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If yous're looking to practise construction work in California, getting licensed is a skilful place to first. Without the proper license, contractors can lose any and all rights to payment. It'south hard enough to get paid in structure every bit it is! In society to get a California contractors license, there are qualifications, applications, and exams along the way.

In this guide, you'll get a better understanding of California'due south licensing requirements and the process involved in getting one. Yous'll also larn what can happen if y'all don't have the appropriate license for your merchandise, and how it puts your payments at gamble.

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

Contractor licensing in California

Contractor licensing in California is a function of the Contractor State Licensing Board (CSLB). Established in 1929, this governing body'due south principal goal is to protect consumers from predatory contractors and fly-past-dark crews. The CSLB works to constitute merchandise standards, ethics, and sound business organization practices in the state.

Learn more about the CSLB and how it works.

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

Merely that's non all. The Statewide Investigative Fraud Team (SWIFT) works alongside the CSLB and performs regular stings and sweeps of construction sites to find potential violations. The penalties tin can be steep — nosotros'll cover those farther down.

Contractor licensing is critical in California

A license is not but some easy-to-come up-past slice 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 defective piece of work and inexperienced contractors. If you're considering hiring a contractor, be sure to check their license. Whatever project valued in excess of $500 requires a contractor to agree a license, so don't accept any excuse as to why they don't have one.

Unlicensed contractors can often undercut the bid of a licensed company considering they don't have to carry overhead expenses, like insurance or bonds. As a result, substantially lower project estimates may exist a cherry-red flag of an unlicensed contractor. CSLB regulations require licensed contractors to deport insurance and bonds. Without the appropriate insurance, property owners could exist liable for issues that occur on the job.

Without the required bond, the unlicensed contractor can skip boondocks without paying their subs. If these subs have 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:

  • Wait upward a contractor'due south license number
  • Find a licensed contractor
  • File a complaint

It maintains contractor rights

Every bit a contractor, it's critical to carry the appropriate license for your 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 claim, or any other claim in California for that matter. And missing out on payment isn't the finish of it: You could wind up in jail.

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

Co-ordinate to the CSLB, getting defenseless contracting without the appropriate license is a misdemeanor. A outset offense is punishable by up to six months in jail, a $5,000 fine, as well as administrative fines between $200 and $fifteen,000. A second criminal offence is a mandatory 90-solar day jail judgement and a fine for upward to 20 percent of the contract up to $5,000.

California is also very clear on payment disputes involving contractors without licenses. Unlicensed contractors have no remedy for non-payment. As an unlicensed contractor, if you perform $20,000 on a project, and the owner chooses not to pay, y'all accept no ground to stand up on to recover your money. You can't file a mechanics lien, and y'all won't be able to take it to court.

Performing piece of work every bit an unlicensed subcontractor when a license is a requirement in California puts your payments at risk. Savvy GC's know this and can accept advantage of you if they choose to, so exist certain to go through the correct channels to get your license.

Who needs a contractor license in California?

If you're wondering if you crave a license in the State of California, the answer is probably yeah.

The general rule is that a person or entity needs a license if they construct or alter whatsoever of the following if the full price (including labor and materials) is $500 or more:

  • Building
  • Road
  • Parking facility
  • Railroad + excavation
  • Any other construction

This guideline goes on to land that contractors, subs, and specialty contractors engaged in habitation improvement must have a contractors license earlier submitting bids.

Essentially, these guidelines include all contractors. So, if you lot're a General Contractor, you must have a license. If you lot're a painter, you demand a license. If your visitor installs windows and siding, get a license. In general, the CSLB is very strict on this point. Still, there are a few exceptions.

Exceptions

A handyman service that completes projects less than $500 in value (including the toll of materials) do not need a license. But they cannot break a large chore down into smaller $500 projects to skirt this law.

The CSLB gives this example: Suppose y'all are remodeling the kitchen for a total toll of $vi,000. You sublet the floor work, which is only $300. The floor worker is not exempt from licensure, because the overall project cost was over $500.

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

As y'all tin see, information technology's actually easier to proper name the trades and businesses that exercise non need a license in California than the other manner around. The CSLB is extremely clear on this topic. If yous're working on projects valued in excess of $500 in California, the chances are that you lot need to get through the contractor licensing procedure.

Why you need a contractor's license in California

A general contractor license, too as any license a sub might take to behave, might seem like unnecessary red tape. Simply 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 country's interest.

A California contractor license makes yous wait professional

If you want to land the jobs that pay the big bucks, yous need to present yourself in a professional light. Providing your customers with your license ID number buys them some peace of mind.

In brusk, a license is good for business organisation.

A license ensures you're capable

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

It ensures you're insured and bonded

The land also needs to ensure that contractors carry the right insurance and bonds for whatsoever work they're doing. The all-time way to practise that is to require proof of those compliances in order to go a license.

It'southward the law

Most chiefly, carrying a 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 dwelling house improvement to carry a license earlier fifty-fifty submitting a bid. Not merely are there fines and legal consequences (which nosotros'll go into later on in the article), simply unlicensed contractors might not have mechanics lien rights as well.

How to go a contractor'south license in California

While the procedure of obtaining a California contractor's license may seem daunting at showtime, it breaks down into only a few piece of cake to manage steps. Information technology begins with education, specification knowledge, correct awarding work, fee management, test completion, and qualification. With the right data and experience the whole process can exist completed with ease, but it however may be difficult to predict how long it will take to get the license.

We'll go over all of this in item, merely before you lot utilise for your license you need to make sure you're applying for the right ane.

i. Place the license classification you need

Before you utilise for your license, you need to brand sure you're applying for the right i. In that location are three general types of contractor licenses in California. The type of work you practise determines which license you demand.

Class A Full general Engineering science Contractor License

The CSLB requires a Class A General Applied science License for whatever contractor "whose principal contracting business is in connection with fixed works requiring specialized engineering science cognition and skill." This includes land leveling, earthmoving, excavating, trenching, paving, likewise as cement and concrete work.

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

These are big-scale, public works-type projects. Projects similar these will take off under i or more than engineers' licenses, usually employed by a large structure visitor or engineering firm.

Class B General Edifice Contractor License

The CSLB requires a Course B General Edifice License for whatever contractor "whose master contracting business organization is in connection with any structure congenital, beingness built, or to be built, for the support, shelter, and enclosure of persons, animals, chattels, or movable belongings of whatsoever kind, requiring in its construction the use of at least two unrelated building trades or crafts, or to practise or superintendent the whole or whatsoever function thereof."

Here's the gist: Class B is a California license for general contractors. If you are bidding on and taking prime contracts, yous'll need a Form B license. With a Class B license, General Contractors tin take the framing contract on a project, only the project must also include ii unrelated trades as well.

Form C Speciality Contractor License

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

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

  • C-five Framing and Crude Carpentry
  • C-ix Drywall
  • C-10 Electrical
  • C-27 Landscaping
  • C-29 Masonry
  • C-33 Painting and Decorating
  • C-36 Plumbing

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

ii. Meet the basic licensing requirements

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

  • Be 18 years or older
  • Take the experience and skills necessary to manage the daily activities of a construction business organisation, including field supervision (or have representation with the necessary skills and feel to serve as your qualifying individual)
  • Accept four years of verifiable feel at the journey level, or as foreman, supervisor, or contractor in the classification you're applying for
  • Secure a $15,000 bond to protect consumers against defective craftsmanship and employees from non-payment. If you're using a qualifying private, their bail's value is set at $12,500.

There are no additional fiscal requirements. This is to protect consumers from contractors flight nether the radar by challenge they don't earn enough revenue to authorize for a license.

Contractor education & credits

There are no educational requirements outside of those required to see the journeying level in your trade.

However, the CSLB may provide credit in the form of work experience for upwardly to three years for vocational grooming or an applicable apprenticeship. You lot tin can as well receive a credit for up to 1 ½ years for an Acquaintance of Arts in building or construction management, or three years for a available'southward degree coming together certain requirements.

Note from the CSLB: "Please be aware that there are no schools or application preparation organizations that are affiliated with or agents of CSLB, although some may take company names that are confusingly similar to CSLB. If you notice that an organization has misrepresented itself every bit being CSLB, you should submit a complaint to CSLB or the California Department of Consumer Affairs. Official CSLB examination report guides are available gratis of charge on CSLB's website and are mailed to applicants when they are scheduled for exams."

California contractor licensing schools

  1. Find a customs higher with a structure program nearly you lot
  2. Research individual schools with the California's Agency for Private Post-Secondary Didactics (BPPE). Search for approved schools.

3. Fill out the licensing application

The showtime stride in becoming licensed in California is to decide that y'all're eligible. There's a non-refundable $330 application fee, so be certain you lot meet the requirements before applying, else you could be out some cash.

If you see the requirements for licensing, you'll need to fill out an Like shooting fish in a barrel-Make full or PDF application, or club a paper application.

The application requires the post-obit information:

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

Post the completed application and the $330 application fee to:

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

Later the CSLB accepts the application, you'll receive a fingerprinting parcel (which costs actress). Accept care of that ASAP, every bit the exam notice should arrive within three weeks. If yous take to reschedule the examination, additional fees volition apply.

4. Complete a background cheque

One time the CSLB accepts your application, you'll accept to submit fingerprints as part of the criminal background check. The CSLB will contact yous with how to get these taken intendance of, where y'all tin go, and ultimately, how much it will cost.

After fingerprinting, a random selection process could require you lot to verify your work experience. You can utilise an employer, a General Contractor, a foreman or supervisor, also equally another journeyman for this step in the process. That person volition demand to verify that you accept the experience required to run a construction business concern.

Criminal background exclusions

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

That said, the board may issue a license if y'all've shown sufficient rehabilitation.

If you're qualified, fingerprinted, and verified, y'all can schedule your CSLB examination.

5. Laissez passer the California contractor licensing exam

Beyond the basic didactics and experience requirements, California contractors have to laissez passer a licensing exam. In one case the CSLB accepts your application, you'll have to sign up for an exam at 1 of the following locations:

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

Regardless of license, y'all'll accept to laissez passer a Law and Business department to confirm that you lot're familiar with the laws and regulations that govern construction. The other one-half of the test will cover bodily cognition of the trade (or trades, in the Class B instance).

Depending on the license type, an additional merchandise-centric section might be a requirement. This section will ensure that the applicant has practical noesis of the codes, best practices, and methods for the specific line of work for which they practical.

6. Submit bonding & insurance documents

If you pass, y'all'll take more paperwork to do. You have to submit proof of your bond, worker'due south compensation, and liability insurance. You'll likewise take to pay an initial licensing fee.

How much does a California contractor's license toll?

At a minimum, the total cost for a California contractor'south license is $579. That does not include any actress fees for additional fingerprinting or a rescheduling an test.

  • The application for licensing is $330.
  • The fee for the actual license is $200, and it's valid for ii years.
  • Yous'll need fingerprints taken to ensure that your criminal background is accurate. The fee for fingerprinting is usually $49. Fees for additional fingerprint rolling are a possibility.
  • If you take to reschedule your exam for whatever reason, in that location is a fee of $threescore.

Renewal fees

Once yous have your license, you'll take to maintain it with the CSLB. Active licenses expire every 2 years, while inactive licenses elapse every four. The CSLB will send a renewal application roughly lx days before your license is due to expire. You need to fill it out and send it back with the renewal fee.

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

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

Reciprocity: Transferring a license from another country

If you already hold a license in another country, California may make it easier for you. The three states that California offers a reciprocal license with are Arizona, Nevada, and Louisiana.

In lodge to qualify for reciprocity, you must be applying for a license that appears on California'due south State Reciprocal Classification List. You must have held that license in adept continuing for the previous five years.

You'll then need to submit a Request for Verification of License, completed by the already-licensed entity. After that, it's an Application for Original Contractor'due south License.

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

Licensing timeline

Ultimately, it's hard to provide even a rough timeline to suggest how long it will take you to get your license from get-go to stop, fifty-fifty if you laissez passer your examination on the first go. To become an idea of where each CSLB testing location is in the awarding process, you tin bank check the CSLB Processing Times.

Penalties for unlicensed contractors

California takes unlicensed contract piece of work very seriously. They hitting you where it hurts – both in your walletand with potential criminal penalties (nosotros'll get to those in a second).

Financial penalties

If you are supposed to accept a license, and do non, you have zero recourse for payment in any way. Zilch. Nada.

Nether California constabulary, an unlicensed contractor "may not bring or maintain" whatever 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 functioning of the job.

Keep the phrase "at all times" in mind. Even if y'all were licensed when you started a project, if your license expires or is suspended for whatsoever reason, the same penalties apply.

Perhaps even more than astringent than that is the "disgorgement" principle. It's an ugly sounding word, just it basically just means to "give dorsum" sick-gotten gains. An unlicensed contractor may exist required to disgorge ("give back") whatever past compensation.

And so any money that you fronted for materials and labor are at present lost. What'south even worse? Yous may terminate upwards paying taxes on the coin earned likewise!

Criminal penalties

Now on to criminal penalties! A showtime criminal offense of unlicensed contractor work is a misdemeanor which tin can include up to 6 months jail time and/or $5,000 fine. That doesn't include administrative fines that can range anywhere from $200 to $15,000.

A second criminal offence comes with a mandatory 90 day jail time and a fine of either twenty% of the full contract toll or $5,000. If that wasn't enough, you can confront felony charges besides. If you illegally use another person'south license or pretend to exist licensed, it's considered a felony. So is unlicensed contract work during a declared land of emergency or disaster (unless the rules have been relaxed by the appropriate governing bodies).

The lesser line on licensing

California takes unlicensed contractor work very seriously . If you are a contractor or sub in California, it'due south well advised to not perform any work on a construction project 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

Description

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

Author

Alex Benarroche

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levelset

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