1. Who can become a licensed contractor?

To qualify to become a licensed contractor an individual must be 18 years of age or older and have the experience and skills necessary to manage the daily activities of a construction business, including field supervision. Or, you must be represented by someone else with the necessary experience and skills, who serves as your 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 at a journey level, or as a foreman, supervisor, or contractor in the classification for which he or she is applying. The experience claimed on the application must be verifiable and individuals who have knowledge of the experience must certify the accuracy of the experience information provided by the applicant (page 3 of 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 $500 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. The CSLB does not issue licenses to Limited Liability Companies (LLC's).

3. Is anyone exempt from the requirement to be licensed?

Yes. Here are some of the exemptions:

4. Do I have to reside in California to get 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 don't advertise yourself as a licensed contractor and never contract for jobs costing $500 or more, including labor and materials.

The Contractors State License Board has established statewide investigative fraud teams that focus on unlicensed contractors and the underground economy. To curtail illegal contracting activities, these units conduct stings and sweeps which are publicized to ensure maximum consumer education.

Contracting without a license is usually a misdemeanor, carrying a potential sentence of up to six months in jail and/or a $500 fine, and a potential administrative fine of $200 to $15,000. Subsequent violations increase criminal penalties; if there is a prior conviction for contracting without a license, a fine of 20 percent of the contract price of the work performed, or a $4,500 fine shall be imposed. Also, the unlicensed contractor shall be confined to jail for no less than 90 days.

Felony charges may be filed against those who contract without a license for any project that is covered by a state of emergency or disaster proclaimed by the Governor of California or the President of the United States. Felony convictions may result in a state prison term as specified by the court.

During fiscal year 2003-04 the CSLB filed 1,515 nonlicensee citations and referred 1,057 non-licensees to the District Attorney.

7. What kind of experience is required for a contractor's license?

You must have at least four years of experience is required to qualify to take the examination. Credit for experience is given only for experience at a journey level or as a foreman, supervising employee, contractor, or owner-builder. These are defined as follows:

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 firsthand knowledge of your experience--that is, he or she must have observed the work that you have done--and must complete the experience certification portion of the application. Even if you provide a certification of your experience, be prepared to furnish documentation of any experience you claim on the application whenever such documentation is requested. The failure to provide this documentation will result in rejection of your application or denial of the license.

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 the:

(PLEASE NOTE: CSLB cannot 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 can I expect to 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:

A maximum of two years upon submission of transcripts of any of the following:

A maximum of three years upon submission of any of the following:

11. What are the contractor license classifications?

The CSLB issues licenses to contract in particular trades or fields of the construction profession. Each separate trade is recognized as a "classification." You may add as many classifications to your license as you can qualify for.

The CSLB issues licenses for the following classifications:

12. In what trades may I obtain a class "C" Specialty Contractor's License?

For answers to this question please click here: http://www.cslb.ca.gov/applicants/blueprint.asp

13. Are there any special requirements for contractors who work with asbestos or other hazardous substances?

Contractors who work with asbestos or other hazardous substances are regulated by the United States Department of Labor, Federal Occupational Safety and Health Administration, and the California Department of Industrial Relations, Division of Occupational Safety and Health (DOSH), as well as by the CSLB. These contractors are subject to a number of certification, registration, reporting, and safety requirements.

The following are some of the CSLB's basic requirements:

14. Are there any other requirements I need to complete?

Until January 1, 2004, all contractors who engaged in the business of home improvement or who provided goods and services for home improvement were required to obtain the Home Improvement Certification. This certification is no longer required. The home improvement contract requirements still exist, however. Please see Chapter 5 of the California Contractor’s License Law and Reference Book for details.

15. How do I apply for a contractor's license?

You must complete the following steps:

You may apply for only one license classification at a time if you are required to pass an exam. After your original license is issued, you may apply for additional classifications.

If you are required to take the examination, complete the following steps:

If you are NOT required to take an examination for any classification for which you are applying, you must:

If you are applying for an inactive license, you must:

Online Information for Applicants

For online information about applying for a contractor's license, go to www.cslb.ca.gov.

16. Will the CSLB acknowledge receipt of my application?

The CSLB will send you a letter of acknowledgment. This letter will contain two important numbers: a nine-digit Application Fee Number and a four-digit Personal Identification (PIN) Number, together with instructions on how to use these numbers to check on the progress of your application.

Your Application Fee Number, also known as your "receipt number," will also appear on the front of your canceled check, on the Notice to Appear for Examination and on a request for you to submit the appropriate documents and initial license fee. Please retain a record of this number, and use it in all inquiries regarding your pending application.

Enclosed with this notice is a Request for Live Scan Service Form (BCII 8016) for each person listed on the application. The person submitting the form must complete the third section (applicant information) in its entirety and take two copies of the completed form to the nearest Live Scan station to have his or her fingerprints submitted to the Department of Justice and the Federal Bureau of Investigation. The Live Scan operator will return one copy of the Live Scan form to you. You must keep this copy for the duration of the application process should additional follow-up be required.

A listing of Live Scan locations is available on the Internet.

17. How long does it take to complete the license application process?

Because there are many factors that affect the time it takes to process an application (type of application, workload, vacancies, etc.), processing times continually change. By using your PIN (Personal Identification Number) and your Application Fee Number to do an Application Status Check, you can get information on what date the Board is currently working on in regard to your specific type of application. This information is updated weekly and will give you a good idea of when your application will be pulled for processing.

If no exam is required and all license requirements are met, a license can be issued shortly after being pulled for processing. If an exam is required, you will be given an exam date after the application is processed and considered acceptable (no corrections or additional information is required). Additional time to complete the processing of your application is required after you pass the exam. Your license will not be issued until all requirements have been met.

18. How will I know if my application is approved?

After your application is reviewed and approved, you will receive either a Notice to Appear for Examination, or, if the examination is waived, a request for documents and the initial license fee. Some applications are sent for investigation and, even though you may take and pass the exam, the license will not be issued until the application has been approved and all licensing requirements have been met. Applications which require no examination can be submitted with the Contractors Bond, Bond of Qualifying Individual (if required), proof of Workers' Compensation Insurance, and applicable fees.

19. How can I check on the status of my application?

To check on the status of your application, visit CSLB's Web site, www.cslb.ca.gov, or call the toll-free automated information line, (800) 321-CSLB (2752). (see Question 16)

20. What happens if my application is not approved?

Your application may be returned to you if it is insufficient or incomplete. You must provide any missing information, make corrections, and resubmit your application within 90 days from the date it was returned. If you do not resubmit your application to the CSLB within 90 days, it becomes void. You cannot reinstate it, and you must submit a new application and processing fee if you wish to pursue a license.

21. If my application is not approved, can you refund my application fee?

No. The fee is for processing the application, whether or not the application is approved. Since each application is filed for processing as soon as it arrives at the CSLB, the fee cannot be refunded.

22. How do I apply for a joint venture license?

A joint venture license is one that is issued to two or more licensees together (sole owners, partnerships, corporations or other joint ventures) whose licenses are current and active. A joint venture license may be issued in any or all of the classifications in which the members of the joint venture are licensed.

To apply for a joint venture license, you may submit your application to the CSLB headquarters office. The following requirements must be met:

No examination or public posting is required.

23. When does a joint venture license expire?

The joint venture license will expire two years from the last day of the month in which the license was issued. Each license included in the joint venture must be current and active before the joint venture license can be renewed in active status.

24. What is cause for suspension of a joint venture license?

If any of the member licenses ceases to be current and active or is suspended for any reason, the joint venture license will be suspended.

25. Is there an examination requirement for a contractor's license?

The qualifying individual for a contractor's license is required to pass the written Law and Business and trade examinations unless he or she meets the requirements for a waiver.

26. Under what circumstances is a waiver of an examination granted?

The Registrar may waive the examination requirement if the qualifying individual meets one of the following conditions:

27. Are there any additional circumstances under which a waiver of an examination may be requested?

Yes, at the Registrar's discretion, if the qualifying individual meets the following criteria:

28. If I think I am eligible for a waiver, must 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 firsthand 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:

29. How will I find out if I have to take the examination?

If you have 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.

30. How soon after filing my application will I receive my Notice to Appear for Examination?

Scheduling of the exam occurs after your application is processed and found acceptable (see Question 17). There are many factors that affect the time it may take to process an application.

You will be scheduled for the exam after your application is accepted. You should receive your examination notice at least three weeks prior to the examination date. PLEASE NOTE: Some applications are sent for formal investigation. Each application must be accepted AND approved in order for the license to be issued, even if the qualifier has passed the exam. Please refer to your acknowledgment letter for instructions on how to check the status of your application.

31. Where are the examinations given?

To make the examination procedure more convenient for applicants, testing centers are located throughout the state. The examination sites are located in San Diego, San Bernardino, Norwalk, Oxnard, Oakland, Sacramento, San Jose, and Fresno. CSLB testing staff use zip codes to assign applicants to the testing center nearest their business address.

The Notice to Appear for Examination mailed to you will state where you will take your examination; the date and time of the exam; what identification is required; and directions on how to get to the examination site.

32. What are the major components of the examination?

There are two parts to the examination process: ALL qualifying individuals must pass the standard Law and Business examination; in addition, with the exception of the C-61 Limited Specialty Classification, qualifying individuals must pass a second test covering the specific trade or certification area for which they are applying.

33. What does the Law and Business examination cover?

The Law and Business examination consists of multiple choice questions related to business management and construction law. Applicants can find information on the breakdown of the topics covered in the examination in the Study Guide for the Law and Business Examination that is sent to applicants along with the Notice to Appear for Examination.

34. How can I prepare for the Law and Business examination?

The California Contractors License Law & Reference Book is the basic study reference. The book with CD-ROM is available from LexisNexis/Matthew Bender. The cost for the 2005 edition is $14.50 plus tax and shipping. Call (800) 562-1197, and ask for "CALIFORNIA Contractors License Law and Reference Book." You may also order online at www.cslb.ca.gov. The information may also be downloaded for free from the CSLB Web site www.cslb.ca.gov.

Please note that the California License Law and Reference Book is not sold at any CSLB office.

Other suggested study materials are listed in the resource list included in the Study Guide for the Law and Business Examination. These additional resource materials include employer's guides from state and federal tax agencies, and materials focusing on business management and construction law. The study guide is available on the CSLB Web site, www.cslb.ca.gov, or by calling the 24-hour automated public information line, (800) 321-CSLB (2752).

35. How can I prepare for my trade or certification examination?

A study guide for each examination will be sent to you with your Notice to Appear For Examination. The study guide (also available on the CSLB Web site and automated phone system) lists the topic areas covered by the examination, shows how each area is weighted, and recommends resource materials to study.

36. What are the trade examinations like?

All 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. The examinations are developed with the assistance of licensed contractors. Most examinations include questions that refer to accompanying blueprints and/or booklets containing drawings.

37. What should I bring to the examination site?

In order to be admitted to the test center, bring your Notice to Appear for Examination. You must also bring picture identification (a current valid driver's license, Department of Motor Vehicles identification card, or military identification card).

Pencils, scratch paper, calculators and scale rulers will be provided at the test center. No personal calculators, cell phones, pagers or other electronic devices are permitted in the testing area. All personal items must be placed in a common storage area at your own risk. You are advised to leave articles of value locked in your vehicle since the test center staff does not watch the storage area.

38. How long does the examination take?

You will be given 2 -1/2 hours to complete each examination. Failure to arrive at the test site on time may result in your seat being given to another candidate.

39. What is involved with the computer-assisted testing (CAT) system?

You will be taking your examination on the easy-to-use computer-assisted testing (CAT) system. No prior experience with computers is necessary--the test monitor guides all test-takers through a short exercise to help them feel at ease with the computer.

40. What kind of feedback will I receive?

Test-takers receive their score results before they leave the test site. Successful test-takers are told only that they have passed the examination-they are not given detailed information about the score.

Unsuccessful test-takers are given a statement showing how well they performed in each section of the test. These sections are described in greater detail in the Study Guide for that examination so the test-taker will know what areas to emphasize in preparing to retake the examination.

41. If I fail to appear for an examination or fail to pass the Law and Business and/or a trade examination, may I retake the examination(s)?

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. Your examination may be rescheduled one time without a fee if you provide documented evidence that the failure to appear was due to a medical emergency or other circumstance beyond your control.

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 18 months to pass the examinations. If you do not pass within 18 months after your application is accepted by the Board, your application is considered void, and you will have to submit a new application. The void date on an application may be extended up to 90 days if you provide documented evidence that the failure to complete the application process was due to a medical emergency or other circumstance beyond your control.

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.

Examination results are good for five years. If you pass either the trade or the Law and Business examination but fail the other, you need only take the examination you failed as long as you retake the examination within five years.

42. 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.

43. Are there any penalties for disclosing the contents of a state examination?

Yes. Conduct which violates the security of the examination includes providing information about test questions to any school, person, or business other than CSLB examination staff; removing examination materials from the examination site (includes copying examination questions by any means 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.

44. What will I receive to show that I'm licensed?

You will receive a wall certificate showing the name of the person or company to which the certificate has been issued, the license number, the classifications held, and the date of issue; and a permanent plastic pocket card showing the license number, business name, classification(s), 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. CSLB’s publication, “What You Should Know Before You Hire a Contractor,” recommends that customers ask to see the contractor’s pocket license.

45. How long before I receive those documents?

You should receive your wall certificate and pocket card within approximately one week of the time your license is issued.

46. To whom is a license issued?

A license may be issued to an individual, a partnership, a corporation, or a joint venture. The license belongs to the owner of an individual license, to the partnership, to the corporation as it is registered with the California Secretary of State, or to the combination of licensees who are party to the joint venture. The CSLB does not issue licenses to Limited Liability Companies (LLC's).

47. If the ownership of a business changes, is the contractor's license considered to be part of the purchase?

No, with the possible exception of a corporation, the license is not considered part of the business. If the corporation's registration number assigned by the California Secretary of State remains the same, the same license can be used if the license is current and active. The officers and the qualifying individual do not necessarily have to remain the same, although a qualifying individual must be in place in order for the license to be valid.

48. What is the difference between an active and an inactive license?

The holder of an active license is entitled to contract for work in the classifications which appear on the license. While the license is active, the licensee must maintain a current Contractor's Bond, a Bond of Qualifying Individual (if required), and Workers' Compensation Insurance coverage.

If a license is inactive, that is, currently renewed but on inactive status, the holder may not bid or contract for work. Neither the Contractor's Bond nor the Bond of Qualifying Individual is required for an inactive license. Also, a licensee does not need to have either the proof or exemption for workers' compensation insurance coverage on file with the CSLB while the license is inactive (see Question 59).

49. To whom does the term "qualifying individual" refer?

A qualifying individual, or simply "qualifier," is the person listed on the CSLB records who meets the experience and examination requirements for the license. A qualifying individual is required for every classification on each license issued by the CSLB.

50. What is the qualifying individual required to do?

The qualifying individual for a license is responsible for the employer's (or principal's) construction operations.

51. Can the same person serve as the qualifier for more than one license?

A person may act as a qualifying individual for more than one active license only if one of the following conditions exists:

Even if he or she meets the above conditions, A PERSON MAY SERVE AS THE QUALIFYING INDIVIDUAL FOR NO MORE THAN THREE FIRMS IN ANY ONE-YEAR PERIOD. If a qualifier disassociates from the third firm, he or she must wait one year before associating with a new third firm.

A Responsible Managing Employee (RME) can only act as a qualifying individual for one active license at a time.

52. Who can be a qualifying individual?

If you have an individual license, your qualifier may be either a Responsible Managing Employee (RME) or you.

If you have a partnership license, your qualifier may either be one of the general partners (who shall be designated as the qualifying partner) or the RME.

If you have a corporate license, your qualifier may be either one of the officers listed on the CSLB's records for your license (who shall be designated as the Responsible Managing Officer, or RMO), or an RME.

If your qualifying individual is a Responsible Managing Employee, he or she must be a bona fide employee of the firm and may not be the qualifier on any other active license. This means that the RME must be regularly employed by the firm and actively involved in the operation of the business at least 32 hours per week or 80 percent of the total business operating hours per week, whichever is less.

53. Will a conviction for a criminal offense prevent a person from being licensed as a contractor or from serving as a qualifying individual?

The CSLB’s applications and other forms include questions regarding criminal convictions. The CSLB may deny a license if the crime is substantially related to the duties, functions and qualifications of a contractor. Failure to disclose the requested information may, in and of itself, be grounds for denial of a license.

Even if a crime is found to be substantially related to the duties, functions and qualifications of a contractor, an individual may be licensed if he or she has demonstrated sufficient rehabilitation. See Rule 869 in Chapter 13 of the California Contractor’s License Law & Reference Book.

In 2003, the Legislature mandated that all applicants for licenses and home improvement salesperson registrations would be required to submit fingerprints with each application. All new applicants for licensure, including each officer, partner, owner and responsible managing employee; and all home improvement salespersons will have to submit fingerprints.

Fingerprints are not required for:

Please visit the CSLB's Web site for additional details.

54. 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.

55. Are there any bond requirements for a contractor's license?

Yes. It is your responsibility to file a contractor's bond or cash deposit with the Registrar in the amount of $10,000. 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.

56. Where do I obtain bonds?

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. Information regarding bonds and cash alternatives to bonds is available from the CSLB Web site, the automated phone system, or by mail.

57. How long is a bond valid?

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.

58. What is the total amount of the 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's automated phone system or check the Web site 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.

59. Do I need to be concerned about Workers' Compensation Insurance?

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. If the license is qualified by a Responsible Managing Employee (RME), an exemption certificate cannot be submitted. Neither the proof of coverage nor the exemption is required for an inactive license (see Question 48).

60. 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.