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.

Understanding the Contractor’s License Bond


In California, anyone who contracts to perform work that is valued at $500 or more for labor and materials must hold a current, valid license from the Contractors State License Board (hereinafter “CSLB”) and must carry a Contractor’s License Bond. Surety bonds are commonly used for this purpose, but cash or certificates of deposit may also be posted. All Contractor License Bonds must be implemented by an authorized surety company, in a manner up to the required standard of the CSLB and suitable to the State of California. Currently the CSLB requires that contractor’s bonds be in the sum of twelve thousand five hundred dollars ($12,500). At their discretion, the Board may require an applicant to carry a higher bond amount or separate bonds for contractors who have been disciplined, and the amounts of these bonds vary. The bond amount is not per job. It is the amount available for all jobs a contractor takes on during the life of the bond.

A surety bond is a contract in which a surety company promises the State of California that the contractor will comply with the Contractors’ State License Law. Generally speaking, a licensed contractor is obligated not to commit any violations of the Contractors’ State License Law. The law describes and identifies specific violations that the bond will cover and violations can result in disciplinary action against the licensed contractor. California Business and Professions Code § 7071.15 provides that failure to maintain a sufficient bond can result in a minimum penalty of suspension ranging from 60 days up to 1 year probation, and a maximum penalty of revocation. Additionally, if warranted the CSLB can impose an actual suspension of the license for 5 days or more, require contractors to retake the CSLB law and business examination if not taken within the past 5 years, impose educational course requirements, or require payment of CSLB investigation and enforcements costs.

If the contractor does not comply with the conditions of the bond, a consumer, supplier or an employee can file a claim against the bond. California Business and Professions Code § 7071.5 provides that the contractor’s bond shall be for the benefit of the following:
(a) A homeowner contracting for home improvement upon the homeowner’s personal family residence damaged as a result of a violation of this chapter by the licensee.
(b) A property owner contracting for the construction of a single-family dwelling who is damaged as a result of a violation of this chapter by the licensee. That property owner shall only recover under this subdivision if the single-family dwelling is not intended for sale or offered for sale at the time the damages were incurred.
(c) A person damaged as a result of a willful and deliberate violation of this chapter by the licensee, or by the fraud of the licensee in the execution or performance of a construction contract.
(d) An employee of the licensee damaged by the licensee’s failure to pay wages.
(e) A person or entity, including an express trust fund described in Section 3111 of the Civil Code, to whom a portion of the compensation of an employee of a licensee is paid by agreement with that employee or the collective bargaining agent of that employee, damaged as the result of the licensee’s failure to pay fringe benefits for its employees, including, but not limited to, employer payments described in Section 1773.1 of the Labor Code and regulations thereunder (without regard to whether the work was performed on a private or public work). Damage to an express trust fund is limited to actual employer payments required to be made on behalf of employees of the licensee, as part of the overall compensation of those employees, which the licensee fails to pay.

General requirements for bonds include the following:
•Bonds are NOT transferable – do not attempt to transfer a bond from
one license to another or from one qualifying individual to another;
•The business name and license number on the bond must correspond EXACTLY to the information in the records of the CSLB
•The license number on the bond of a qualifying individual must match that of the firm for whom the individual is to serve as the qualifying individual;
•Contractors bonds must be in the correct amount of $12,500;
•A bond of a qualifying individual must be in the correct amount of $12,500;
•The bond must have the signature of the attorney-in-fact ; and
•Bonds must be filed with the CSLB within 90 days of the effective date of the bond.

To avoid problems with the bonds filed for your license and to maintain your bonds, the following guidelines are helpful:
•Keep your required bonds, cash deposits, or bond exemptions current at all times;
•Renew your bonds promptly. Make sure that the effective date of a new bond is the same as the cancellation date of the old bond and allow for processing time;
•Only one bond is effective at any time. A second bond filed for the same period will cancel out the first bond;
•CSLB does not return any bond that has been accepted or processed for an active license; and
•Keep accurate records on your agent, surety company, bond numbers, effective dates, and terms of the bonds.

If a contractor receives notice from their surety company that a claim has been filed against his/her bond, the contractor should immediately contact the surety company to respond to the claim and explain his/her position. The contractor should also submit all documentation relevant to the claim. If a complaint is filed with the CSLB, the contractor should also respond immediately and provide the CSLB all of the requested information and documentation throughout the course of the investigation. Complaints filed with the CSLB and with surety companies are taken very seriously and a contractor’s cooperation is critical to a successful resolution.
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1. See California Business and Professions Code § 7071.6.
2. The term attorney-in-fact is commonly used in the United States, to make a distinction from the term Attorney at law. An attorney-at-law in the United States is a lawyer—someone licensed to practice law in a particular jurisdiction. As an agent, an attorney-in-fact is a fiduciary for the principal, so the law requires an attorney-in-fact to be completely honest with and loyal to the principal in their dealings with each other. See Wikipedia @ http://en.wikipedia.org/wiki/Power_of_attorney .

Important CSLB Bulletin: Attention C-10 Contractors


CSLB Announces Zero-Tolerance for C-10 Requirement ViolationsOnly Certified Electricians to Perform Work as Electricians
SACRAMENTO – Effective immediately, the Contractors State License Board (CSLB) establishes a zero-tolerance enforcement policy and will issue legal action against any C-10 Electrical contractor who willfully employs even one uncertified electrician to perform work as an electrician. CSLB is legally required to open an investigation and initiate disciplinary action against the contractor, which may include license suspension or revocation, within 60 days of receipt of a referral or complaint from the Division of Apprenticeship Standards (DAS).
Subsections within Labor Code Section 3099 clearly state that certification by DAS is required for anyone who performs work as an electrician for C-10 Electrical contractors. DAS is required by Labor Code Section 3099.2 to report violations to CSLB.
Electricians are defined as all persons who engage in the connection of electrical devices for C-10 contractors. It is CSLB a position that electrical work must be performed by a certified electrician or an approved apprentice. Trenching, concrete, framing, and other work that does not involve connecting electrical devices may be performed by noncertified workers.
Questions regarding this CSLB enforcement policy should be directed to Brian Gedney (916) 255- 4435.

CSLB Reports: More Than One Dozen Phony Contractors Caught in San Rafael Sting

Undercover operation highlights importance of checking the license first
SACRAMENTO – Thirteen people will be in Marin County Court next month for arraignment on charges related to contracting without a license. These unlicensed operators were caught this week in a two-day undercover sting conducted by the Contractors State License Board’s (CSLB) Statewide Investigative Fraud Team (SWIFT), along with investigators from the Marin County District Attorney’s Office.
On November 9-10, 2010, SWIFT investigators posed as homeowners seeking bids for fencing, landscaping, concrete, painting, sheet metal, and drywall work at a home in San Rafael. Suspects who bid more than $500 for labor and materials received a Notice to Appear (NTA) in court. California law requires all home improvement jobs valued at more than $500 to be undertaken by a licensed contractor. Contractors also must place their state contractor license number in all advertisements. Unlicensed individuals may advertise and accept jobs valued at less than $500, but their ads must state that they are not a licensed contractor.
Fraudulent use of an incorrect license number (Business & Professions Code Section 7027.3) is punishable by fines of up to $10,000 and/or time in state prison or up to one year in county jail. Misdemeanor contracting without a license (B&P §7028) is punishable by up to $5,000 in fines and/or up to six months in county jail.
“This sting operation underscores the importance of consumers asking to see a contractor’s pocket license card and photo identification to make sure the license is issued to that individual,” said CSLB Registrar Steve Sands. “Consumers can check the license number or contractor or business name on the CSLB website or toll-free phone line to verify the status of the license and to assure the licensee has workers’ compensation insurance.
State law requires that licensees have workers’ compensation coverage to protect property owners from liability, unless they certify they have no employees and receive an exemption. The law requires roofing contractors to carry a workers’ compensation policy for themselves even if they do not have employees.
Suspects who received NTAs will be arraigned at Marin County Superior Court at 3501 Civic Center Drive on December 3, 2010.

CSLB urges consumers to remember the following tips when hiring a contractor:
• Verify the contractor’s license by checking online at www.cslb.ca.gov, or via CSLB’s automated phone system at 1-800-321-CSLB (2752).
• Ask to see the person’s identification to make sure you are dealing with the correct individual.
• Don’t pay more than 10% down or $1,000, whichever is less. There is an exception to this for about two dozen contractors who purchase special bonds that are noted on CSLB’s website.
• Don’t pay in cash, and don’t let the payments get ahead of the work.
• Check references, and get at least three bids and a written contract before your project begins.
• Make sure your contractor obtains the necessary building permits for any project. If you are unsure of these requirements, contact your local building department.

STEPS TO BECOMING A LICENSED CONTRACTOR IN CALIFORNIA:What You Need To Know

What You Need To Know About Becoming A Licensed Contractor


Wondering how to become a Licensed Contractor or if you need to be Licensed? The following are the top questions we hear and answer guiding you and our students through becoming a Licensed Contractor successfully.

Who can become a licensed contractor?
A licensed contractor must be 18 years of age or older and have the experience and skills necessary to manage daily activities of a construction business, including field supervision, or be represented by a qualifying individual with the necessary experience and skills.

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 California Contractors State License Board if the total cost (labor and materials) of one or more contracts on the project is $500 or more. Contractors must be licensed before submitting bids.

How much does a license cost?
In addition to the financial requirements that must be met, it costs $250 for an original application fee (nonrefundable) and $150 for the initial license fee for one classification. The license must be renewed every two years. Currently, the renewal fee is $300.

How can you apply?
The Application for Original Contractor’s License is available at any office of the Contractors State License Board. It is also possible to order or download an application form from our Website, www.cslb.ca.gov, call the CSLB’s 24-hour automated information line, (800) 321-CSLB (2752), or write to the CSLB, at: P.O. Box 26000, Sacramento, CA 95826, to request an application.

What kind of experience is required?
At least four years of journey-level experience is required to qualify for the exam. Credit is given for experience as a journeyman, foreman, supervising employee, contractor, or owner-builder.

What are the other requirements?
All applicants must be fingerprinted and undergo a criminal background check before a license is issued at an additional cost to the applicant.

Is there an examination requirement for a contractor’s license?
Yes, the qualifying individual for a contractor’s license is required to pass law and trade examinations, unless he or she meets the requirements for a waiver. An examination notice will be sent at least three weeks prior to the examination date.

Is school necessary?
Although there are no educational requirements to qualify for a contractor’s license, it is highly encouraged to seek assistance from a school that specializes in helping students pass the Contractor State License Board Exam.

For more detailed information on becoming a California licensed contractor, see the CSLB publication, Blueprint
for Becoming a California Licensed Contractor or visit our Website, www.cslb.ca.gov or visit MakeMeAContractor.com for more information today.

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CSLB Fall California Blitz Stings 111 for Unlicensed Contracting


CSLB reported the California Blitz stung 111 for unlicensed contracting.
SACRAMENTO – The Contractors State License Board’s (CSLB) fall “California Blitz” puts a glaring spotlight on the importance of making sure contractors are properly licensed before allowing them into your home. A total of 111 suspected unlicensed contractors were arrested during the two-day statewide undercover operation on October 20 and 21, 2010. Three of those arrested, including a convicted sex offender, went to jail.

CSLB conducted nine simultaneous sting operations in Fresno, La Mesa, Pasadena, Placerville, Porterville, San Juan Capistrano, Seaside, Visalia, and West Sacramento.

During the Blitz, investigators from CSLB’s Statewide Investigative Fraud Team (SWIFT) posed as homeowners or community organization volunteers, asking for bids on projects that ranged from swimming pool repair to painting, landscaping, and tree trimming. Those who bid more than the legal limit of $500 for labor and materials received a Notice to Appear (NTA) in court for a misdemeanor charge of contracting without a license. Other charges included illegal advertising and soliciting excessive down payments. State law also requires contractors to put their license number in all forms of advertising. Those who are not licensed can advertise and do jobs valued at less than $500, but their ads must state that they are not a licensed contractor. Also, it is illegal to ask for a down payment greater than 10 percent of the contract price or $1,000, whichever is less. There is an exception for about two dozen licensees who purchase special bonds for consumer protection. Those exceptions are noted on CSLB’s website.

Three people were booked and taken to jail on outstanding warrants in West Sacramento and Placerville. Mardardo Flores, 31, of Woodland, was booked on a no bail warrant for violating probation by failing to register as a sex offender. JosĂŠ Antonio Anguiano, 28, of Sacramento, went to jail on a no bail warrant for felony domestic violence. Carl Borrowman, 47, of Placerville, was booked on a warrant for felony fraudulent use of a contractor license number (for contracting on a license that CSLB revoked from him in 2000). Since 2005, state law has required that applicants for new licenses or those changing their classifications submit fingerprints for criminal background checks.

“This Blitz is a wake-up call for all California consumers,” said CSLB Registrar Steve Sands. “You must check out the people you’re going to hire to work on your home to make sure they’re properly licensed. Your family safety or your finances could be jeopardized by not taking a few minutes to verify the contractor on CSLB’s website or through our toll-free phone system.”

Consumers often don’t realize the risk they run when hiring an unlicensed operator. Because these phony contractors don’t carry workers’ compensation insurance, the homeowner could be liable if a worker gets hurt on the job. Also, if something goes wrong or the project is abandoned, homeowners have few options for getting back their money.

The goal of CSLB’s twice-yearly blitz is to educate consumers about potential dangers of hiring phony contractors, and to encourage people who want to work in the construction trades and who qualify to get their contractor license to comply with California law. Local prosecutors and law enforcement agencies, as well as the California Department of Insurance, Department of Industrial Relations, and the Department of Homeland Security’s Immigration and Customs Enforcement assisted CSLB with the Fall Blitz. “The Yolo County District Attorney’s Office is always anxious to work with other agencies to ensure compliance with the law,” said Yolo County District Attorney Jeff Reisig. “We’ll make every effort to get these people into compliance and to ensure the public is safeguarded.”
In addition to the stings, CSLB investigators, along with investigators from the Department of Industrial Relations and Department of Insurance, also conducted sweep operations at construction sites in Solano and Riverside Counties. These sweeps were to verify that contractors were properly licensed and carried the necessary insurance. A number of citations were issued to contractors for not carrying workers’ compensation insurance.

Visit MakeMeAContractor.com to learn how to avoid the CSLB Stings by earning a valid Contractors License.

CSLS iPad Contest Winner Awarded New iPad

CSLS iPad Contest Winner Karl Menjivar Awarded New iPad

CSLS iPad Contest Winner Karl Menjivar Awarded New iPad


Helping to build futures, today CSLS awarded student Karl Menjivar a New iPad. CSLS iPad contest ran throughout the month of October resulting in one very lucky winner. “I am so excited”, said Karl. “I didn’t expect to win.” Karl is pursuing his C-10 Electrical Contractors License. We wish Karl the best and congratulate him on his win!

Looking for how you too can leverage an iPad for your Construction business? Take a look at the top 5 ways an Apple iPad can help your Construction business save time, earn more clients, and simply make your professional life easier.

Top 5 Ways an Ipad can Help Your Contractor Business

1. In the field sketching / note-taking: Sketching out plans, dimensions and equations on the fly is an integral part of the construction process. For this, the iPad opens up a whole new world of possibilities for accuracy, convenience and organization. This tablet can make sketching a plan out as easy as touching the screen and drawing with your finger. Need a calculator? Flip on over to the calculator application. Need to jot a few notes? Flip on over to the notepad application. Then, when you are done – just click save, and move on with your day. There will most likely be tons of applications that you can download that might make the process even easier.

2. Contract reference: The iPad allows you to store and view your most important documents where you can reference contracts, accounts payable, receivables, as well as popular books. Need a on the job reference guide check out the ibooks option.

3. Portable credentials: How many times have you been bidding on a job and been asked to show some credentials? The iPad could easily turn into your on-the-road filing cabinet. Keep important documents like your certificate of liability, Contractors bond, Contractors license(s), worker’s comp – basically anything that you might need when out in the field or bidding on a project, all in one spot.

4. Mobile Professional Portfolio: Nowadays, people want proof of how good you are. They want to see photos, videos, maybe even testimonials of past customers. What better way to showcase yourself than with your iPad? Show customers slideshows of your work, your website, videos … get creative! Apple is renowned for it’s products’ abilities to create cool looking presentations, so take advantage of it and get some more jobs!

5. Digital blueprints: Many contractors have gotten into the habit of bringing their laptops on the job to reference digital blueprints and plans. Well laptops, the iPad has just one-upped you. Already with Apple’s smaller touch interfaces, you can zoom in to minute details, rotate images, even edit on the spot – all with your fingers. And it’s fast! We can only imagine the cool new ways that a larger screen will allow you to interact with and share your plans on the job site. Paper is indeed a thing of the past.

View more on our website at http://www.contractorslicensingschools.com/contractor-industry-news.cfm(List adapted from Center Networks, by Johnnie Munger)

Contractors State License Services Honors Victor Perez With A Contractors Scholarship

Contractors State License Services (CSLS) Awards Victor Perez Full Scholarship, Fresno California

CSLS Awards Victor Perez Full Scholarship, Fresno California


Contractors State License Services (CSLS) granted a full scholarship to local Fresno California, hero Victor Perez, an unemployed Contractor in the hopes to build a brighter future for a Good Samaritan and hero. Victor Perez, the Fresno Construction worker put his life on the line to save an abducted 8-year-old girl last week. Victor’s heroics and daring rescue has touched the heart of not only local residents to Fresno California but also the President and CEO of Contractors State License Services, also known as MakeMeAContractor.com, David Mizener.

David Mizener, CSLS’ President & CEO, learned about Victor’s compelling story and that he lacked a California Contractors License through the Media. “After hearing Victor’s story and the request of Governor Schwarzenegger that someone give Victor a job. “I knew we could do more than simply give him a job, we could help him build a future and a business that would ultimately help him provide for his family,” said David Mizener.

The Contractors Scholarship valued at over $1,500 provides full enrollment to Contractors State License Services In-School Law and Trade program which is designed to assist Contractors in passing the California Contractors License Exam. “Our 98% pass rate will provide Victor with a sense of peace knowing that he will pass the first time he sits for the Contractor’s License Exam. In fact, we have helped over 120,000 Contractors just like Victor to gain their Contractors License,” states Maureen Esses, License Advisor. CSLS classes offer live instruction taught by qualified and experienced instructors. The classroom setting allows for individual attention and the opportunity for classroom discussion and immediate response to questions our students may have. Program content is relevant to day-in, day-out Contractor practice and the California Contractors State License Examination such as Contractors Business Law.

Additionally, Contractors State License Services Contractors Scholarship will also cover all the State required fees associated with gaining a Contractor’s License such as the California State Contractors License Application Fee, Contractor’s License Fee, as well as, additional Contractor fees for requirements such as Contractor Bonding fees. “We are happy to assist such a great man with the additional cost of earning a Contractor’s License. The Contractors Bonding requirement of $12,500 will be covered by CSLS as well”, states David Mizener, CSLS President & CEO. “That’s unbelievable,” Perez said. “To become a contractor would be a dream come true.”

Victor plans to pursue the General Building (General B) Contractors License and to attend CSLS’s Fresno School Locations live class room 4 week program. The Fresno school location is one of 25 School locations throughout California for Contractors State License Services along with the Live Online programs nationwide and Home Study programs. “We are excited to assist Victor reach his goal of becoming a Licensed Contractor. We applaud Victor’s first steps to building a brighter future and look forward to helping him achieve his goals”, says Mary Birch District Manager.

About CSLS (contractorslicensingschools.com/)

Contractors State License Services (CSLS) is the largest school in California devoted to the Construction professional. For over 25 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. In fact, 1 in 3 applicants to the California State Licensing Board (CSLB) have used CSLS to successfully pass the exam. Contractors State License Services 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. Contractors State License Services also provides CSLS Contractors with Business Development Services to assist in every aspect of sustaining a strong Construction Business. These include Bonds, Corporation Services, DBA’s, Application Processing, Fingerprint Services, and Insurance Services.

11 Best Construction Books to Read in 2010 and 2011

Top 10 Construction Books to Read in 2010 & 2011


Here at CSLS our Instructors are often times asked for helpful tips on how to run a successful Construction business once a Contractor has earned his/her Contractors License. We love this question and typically will point our students in several directions to obtain the best tips. What we also do is suggest that our students follow best practices in developing a successful construction business. In doing so we found that many successful entrepreneurs maintain ongoing training and development to continuously sharpen the saw (no pun intended). In fact, an old quote says “Books are the quietest and most constant of friends; they are the most accessible and wisest of counselors, and the most patient of teachers.” With that said we have found most of our best book sellers are those that provide current Construction industry news, best practices, and tips. The construction profession is fortunate to have a multitude of counselors who are willing to share their insights with their peers. Above is Contractors State License Services/CSLS’ selection of the best books to read for any construction professional or for those that aspire to enter the construction profession. We have diligently outlined books to help you improve your construction business, skill-set, understanding, and increase your customer’s value in your construction business. The top 10 books plus the bonus book aims to provide valuable ideas and tips if applied correctly will help you increase your construction business effectiveness.

Take a look at great books such as Blue Print Reading, Code Check Complete, Contractor’s Survival Guide, Construction Forms & Contracts, and Construction Estimating Reference Data.

Find out more at our Bookstore!
http://www.contractorslicensingschools.com/online-store-books.cfm

Looking for A Marketing Slam Dunk: Advertising 101…Learn The Basics About Advertising

Marketing Slam Dunk

Learn the Marketing Slam Dunks for Every Contractor Business


Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideals, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers.

Most contractors know that they must include their license number on all advertising. But do you know what that really means and what the laws really say? Business and Professions (B&P) Code Section 7030.5 states that all licensed contractors are required to include their license number in “(a) all construction contracts; (b) subcontracts and calls for bid; and (c) all forms of advertising, as prescribed by the registrar of contractors.” The Code further provides that failure to comply with this requirement can result in a fine between $100 and $1,000 for a first offense.
The following tips for advertising will not only help you comply with the law, but will also help you plan your marketing strategies for success as a licensed contractor.

1. Include your Contractors license number in anything that might be considered as advertising.
Examples include: newspapers, radio, television ads, your business card, any contract proposal, lettering on every one of your commercially registered vehicles (See B&P Sections 7029.5 and 7029.6), signs or billboards identifying your company as a contractor, your company’s website, any soliciting brochures or pamphlets, any clothing or promotional items that include your company name and logo; and any directory listing that states or implies you are looking for work or services which would require a contractor’s license.

2. Don’t use false or misleading advertising, or advertise a price that you don’t intend to honor.
B&P Section 7161 makes it a misdemeanor “for any person to ….[use] false, misleading, or deceptive advertising as an inducement to enter into any contract for a work of improvement, including, but not limited to, any home improvement contract, whereby any member of the public may be misled or injured.”

3. Don’t advertise to do work that you are not licensed to perform.
Contractors who advertise to do work beyond the scope of their license are subject to a fine of not less than $700 and not more than $1,000, plus any other punishment established by the Registrar of Contractors or a court. Such offenses are deemed misdemeanors according to B&P Section 7027.1.

4. When advertising about asbestos removal services, be sure to include your asbestos certification and registration numbers along with your business name.
Contractors must list their asbestos certification number issued by the Board and the registration number required under Labor Code Section 65015.5. The Registrar will issue a notice to comply if either of these numbers are omitted. If a contractor fails to comply after receiving notice, a citation will be issued as well as potential fines ranging from $100 to $1,500.

5. Don’t advertise about bonding.
Contractors are prohibited from including any reference to the contractor being “bonded” in any advertisement, or on any company “paperwork” that could reasonably be considered “advertising”, if the bond being referred to is the standard license bond that all California Licensed Contractors must have. B&P Section 7071.13 provides that any such references or presentments are grounds for discipline and/or suspension of the contractor’s license.

6. Be VERY careful when advertising as “insured”.
CA licensed contractors cannot advertise that they are “insured” unless they state what type of insurance it is. Any reference to “insured” in your company‘s advertising must specifically state the type of insurance you are referencing. Failure to properly identify the type of insurance in the advertisement is cause for discipline pursuant to B & P Section 7027.4. If for example you want to advertise that you carry both commercial general liability insurance and worker’s compensation insurance, then it should be stated as such, “We carry Commercial General Liability and Worker’s Compensation Insurance.”

Knowing the law can help keep you out of trouble with the CA State Contractors Licensing Board and prevent legal problems that can arise from mistakes.

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1 See Wikipedia @ http://en.wikipedia.org/wiki/Advertising .
A misdemeanor is a crime punishable by imprisonment in a county or city jail or detention facility not to exceed one year. Except where the law specifies a different punishment, a misdemeanor is punishable by imprisonment in a county jail not exceeding six months and/or a fine not exceeding one thousand dollars. See California Penal Code Section 19.

CSLB Takes the Cake for Sting Targeting Illegal Operators + Ten Reasons to get your License


CSLB Web Release www.CSLB.ca.gov shares the latest news regarding the legal necessity for Contractors to operate with a California Contractors License. Here at Contractors State License Services our mantra is to share the news and events that effect our prospective students and students. Just this month alone we continue to see more and more news of targets on illegal operators. In this case the CSLB stings another ten for violating California contracting laws. These news bites further illustrate the need for a valid Contractors License.

CSLB Takes the Cake for Sting Targeting Illegal Operators
Ten headed to court for violations of California contracting laws

SACRAMENTO – Members of the Contractors State License Board (CSLB)’s Statewide Investigative Fraud Team (SWIFT) received a torte and a hearty thank you from a licensed contractor for a sting operation conducted in Monterey last week. One of the ten arrested suspects said he worked for the grateful licensee, which was not the case. The sting operation, on September 30, 2010, was conducted with assistance from the Monterey Police Department and Monterey County District Attorney’s Office.

During the operation, SWIFT investigators posed as homeowners who were looking for a contractor to do fencing work on their home. Those who bid more than $500 were arrested and issued an issued a Notice to Appear (NTA) in court for contracting without a license. California law requires all home improvement jobs valued at greater than $500 for labor and materials be undertaken by a state-licensed contractor. Those without licenses may advertise their services and work on jobs valued at less than $500, but their ads must state that they are not licensed. Licensees are required to put their license number in all ads. Some of those who will be going to court will also face charges of soliciting an excessive down payment. State law prohibits asking for down payments greater than $1,000 or ten percent of the contract price, whichever is less. There is an exception for about two dozen contractors who purchase special consumer protection bonds that are noted on CSLB’s website.

“Many consumers don’t realize the risks they take when they let an unlicensed operator into their home,” said CSLB Registrar Steve Sands. “Those who are violating the state’s license laws are also not complying with important consumer protection requirements, such as purchasing workers’ compensation coverage for their employees.”
State law requires licensed contractors to carry workers’ compensation coverage for all employees. That ensures the homeowner isn’t stuck with medical bills if a worker is injured on their property.

Top ten reasons we hear for getting a Contractors License:
1. To legally operate in California
2. To protect yourself
3. To gain respect from your colleagues and prospective customers
4. To be competitive
5. To be self employed
6. To gain prestige as a professional and avoid the negative connotation that follow unlicensed contractors
7. To enter into larger contracts & advertise without being worried
8. To avoid being arrested and fined by the State
9. To network with other licensed contractors for more business
10. To be able to legally collect for work performed

View A CSLB Sting Operation Video here!
http://www.facebook.com/pages/Contractors-State-License-Services/137797582916767?v=wall