General Infomation

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 must be 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 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.

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 Contractors Division 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 Contractors Division does not issue licenses to Limited Liability Companies (LLC's).

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 costs on one or more contracts is less than $500 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 $500 in an attempt to meet the $500 exemption. Unlicensed contractors must provide the purchaser with the written disclosure in B&P Code section 7048 stating that they are not licensed by the Contractors Division, or the $500 exemption does not apply and that a citation can be issued for work completed by an unlicensed contractor;
• An employee who is paid wages, who does not usually work in an independently established business, and 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;
• 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;
• A seller of installed carpets who holds a retail furniture dealer's licenses but who contracts for installation of the carpet with a licensed carpet installer;
• 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 California Contractors Division).
• 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.

Do I have to reside in California to get and keep a contractor's license?

No.

Does California recognize contractors' licenses issued by other states or countries?

*Note: Waiver Changed by CA State Contractors Division

*7065.1(a) License Exam Waivers Discontinued

Effective September 1, 2004, except in cases of family-owned partnerships and corporations, the CA State Contractors Division is no longer granting license exam waivers based on section 7065.1(a) of the Contractors License Law. Under this provision, the Registrar may, but is not required to waive the exam portion of the license application if the applicant has been listed on a license and actively engaged in the contracting business for five of the last seven years. In each of the last two fiscal years, approximately 8,600 license applicants applied for an exam waiver. It is estimated that roughly 20-25 percent of those waiver applications fell under section 7065.1(a). About one-third of all waiver requests are rejected for failure to meet requirements. "Waiver applications take considerably longer to process and have a significantly higher rejection rate," explains Licensing Unit Chief, Michael A. Brown. "The change in policy is consistent with the CA State Contractors Division efforts to ensure applicants possess the required qualifications and experience, while maximizing the effectiveness of reduced staff resources." Applications postmarked after September 1, 2003, are subject to the new policy were processed as exam applications and the qualifiers will be required to take the license exam. All 7065.1(a) applications postmarked September 1 or earlier will continue to be processed as waiver applications. License exam waiver provisions in 7065.1(b) (family member waiver for sole-owner license) and 7065.1(c) (waiver to replace a corporate qualifier) may still be granted.< 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 State of California Contractors Division.

What happens if I contract without a license?

A contractor's license is not necessary as long as you advertise yourself as an unlicensed contractor, provide your customers with a written statement that you are unlicensed, and never contract for jobs costing $500 or more, including labor and materials.

The Contractors Division has established statewide investigative fraud teams that focus on unlicensed contractors and the underground economy. These units conduct stings and sweeps to curtail illegal contracting activities.

Contracting without a license is a misdemeanor. Unlicensed contractors face potential sentences of up to one year in county jail and potential administrative fines from $200 to $15,000. Stings and sweeps are publicized to ensure maximum consumer education.

How many classifications may I apply for at a time?

In most cases, you must file a separate Application for Additional Classification for each classification you are requesting. However, all of the C-61 (Limited Specialty) classifications you request may be applied for on one application.

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, and the date of issue; and a permanent plastic pocket card showing the license number, business name, classification(s), certification(s) (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.

Experience & Education Requirements

7065.1(a) License Exam Waivers Discontinued

Effective September 1, except in cases of family-owned partnerships and corporations, the CA State Contractors Division is no longer granting license exam waivers based on section 7065.1(a) of the Contractors License Law. Under this provision, the Registrar may, but is not required to waive the exam portion of the license application if the applicant has been listed on a license and actively engaged in the contracting business for five of the last seven years. In each of the last two fiscal years, approximately 8,600 license applicants applied for an exam waiver. It is estimated that roughly 20-25 percent of those waiver applications fell under section 7065.1(a). About one-third of all waiver requests are rejected for failure to meet requirements. "Waiver applications take considerably longer to process and have a significantly higher rejection rate," explains Licensing Unit Chief, Michael A. Brown. "The change in policy is consistent with the CA State Contractors Division efforts to ensure applicants possess the required qualifications and experience, while maximizing the effectiveness of reduced staff resources." Applications postmarked after September 1, 2003, are subject to the new policy were processed as exam applications and the qualifiers will be required to take the license exam. All 7065.1(a) applications postmarked September 1 or earlier will continue to be processed as waiver applications. License exam waiver provisions in 7065.1(b) (family member waiver for sole-owner license) and 7065.1(c) (waiver to replace a corporate qualifier) may still be granted.

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

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:

• A journeyman is a person who 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 is a person who has the knowledge and skill of a journeyman and directly supervises physical construction.
• A contractor is a person who manages the daily activities of a construction business, including field supervision.
• An owner-builder is a person who has the knowledge and skills of a journeyman and who 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 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.

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.

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.

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 Contractors Division may credit training, apprenticeship, or education as follows:

1. A maximum of 1-1/2 years upon submission of transcripts of the following:
• An A.A. degree from an accredited school or college in building or construction management
2. A maximum of two 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
• Substantial college or university course work in accounting, architecture, business, construction technology, drafting, economics, engineering, mathematics, or physics.
3. A maximum of three 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.

Applying for a License

Note: Pursuant to California law* (*Business and Professions Code Sections 144 and 7069.), all applicants for a Contractors State License Board (CSLB) license are required to submit a full set of fingerprints for the purpose of conducting a criminal background check. Fingerprints will be compared to the records of the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) to determine whether a criminal history exists.

All new applicants and each officer, partner, owner and responsible managing employee thereof as well as all home improvement salespersons will have to submit fingerprints. Individuals who are currently licensed by the CSLB and do not apply for any changes to his/her license, and applicants for a joint venture license will not be required to submit fingerprints.

After submitting your completed application fom you will be notified about how to be fingerprinted.

How do I apply for a contractor's license?

You must complete the following steps:

1. Obtain an Application for Original Contractor's License or call us at 1-800-966-9596.
• Take the time to read and follow carefully the instructions attached to the application. Note especially that if you are applying for credit for experience, all experience and certifications in support of experience must be submitted with the application. No experience verification will be accepted after the application has been accepted.
2. Complete the application and all accompanying forms in ink or with a typewriter. Forms completed in pencil will be returned to you.
• Proofread your application for any omissions. If the Contractors Division has to return the application to you for any missing information, your license will be delayed.
3. Sign and date the application;
• NOTE: Applicants with a disability requiring special testing accommodations must complete Form 13E-77, Special Accommodation Request For Examination.
4. Submit the $250 to the Contractors Division nonrefundable application processing fee. Note the $50 fee for each additional classification..
   
   • You may apply for only one classification, which requires passing an examination. After your license is issued, you may apply for additional classifications that you qualify for.
   • You may only submit an application for more than one classification at a time if you have already qualified for each of the classifications you are applying for.
5. Obtain Fingerprinting.
• After submitting your completed application fom you will be notified about how to be fingerprinted.

Licensing Examinations

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

Yes, the qualifying individual for a contractor's license is required to:

• Pass the written Law and Business test(unless he or she meets the requirements for a waiver)

and

• Pass a second test covering the specific trade or certification area for which they are applying, with the exception of the C-61 Limited Specialty Classification. No trade examination is required for this classification (C-61).

You are given 18 months to pass the examinations. If you do not pass within 18 months after your application is accepted by the California Contractors Division and 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.

Under what circumstances is a waiver of an examination granted?

7065.1(a) License Exam Waivers Discontinued

Effective September 1, 2004, except in cases of family-owned partnerships and corporations, the CA State Contractors Division is no longer granting license exam waivers based on section 7065.1(a) of the Contractors License Law. Under this provision, the Registrar may, but is not required to waive the exam portion of the license application if the applicant has been listed on a license and actively engaged in the contracting business for five of the last seven years. In each of the last two fiscal years, approximately 8,600 license applicants applied for an exam waiver. It is estimated that roughly 20-25 percent of those waiver applications fell under section 7065.1(a). About one-third of all waiver requests are rejected for failure to meet requirements. "Waiver applications take considerably longer to process and have a significantly higher rejection rate," explains Licensing Unit Chief, Michael A. Brown. "The change in policy is consistent with the CA State Contractors Division efforts to ensure applicants possess the required qualifications and experience, while maximizing the effectiveness of reduced staff resources." Applications postmarked after September 1, 2003, are subject to the new policy were processed as exam applications and the qualifiers will be required to take the license exam. All 7065.1(a) applications postmarked September 1, 2004 or earlier will continue to be processed as waiver applications.

License exam waiver provisions in 7065.1(b) (family member waiver for sole-owner license) and 7065.1(c) (waiver to replace a corporate qualifier) may still be granted.

The examination requirement is waived if the qualifying individual meets one of the following conditions: Read the above CA State Waiver Change.
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.

If you qualify for a waiver, you will be sent a notice requesting the required documents and fees be submitted.

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 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 California Contractors Division's records for any license that was active and in good standing, in the same classification applied for. 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.

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:

• 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
• 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.

Test Site Policy

This is a closed-book examination. No reference materials may be used during the examination. All materials brought to the examination site must be left in an unmonitored area at your own risk.

Test Type

The test is a multiple choice examination with four choices per question. Some questions require mathematical computation. Examination questions are written to provide only one BEST answer and are NOT written as trick 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

All correct answers have equal value and there are no score reductions for wrong answers. Therefore, all examination questions should be answered.

Ample time is provided to answer all examination questions, so be sure to read each question and its four choices completely and carefully before selecting the BEST possible answer to the question.

Special Accommodation Request For Examination

In compliance with the Americans with Disabilities Act (ADA), Public Law 101-336, the CA State Contractor Division provides "reasonable accommodations" for applicants with disabilities that may affect their ability to take required examinations. It is the applicant's responsibility to notify the CA State Contractor Division of alternative arrangements needed. The CA State Contractor Division is not required by the ADA to provide special accommodations if they are unaware of specific needs. To request special accommodations, submit Form 13E-77, Special Accommodation Request For Examination.

How long does the examination take?

You will be given 2 -1/2 hours to complete each examination

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.

What should I bring to the examination site?

You will need:

• Your Notice to Appear for Examination to be admitted to the test center.
• You must also bring picture identification (either a current valid driver's license, Department of Motor Vehicles identification card, or military identification card).
• You may also bring a scale ruler. Pencils, scratch paper, calculators and rulers will be provided at the test center.
• No personal calculators, cell phones or pagers 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 do not watch the storage area.

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.

If I fail to appear for an examination may I retake the examination(s)?

Yes. If you fail to appear for an examination, you must pay a $50 rescheduling fee. 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 to appear a second time, your application will be considered void, and you will have to submit a new application with new fees.

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

You are given 18 months to pass the examinations. If you do not pass within 18 months after your application is accepted by the California Contractors Division and 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.

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.

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 California Contractors Division. (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.

Test Preparation

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 CA Contractor School Online @ www.cacontractorschoolonline.com or call 1-800-966-9596.

How can I prepare for the Law and Business examination?

Contact the California Contractor School Online and they will assist you. Website address is www.cacontractorschoolonline.com or call 1-800-966-9596.
The California License Law is not sold at any California Contractors Division's office. Other suggested study materials contact the CA Contractor School Online www.cacontractorschoolonline or call 1-800-966-9596. All study guides are available on the California Contractor School Online Web site, www.cacontractorschoolonline.com , or by calling 1-800-966-9596.

What does the Law and Business examination cover and how can I prepare for my trade or certification examination?

A study guide for each exam study guide is available from the Contractor School Online @ www.cacontractorschoolonline.com or call 1-800-966-9596.

License Issuance

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 California Contractors Division does not issue licenses to Limited Liability Companies (LLC's).

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. 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.

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 California Contractors Division while the license is inactive.

To whom does the term "qualifying individual" refer?

A qualifying individual, or simply "qualifier," is the person listed on the California Contractors Division 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 California Contractors Division.

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.

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;
  
• 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.

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 California Contractors Division'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.

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

The California Contractors Division's applications and other forms include questions regarding criminal convictions. The California Contractors Division 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 are 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.

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.