FAQ
What is a Contractor?
A Contractor is a person who has the skills necessary to manage the daily activities of a construction business, including field supervision.
Who must be a licensed Contractor?
Any business that undertakes work to construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement must be licensed by the Registrar of Contractors in order to undertake a project if the total cost of labor and material is $500 or more.
What are the Contractor license classifications?
A - General Engineering Contractor is one who works on fixed works, such as public works irrigation, streets, roads, parks excavations, etc.
​
B - General Building Contractor is one who works on structures built for the shelter for persons or animals requiring more than two unrelated trades or crafts. A general building contractor who performs only one trade on a job (with the exception of carpentry or framing) must have the Specialty Classification for that trade.
​
C - Specialty Contractor: is one whose construction work requires special skills and whose principal contracting business involves the use of specialized building trades or crafts (i.e., electricians, plumbers, landscapers, painters, etc.)
What are the requirements to apply for a Contractors License?
Must be 18 years or older
4 years of experience in the trade at the journeyman level
a person to vouch your experience
valid SSN or ITIN
Are there any financial requirements to meet in order to qualify for a contractors license?
No, you don’t have to meet any financial requirements to qualify for a contractor’s license.
You will need to have a $15,000 bond in place before you become licensed. The bond is filed for the benefit of consumers who may be damaged as a result of defective construction or other license law violations, and for the benefit of employees who have not been paid wages that are due to them. In lieu of a contractor’s bond, you may file a $15,000 cashier's check with CSLB. The bond of a qualifying individual is $12,500.
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.
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:
There is a common ownership of at least 20 percent of the equity of each firm for which the person acts as a qualifier; or
The additional firm is a subsidiary of or a joint venture with the first; or
The majority of the partners or officers are the same.
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.
What are the penalties for contracting 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.
There are serious penalties for unlicensed contracting and the Contractors State License Board (CSLB) seriously pursues violators. The CSLB has Statewide Investigative Fraud Team(s) that conduct stings and sweeps on a regular basis focusing on the underground economy.
First time offenses for contracting without a license are usually a misdemeanor, carrying a potential sentence of up to six months in jail and/or a $500 fine, along with a potential administrative fine of $200 to $15,000.
The penalties go up with subsequent violations. A second conviction can mean a fine of 20 percent of the contract price of the work performed, or a $4,500 fine. Also, the unlicensed contractor shall be confined to jail for no less than 90 days.