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If you're looking to do structure piece of work in California, getting licensed is a good identify to offset. Without the proper license, contractors tin lose whatever and all rights to payment. It's hard enough to get paid in structure as information technology is! In order to go a California contractors license, there are qualifications, applications, and exams forth the way.

In this guide, you'll get a meliorate understanding of California'due south licensing requirements and the procedure involved in getting one. You'll also larn what can happen if you don't have the advisable license for your merchandise, and how it puts your payments at take a chance.

Read more: The Ultimate Land-by-State Guide to Contractor License Requirements

Contractor licensing in California

Contractor licensing in California is a part of the Contractor State Licensing Board (CSLB). Established in 1929, this governing body's principal goal is to protect consumers from predatory contractors and wing-by-night crews. The CSLB works to constitute trade standards, ethics, and audio concern practices in the state.

Learn more than about the CSLB and how it works.

In California, the CSLB works to ensure that contractors aren't taking advantage of consumers. The board sets the requirements, standards, and testing for licensing. Generally speaking, the CSLB requires almost all contractors to behave a license, with a few exceptions.

But that's not all. The Statewide Investigative Fraud Team (SWIFT) works alongside the CSLB and performs regular stings and sweeps of construction sites to detect potential violations. The penalties tin can be steep — nosotros'll embrace those further down.

Contractor licensing is critical in California

A license is not simply some easy-to-come-by piece of paper. It's important, both to the consumer and the contractor.

It protects consumers

The CSLB's entire purpose is to protect consumers from lacking piece of work and inexperienced contractors. If you're considering hiring a contractor, be certain to bank check their license. Any project valued in excess of $500 requires a contractor to concord a license, so don't take whatsoever excuse equally to why they don't have one.

Unlicensed contractors can frequently undercut the bid of a licensed company considering they don't have to carry overhead expenses, like insurance or bonds. Every bit a result, essentially lower project estimates may be a red flag of an unlicensed contractor. CSLB regulations require licensed contractors to carry insurance and bonds. Without the appropriate insurance, property owners could be liable for issues that occur on the task.

Without the required bond, the unlicensed contractor can skip town without paying their subs. If these subs take licenses, they could potentially file a mechanics lien on your house for coin you already paid to an unlicensed contractor.

Here are some quick links:

  • Expect upwards a contractor's license number
  • Find a licensed contractor
  • File a complaint

It maintains contractor rights

Equally a contractor, it's disquisitional to carry the advisable license for your piece of work. If an unlicensed contractor performs work where a license is required, they lose all legal rights to collect payment.

They cannot file a California mechanics lien, bond merits, or whatever other claim in California for that matter. And missing out on payment isn't the stop of it: You could current of air up in jail.

If an unlicensed contractor performs work where a license is required, they lose all legal rights to collect payment.

According to the CSLB, getting caught contracting without the advisable license is a misdemeanor. A first offense is punishable by up to half dozen months in jail, a $5,000 fine, as well as administrative fines between $200 and $15,000. A second offense is a mandatory 90-day jail sentence and a fine for up to 20 pct of the contract up to $five,000.

California is also very clear on payment disputes involving contractors without licenses. Unlicensed contractors have no remedy for non-payment. Equally an unlicensed contractor, if you perform $twenty,000 on a projection, and the owner chooses not to pay, you have no ground to stand up on to recover your coin. You can't file a mechanics lien, and you won't be able to take information technology to court.

Performing work as an unlicensed subcontractor when a license is a requirement in California puts your payments at risk. Savvy GC'southward know this and tin can accept advantage of y'all if they cull to, and then be certain to go through the right channels to get your license.

Who needs a contractor license in California?

If you're wondering if you require a license in the State of California, the reply is probably yes.

The general dominion is that a person or entity needs a license if they construct or alter any of the post-obit if the total cost (including labor and materials) is $500 or more:

  • Building
  • Route
  • Parking facility
  • Railroad + excavation
  • Any other structure

This guideline goes on to state that contractors, subs, and specialty contractors engaged in domicile improvement must accept a contractors license before submitting bids.

Essentially, these guidelines include all contractors. And then, if you're a General Contractor, y'all must have a license. If you're a painter, you lot need a license. If your company installs windows and siding, become a license. In general, the CSLB is very strict on this point. However, at that place are a few exceptions.

Exceptions

A handyman service that completes projects less than $500 in value (including the cost of materials) practise non need a license. Simply they cannot break a large job down into smaller $500 projects to skirt this police.

The CSLB gives this case: Suppose yous are remodeling the kitchen for a total cost of $6,000. You lot sublet the flooring work, which is only $300. The flooring worker is not exempt from licensure, because the overall project toll was over $500.

Likewise, owner-builders — those edifice a construction on their own property — do not need a license. The same exception applies to security alarm company operators, satellite installers, or any craftsperson selling or installing finished products that do not become function of the construction.

Every bit you can see, it's actually easier to name the trades and businesses that exercise not need a license in California than the other manner effectually. The CSLB is extremely clear on this topic. If you're working on projects valued in excess of $500 in California, the chances are that yous need to go through the contractor licensing process.

Why you need a contractor's license in California

A general contractor license, besides as any license a sub might have to carry, might seem like unnecessary red tape. But that'due south simply not the case. There are many valid reasons why carrying a contractor license in California is important for your business organization and the state's involvement.

A California contractor license makes you await professional person

If y'all want to country the jobs that pay the big bucks, you lot need to nowadays yourself in a professional light. Providing your customers with your license ID number buys them some peace of heed.

In curt, a license is adept for business.

A license ensures you're capable

The state doesn't desire fly-by-night contractors working in construction, whether it exist commercial or residential work. By passing the licensing examination, the country is certifying that you know what yous're doing.

It ensures you're insured and bonded

The state also needs to ensure that contractors carry the right insurance and bonds for any piece of work they're doing. The best way to practise that is to require proof of those compliances in order to become a license.

It'south the law

Nearly importantly, carrying a full general contractor license — or other contractor license types — is a legal requirement in California.

In fact, the state requires contractors, subs, and specialty contractors engaged in home improvement to carry a license before even submitting a bid. Non only are in that location fines and legal consequences (which nosotros'll get into later in the article), just unlicensed contractors might not have mechanics lien rights likewise.

How to go a contractor's license in California

While the process of obtaining a California contractor's license may seem daunting at first, it breaks downward into only a few easy to manage steps. It begins with education, specification noesis, correct awarding work, fee management, test completion, and qualification. With the right information and experience the whole process tin exist completed with ease, but it withal may be hard to predict how long information technology volition take to become the license.

We'll get over all of this in detail, but before you lot apply for your license you need to brand sure you're applying for the right one.

one. Identify the license nomenclature yous need

Earlier you utilise for your license, you need to make sure y'all're applying for the right one. There are three general types of contractor licenses in California. The blazon of work yous do determines which license you demand.

Class A General Applied science Contractor License

The CSLB requires a Form A General Engineering License for any contractor "whose principal contracting business is in connexion with fixed works requiring specialized engineering knowledge and skill." This includes land leveling, earthmoving, excavating, trenching, paving, besides as cement and concrete work.

Projects typically requiring Form A licenses could include overpasses, underpasses, bridges, airports, power plants, pipelines, railroads, and highways.

These are large-scale, public works-type projects. Projects like these will take off under one or more engineers' licenses, usually employed by a large construction company or engineering business firm.

Course B General Building Contractor License

The CSLB requires a Class B General Building License for any contractor "whose principal contracting business organization is in connectedness with whatever structure built, being congenital, or to be built, for the support, shelter, and enclosure of persons, animals, chattels, or movable belongings of any kind, requiring in its construction the use of at least two unrelated building trades or crafts, or to do or superintendent the whole or any part thereof."

Hither'southward the gist: Class B is a California license for general contractors. If you are behest on and taking prime number contracts, you'll need a Course B license. With a Class B license, General Contractors tin accept the framing contract on a project, but the projection must besides include ii unrelated trades every bit well.

Form C Speciality Contractor License

The CSLB requires contractors specializing in a particular trade to bear a Course C Specialty Contractor License. This license applies to electrical, plumbing, and HVAC subcontractors, to name a few.

CSLB designates over 40 unlike categories of Grade C licenses. They include:

  • C-5 Framing and Rough Carpentry
  • C-9 Drywall
  • C-ten Electrical
  • C-27 Landscaping
  • C-29 Masonry
  • C-33 Painting and Decorating
  • C-36 Plumbing

If you're taking a prime contract on a project that does Not require two or more unrelated trades, you'll be fine with a Class C license, provided yous hold the license for that specific work.

two. Meet the basic licensing requirements

The general licensing requirements in California are pretty straightforward. To authorize for a license in California, you must:

  • Be eighteen years or older
  • Have the experience and skills necessary to manage the daily activities of a structure business, including field supervision (or have representation with the necessary skills and experience to serve as your qualifying individual)
  • Take four years of verifiable experience at the journey level, or as foreman, supervisor, or contractor in the nomenclature you're applying for
  • Secure a $xv,000 bond to protect consumers against defective adroitness and employees from not-payment. If you're using a qualifying individual, their bond's value is set at $12,500.

In that location are no additional fiscal requirements. This is to protect consumers from contractors flying under the radar by challenge they don't earn enough revenue to qualify for a license.

Contractor pedagogy & credits

In that location are no educational requirements exterior of those required to run into the journey level in your trade.

All the same, the CSLB may provide credit in the grade of piece of work experience for up to three years for vocational training or an applicable apprenticeship. You lot tin can besides receive a credit for up to 1 ½ years for an Associate of Arts in edifice or construction management, or iii years for a bachelor's degree coming together certain requirements.

Note from the CSLB: "Delight be aware that in that location are no schools or application preparation organizations that are affiliated with or agents of CSLB, although some may have company names that are confusingly similar to CSLB. If you find that an organization has misrepresented itself as being CSLB, you should submit a complaint to CSLB or the California Section of Consumer Affairs. Official CSLB test study guides are bachelor free of charge on CSLB'due south website and are mailed to applicants when they are scheduled for exams."

California contractor licensing schools

  1. Find a community college with a construction program nigh yous
  2. Research individual schools with the California's Bureau for Private Post-Secondary Education (BPPE). Search for approved schools.

3. Fill up out the licensing awarding

The first pace in condign licensed in California is to determine that you're eligible. At that place's a non-refundable $330 application fee, so be certain yous run into the requirements before applying, else you could be out some greenbacks.

If you meet the requirements for licensing, you'll need to fill up out an Easy-Fill or PDF application, or club a newspaper application.

The awarding requires the following data:

  • Full business concern proper noun
  • Address information, including:
    • Public mailing address
    • Concrete location
    • Business phone and fax numbers
    • Email address
  • License blazon or class requested
  • Business entity type, including:
    • Sole proprietorship
    • Partnership
    • Express Liability Company, requiring:
      • $100,000 surety bond
      • $i,000,000 liability insurance policy
      • Identifying data for every officer, responsible managing director, member, or director
    • Corporation (requires active California Secretarial assistant of State registration number)
  • Identifying data for the Qualifying Individual, including:
    • Name, address, engagement of birth, social security number, and commuter'south license number
    • Current or previous CSLB license numbers
    • The percentage of the concern endemic past the Qualified Individual
  • Identifying information for personnel, including:
    • Legal names
    • Dates of birth
    • Social security numbers
    • Addresses
    • Driver'southward license numbers
    • Title or position
    • Personal phone numbers
  • Work experience breakdown, completed by the Qualified Individual

Mail service the completed application and the $330 awarding fee to:

CSLB Headquarters
Contractors Country License Board
P.O. Box 26000
Sacramento, CA 95826-0026

Later the CSLB accepts the awarding, yous'll receive a fingerprinting packet (which costs extra). Take care of that ASAP, as the examination notice should arrive within three weeks. If you have to reschedule the exam, additional fees will employ.

4. Consummate a background check

Once the CSLB accepts your application, y'all'll accept to submit fingerprints as function of the criminal groundwork check. The CSLB will contact you lot with how to become these taken care of, where you lot tin go, and ultimately, how much it volition toll.

After fingerprinting, a random selection procedure could crave yous to verify your work experience. You can use an employer, a Full general Contractor, a foreman or supervisor, as well as another journeyman for this step in the procedure. That person volition need to verify that you have the experience required to run a structure business.

Criminal background exclusions

If you have a conviction for a criminal crime on your record, you may still qualify for a license. The CSLB has the right to deny a license for any conviction substantially related to the duties, functions, or qualifications of a contractor.

That said, the lath may result a license if you lot've shown sufficient rehabilitation.

If yous're qualified, fingerprinted, and verified, yous tin can schedule your CSLB test.

5. Pass the California contractor licensing exam

Beyond the basic teaching and experience requirements, California contractors take to laissez passer a licensing exam. Once the CSLB accepts your awarding, yous'll have to sign up for an exam at i of the following locations:

  • Fresno
  • Norwalk
  • Oakland
  • Oxnard
  • Sacramento
  • San Bernardino
  • San Diego
  • San Jose

Regardless of license, you'll accept to pass a Law and Business section to confirm that you're familiar with the laws and regulations that govern construction. The other half of the test will cover actual noesis of the trade (or trades, in the Form B example).

Depending on the license type, an boosted trade-centric section might exist a requirement. This section will ensure that the applicant has practical knowledge of the codes, best practices, and methods for the specific line of work for which they applied.

6. Submit bonding & insurance documents

If you laissez passer, you lot'll have more than paperwork to do. Y'all have to submit proof of your bond, worker's compensation, and liability insurance. You'll too have to pay an initial licensing fee.

How much does a California contractor's license cost?

At a minimum, the total toll for a California contractor's license is $579. That does not include whatever extra fees for additional fingerprinting or a rescheduling an exam.

  • The awarding for licensing is $330.
  • The fee for the actual license is $200, and it's valid for two years.
  • You lot'll need fingerprints taken to ensure that your criminal background is authentic. The fee for fingerprinting is usually $49. Fees for additional fingerprint rolling are a possibility.
  • If you have to reschedule your examination for whatsoever reason, there is a fee of $60.

Renewal fees

Once you accept your license, you'll have to maintain information technology with the CSLB. Active licenses expire every ii years, while inactive licenses elapse every four. The CSLB volition send a renewal application roughly 60 days earlier your license is due to expire. You lot demand to fill it out and transport it back with the renewal fee.

Timing is everything with your renewal. If you send your renewal application in on time, an active renewal will cost $450, while timely inactive renewals cost $225. If you're belatedly with your application, the fees jump to $675 for active and $337 for inactive.

The CSLB recommends ordering a renewal online if you don't receive a renewal application inside 45 days of your license'due south expiration engagement.

Reciprocity: Transferring a license from some other land

If yous already concur a license in some other state, California may go far easier for y'all. The three states that California offers a reciprocal license with are Arizona, Nevada, and Louisiana.

In order to authorize for reciprocity, yous must be applying for a license that appears on California'south State Reciprocal Classification List. You must take held that license in good standing for the previous 5 years.

Y'all'll then need to submit a Asking for Verification of License, completed past the already-licensed entity. After that, it's an Application for Original Contractor'southward License.

If the CSLB accepts your request, yous'll have to show proof of bonding, the necessary insurances, and pay your licensing fees.

Licensing timeline

Ultimately, it's hard to provide fifty-fifty a crude timeline to suggest how long it volition take you to get your license from showtime to finish, fifty-fifty if you laissez passer your test on the first go. To get an idea of where each CSLB testing location is in the application procedure, you can cheque the CSLB Processing Times.

Penalties for unlicensed contractors

California takes unlicensed contract work very seriously. They hit yous where it hurts – both in your walletand with potential criminal penalties (we'll get to those in a 2d).

Financial penalties

If you are supposed to have a license, and practise non, you have cipher recourse for payment in any way. Zilch. Zip.

Under California constabulary, an unlicensed contractor "may not bring or maintain" any action for compensation for performing any act or contract for which a license is required unless the contractor was duly licensed "at all times" during performance of the chore.

Proceed the phrase "at all times" in heed. Fifty-fifty if yous were licensed when you started a project, if your license expires or is suspended for any reason, the aforementioned penalties apply.

Possibly even more astringent than that is the "disgorgement" principle. It'due south an ugly sounding word, merely it basically simply means to "give back" sick-gotten gains. An unlicensed contractor may be required to disgorge ("give back") whatsoever past compensation.

And then whatever money that y'all fronted for materials and labor are now lost. What'southward even worse? Y'all may end up paying taxes on the money earned also!

Criminal penalties

Now on to criminal penalties! A first offense of unlicensed contractor work is a misdemeanor which tin include up to 6 months jail time and/or $5,000 fine. That doesn't include authoritative fines that tin range anywhere from $200 to $xv,000.

A 2d offense comes with a mandatory 90 day jail time and a fine of either 20% of the total contract toll or $v,000. If that wasn't enough, you can face felony charges as well. If you illegally apply another person'south license or pretend to exist licensed, it'due south considered a felony. So is unlicensed contract work during a declared state of emergency or disaster (unless the rules have been relaxed by the appropriate governing bodies).

The lesser line on licensing

California takes unlicensed contractor piece of work very seriously . If you are a contractor or sub in California, it'due south well advised to not perform any work on a structure projection without a valid California contractors license in place at all times. Without it, you could be in trouble.

Summary

Article Name

Contractor'due south License California - Understanding the Rules

Clarification

Without a California contractors license, contractors in California could face fines, penalties, and even misdemeanors or felonies. If yous don't desire the California Contractors State Licensing Board (CSLB) knocking on your door - brand sure you've obtained the necessary licensure to perform your work.

Author

Alex Benarroche

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levelset

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