Author Archives: CSLS

About CSLS

Contractors State License Service (CSLS) is the largest school in California devoted to the Construction professional. For over 23 years, CSLS has helped its students pass the exam to become licensed contractors in the State of California, licensing more students than any other school. From our main offices in Southern California, CSLS operates over 25 locations with full-service support and classrooms. We have grown to this extent by providing quality, professional services. In comparison, this provides 7 times the number of convenient locations than the second largest contractor school. Contractors State License Services is one of the only contractor schools in the state that is run by educators, not lawyers or people mostly interested in the bonding and insurance business. Contractors State License Services formerly operated under the oversight of the State of California's Bureau for Private Post Secondary and Vocational Education. As of January 1 2010, the new Bureau for Private Postsecondary Education (BPPE) came into existence replacing the BPPVE. CSLS now operates under the provisions of the California Private Postsecondary Education Act of 2009 (CPPEA), Article 4 Section 94874(f). Our Mission is simple; We can help you pass your California Contractors License Exam. Celebrating our 25th year, CSLS has helped over 120,000 students pass the California contractor licensing exam to become licensed contractors in the State of California. Additionally, we offer complete home study and online contractor’s license programs to help you pass your California contractors license exam. CSLS offers licensing classes for all types of contractor licenses, including General Engineering Contractor, General Building Contractor, Specialty Contractor, Insulation and Acoustical Contractor, Framing and Rough Carpentry Contractor, Cabinet, Millwork and Finish Carpentry Contractor, Concrete Contractor, Drywall Contractor, Electrical Contractor, Elevator Contractor, Landscaping Contractor, Warm-Air Heating, Ventilating and Air-Conditioning Contractor, and many others. For a complete list of contractor licenses, visit www.MakeMeAContractor.com and tuned for more informative posts.

The Most Common California Contractors License Violations and How to Steer Clear

In the bustling construction industry of California, maintaining a valid contractor’s license is essential for success. Not only are licensed contractors seen as more legitimate by clients, but it’s also illegal to do construction work over $500 in California without a valid Contractors State License Board (CSLB) contractor license.

However, navigating the sometimes-confusing rules and regulations set forth by the CSLB can be a daunting task. To keep your business on the straight and narrow – and bringing in money –  it’s vital to be aware of the most common California contractors license violations and how to avoid them. 

In this article, we’ll shine a light on these common pitfalls and provide you with the knowledge to dodge them like a pro. So, let’s get started!

Violation #1: Working Without a License

Avoiding the Unlicensed Trap

As we stated earlier, you CANNOT perform work in California on jobs over $500 without holding a valid California contractor license specific to your area of work. 

One of the most common California Contractors License Violations is working without a valid license. That includes if you’re a license holder whose license has expired, or if you’re a seasoned construction worker working under another person who may have a license.

The remedies to this situation are fairly obvious. Make sure you have a license. Here’s how:

  • Obtain a contractor’s license from the CSLB before starting any construction work exceeding $500 in labor and materials.
  • Renew your license promptly and maintain an active licensing bond at all times
  • Keep your license information up-to-date, reporting any changes to the CSLB ASAP

Violation #2: Misleading Advertising

Honesty Is the Best Policy

Inaccurate or misleading advertising can land you in hot water with the CSLB. Never advertise anything that you can’t do, and never advertise your services for jobs that are outside of your classification (such as, bidding for plumbing jobs as a roofing contractor).

What’s misleading can be open to interpretation, but in general, keep things obvious and direct about who you are, what jobs you can do and what customers can expect you to deliver. At the end of the day, play it safe.

Remember to:

  • Accurately represent your company, services, and experience. Do not oversell your credentials.
  • Display your contractor’s license number on all advertisements, including websites, business cards, and promotional materials.
  • Avoid making false claims or guarantees that you cannot fulfill.

Violation #3: Unlawful Contracts

Crafting Compliant Contracts

An improperly drafted contract can result in violations and potential legal issues. It’s prudent to have a business or construction lawyer look over EVERY contract you send out to a potential customer, to avoid any issues down the road. 

To ensure your contracts are up to snuff, follow these guidelines.

  • Include your contractor’s license number, business name, and address on all contracts.
  • Clearly outline the project scope, timeline, and payment terms.
  • Obtain all necessary permits and approvals before commencing work.
  • Provide a written “Notice to Owner” document, explaining the owner’s rights and responsibilities under California law.

Violation #4: Inadequate Workers’ Compensation Insurance

Protecting Your Team

Workers Compensation insurance is now a CSLB requirement as of 2023. Failing to provide adequate workers’ compensation insurance is a serious violation and will result in you having your license pulled.

You MUST have workers’ comp insurance for EVERY employee you have, even day laborers and you must provide documentation to the CSLB about your workers’ comp insurance.

To keep your team protected and avoid penalties, be sure to:

  • Obtain workers’ compensation insurance for all employees, even part-time or temporary workers.
  • Maintain coverage at all times and notify the CSLB of any changes in coverage.
  • Provide proof of insurance to the CSLB when renewing your contractor’s license.

Violation #5: Unapproved Job Site Supervision

Keeping an Eye on Your Projects

Overseeing your projects is a crucial aspect of contractor responsibilities. As a contractor, you are responsible for your work sites. Even if you have someone else stepping in for you as a foreman or as a manager, you are still responsible for workplace safety and supervision.

To avoid violations related to job site supervision, always:

  • Assign a qualifying individual or responsible managing employee to supervise all projects. This means someone who is also a CSLB certified contractor.
  • Ensure the supervisor is on-site regularly and is familiar with the project’s progress, materials, and personnel.
  • Maintain open communication with your clients and address any concerns promptly.

Violation #6: Improper Classification

Stay In Your Lane

Performing work outside of your CSLB contractor’s license classification is a quick way to having your license suspended – and facing criminal consequences.

There’s only one bullet point here, and it’s fairly obvious:

ONLY perform work that falls under your classificaiton. If you are a plumber, you CANNOT perform electrical work. If you are a general contractor with a Class B license, you need to hire roofers, HVAC techs and so on. You cannot perform this work yourself, even if you know how to do it.

Conclusion

By being aware of the most common California Contractors License Violations and taking proactive steps to avoid them, you can ensure your business remains compliant with state regulations and thrives in the Golden State’s competitive construction industry. 

Navigating the complex world of contracting can be challenging, but with a solid understanding of the potential pitfalls and the know-how to dodge them, you’ll be well on your way to a successful and profitable construction business in California. So, stay informed, be vigilant, and let your dedication to excellence speak for itself. Good luck, and happy building!

Complete Guide To California Contractors License Bonds

If you’re a contractor in California – or looking to get your license – you know you need to have a License Bond to get your California contractor’s license. In the CSLB’s own words: 

“A Contractor’s Bond must be in place before CSLB can issue an active license, reactivate an inactive license, or renew an active license. (Business and Professions Code Section 7071.6).”

As a general contractor or a specialized contractor in California, it’s critically important to understand the ins and outs of the California Contractors License Bond. 

This article will take an in-depth look at California contractor license bonds. We’ll cover everything you need to know about how to get your bond and start working as a contractor today.

What’s the Purpose of the California Contractors License Bond?

A Safety Net for Consumers

The California Contractors License Bond exists primarily to protect consumers from any financial loss resulting from a contractor’s failure to meet their contractual obligations. 

Basically, a Contractor’s License Bond exists to make sure that consumers are protected by sketchy or unscrupulous contractors who perform poor work or don’t perform the work agreed upon in the contract. In the case of a project that doesn’t meet expectations, the client who hired the contractor will at least be protected financially by this bond.

At the end of the day, the licensing bond serves as a safety net, ensuring that contractors will adhere to the rules and regulations set forth by the Contractors State License Board (CSLB) – which is critical to maintaining trust between contractors and clients.

Who Needs to Obtain a California Contractors License Bond?

The Licensing Requirement

If you’re looking to perform construction work in California that exceeds $500 in labor and materials, you’ll need to secure a California Contractors License Bond. 

In other words, if you’re looking to do any sort of construction work beyond simple handyman jobs, you’ll need a valid CSLB contractor’s license. And in order to get a contractor’s license, you’ll need to provide a surety bond.

This requirement applies to any sort of construction work. If you’re a plumber, you need a licensing bond. If you’re a solar installer, you need a licensing bond. If you’re a general contractor, heck, if you’re an engineer with a Class A license, you need a licensing bond.

How Much Coverage Do I Need? 

Changes To The Required Bond Amount

Heads up! As of January 1, 2023, bond amount requirements have increased. In the past, contractors were required to provide contractor license bonds in the amount of $15,000. That has changed!

As of 2023, you now need to provide a bond in the amount of $25,000 to the CSLB to get your contractor’s license. 

How Much Does the California Contractors License Bond Cost?

Crunching the Numbers

The bond amount required by the CSLB is currently set at $25,000. However, contractors don’t pay the full bond amount upfront. 

Instead, they pay a premium, which is typically a percentage of the bond amount. The premium rate varies depending on the contractor’s credit score and other factors, such as:

  • Financial standing
  • Industry experience
  • Claims history
  • Disciplinary record

Contractors with good credit can expect to pay a premium of 1-3% of the bond amount, while those with less-than-stellar credit might pay a premium of 5-15%.

In general, you can get a contractor’s bond in California from roughly $100-$500.

How Do I Obtain a California Contractors License Bond?

Securing the Bond

To obtain a California Contractors License Bond, follow these steps:

  1. Contact a surety bond company or insurance agency authorized to issue contractor license bonds in California.
  2. Complete the bond application, providing your business information, license number, and other required details.
  3. Undergo a credit check and other underwriting procedures to determine your premium rate.
  4. Pay the required premium and receive your bond.

Once you’ve secured the bond, submit a copy of it to the CSLB to complete your licensing process.

Where Can I Find A CSLB-approved Contractor Bond Provider?

Get Your Bond From A CSLB-verified Contractor

Finding a reputable company to supply your contractor’s license bond isn’t difficult – there are dozens of insurance and bonding companies in California that offer low-cost bond packages for contractors.

 

However, all bond providers MUST be approved by the CSLB, so make sure you are buying a contractor’s bond from a CSLB-approved provider. 


As of February 2023, here is the full list of approved surety companies. 

 

  • Allegheny Casualty Company
  • American Alternative Insurance Corporation
  • American Casualty Company of Reading Pennsylvania
  • American Contractors Indemnity Company
  • American States Insurance Company
  • Arch Insurance Company
  • Argonaut Insurance Company
  • Aspen American Insurance Company
  • Atlantic Specialty Insurance
  • Berkley Insurance Company
  • Berkley Regional Insurance Company
  • Berkshire Hathaway Specialty Insurance Company
  • Bond Safeguard Insurance Company
  • Business Alliance Insurance Company
  • Capitol Indemnity Corporation
  • Cincinnati Insurance Company (The)
  • Colonial Surety Company (only the contractor bond endorsement)
  • Continental Casualty Company
  • Continental Insurance Company (The)
  • Contractors Bonding and Insurance Company
  • Employers Mutual Casualty Company
  • Endurance Assurance Corporation
  • Everest Reinsurance Company
  • Federal Insurance Company
  • Fidelity and Deposit Company of Maryland
  • Financial Pacific Insurance Company
  • First National Insurance Company of America
  • Granite Re, Inc dba Granite Surety Insurance Company
  • Gray Casualty & Surety Company (The)
  • Gray Insurance Company (The)
  • Great American Insurance Company
  • Great Midwest Insurance Company
  • Hanover Insurance Company (The)
  • Harco National Insurance Company
  • Hartford Fire Insurance Company
  • Hartford Insurance Company of the Midwest
  • Hudson Insurance Company
  • Jet Insurance Company
  • Lexon Insurance Company
  • Liberty Mutual Insurance Company
  • Markel Insurance Company
  • Merchants Bonding Company (Mutual)
  • National Fire Insurance Company of Hartford
  • Nationwide Mutual Insurance Company
  • Navigators Insurance Company
  • Old Republic General Insurance Corporation
  • Old Republic Surety Company
  • Pacific Indemnity Company
  • Philadelphia Indemnity Insurance Company
  • Platte River Insurance Company
  • RLI Insurance Company
  • Safeco Insurance Company of America
  • State Farm Fire and Casualty Company
  • St Paul Fire and Marine Insurance Company
  • SureTec Insurance Company
  • Swiss Re Corporate Solutions America
  • Swiss Re Corporate Solutions Premier
  • The Guarantee Company of North America USA
  • The North River Insurance Company
  • The Ohio Casualty Insurance Company
  • Travelers Casualty and Surety Company
  • Travelers Casualty and Surety Company of America
  • Trisura Insurance Company
  • United Fire & Casualty Company
  • United States Fire Insurance Company
  • United Surety Insurance Company
  • Universal Surety of America
  • U S Specialty Insurance Company
  • Vigilant Insurance Company
  • Wesco Insurance Company
  • Westchester Fire Insurance Company
  • Western National Mutual Insurance Company
  • Western Surety Company
  • XL Specialty Insurance Company
  • Zurich American Insurance Company

You can find more information on the CSLB’s bond page here.

Can I Get a California Contractors License Bond with Bad Credit?

Don’t Give Up Hope

While it’s true that having bad credit can make obtaining a California Contractors License Bond more challenging, it’s not impossible. Many surety bond companies offer bonds for applicants with less-than-perfect credit. However, expect to pay a higher premium rate if your credit history is less than stellar.

How Long Does the California Contractors License Bond Last?

Bond Validity

The California Contractors License Bond is valid for a period of one or two years, depending on the bond’s terms. 

Contractors are required to maintain an active bond at all times during their licensing period. Failure to do so can result in penalties or even the suspension of your contractor’s license.

What Happens if There’s a Claim Against My Bond?

The Claim Process

If a consumer files a claim against your California Contractors License Bond, the surety company will investigatethe claim to determine its validity. If the claim is deemed valid, the surety company will pay the claimant up to the bond amount. However, as the contractor, you are ultimately responsible for repaying the surety company for any claim payouts, as well as any legal fees associated with the claim.

To avoid claims, it’s essential to adhere to the rules and regulations set forth by the CSLB, honor your contracts, and provide high-quality workmanship.

What’s the Difference Between a Contractors License Bond and Insurance?

Bonds vs. Insurance

While both bonds and insurance are designed to protect parties from financial loss, they serve different purposes and offer distinct forms of protection. Generally speaking, bonds are to protect the consumer, whilst insurance is there to protect you and your company from liability.

A California Contractors License Bond protects consumers by ensuring that contractors adhere to CSLB rules and regulations. If a contractor fails to meet their obligations, the bond will cover the consumer’s financial loss.

Contractors’ insurance, on the other hand, protects the contractor and their business from financial loss due to property damage, bodily injury, or other liabilities that may arise during the course of their work.

As a contractor, it’s important to have both a bond and adequate insurance coverage to protect yourself and your clients.

Conclusion

The California Contractors License Bond is an essential requirement for contractors operating in the Golden State. By understanding the ins and outs of this bond, you’ll be better equipped to navigate the bonding process and maintain compliance with the CSLB requirements.

Remember to keep in mind the California Contractors License Bond’s purpose, cost, validity, and the process of obtaining and maintaining one. Additionally, be aware of how to handle claims and the difference between a bond and insurance. With this knowledge, you’ll be on the path to a successful and thriving contracting business in sunny California!

 

How to Check the Status of Your California Contractors License Application

Applying for a California Contractors License is a significant step toward building a successful construction business in California. You’ve taken the test and passed – but now you don’t know where your application is in the process. Or maybe you took the test a while ago and aren’t sure where you are and what the next steps are.

In this article, we’ll guide you through the process of checking the status of your California Contractors License Application, so you can know exactly where you are in the process of becoming a California contractor. Let’s dive in!

Step #1: Gather Your Application Details

Prepping for the Check

Like any application check, you’ll need to have all of your information on hand to even perform the check. Before checking your application’s status, ensure you have the following information handy:

  • Your Application Fee Number: This number is assigned to your application when you pay the initial application fee.
  • Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): The CSLB will use this to identify your application.

With this information on hand, you can easily check the status of your application. 

Step #2: Visit the CSLB Website

Navigating to the Right Place

To check the status of your California Contractors License Application, you’ll need to head to the Contractors State License Board’s website. Once there, follow these simple steps:

Locate the “Online Services” menu.

  1. Click on the “Check a License” or “Check an Application” link.

You can also go directly to the Application Check Status page by clicking this link.

Step #3: Enter Your Information

Getting Down to Business

On the “Check an Application” page, you’ll need to input the necessary details:

  1. Type in your Application Fee Number or Contractor PIN # in the box. They may ask you to provide your SSN or ITIN in the next step, where applicable.

After entering your information, click the “Submit” button to proceed.

Step #4: Review Your Application Status

Keeping Your Finger on the Pulse

Once you’ve submitted your information, the CSLB will provide an overview of your application’s current status. This will include:

  • The current processing stage: This indicates which part of the licensing process your application is in, such as background check, exam scheduling, or bond submission. 
  • Any outstanding requirements: If there are any missing documents or unfulfilled requirements, the CSLB will list them here.

Any and all of these steps will help you understand where your application is at, and any steps you may need to take to complete your application. Any further information you may need can be acquired by contacting the CSLB directly.

What to Do if Your Application is Delayed or Denied

Navigating Potential Roadblocks

If your application is delayed or denied, don’t worry – the CSLB is there to help you move through the process. Usually, the information to fix your delay or denial will be available online in your application status, but you may need to take further steps to understand the issues.

To resolve any problems, take the following steps:

  1. Review the CSLB’s feedback and identify the specific issue(s).
  2. Gather any necessary documentation or complete any required actions, such as retaking an exam or providing additional references.
  3. Contact the CSLB directly if you need further clarification or guidance.

By proactively addressing any delays or denials, you’ll increase your chances of successfully obtaining your California Contractors License – so you can get to work right away and start making more of that beautiful, beautiful green.

Conclusion

Checking the status of your California Contractors License Application is a crucial aspect of staying informed and ensuring a successful licensing process. By following the steps outlined in this article, you can confidently monitor your application’s progress and address any potential roadblocks that may arise.

How Long Does It Take to Get Your License After The CSLB Exam?

Becoming a licensed contractor in California is a significant milestone for any contractor – it means you can take on projects over $500 and allows you to work in your area of specialty, whether that’s Class B general contracting or Class C work like HVAC or electrical. 

Once you’ve taken the Contractors State License Board (CSLB) exam, you’re probably wondering, “How long does it take to get your license after taking the CSLB exam? I want my license now so I can start making some money!”

We got you. In this article, we’ll break down the process and timeline, so you know what to expect and how to speed things up as best you possibly can – so you can get to work as a licensed contractor in California.

The License Issuance Process

Step by Step

After successfully passing the CSLB exam, you’ll get your results immediately, but there are a few steps you need to complete before receiving your contractor’s license. 

Here’s an overview of the process.

  1. Receive Your Exam Results.
    • Typically, you’ll receive your exam results immediately upon completion of the computer-based test immediately.
    • You must score at least a 72% on the exam to pass the CSLB exam.
  2. Submit Required Documents: If you’ve passed the exam, you’ll need to submit any outstanding documents to the CSLB, such as:
  3. License Activation: Once the CSLB receives and processes your documents, they’ll issue your contractor’s license number, activating your license.
    • This means you’re legally allowed to perform work as per your license’s guidelines! Alright!!! You’re a contractor!
  4. License Certificate: You’ll receive a physical license certificate by mail, typically within 1-2 weeks of your license activation.
    • This is just a certificate to prove you’re a contractor. Put it somewhere safe, but don’t worry about losing it – you’re still in the CSLB’s system, so unless your license expires, you’re still licensed.

The Timeline: How Long Does It Take to Get Your License?

From Exam to License

The time it takes to receive your license after taking the CSLB exam largely depends on how quickly you submit the required documents and how promptly the CSLB processes your information.

Generally, the process can take anywhere from 2-6 weeks.

Of course, the quicker you submit the required documents, the sooner you’ll receive your license – any delay on your end can add precious time to getting your license. CSLB processing times can also affect how long it takes to get your license. Certain times of the year or events affecting California can add time to this process. 

Luckily, the CSLB has an easy way to check how long their current processing times are on their website. 

Visit this link to check the current processing times, so you can know how long to expect the process to take for you.

Speeding Up the Process

Proactive Measures

While there’s no magic formula to guarantee a faster license issuance, there are a few things you can do to help speed up the process:

  • Submit Your Documents ASAP: As soon as you pass the CSLB exam, gather and submit all required documents without delay.
  • Ensure Accurate and Complete Documents: Double-check your documents for accuracy and completeness before submitting them to the CSLB. This will help prevent delays due to corrections or missing information.
  • Stay Informed: Keep track of your application status through the CSLB’s online services and promptly address any issues or requests from the Board.

Conclusion

So, how long does it take to get your license after taking the CSLB exam? 

While the exact timeline can vary depending on several factors, expect the process to take anywhere from 2-6 weeks. 

By being proactive, promptly submitting accurate and complete documents, and staying informed, you can help expedite the process and get your hands on that coveted California contractor’s license as soon as possible.

5 Things To Focus On When Hiring A Subcontractor As A Licensed Contractor

Working with a new subcontractor to do a crucial job on your commercial or residential project can test the nerves of even the strongest, most seasoned contractors.

While most contractors have a strong network of co-workers that they can trust, you never know when you’ll need to hire a specialist that’s outside of your network (we once had a client inadvertently demand a load-bearing lattice archway made out of granite!).

Here are 5 things to focus on when hiring subcontractors that you don’t know.

1. Verify Their License

According to a survey by the National Association of State Contractors Licensing Agencies, around 40% of contractor complaints are related to unlicensed activity. 

If you’re in a position where you’re hiring subcontractors to do jobs, you already know how important it is to make sure you’re doing in accordance with CSLB requirements – and California law. Step 1 is verifying your potential sub’s license.

First things first: get your subcontractor’s CSLB license number. Once you have that, you can check your potential sub’s license status with the CSLB using their online license checker. 

Once you’ve verified their contractor’s license, you can begin assessing their capabilities as a contractor.

2. Call Up Those References!

This is a no-brainer, but always request references from former clients and contact them to learn about their experience with the subcontractor. 

In many cases, the subcontractor you’re looking at is a friend of a friend or even maybe a family member of one of your existing employees or subs. While you may be tempted to take their word for it, you must make sure they’re not going to put you in legal and financial trouble by doing something stupid.

The best way to verify a contractor’s quality is by speaking to their former employees. That way you can get an objective viewpoint

3. Check Their Communication Skills

You can usually tell pretty quickly whether someone will be a good subcontractor by how they communicate.

Poor communication can increase project costs by up to 20%, so strong communication skills are absolutely necessary for success on a jobsite.

Especially when it comes to the sometimes-surly world of hiring subs, always check that the subcontractor you’re considering can actually communicate – with you and with others. People who can’t communicate have no place on a construction site, as it can not only harm the project but it also creates the potential for conflict or hazardous work situations.

4. Assess their Capacity and Flexibility

Research shows that 85% of projects exceed their initial timeline, so making sure your potential subcontractor even has the resources and time to commit to your project is critical to keeping things on track.

Determine their availability and willingness to work within your project’s timeline. This is your ship, not theirs. Also make sure they can adapt to potential changes in project scope – this is the construction industry, after all, and things are changing in scope or scale all the time. Any good subcontractor will have no problem adapting.

5. Establish An Onboarding Pipeline

If you’re hiring a subcontractor, you need to have all your stuff in order. You and your team need a robust process for hiring, paying and handling paperwork with regards to any subcontractors you hire.

You’ll also need to acquire Workers’ Compensation insurance and liability insurance as well. Establishing a process with your team to handle the administrative load of making sure all your insurance, licenses, contracts and paperwork are all in order is absolutely critical. Not only will it protect you legally, but it’ll make it quicker and easier to hire more people and grow your business.

Conclusion: Building a Robust Team of Subcontractors

Any general contractor worth their salt knows that any successful construction job hinges on the success of its weakest team member, so hire carefully and hire slowly.

At the very least, always always always make sure that your subcontractors are verified CSLB license holders, and you can protect yourself from the worst consequences of a hiring mishap.

Do I Need A License To Work On My Home In California?

In California, there is a way for property owners to act as their own contractors for construction projects that would otherwise need a contractor’s license – without having to go through the arduous process of obtaining a California State Licensing Board (CSLB) contractor license.

This exemption is called the Owner-Builder Exemption, and according to the CSLB, this exemption allows one to do work on residential construction projects on the owner’s property, provided that they are not intended for sale.

What’s an Owner-Builder?

According to the CSLB, an Owner-Builder is “Any individual or group of individuals who own the property on which they plan to construct, alter, repair, improve, or remodel a building or structure is considered an owner-builder.”

It’s exactly what it sounds like – someone who wishes to build, maintain, amend or otherwise do construction work on a property they themselves own.

The Owner-Builder’s Role

As an owner-builder, you are responsible for everything a regular Class “B” General Contractor would do. That includes managing your construction project, obtaining permits, and ensuring that your project complies with local building codes and regulations. Basically, you have all the same legal and financial responsibilities you would have if you hired a contractor to do the work for you.

Also, if you hire subcontractors or other workers to do jobs you can’t do (like HVAC or plumbing, for example), you will need to both verify their licenses and provide workers’ compensation insurance for every employee. It’s actually a lot of stuff!

Obtaining Permits and Following Regulations

Securing the necessary permits is necessary for Owner-Builders, and it’s up to YOU to understand and comply with your local regulations.

Failure to obtain proper permits, or building in ways that violate local building codes and bylaws can result in serious financial and legal penalties. Do your diligence before starting your work!

Unless you’re a contractor yourself, it makes sense to hire a contractor to do this work for you as building codes and regulations can be extremely difficult to navigate for people not in the industry.

Hiring Subcontractors

If you need to hire subcontractors to get the job done, you absolutely have to check their licenses to ensure that you are not liable for legal damages. 

Also, secure written contracts that outline the scope of work, payment terms, and project timeline. By doing so, you can protect yourself from potential legal disputes and ensure the project’s success.

Workers’ Compensation Insurance

As we said earlier, you have all the same legal requirements as a licensed contractor when working on your home. Amongst these requirements is Workers’ Compensation insurance for any workers.

When hiring workers, owner-builders must provide workers’ compensation insurance to cover any potential injuries or illnesses that may occur on the job site. This insurance is essential to protect both you and your workers in case of accidents or work-related health issues.

Sales Restrictions

While the owner-builder exemption makes it so property owners can handle construction projects without a contractor’s license, it does come with specific restrictions when selling the property, to prevent people from simply obfuscating the strict contractor license requirements.

California law stipulates that properties built under the owner-builder exemption cannot be sold within one year of obtaining the final inspection or certificate of occupancy. So if you’re looking to sell your home within a year, you CANNOT do work on it without a license. You must wait a full year before legally being able to sell.

Frequently Asked Questions (FAQs)

Q: What is an owner-builder?

A: An owner-builder is a property owner who opts to manage their residential construction project without hiring a licensed contractor. They are responsible for obtaining permits, following building codes, and providing workers’ compensation insurance.

Q: Do owner-builders need a contractor’s license?

A: It depends. Generally, owner-builders do not need a contractor’s license – but there are limitations. You don’t need a license as an owner-builder if you meet these CSLB-mandated requirements:

  • The owner-builder does the work himself or herself or through his or her own employees with wages as their sole compensation and the structure(s) is/are not intended for sale.
  • The owner-builder contracts with properly licensed subcontractor(s).
  • The owner-builder contracts with a General Building (“B”) contractor. 

Q: Do I need a contractor’s license to work on my home?

A: According to the CSLB, you do NOT need a contractor’s license to perform work on your home, so long as you fulfill the following requirements:

  • The work is performed prior to sale of the home
  • The homeowner resides in the residence for the 12 months prior to completion of the work
  • The homeowner has not taken advantage of this exemption on more than two structures during any three-year period

Q: Can an owner-builder hire subcontractors?

A: Yes, an owner-builder can hire subcontractors, but they must verify the subcontractors’ licenses and establish written contracts outlining the scope of work, payment terms, and project timeline. They must also hold proof or workers’ compensation insurance for every subcontractor.

Q: Is workers’ compensation insurance required for owner-builders?

A: Yes, owner-builders must provide workers’ compensation insurance when hiring workers to cover potential injuries or illnesses that may occur on the job site.

Q: Can I sell a property built under the owner-builder exemption?

A: Yes, you can sell a property built under the owner-builder exemption, but California law requires that you wait at least one year after obtaining the final inspection or certificate of occupancy before selling.

 

How to File a Complaint Against a Licensed Contractor in California

Whether you’re a homeowner who has experienced the reason why the Contractor’s State Licensing Board (CSLB) exists, or a contractor who has seen some sketchy work from a fellow “contractor”, you’re here because you need to file a complaint against a contractor.

Let’s not waste any time – here’s a comprehensive guide to preparing and executing on a contractor complaint.

The Basics

California has some of the strictest consumer protection laws in the country, and there are dozens of them. It’s important to have at least a basic understanding of these pieces of the law as you consider legal action against a contractor.

  • California Contractors State License Board (CSLB). The CSLB is the state agency that oversees contractor licensing. They specifically handle complaints as well, so this is the supervisory body that will handle the legal and financial repercussions of your complaint.
  • California Business and Professions Code Section 7000: This piece of legislation governs the licensing and regulation of contractors.
  • The Right to Repair Act. This act gives homeowners the right to request repairs and sets forth a process for resolving construction defect disputes. This is not the primary piece of legislation that you’ll use to enact your complaint, but it can be added onto any civil legal action.

It’s important to note – you will become VERY familiar with as you work through the complaint process. The other two pieces of contractor-related legal act are important to know about, but not critical for every situation.

Filing a Complaint: A Step-by-Step Guide

Step 1: Gather Your Evidence

No matter what has transpired, no matter how serious the matter, it’s always important for you to gather as much hard evidence of the malicious or negligent actions of the contractor as possible.

Paperwork is your friend here. In general, when dealing with contracts of any kind, it’s important to always get it in writing. You may trust your associate, and they may be honest in that moment, but things change quickly on a construction site. Make sure you’re protected. 

Here’s some key pieces of evidence to gather:

  • A written contract or other documents outlining the agreed-upon scope of work
  • Invoices, receipts, and other proof of payment
  • Photographs or videos showing the issues with the contractor’s work
  • Any communication with the contractor, such as emails, texts, or voicemails
  • Witness statements or expert evaluations, if applicable
  • Proof (or lack thereof) of a CSLB license
  • Any statements from former employers or clients
  • Any former CSLB complaints on the contractor

Step 2: Check the Contractor’s License

Before filing your complaint, ensure that the contractor is indeed licensed in California.

The first thing you’ll need is the contractor’s license. You may have to ask for your contractor’s number, but many will provide it on their invoices, license, or in some paperwork before you’ve engaged in work. 

Once you have their number you can check their license. You can verify their license status on the CSLB website. 

Be aware that if you ask for their license after a confrontation or serious event has taken place, it is possible that they may disappear. 

In either case, they may be licensed, they may be unlicensed. If a serious issue has taken place – especially in situations where you feel the health and safety of people are at risk – it’s important to report it to the CSLB.

Step 3: File Your Complaint with the CSLB

Once you have all the evidence and the necessary information to file a complaint against a licensed contractor in California, you can easily head to the CSLB website and complete the online complaint form 

You can find the link to the CSLB complaint form here.

Alternatively, you can request a paper form by calling their toll-free number at 1-800-321-CSLB (2752). Fill out the form, attaching any supporting evidence, and submit it to the CSLB.

Step 4: The Investigation Process

Once your complaint has been filed, the CSLB will review the information and determine if further investigation is warranted. In many cases, this is the last you’ll hear of it – the CSLB will usually handle the situation appropriately. 

If they need additional information, an investigator will be assigned to your case, and they may contact you for additional information or to schedule a site visit. Either way, they are trying to build a legal case against this individual or company to protect the public.

Step 6: Possible Outcomes and Next Steps

After the investigation is complete, the CSLB will decide on the appropriate course of action. Possible outcomes include:

  • Informal resolution. The CSLB may mediate a resolution between you and the contractor to make you whole. Basically, they will legally require the contractor to pay you back the damages you received as a result of their work.
  • Disciplinary action. If the contractor is found to be in violation of California law or licensing regulations, they may face disciplinary action such as fines, probation, or even license suspension or revocation. If they’re a repeat offender, they may see jail time.
  • Referral to a different agency. In extreme cases, your complaint may fall outside the CSLB’s jurisdiction. In that scenario, they may refer you to another agency that can better address your concerns. Usually, this would be a situation where it involved crossing state lines or similar Federal situations.

In some cases, the CSLB may determine that there is not enough evidence to take action against the contractor. That’s life – but it doesn’t mean it has to end there. 


The CSLB cannot prosecute every single case, and sometimes the burden of proof is greater than what would net a result in civil court. If you think you’ve got a case, it might be worth it to contact a lawyer and see if it’s worthwhile.

Be Prepared: Tips for a Successful Complaint

To increase the likelihood of a favorable outcome, keep these tips in mind when filing a complaint against a licensed contractor in California. These little things can be the difference between nailing an unscrupulous contractor and them slipping out on technicalities or lack of evidence.

  • Be thorough and accurate. Provide as much detailed information as possible, including dates, locations, and specifics about the issue.
  • Organize your evidence. Ensure your documents, photos, and other evidence are well-organized and easy to understand. Making things easy for the legal teams will make it easier for them to help your case.
  • Stay professional. Keep your communication with the contractor and the CSLB courteous and professional. This contractor may have hurt you or your family personally – but it’s extremely important to stick to the facts and avoid letting emotions dictate your interactions.

Speak Up – It’s Good For All Of Us

There are plenty of people out there who would just love to get away with screwing up your home and potentially costing you thousands of dollars in damages. Plenty of them.

Don’t let you, your family, or your fellow Californians suffer at the hands of these sketchy clowns who parade themselves as trustworthy contractors who have put in the hours and spent thousands of dollars to be certified by the CSLB.

Letting unscrupulous or unlicensed contractors do shoddy work reflects poorly on all contractors in California. If you see someone doing something wrong, and you know it – contact the CSLB to make it right.

What to Expect and How to Prepare for a Background Check as Part of the CSLB Licensing Process

Getting a Contractor’s State License Board (CSLB) license is an important step for any construction professional. However, before you can get licensed, you need to undergo a background check. This process can seem intimidating, but it doesn’t have to be. In this guide, we’ll take a look at what you can expect and how you can prepare for a background check as part of the CSLB licensing process.

What to Expect

When you apply for a CSLB license, you will need to provide personal information, such as your name, address, and Social Security number. The CSLB will use this information to conduct a criminal background check. Here’s what you can expect during the process:

1. Fingerprinting

As part of the background check, you will need to get fingerprinted. The CSLB will send you a fingerprint kit after you submit your application. You can either take the kit to a law enforcement agency or use a live scan service provider to get your fingerprints taken. The live scan service provider will electronically transmit your fingerprints to the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) for processing.

The Live Scan Process

If you choose to use a live scan service provider, you will need to schedule an appointment with them. When you arrive at the provider, you will need to provide your valid form of identification and pay the live scan processing fee. The provider will then take your fingerprints using a digital scanner, which will capture an electronic image of your fingerprints. The image will be electronically transmitted to the DOJ and FBI for processing.

The DOJ and FBI will process your fingerprints and provide a response to the CSLB. The processing time for fingerprints can vary, but typically takes between two and three weeks. If you have a criminal history, the processing time may take longer.

2. Criminal History Review

The CSLB will review your criminal history to determine if you have any convictions that could affect your ability to get licensed. They will look at both misdemeanor and felony convictions, as well as any pending cases.

3. Personal and Professional References 

As part of the background check, the CSLB will also contact your personal and professional references. They will ask about your character, work history, and any criminal convictions you may have.

How to Prepare 

To ensure a smooth background check process, you should be prepared to provide the following documents:

 1. Identification 

You will need to provide a valid form of identification, such as a driver’s license or passport when you get fingerprinted. This is only to confirm your identity – they won’t be taking either for any amount of time.

 2. Court Documents 

If you have any criminal convictions, you should gather all court documents related to those convictions. This includes sentencing documents and proof of completion of any court-ordered programs. Any information you can provide that shows that you are following court guidelines will help your case.

3. Professional and Personal References

Pick a few people that you know you can trust from both your professional and personal worlds. Ask them ahead of time if they can be contacted as part of your background check, and make sure you have their contact information if they agree. These references can go a long way, so choose people you think would paint a good picture of your character.

 4. Business Documents 

If you own a business, you will need to provide documents related to your business, such as your business license and articles of incorporation. An organized person has organized paperwork and is always ready to show receipts. It’s always better to be prepared with the necessary documents, rather than having to hunt something down when it’s requested.

 5. Application Fees 

There are fees associated with the background check process. You will need to pay the fingerprint processing fee and the application fee when you submit your application. What those fees are varies depending on the status of your application, but generally hovers around $50 at the time of writing.

Conclusion

Getting a CSLB license is the biggest step for anyone in the construction industry. While the background check process may seem daunting, it’s a necessary step to ensure the safety of the public. 

The live scan process for fingerprinting is a quick and easy way to get your fingerprints taken and processed electronically. By being prepared and providing all the necessary documents and fees, you can help ensure a smooth and successful background check. Good luck to you as you jump through the (necessary) hoops to getting your license! 

 

The Top Mistakes to Avoid When Applying for a Contractor License in California

Time is money, and if you’re a contractor in California, you know that obtaining your contractor’s license as quickly as possible will save you tons of time and money. 

However, the process can be confusing and overwhelming, and many contractors make mistakes that can delay or even prevent them from getting their license. Even a week’s delay in getting your license can be a great expense to you and your business.

This article will show you how to avoid the most common mistakes when applying for a contractor’s license in California. By avoiding these mistakes, you can get your license as quickly as possible. 

Mistake #1: Failing To Satisfy The Minimum Criteria

One of the most common mistakes contractors make when applying for a license in California is not meeting the basic requirements to even apply for a license in the first place. 

These include being at least 18 years old, having a valid Social Security number, and possessing the necessary experience and education in your chosen field. Before applying for a license, make sure you have all of these requirements in place.

Mistake #2: Applying For The Incorrect License Classification

Contractors also frequently submit applications for the incorrect license classification. There are over 44 different license classifications in California, and each has its own set of criteria and limits.

Visit the CSLB website to make sure that the category you apply for corresponds to your area of expertise; otherwise, your application will be rejected.

Mistake #3: Submitting The Wrong Application Forms

Another frequent error is submitting incorrect application forms. If you send in the wrong form, your application may be denied or held up because there are different forms for different types of licenses. 

Be sure to double-check the application form requirements before submitting them. The CSLB will reject your application in the blink of an eye, requiring you to wait weeks or months to reapply.

Mistake #4: Keeping Prior Convictions or Disciplinary Actions Secret

On your license application, it is important to list any criminal convictions or contractor-related disciplinary actions. If this information is found out later, your application could be turned down, your license could be taken away, and you could even face criminal charges or be held liable for damages.

Always be transparent and honest in your application, as anything that needs to be investigated will add more time to getting your license.

Mistake #5: Not Acquiring The Necessary Bonds And Insurance

Bonds and insurance are requirements for contractors as part of the licensing procedure. If you don’t have the right bonds or insurance, your license could be delayed or even denied, which means you’ll lose money and have to pay to re-apply,

Make sure you understand the requirements and have the proper bonds and insurance before applying for a license. This information can be found on the CSLB website. 

Mistake #6: Providing the Application with Insufficient or Inaccurate Information

Similar to other mistakes here, always double- and triple-check your application forms for accuracy. You must fill out every bit of the application form. Any mistakes or omissions will result in your application being rejected. 

Applications for licenses that contain inaccurate or incomplete information may be delayed or rejected. When submitting the application, make sure all the required details are included and that it is accurate.

Mistake #7: Not Preparing For The CSLB Examination

With the amount of money on the line, the CSLB exam is one of the most important tests anyone will ever take. It’s also not easy — even minor mistakes can delay your license for months.

Most license classifications require passing an examination before getting a license. If you don’t study enough for the exam, you could easily fail it and be forced to wait longer to get your license. Make sure you’re ready for the test by taking one of our classes and studying adequately.

Mistake #8: Failure To Renew Your License On Time

If you’ve already received a contractor’s license, it’s important to remember to renew your license promptly as you build your contracting business. If you don’t renew your license on time, it will expire, and you will have to start the licensing process over from the beginning. This process can take weeks or even months.

Always keep track of the renewal deadline and send the application in on time. If your license expires, you’ll not only have to go through the renewal process again, but the CSLB will also charge higher fees for allowing your license to expire.

Conclusion

Any contractor who wants to grow their business in California must first obtain a contractor’s license. Still, it’s important to stay away from the common mistakes that can cause your license to be accepted later or not at all. 

If you don’t make these common mistakes, you can easily speed up the licensing process and avoid any unnecessary delays. The quicker you get your contractor license, the quicker you can start making more money.

 

The Best Tools and Software for California Contractors

As a contractor in California, managing jobs, finances, and client communication can be difficult. Luckily, there are a variety of applications and tools available to make your work more efficient and manageable. 

Applications and tools are available to make your work more efficient and manageable. By embracing these tools and learning to use them to their maximum potential, you can establish a huge advantage over your tech-averse competitors.

Project Management Tools

Effective project management is an essential element of any successful construction company. If you can’t manage people, timelines, and material well, you will miss your bids, end up costing the client more, and ultimately lose work as your reputation tanks.

There are a number of easy-to-learn apps that can help you keep track of deadlines, schedules, budgets, and team members in a way that puts you ahead of your peers.

Trello, Asana, and Monday are three of the most popular and user-friendly project management apps. They all function similarly — using boards, lists, and cards to organize tasks and projects. You can generate task cards and task boards for each project, along with milestones and timelines to track the project’s progress. 

As you grow, you can integrate new team members, adding new tasks and new employees into your pipeline seamlessly. By establishing one of these programs as your established project management software, you can set a precedent for handling projects going forward.

Accounting Software

Strict management of your financial health is essential to the operation of a successful contracting business, whether you’re a sole proprietor or in charge of dozens of employees. 

Accounting software can help you monitor your expenditures, invoices, and payments. Here are the best accounting tools for contractors in California.

QuickBooks

QuickBooks is probably the most popular piece of accounting software out there. If you’re a small contractor, QuickBooks is a cheap and accessible app for billing, expenditure tracking, and payment administration. As an added bonus, QuickBooks integrates with other applications such as Trello and Asana, making it easy to manage your accounts and projects from a single location. Score!

Xero

An alternative to Quickbooks, Xero is another popular accounting tool among small contractors. Like QuickBooks, Xero can help you manage your finances effectively, allowing you to track spending, generate invoices, and manage payments in one place. It also integrates with Stripe and PayPal, making it easy to manage your finances if you use either of those for payment.

Communication Apps

Effective communication is essential to maintaining timelines and costs as you work through your project. Using communication tools, you can maintain contact with your team members, clients, and vendors as things change in real time. Here are some of the most effective methods of communication for California contractors.

Slack 

Slack is a well-known app for communicating with team members that helps everyone stay on the same page in real-time. In addition to simple text communication, you can share images, video and files via Slack. You can also create channels for distinct projects, departments, and teams using Slack. 

Like Quickbooks, Slack also integrates with Trello and Asana, making it easy to organize your projects and communication in one place.

Zoom/Google Meet/Microsoft Teams

Thanks to the pandemic, everybody is using video conferencing now, and chances are, you’ve used one of these services at some point already. 

While video conferencing is an excellent tool for simple meetings with clients or coworkers, It can also be used for doing walkthroughs, examining construction materials, or providing an overall sense of project progress.

Which platform you use really depends on your clients. A lot of corporate clients use Microsoft Teams, while clients like homeowners use a free service like Google Meet. 

What matters is that you meet your client where they need to be met. Knowing all of these communication technologies can give you a significant advantage over other contractors.

Estimation Tools

A contracting business needs to be able to accurately estimate the cost of a project, period.  These tools can assist you in generating precise estimates, tracking expenditures, and managing bids. 

Here are some of the best estimating tools for contractors in California. 

STACK

STACK is another estimation tool that can help contractors quickly generate accurate quotes for projects. It includes takeoffs, annotations, and bid management capabilities. STACK works with other apps like PlanGrid and Procore, so project and estimate management can be done in one place. This is hugely helpful for construction projects.

ProEst

ProEst is a tool for estimating that allows contractors to quickly generate reliable estimates. It has cost-effective database capabilities, pre-built templates, and digital takeoffs. ProEst also interacts with other applications such as QuickBooks, allowing you to handle your money and estimates in a single location.

PlanSwift

PlanSwift is a software program for estimating that helps contractors make accurate estimates by using digital designs. It includes features like takeoffs, annotations, and digital measurements. Like ProEst, PlanSwift also integrates with QuickBooks.

Conclusion

As a contractor in California, managing projects, finances, communication, and estimates can be overwhelming. But, with the proper tools and applications, you may streamline and improve the efficiency of your work. 

Whether you’re building a skyscraper in downtown Los Angeles or pouring concrete for your neighbor’s steps, these tools will assist you in staying organized, communicating effectively, and managing your budget and estimates with precision, so you can build your network and make more money.