
- Project/Job Management (about 20 % of the test);
- Licensing (about 15 %);
- Bookkeeping (about 15 %);
- Bid Procedures (about 13%);
- Safety (about 12%);
- Contracts (about 10%);
- Liens and Dispute Resolution (about 5%);
- Employee Issues (about 4%);
- Insurance (about 3%); and
- Special Circumstances (about 3%).
30. How can I prepare for the Law and Business examination?
The current edition of the California Contractors License Law and Reference Book is the basic study reference. Copies may be purchased from the Department of General Services, Office of Procurement, Publication Section:
Counter Sales:
4675 Watt Avenue North Highlands, CA
(916) 574-2200
Monday – Friday, 8 a.m. – 5 p.m.
Mail Order – Please send check or money order (no cash) with request to:
General Services, Office of Procurement P.O. Box 1015 North Highlands, CA 95660
The California License Law and Reference Book is not sold at any CS LB office. Copies may be available from some specialty bookstores. Please check your local telephone directory.
Other suggested study materials are listed in the reference list included in the Study Guide for the Law and Business Examination that is sent to applicants along with the Notice to Appear for Examination. These additional reference materials include employers’ guides from state and federal tax agencies and books focusing on business management and construction law. The study guide is available at all CSLB offices or by calling the CSLB’s 24-hour automated public information line (800) 321-2752.
31. How may I prepare for my trade or certification examination?
A study guide for each examination is available from the CSLB in Sacramento and will be sent to you with your Notice to Appear For Examination. The study guide lists the topic areas covered by the examination, shows how each area is weighed, and in most cases recommends reference materials to study.
32. What are the trade examinations like?
Most trade examinations consist of multiple-choice questions. You will be informed at the test site about the percentage of correct answers needed to pass each examination. Most examinations include questions that refer to accompanying blueprints and/or booklets containing drawings or blueprints.
33. What do I bring to the examination site?
You will need your Notice to Appear for Examination to be admitted to the examination room.
You must also show two forms of signed identification before taking your examination(s):
- Picture identification (either a current valid driver’s license, Department of Motor Vehicles identification card), or military identification card; and
- A second form of identification with a signature (either a credit card, library card, or Social Security card).
The only materials allowed at your seat during your examination are a scale ruler and a nonprinting calculator. Calculators must be battery operated or solar powered. Alpha-programmable calculators are not permitted under any conditions. Pencils and scratch paper will be provided.
You will be told to place any other items brought to the examination site, at your own risk, in a common storage area. You are advised to leave articles of value locked in your vehicle. The examination site staff do not watch the storage area.
34. How long does the examination take?
You will be given approximately 2-1/2 hours to complete each examination. The exact amount of time allowed for each examination will be announced at the test site.
35. What is involved with the Computer Assisted Testing (CAT) system?
In most cases, you will be taking your examination on a computer. The Computer Assisted Testing (CAT) system is very easy for license applicants to use. No prior experience with computers is necessary. Only the space bar and four arrow keys on the keyboard are needed. The test monitor guides all test-takers through a short exercise to help them to feel at ease with the computer.
Examinees who have used the CAT system, as well as the old paper and pencil method, report that using the computer speeds the examination process. They also claim they are less likely to make careless errors when using the computer. Finally, they prefer receiving their test results immediately after finishing their examinations on the computer, instead of waiting up to six weeks for their results as they had to in the past.
36. What kind of feedback will I receive?
Successful test-takers are only told that they have passed the examination. They will not be given detailed information about the score.
Applicants who are not successful are told the percentage of questions they answered correctly. In addition, they are given a statement showing how well they did in each of the major sections of the test. These sections are described in greater detail in the Study Guide for that examination, so that the test-taker will know what areas to emphasize in preparing for the next test.
37. If I fail to appear for an examination or fail to pass the Law and Business and/or a trade examination, may I reschedule?
Yes. If you fail to appear for an examination, you must pay a $50 rescheduling fee. If you fail to appear a second time, your application will be considered void, and you will have to submit a new application with new fees.
If you fail the Law and Business examination and/or your trade examination, you must also pay a $50 fee each time you are rescheduled. You are given two more opportunities to succeed. If you do not pass after three attempts, your application is considered void, and you will have to submit a new application.
To file for rescheduling, complete the application on the bottom of the notice informing you that you failed to pass the examination, and submit it with the $50 fee to the CSLB. (Please note any address change on this form.) You will be sent a notice informing you where and when to appear for your next examination.
Test results are good for five years. If you have passed the Law and Business examination or your trade examination, you would not have to take it again if you failed the other test, failed to appear for testing, or even had to submit a new application.
38. May I review the test questions after the examinations?
No. Test questions and answer keys are not available for review. You may file a written protest or critique of any examination question(s) after you have completed your examination and before you turn in your examination materials to the proctor.
39. Are there any penalties for disclosing the contents of a state examination?
Conduct which violates the security of the examination (includes providing information about test questions to any person or business other than the CSLB examination staff); removing examination materials from the examination site (includes writing down examination questions for future use); communicating with other examinees during an examination; copying or permitting your answers to be copied; having in your possession any written material other than test materials provided by the CSLB; or taking the examination on behalf of another applicant.
Penalties for conduct that violates the security of the examination include prosecution on misdemeanor charges resulting in a fine of $500, payment of damages of up to $10,000 plus the costs of litigation, and a sentence in the county jail. You would also be subject to automatic test failure; any fee(s) paid to the State of California would not be refunded; and you would not be allowed to apply for any license classification for a period of one year from your examination date.
40. What will I receive to show that I am licensed?
You will receive three things: (1) a wall certificate showing the name of the person or company to which the certificate has been issued, the license number, and the date of issue; (2) a temporary paper pocket card; and (3) a permanent plastic pocket card showing the license number, business name, classification(s), certifications, if applicable, and the license expiration date. The law requires that you display your wall certificate in your main office or chief place of business. You should also make it a habit to carry your pocket card, especially in situations where you think you might be soliciting business or talking to potential customers.
41. How long before I receive those documents?
You should receive your wall certificate and temporary paper pocket card within a week of the time your license is issued. Your plastic pocket card should arrive in six to eight weeks.
50. Are there any financial requirements to meet in order to qualify for a contractor’s license?
Yes. All applicants for a new contractor’s license, other than those applying for a joint venture license, must have more than $2,500 worth of operating capital. Operating capital is defined as your current assets minus your current liabilities.
51. Are there any bond requirements for a contractor’s license?
Yes. It is your responsibility to file with the registrar a contractor’s bond or cash deposit in the amount of $7,500 (except for the C-53, Swimming Pool classification, which requires a $10,000 bond or cash deposit). In addition, you must submit a separate Bond of Qualifying Individual or cash deposit in the amount of $7,500 for the responsible managing employee (RME) or the responsible managing officer (RMO). However, the CSLB may grant an exemption from the requirement to file a Bond of Qualifying Individual if the RMO certifies that he or she owns 10 percent or more of the voting stock or equity of the corporation for which he or she is to serve as the qualifying individual.
You may purchase bonds from your insurance agent or from one of the private holding companies licensed by the State Department of Insurance. The CSLB does not issue bonds. Copies of the approved bond form and information regarding cash alternatives to bonds are available from the CSLB upon request.
A bond may be issued for whatever length of time you and your insurance agent or bond company representative arrange. Most bonds are issued for a period of one to three years. At the end of that time, the bond may be canceled, or the bond company may request another premium to extend the life of the bond.
54. What is the total amount of fees I must pay to obtain a contractor’s license?
Fees are subject to change. Current fees are printed on the application forms and notices distributed to you. You may call the CSLB to verify the fees. Currently, it costs a total of $400 in fees to obtain a contractor’s license for one classification. This amount includes both the nonrefundable application processing fee and the two-year initial license fee.
55. Do I need to be concerned about workers’ compensation?
All contractors are required to present proof of workers’ compensation insurance coverage as a condition of licensure, to maintain a license, to activate an inactive license, or to renew a license, unless they are exempt from this requirement. Contractors who do not have employees working for them are exempt from the requirement for Workers’ Compensation Insurance, but they will be required to file a certification of this exemption with the registrar. Neither the proof of coverage nor the exemption is required for an inactive license (see question #44).
56. How long is a license valid?
A contractor’s license is initially issued for a two-year period. It will expire two years from the last day of the month in which it was issued. Licenses may be renewed for two years at a time if renewed on active status, or for four years if renewed on inactive status.
