Category Archives: Construction

What Does It Take to Get a General Contractor License in California?

In these uncertain times, when the job market is constantly changing, we do what we can to take control of our lives. Maybe you’re looking for a career change. Maybe you’re finishing up school and making decisions about what to do next.

No matter what season of life you find yourself in currently, you can look around and be certain that the construction business is strong and consistent in California.

If your career ambitions have begun to steer you toward becoming a contractor, you’re probably thinking, what does it take to get a Class B General Building Contractor License? This article can serve as an easy jumping-off point so that you can decide for yourself if taking this next big step is right for you.

Basic Requirements

Before getting too deep in the weeds about general contractor life, let’s make sure all the basics are covered. Here’s the absolute essential requirements put forth by the CSLB.

  • You must be at least 18 years old.
  • You must be legally allowed to work in the United States.
  • You must have a minimum of 4 years of journey-level experience.
  • Conversely, you may supply the CSLB with proof of three years of college or trade-specific classroom education. You must, however, have at least one year’s on-the-job experience doing general contractor work.

How Much Education Does It Take to Get a General Contractor License?

One thing that sets the general contractor career apart from so many others is the fact that you can build a lucrative future for yourself without having to worry about securing a pricey, seemingly out-of-reach higher ed degree first – and potentially saddling yourself with lifelong debt.

The reality is that the amount of education that you want to take on as you move toward your goals as a general contractor is mostly up to you – but education is always a method to empower oneself.

Basic math and reading comprehension are the main prerequisites that you’ll need in your day-to-day life as a general contractor – think about all the square footage you need to measure and the dozens of emails you have to write – so a high school diploma or an equivalent (like the GED) is enough to get you going.

Of course, you know that knowledge is power, so if you’re so inclined you can enroll in construction management programs, courses focusing on blueprint reading, or business administration classes to build your skill set anytime. Even a university degree can hugely benefit general contractors in this area of work.

General Contractors and Financial Commitments

For a lot of people who are just getting started with becoming a general contractor, the heaviest lift is the financial commitment involved. Take some time and reflect on whether now is the right time to go for your general contractor license. To make this pursuit worthwhile you’ll need:

When it comes to understanding the full schedule of fees, check out some of our recent posts, like How to Obtain a Contractor License with Minimal Fees and our Comprehensive Guide To CSLB Application Fees!

Liability and Mitigating Risk

We mentioned above that having a Contractor’s Bond (and very soon, workers’ comp) is essential as you move toward getting your general contractor’s license.

This is because the Contractors State License Board (CSLB) will not issue an active license, reactivate an inactive license, or renew an active license until these protections are in place.

This fact really gets to the heart of what it takes to become a general contractor. It takes the willingness to take on a hefty amount of liability. It takes someone who isn’t afraid of risk, but who can mitigate risk while on the job.

It takes a commitment to working in compliance with building codes and regulations. Meeting these standards is non-negotiable for a general contractor.

A failure to comply with the guidelines and restrictions set by local authorities inevitably leads to an increase in legal liabilities, financial penalties, and a damaged reputation.

Throughout your four years of required training, you’re likely to make mistakes and you’re likely to learn from those mistakes. But when you’re officially a license-holding general contractor the mistakes will be more costly and possibly more dangerous.

Can you envision yourself working closely with clients and crew members to mitigate risk as you work through your career in construction? Are you prepared to keep a clean paper trail documenting all your contracts, permits, inspections, and transactions?

Networking and Building a Reputation

Sometimes a word-of-mouth testimonial is your best asset. One major pillar that you’ll need to prop up your career as a general contractor is networking and reputation-building skills.

  • Join Trade Associations and participate in industry events, workshops, and seminars. The Associated General Contractors (AGC) or the National Association of Home Builders (NAHB) are great places to seek out networking opportunities.
  • Fix up your online presence and create a professional website for yourself. Link to social media and LinkedIn and include client testimonials there along with details about your industry expertise.
  • Prioritize customer service and nurture lasting relationships with clients. Remain consistent and always deliver high-quality workmanship while also keeping your communication with clients open and honest to maintain mutual trust.

Conclusion

It definitely takes a great deal to become a general contractor. But if you determine that you’re up for the task, it’s nothing you can’t handle.

Meeting the necessary requirements for getting the General Building Contractor license is only the beginning. Beyond that step, you will need to invest in continuing education for yourself and manage your financial responsibilities from job to job and in between jobs.

You will also have to work in compliance with California codes and local ordinances all while keeping up strong and healthy relationships with clients and colleagues.

If you see yourself aligning with this career journey, please check out the CSLB website to get the most current and accurate guidance for the next steps toward your future in construction.

Do You Need a Permit to Add a Sink in California?

When considering home improvements or construction projects in California, one common question is whether a permit is required for specific tasks, such as adding a sink.

Understanding the legal requirements and processes for permits is crucial for contractors and homeowners alike to ensure compliance with state and local regulations.

This article will cover the essentials regarding permits for adding a sink in California, both for homeowners and contractors alike. Let’s dig in.

What is a Permit?

A permit is a legal document issued by local government agencies that authorizes the permit holder to conduct certain construction or remodeling activities. It ensures that the project complies with state and local building codes, zoning regulations, and safety standards.

Permits are typically required for activities that may affect the health and safety of the occupants or impact the structural integrity of a building. Check out our article on the 10 Most Common Permits for a rundown of typical permits you’ll come across.

When Do You Need a Permit to Build in California?

In California, the need for a building permit is determined by the nature of the project. Generally, permits are required for projects that involve constructing, enlarging, altering, repairing, moving, or demolishing a building or structure. Sounds like a lot of stuff, right? Yeah, it’s practically everything.

This includes significant changes to electrical, mechanical, and, yes, plumbing systems. While the specific requirements can and do vary by city and county, overarching state regulations are the ones that dictate whether or not you can install a sink in your own home.

Do You Need a Permit to Add a Sink in California?

Yes, adding a sink in California typically requires a permit. This is because installing a sink involves changes to the plumbing system, which must comply with the California Plumbing Code, therefore requiring a specific permit to allow construction to go forward.

These regulations ensure that plumbing installations meet health and safety standards, preventing issues such as water contamination and improper drainage. If you’ve ever tried to install a bidet without turning off the water first – you know exactly why these types of regulations exist!

What Kind of Permit Do You Need to Add a Sink in California?

The specific type of permit required to add a sink in California is a plumbing permit. These are usually handled by local government. For example, the City of San Diego has a whole page dedicated to their specific building permits, including plumbing permits.

A plumbing permit covers the installation of new plumbing fixtures and the modification of existing plumbing systems within every jurisdiction. The process involves submitting detailed plans of the plumbing work to the local building department for review and approval. If it’s just a homeowner installing a sink, this process is usually very quick and painless, as it’s an extremely common type of permit.

Do You Need a Contractor License to Install a Sink in California?

Yes, in most cases, you need a licensed contractor to install a sink in California.

Contractors performing plumbing work in California are required to have a C-36 plumbing license issued by the California State Licensing Board (CSLB). This requirement ensures that plumbing work is performed by qualified professionals who understand the state and local codes.

Who Can Install a Sink in California?

In California, the following individuals or entities can install a sink:

  • Licensed Plumbing Contractors: Individuals or companies with a C-36 plumbing license can perform plumbing installations, including sink installation. This is the quickest and easiest way to get your sink installed in California.
  • Homeowners: Homeowners may be allowed to install sinks in their own homes if the costs of material and labor are less than $500. However, homeowners must obtain the necessary permits and may be required to demonstrate knowledge of the plumbing code. It’s important to check with local building departments for specific regulations.

Conclusion

Like everything in California, installing a sink in your own home involves navigating the regulatory environment in place. You do need a plumbing permit as per the California Plumbing Code to install a sink in your home.

We, of course, recommend contracting with a C-36 plumbing contractor when installing a sink as they have the expertise and experience to deliver a quality sink installation without all the hullabaloo of permitting and licensure.

By understanding and following these requirements, contractors and homeowners can ensure that their projects are completed safely, legally, and to a high standard. Always consult with the local building department for the most accurate and up-to-date information specific to your project and locality.

Remember, compliance with building codes and regulations not only ensures safety but also avoids potential legal and financial penalties associated with unpermitted work. Whether you’re a seasoned contractor or a homeowner embarking on a DIY project, taking the time to secure the proper permits is critical – lest you face the wrath of the state afterward.

C-46 Solar Contractor’s License: A Comprehensive Guide

Over recent years, solar panel systems have inspired a lot of chatter, especially in California, where ecological demands are great in the world’s fourth-largest economy. The demand for qualified workers in solar power is higher than ever as well-heeled home and landowners seek ways to harness sustainable energy.

If you’re one of the many, many contractors seeking out a chance to install and maintain solar panel systems – you need to know about the C-46 Solar Contractor License, as this is a requirement to do solar power contracting work in the state.

The Contractors State License Board (CSLB) issues this license to individuals or companies who have demonstrated that they know a lot about solar energy technologies and use them safely.

It should also be mentioned that many solar contractors carry the C-10 Electricians License as these two disciplines dovetail very easily. In fact, the CSLB has historically favored the C-10 License when it comes to classifying certain kinds of important contractor work in the solar power space – only recently has the C-46 license become the sole license for solar work.

All the same, it’s good for anyone in the construction business to know what’s going on with solar. If you’re hoping to get a solar contractor license yourself or if you’re just curious about this license, let’s go deeper into the details, so you can prepare yourself for a successful career as a solar installer.

Requirements for the Solar Contractor License

Here are the basic requirements for receiving a C-46 solar contractor license in California:

  • You must be at least 18 years old.
  • You must have a valid social security or ITIN number.
  • You must complete four years of experience doing C-46 Solar work.
  • You may also be exempt from four years’ experience by doing three years’ education and one year on-the-job training.
  • You must pass the C-46 exam and the California Business Law exam.

Completing your four years of on-the-job training and passing the serious CSLB tests certifies that you do indeed know your stuff when it comes to solar energy systems, safety protocols, and local building codes. If you can’t pass the test – you don’t have the expertise to become a license holder.

2024 Solar Power Construction News in California

What you’ve heard is true – California really is still the leader in the U.S. for embracing solar power as a source of renewable energy.

It’s good for contractors to keep up with how the solar power conversation is changing and how recent developments in solar are creating more work opportunities in construction.

Ambitious Solar Energy Goals in California
California Governor Gavin Newsom is ramping up the state’s solar energy capacity by an additional 10 gigawatts over the next five years – providing great opportunity for contractors in this space.

Ambitious goals like these truly solidify California’s position as a global leader in renewable energy adoption.

Solar Incentive Programs Gain Traction
State-sponsored incentive programs are encouraging California residents and businesses to adopt new solar technology using tax credits and rebates which help offset the upfront costs.

With more solar panel systems being installed, the demand for solar contractors is rising, again creating more opportunities for people like you.

Solar Innovation and The California Solar Mandate
With solar technology becoming more advanced, contractors ought to know precisely how they can keep up with the latest trends and innovations.

And becoming more familiar with solar power isn’t exactly optional. The California Energy Commission (CEC) created the California Solar Mandate, which requires the installation of solar panels for many new construction projects.

Learning to Install Solar Panels

Contractors who are hungry for a chance to learn how to install solar panels have several options.

Vocational Training Programs
These days California has quite the array of vocational schools and community colleges that offer specialized training programs related to solar energy.

These programs cover topics such as photovoltaic system design, installation techniques, and safety procedures – all of which are critical for solar power contractors in the state.

Apprenticeship Programs
Seeking out apprenticeship programs is a good idea for the contractor who wants to get hands-on experience under the guidance of a seasoned, licensed solar contractor.

It is a great learning opportunity that also comes with a legitimate wage. For people in the middle of a career change and for people in that pre-career phase hoping to get their start in solar, this might be an attractive option.

Certifications
Unlike the solar contractor license which is issued by the state, the Solar Professionals Certificate is issued by the North American Board of Certified Energy Practitioners (NABCEP). The NABCEP Handbook covers all of the specific qualifications for becoming certified.

There are other certifications in solar, but Solar Energy International recognizes NABCEP as the leading authority in this area.

Conclusion

There has never been a more exciting time for contractors to engage with solar power. Many C-10 electrical contractors and some class B general contractors are already busy working on new solar projects at this very moment.

There are certification options and special training programs available to contractors who want to get their start in solar – but the C-46 Solar Contractor License is the one credential issued by the CSLB that is wholly dedicated to contractors who install and maintain solar panel systems.

Do You Need A Contractor License For Private Construction?

While it’s true that public construction comes with more constraints, codes, and requirements, you still need a contractor license for all private construction costing $500 or more in materials or labor.

The consequences of working as a contractor without a license are very serious. The Contractors State License Board (CSLB) exists to enforce the much-needed state-regulated construction standards that ensure the safety and quality of construction jobs across the state.

While you usually need a contractor’s license on pretty much every project in California, there are some exceptions when it comes to private construction. Let’s take a look at private construction and see how the CSLB contractor’s license comes into play.

Why Are Contractor Licenses Required?

1. Safety and Quality
In construction, safety and quality are most important. People need to know that the homes, offices, stores, and other buildings we spend our time in are safe and habitable. A contractor license ensures safety and quality, serving as a voucher that proves your training and expertise when it comes to these facets of the business.

2. Legal Compliance
Licensing makes sure contractors stick to local building codes, zoning laws, and regulations. Any lawless, unregulated construction is a hazard for the property owner and the surrounding public. Licensing protects you from unnecessary legal struggles by ensuring that there are consequences for running afoul of local ordinances.

3. Consumer Protection
Since licensing requires contractors to carry insurance and bonds, a contractor’s license provides a guarantee to consumers that they will be able to be made whole financially in the case of a contractor not following through. A contractor’s license serves as a built-in promise that shoddy work or random incidents related to construction can be met with financial recourse.

4. Taxation and Regulation
Contractor licensing can help the government regulate and collect taxes on construction work. It helps take the ambiguity out of what contractors owe in taxes, creating more clarity for contractors and allowing for more precise estimations and quotes.

Different Types of Contractor Licenses for Private Construction

As you assess your private construction needs, you might not be sure which work requires a license and which license classifications are most relevant to you. Here are the key types of contractor’s licenses you may need on your private construction job.

1. General Contractor License
The Class “B” General Building Contractor’s License is required for projects involving major construction involving two or more trades. Whether you’re building new homes, commercial buildings, or doing renovations, this license covers general contractor work.

2. Special Contractor Licenses
Sometimes general contractors subcontract for certain jobs involving specific trades. You’ll need special licenses to perform specialized construction work like electrical, plumbing, HVAC, or roofing. All the CSLB license classifications are listed on the CSLB website.

3. Residential Contractor License
In some regions, residential construction requires a separate license. If your construction project involves home renovations, additions, or repairs then you’ll need a B-2 Residential Remodeling Contractor license.

4. Commercial Contractor License
In certain areas, a specific license is needed for commercial construction. This license covers large-scale projects like office buildings, warehouses, and retail spaces. See our earlier post on the key differences between residential and commercial contractors for more information.

Getting a Contractor License in California

The California Contractors State License Board (CSLB) is responsible for regulating contractors in the Golden State. You can update, renew, or apply for your contractor license through the CSLB website. The process of getting your license can be complex and requires several steps.

We have talked about the process for getting your contractor’s license before and all the same steps apply to your work in private construction. You’ll need:

1. Education and Experience
Contractors need to demonstrate a certain level of education and skill. Apprenticeship programs, vocational training, or relevant work in the field will help cover these requirements.

2. Exam Prep
In most cases, you’ll need to prepare for a written exam and pass to get a contractor license. This confirms your knowledge of construction practices, codes, and regulations.

3. Insurance and Bonds
As mentioned above, contractors need liability insurance and surety bonds. It’s a license requirement put in place to protect clients and hold contractors accountable for their work.

4. A Complete Application and Payment for Fees
To get a contractor license you have to complete an application and submit it. This process involves paying fees, but you can keep those fees to a minimum if you allow this blog post to guide you.

5. Routine License Renewal and Continuing Education
Periodically, licensed contractors have to renew their licenses. Something that goes along with that is continuing education. Taking continuing education courses throughout your career is important so you stay current on trends, best practices, and updated regulations.

Conclusion

You do need a contractor license for private construction projects. Cases where a license isn’t required are quite rare and the consequences for doing unlicensed work are substantial.

Specific requirements for securing specific contractor licenses vary based on region and the classification of the construction work. But you can find all the information you need to make sure your work is compliant on the CSLB website.

Why California Construction Business is Booming in 2024

Contractors are keeping busy this year. All over California, the construction industry is seeing a significant boom for a variety of reasons.

In this article, we break down the key factors responsible for the current upswing in job creation and economic development that the California construction business is experiencing in 2024.

Infrastructure Investment

The state government is putting a lot into improving transportation, public facility upgrades, and updating water and energy infrastructure right now.

A recent report tells us that California has had $32.7 billion announced in Infrastructure Investment and Jobs Act (IIJA) funding. Of this amount, $24.18 billion is dedicated to transportation-related projects – so that could be a good in for civil engineers and public works contractors.

You can keep yourself updated about ongoing transportation projects in California on the California Department of Transportation website. The Office of Governor Gavin Newsom also launched Build.ca.gov to help you track exactly how money is being used for building projects around the state.

It might also be worth mentioning that there are government incentives promoting growth in construction and development.

For instance, construction projects supporting affordable housing, renewable energy goals, and earthquake-resistant builds — since these projects are good for Californians state-wide, so they help companies qualify for tax credits, grants, and subsidies.

Housing Demand

California is just one of those attractive places that people want to call home.

The state has long grappled with a housing shortage, but in 2024 we’re seeing developers go full-tilt in their efforts to build new apartment buildings, condos, and single-family homes.

Over five thousand homes were just fast-tracked by an affordable housing initiative across 10 statewide projects.

You might have seen our post about ADU builds and noticed how homeowners are adding even more residential space to properties where they live. That’s just another indication of how busy construction is in California right now.

Green Building Initiatives

California frequently encourages builders to help the state reduce its environmental footprint and there’s no sign of that stopping in 2024. 2023 was the hottest year on record, underlining the reality that green construction is more important than ever – which is a great opportunity for contractors who know their environmentally-conscious construction.

With the growing emphasis on sustainable and energy-efficient design and construction, certain government incentives and mandates lead to upgrades, renovations, and other construction projects that promote a greener California.

Advancements in Tech

Based on what we’ve covered in our article AI and Automation Construction trends and what you’ve no doubt observed in the field, you see that Building Information Modeling (BIM), drones, and automation increase efficiency and productivity in construction.

The more construction companies adapt to emerging tech, the higher the demand for their services – and the future is only going to demand you stay up-to-date with current tech in order to serve your customers appropriately.

Consistent Contractors Like You

Just as the construction business in California is growing at a steady pace, so is the number of new contractor licenses being issued.

If you’re looking for immediate, to-the-minute news about infrastructure updates, new housing development, green initiatives, and new tech, one of your best sources will be your peers in the field.

This flourishing industry relies on consistent, knowledgeable contractors like you who are really invested in construction work and how the landscape of the business is changing year to year. So keep yourself updated and check out some construction events in 2024.

Get yourself to some expos and industry conferences. You’ll see how all the factors we discussed in this post create new jobs and amp up construction activity statewide.

Quickstart Guide To California Construction Project Deposits

As a contractor in California, knowing the ins and outs of how to handle deposits for your construction projects is an utterly crucial skill.

First of all, a deposit is a legal obligation on most projects, but beyond that, deposits serve as an essential mechanism of the construction process that functions as a shield for both the contractor and the client.

But how do deposits work? Do you need a deposit on your construction project? How do you go about determining and handling deposits? Let’s find out.

What is a Deposit?

A deposit in any industry is a guarantee of work. It’s a legal mechanism that is designed to encourage good faith agreements between both parties.

In practice, a deposit functions by a client and the service provider agreeing on a small percentage of the total project cost that is paid upfront. Usually this is a small amount – like 10-15% of the total project cost.

This amount protects the homeowner by ensuring they don’t spend a huge amount of money on a service provider that doesn’t provide the service they agreed upon. It also protects the service provider by ensuring that they are monetarily rewarded for taking on a project – even if the client ultimately backs out of seeing the project to completion.

In this way, deposits benefit both parties. Clients feel safe that they’re not losing a big chunk of money on an unscrupulous provider, while service providers know they are going to be paid at least a small amount for the work done on the project.

Deposits encourage good faith bargaining between both parties, creating a safety net to protect both parties’ interests.

How Deposits Work in Construction Projects

When it comes to construction, deposits are relatively straightforward. These are assurances guaranteed ahead of time, usually with a percentage of the entire project being paid to the contractor even before the first trench is dug or the first nail is hammered.

The size, scope, and payment terms of a deposit are influenced by the scale and nature of the project. Smaller projects have more flexibility with a deposit, while larger projects involving multiple contractors or firms may have multiple layers of deposits overlapping at the same time.

A deposit not only protects contractors against nonpayment by clients but it also ensures that initial startup costs – like materials and labor – can be paid for to get the ball rolling. Deposits, then, also function as early funding on a project to make sure it can get completed on time.

In construction, a deposit is a preliminary payment made by the client to the contractor, or by the general contractor to the subcontractor.

Legal Requirements for Deposits in California

When it comes to the legal requirements in the state of California, there’s a number of different frameworks for deposits, spanning the various areas of construction, various levels of complexity, and the various stages of a project.

The General Legal Framework For Construction Deposits In California

  • Home Improvement Projects: Home improvement projects are one of the few areas of construction that have stringent contractual obligations set forth by the CSLB. California limits deposits for home improvement contracts to $1,000 or 10% of the project cost, whichever is less. This is a hard-and-fast rule that cannot be circumvented.
  • Commercial Projects: Unlike home improvement projects, there is no specific legal cap on deposits for commercial construction projects in California. It’s up to the individuals and businesses involved in commercial construction to determine their own deposits.
  • Other Projects: Like commercial projects, there are no deposit requirements for other types of construction projects, like municipal or large-scale infrastructure projects, which are often defined by specific contract terms, government regulations, or funding agreements.

Contractual Requirements

  • Progress Payments: California law mandates that contracts must detail the schedule of progress payments, clearly outlining each phase of work, services provided, and associated payment amounts – including deposits! Contractors cannot legally collect payment for work not completed or materials not delivered. However, they can require a downpayment, which is just another term for a deposit!
  • Change Orders: The law requires that any extra work or change orders be documented in writing and signed by both parties before commencement. This documentation should include the scope, cost changes, and impact on the payment schedule.

Mechanics Lien Warning

A crucial aspect of the contract is the mechanic’s lien warning, which works hand in hand with a deposit to ensure that a project is completed according to the contract.

A Mechanics Lien warning informs clients about the potential for liens against their property by unpaid subcontractors or suppliers, despite full payment to the prime contractor. It emphasizes the importance of preliminary notices from subcontractors and material suppliers.

Check out our article on contractor’s liens, and mechanic’s liens for California contractors for a deeper dive into these legal mechanisms.

Responsibilities and Consequences

Compliance with Deposit Limits

Contractors must comply with the deposit limits and progress payment regulations. Failure to adhere to these rules can lead to legal consequences, including disputes and potential litigation.

There’s only one legally enforceable deposit limitation in California – home improvement contractors cannot demand more than $1000 or 10% of the project cost, whichever is less. In this case, the State of California can hold the contractor legally liable for overstepping this law.

All other instances of deposits in the construction industry are not a civil, not criminal liability – which means it’s up to the individual or business to take the issue to court to receive compensation.

What Happens If You Don’t Have A Deposit?

If you don’t have a deposit on your construction project, you may or may not be in big trouble.

If you don’t have a deposit, you’re not legally in trouble, but you put yourself at significant risk of eating some serious costs without one. Without a deposit, the client can simply cancel the project at any time and you have basically no way to get your money back for things like materials and labor.

The reality is that you should not take on any construction project, no matter how big or small, without a deposit. It exists to protect you and the client, so there’s really no reason not to include one.

So…Do I Need A Deposit To Do Construction?

Do you need a deposit?

Yeah, you do. We can say that any contractor working in any industry, niche, or area of expertise in California should have a deposit in every single contract they sign with a client.

At the end of the day, there’s absolutely zero reason not to. It provides clarity to both the client and the contractor, while also protecting both parties financially in the case of non-fulfillment of a contract for a construction project.

It’s simply a no-brainer – get some money upfront and protect your business from losses!

Is a Subcontractor Liable for Damages?

Construction liability in general can be a difficult and confusing thing to nail down – it’s dictated by miles of paperwork and mountains of bureaucratic language that makes it impossible for the average Joes like us to understand.

Even worse, as construction projects become more complex, more subcontractors are required to take on the specialized work required in today’s world of hyper-complicated, highly bespoke construction. And the more people you bring on a job site, the higher the probability that something will go wrong.

When something does go wrong, you need to know how to fix it, and that first means establishing liability – which makes sense, as you need to establish liability before you can recover damages.

So, are subcontractors liable for damages on a construction job? The answer is…well, it depends. Let’s take a deeper look.

The Subcontractor-Contractor Relationship

In California, the relationship between subcontractors and contractors is complex and governed by specific laws and contractual agreements, but in general, contractors hire subcontractors to do specific, specialized construction work on their job sites.

The contractor – usually a general contractor in California, but possibly a foreman or a project manager – is responsible for finding the right person for their specialized task.

The subcontractor and contractor work hand-in-hand to get the work done. The general contractor establishes the scope, the process, and the schedule to get the work done – then the subcontractor is responsible for delivering as per the contract.

The subcontractor may work independently, but ultimately, they report to the general contractor, who is responsible for verifying and approving the work. When the job is completed, usually the general contractor is responsible for making sure the subcontractor is paid.

In some instances, a subcontractor may subcontract certain jobs out to other subs. While it’s not a general contractor hiring, the chain of command and liability is still the same.

Construction Liability in California

Who is liable for construction issues in California? What legislation defines construction liability?
There’s a series of frameworks that stipulate the entirety of construction liability law in California.

Key Aspects

  • Contractual Agreements: Govern the scope of work, payment terms, and other conditions.
  • Worker Classification: The California ABC test, established by Assembly Bill (AB) 5, is used to differentiate between employees and independent contractors on a state level, but in construction in particular, whoever is hiring is classified as a contractor, while anyone being hired is a subcontractor.
  • Legal Penalties: Refusal or inability to cover the damages from construction defects can lead to even bigger penalties as clients seek to recover losses.

Key Legislation

  • Assembly Bill 1701: Makes general contractors responsible for unpaid wages and benefits of subcontractors’ employees. Contractors have the right to inspect subcontractors’ payroll records to ensure compliance.
  • Liability Limitations: In cases of defective construction, damages are strictly limited by law. The measure of damages is typically either the cost of repair or the diminution in value of the property, whichever is less. Basically, contractors have to cover the cost of poor delivery.

Legal Responsibilities For General Contractors

  • Regular financial reviews of subcontractors.
  • Ensuring subcontractors comply with wage and benefit obligations.
  • Potential changes in contracting practices to mitigate risks.

General Contractors’ Liability for Subcontractor Damages

When it comes to subcontractors’ construction defects, whether or not they’re liable for subcontractors’ construction defects really depends on the situation. In general, these are the things that dictate liability:

  • Contractual Liability: The general contractor and subcontractor relationship is typically defined by a contract. This contract often includes clauses related to indemnification, where the subcontractor may agree to indemnify the general contractor against certain types of liabilities. However, the effectiveness of these clauses can depend on the specific language used and the legal interpretations of such agreements.
  • Vicarious Liability: In some cases, general contractors can be held vicariously liable for the acts of their subcontractors. This can occur when the subcontractor is deemed to be an agent of the general contractor, which often depends on the degree of control the general contractor has over the subcontractor’s work. However, because subcontractors are usually independent entities, this type of liability is less common in construction.
  • Direct Liability: General contractors can also be directly liable for damages caused by their subcontractors if it is found that the general contractor was negligent in some way. This could include situations where the general contractor failed to properly supervise the subcontractor, did not hire a competent subcontractor, or if the general contractor was involved in the activity that caused the damage.

While they are not directly liable for penalties or liquidated damages against the subcontractor, they are responsible for the unpaid wages, benefits, and interest. This responsibility necessitates a change in how general contractors manage and audit their subcontractors.

What Are Subcontractors Liable For?

Subcontractors are liable for their own taxes, liability insurance, and workers’ compensation coverage. They are responsible for the quality of their work and may be liable for damages caused by their negligence or contractual breaches.

In cases of defective construction, subcontractors can be held liable to the owner, with damages limited to repair costs or property value diminution. However, it’s dictated by the three types of liability we covered in the previous section.

Pursuing Damages from a Subcontractor

If a general contractor needs to pursue damages from a subcontractor, they must:

  • Review the contractual agreement for breach clauses.
  • Gather evidence of the subcontractor’s failure to comply with the agreement.
  • Take legal action based on contract law and specific construction laws in California.

Protecting Against Unscrupulous Subcontractors

To protect against hiring unscrupulous subcontractors, general contractors should:

  • Conduct thorough background checks.
  • Review the subcontractor’s financial stability and past project history.
  • Ensure clarity in contracts regarding responsibilities and liabilities.
  • Regularly monitor the subcontractor’s compliance with laws and contract terms.

Situations Where Subcontractors Are And Are Not Liable

Here are some of the main areas when it comes to general contractor liability when dealing with subcontractors.

  • Defective Construction Work
    • Subcontractor Liable: If a subcontractor performs a specific construction task (like plumbing or electrical work) and the work is faulty or doesn’t meet the contract’s specifications, the subcontractor is typically liable for the damages caused by this defective work.
    • Subcontractor Not Liable: If the defect is due to design errors provided by the general contractor or another party, the subcontractor may not be liable, provided they followed the design specifications accurately.
  • Injury on the Job Site
    • Subcontractor Liable: If an employee of the subcontractor or a third party is injured due to the subcontractor’s negligence or failure to adhere to safety standards, the subcontractor can be held liable for these injuries.
    • Subcontractor Not Liable: If the injury is caused by the general contractor’s negligence or by hazards outside the subcontractor’s control or work area, the subcontractor may not be held liable.
  • Non-Payment of Subcontractor’s Employees
    • Subcontractor Liable: Under California law, specifically Assembly Bill 1701, subcontractors are directly liable for paying their employees. If they fail to do so, they can be held responsible for the unpaid wages and benefits.
    • Subcontractor Not Liable: If the general contractor fails to pay the subcontractor, which in turn affects the subcontractor’s ability to pay their employees, the liability may shift to the general contractor, especially if there’s a breach of contract.
  • Environmental Damage
    • Subcontractor Liable: If a subcontractor’s actions lead to environmental damage, such as improper disposal of hazardous materials, they can be held liable for the cleanup costs and any related damages.
    • Subcontractor Not Liable: If the environmental damage is due to factors beyond the subcontractor’s control or due to adherence to the general contractor’s specific instructions, the subcontractor might not be held liable.
  • Project Delays
    • Subcontractor Liable: If a subcontractor fails to complete their portion of the project on time, and this delay is solely due to their mismanagement or lack of resources, they can be held liable for any damages resulting from the delay.
    • Subcontractor Not Liable: If the delay is caused by factors such as change orders from the general contractor, unforeseen site conditions, or delays in other parts of the project not related to the subcontractor’s scope of work, the subcontractor may not be liable for these delays.

Conclusion

In California, both general contractors and subcontractors have specific responsibilities and potential liabilities. Keeping strict track of these liabilities and responsibilities for operating within the legal framework and ensuring a smooth construction process.

As a general contractor or a homeowner signing on with a subcontractor – the best thing you can possibly do for yourself is to outline liability specifically and comprehensively in the contractor. That way, you have it in writing – so you have a legal leg to stand on if something goes wrong.

Can I Build My Own Home in California?

Many ask the question. But are you ready to go the distance?

Frankly, we don’t recommend most people build their own homes, but if you have the skills, the savvy, and the dogged determination required, maybe you can pull it off and build your own home in California.

We’re here to help – we see the vision! But it’s only fair to tell you to expect a long road with lots of (possibly costly) bureaucratic red tape along the way.

Here’s how you build your own home in California.

Learn About Contractor Licensing (And Learn If You Need A License)

The first items you probably already have on your mind are the necessary licenses and permits you’ll need to get the job done. Before you do another online search about the matter, do yourself a favor and browse the California State License Board website – that’s the place to go for any and all state-level licensing requirements and legal information.

Whatever kind of construction work your home-building process requires, the licensing and permitting information that you need will be available for you on the CSLB site.

If you’ve already started getting a construction crew together, you can look up their licenses on the CSLB site as well and learn more about their qualifications and work history. In general, you will find that your contractors are all Class B license holders.

Do you need a license to build your own home? Check out our article on that very topic.

Studying Up on California Building Standards

California’s Building Standards Commission is your BFF if you want to build a safe and compliant house. You can join their mailing list to keep up with all the new building codes and standards throughout the construction of your new residence.

Remember – knowing the building codes on both a state and local level is your job as the builder. Do your diligence upfront and make sure you stay compliant throughout the process.

Gain Purchase in Your Process

You’ll want to learn quite a bit about the California Department of Real Estate and what it takes to buy land and sell a self-built home eventually. Sure, your plan is to build your own home today and live in that self-built home tomorrow, but later down the line, this residence ought to be fit for the California real estate market as well and the DRE can help with that.

Another reason to learn the real estate regulations and licensing details now is that you often need that information to buy the land your home will be built on in the first place. The California Department of Housing and Community Development can help you sort out which land ordinances and zoning laws pertain to you and your process. This department can also help you find out which permit applications you need in your county, city, and neighborhood.

Expect Inspections

As you build your strategy for building your own home, take the considerations of the California Environmental Protection Agency (CalEPA) into account.

The state of California is serious about environmental conservation so check to be sure that your construction project isn’t a hindrance to any protected species or elements. If your project requires special permits or approvals, keep all the paperwork squared away so that later down the line all building inspections go smoothly.

Even if you don’t have any special permits or anything like that, you can expect, especially in the case of a builder-owner, for the state to make sure that you’re staying compliant with environmental standards.

Build an Airtight Strategy

Keep everything mentioned above in mind as you design your home. Create detailed blueprints and if you can, hire an architect or a professional drafter to help you. A project manager or construction manager can also help lighten the administrative load.

Make a realistic budget for yourself. If you qualify for a construction loan, that is a common route that many others have taken before you. Then secure a suitable plot of land for your dream home in California and be sure that your build complies with local zoning regulations.

Before you break ground on construction, you’ll need all those permits we talked about earlier. Building permits, grading permits, electrical permits, plumbing permits, mechanical permits — the whole nine.

When you’re ready to begin construction, consider hiring a team of contractors. Because you’ll need licensed experts to take care of tasks like excavation, framing, plumbing, and electrical work. These aren’t things you can DIY — you need special licenses for all this work.

Throughout construction, you and your team need to make sure that all of your work holds up to California’s building codes and regulations. There will be multiple inspections throughout the process and more once the project is complete.

Home Sweet Home!

If you follow all the necessary guidelines throughout construction, you will be ready to move into your new home once the structure is complete! From there you can get a Certificate of Occupancy from your city that proves you can live in your new home legally! Alright!

There you have it! Building your own home in California is a significant undertaking, and complying with all legal requirements is a full-time job all on its own. Always consult with professionals and the local governing bodies in charge of the regulations in your area to ensure a smooth and legal construction process.

Our word of advice: staying ahead of problems before they become bigger problems is the biggest thing you can do for yourself to maintain your sanity. Always keep an eye peeled for upcoming bumps in the road so you can take evasive maneuvers. Happy building!

5 Unorthodox Ways to Find New Contractor Clients

The California construction contractor industry – with over 300,000 general contractors alone – is one of the most competitive regions in the country. From San Diego to San Francisco, you’re competing against dozens if not thousands of people for the same jobs.

With the intensity of competition for limited jobs by contractors who all have similar skills, and deliver similar services, one of the best ways to gain a competitive advantage as a contractor is through marketing.

Furthermore, most contractors are doing the same thing when it comes to marketing – joining the local chamber of commerce, creating a business profile for Facebook, and putting your logo and contact info on your work truck. This means that the competition for marketing your services as a contractor is just as intense as the jobs themselves.

With that in mind, the best way to gain an advantage over your competition and win more new clients is by going further than the traditional pathways to your new clientele.

The real way to win new clients as a California contractor is to seek out marketing opportunities that aren’t saturated with your competitors’ messaging already.

Here’s five ways to go above and beyond with your marketing to find those new clients for your contracting business.

1. Develop Relationships With Real Estate Professionals and Organizations. Working together with real estate folks is an obvious route to finding new clients. For example, realtors will often have little bits and bobs to address on their various properties, while sellers may need reno work to get the home in perfect condition before a sale. Alternatively, new buyers might want to make improvements so that the home will better suit their needs. Over time, having just a few realtors, developers, home inspectors, and other RE professionals in your network can give you a big boost in referrals.

2. Workshops. Workshops are a great way to meet your clients directly while also demonstrating your skills and personality at the same time. If you can show your clients how to update their kitchen or install a new closet system, you’re the first person they’ll call when they need help with their home.

3. Parties. Sounds weird, right? But everyone loves a party – especially when there’s something in it for them. Throw a customer appreciation party and give them free food and drink – and maybe even a discount on their next service. Bring together local construction-adjacent professionals to build connections and confidence in your name and company. Plus ones are extra, extra invited!

4. Video Ad Campaigns. Online ads are a great way to gain attention for your business, but VERY FEW companies actually advertise their company through moving pictures. With a video ad campaign, you can add life and personality to your business, while also demonstrating what the customer can expect before, during, and after the process. Video campaigns represent incredible potential to ease customers’ fears about you and your service – so they’ll be more likely to call you when a problem arises.

5. Billboards. You’ve seen the car wrap and you’ve seen the banner on the job site, but why do so few construction professionals advertise their services on billboards or similar out-of-home advertising platforms? Marketing a construction business is 90% awareness, and outdoor advertising is incredibly effective at increasing the number of people who are aware of your business. For most construction jobs, that’s enough for people to call you over your competitors.

The Bottom Line: Think Outside The Box (Or Screen)

To win more clients than your competitors in one of the world’s most competitive construction landscapes in the world, you have to think outside the box to find them.

The best way to get people to pay attention to you is to do something that grabs their attention – and that means not doing the same thing everyone else is doing. Take some time and write down some special and interesting ways you can reach your local audience – you know it better than we ever could!

Can Anyone Get A General Contractor License in California?

When it comes to doing contracting work in California, there are few more common words than these three: “general contractor license.”

As by far the most popular contractor license classification in the state – with over 300,000 Class B license holders – becoming a general contractor is a highly desired and highly lucrative career path for many in the state.

But can anyone get a Class B General Contractor license from the Contractors State License Board (CSLB) – and become a licensed general contractor?

In this article, we’ll take a look at whether just anyone can become a GC in California – and the steps you need to take to get there.

The Journey From Apprentice To General Contractor

So, can anyone become a general contractor?

Maybe you know someone else who went after it and successfully obtained their general contractor license. Maybe you’re the first person you know to even try. In any case, taking on this significant milestone can be satisfying and rewarding – financially, professionally, and personally.

The beauty of a career as a general contractor is that anyone can become a general contractor if they’re willing to put in the time and effort to learn the trade. Yes, even you. With no traditional school requirements – only on-the-job experience – becoming a GC is a great way to make good money in a stable industry.

However, there is a long journey ahead – a journey that is, in many ways, much more difficult than the cushy classrooms of a university. Every contractor must complete four years’ worth of journeyman experience in their given trade to even be eligible to apply for their license. For general contractors, that means they must do 4 years’ worth of journeyman work as a general contractor!

An apprenticeship with a general contractor can also pay dividends massively by allowing you to only need three years’ work experience as an apprentice – plus one year of journeyman experience.

Becoming an apprentice or journeyman is critical for your path to becoming a general contractor. In many ways, it’s a lot like a four-year university – except in this case, you’re getting paid to learn your future job!

Review And Understand The Eligibility Requirements

Before you apply for your general contractor license, you must make sure that you meet the eligibility requirements set by the Contractors State License Board (CSLB).

In order to get a Class B License, applicants must meet the following requirements. In some cases – such as situations where an applicant has a criminal record – you may be required to meet other, more rigorous standards to even apply for a general contractor license.

Here are the basic requirements to become a general contractor:

  • Be 18 or older.
  • Have a valid Social Security number or Individual Taxpayer ID.
  • Have at least four years of work experience as a journeyman working as a general contractor
  • OR have three years’ apprenticeship experience and one year of on-the-job training
  • Pass the CSLB exam

Prep for The CSLB Exam

Besides the rigorous four-year training period for all contractors, the other most difficult part of becoming a general contractor is passing the notoriously rigorous CSLB exam. This two-part exam, covering both general contractor knowledge and contractor law and business respectively, has broken many contractors in their pursuit of licensure.

With a stunning 130+ questions, we suggest enrolling in exam prep courses and using study materials provided by the CSLB. You can also find practice exams online to help you gauge your level of readiness. Either way, practice and preparation are critical for saving time, money, and energy.

Submit Your Application

If you meet the experience requirements and pass your exam, then congratulations! You’re past the worst stuff. You can apply online through the CSLB website!

You can submit your application online, or you can submit a physical application instead if that is your preference. Make sure you complete all required sections accurately!

Get Bonded and Insured

In California, it is required for general contractors to secure a contractor’s bond and liability insurance for themselves.

All general contractors are required to have a contractor’s bond – a financial guarantee that you will fulfill contractual obligations on your side. Most GCs will also have to have liability insurance and workers’ compensation insurance, which protects you financially in case of accidents or damages on the job site.

Be advised that your license will not be approved unless you provide proof of and maintain sufficient bonding and insurance coverage throughout your career.

Pay The Fees

Our least favorite section rears its ugly head once again! You must pay any and all fees to the CSLB before you can receive a general contractor’s license (or any contractor license for that matter!).

Take a look at the current fee schedule on the CSLB website and determine which fees pertain to your chosen license classification. Check this information carefully and submit your payment with your application.

Prepare for Your Interview If Applicable

In some cases, the CSLB may request an interview. This part of the process is meant for reviewing your qualifications and past business experience. If this requirement applies to you, do not sweat it.

Look over the detailed record of your work history that you prepared and practice natural ways to reinforce your commitment to your work as a contractor. This part of the process can only help you better your chances of landing a positive result.

Receive Your License And Stay Compliant!

Congratulations! You’ve put in the hard hours, done the diligence, studied your buns off, passed the exam, paid the fees, and finally – finally! – you’re a licensed, bonded, and insured Class B General Contractor.

Receiving your Class B license is a massive milestone in your career and your life. With a Class B license, you can take on almost any job, of any size, and build a new life for yourself and your family.

With that in mind, it’s critical that you don’t stop here and rest on your laurels. Sure, you have your license now, but contractors’ licenses are only valid for 2-3 years. It’s important that you stay on top of your education, resources and more so that your Class B license stays valid throughout your career as a general contractor.

Best of luck to you on your journey!

Can Felons Get A General Contractor License?

While this is a complex question that varies based on every situation, the answer is yes – many felons can qualify for a CSLB Class B license, but the path to get there is different from the typical way.

Check out our article on this topic for a more in-depth guide on this topic.