If you’re a contractor, you might often find yourself asking: “How do I get my hands on one of those lucrative, long-term, often-over-budget government contracts?”

You may see contracts for bridges or tunnels or a number of other federal or local public works projects out there on jobs boards or you may hear about them through your local trade union. But how exactly do you get these jobs? And what kind of work do you need to do to even get your foot in the door?

In this article, we’ll cover everything you need to know about locking down those lucrative government contracts – so you can start bringing in those dollary-doos from Uncle Sam!

 

The End-All, Be-All: The Government Contractor License

To begin, you first have to establish yourself as a verified contractor who can take on jobs for the federal, state or local government by obtaining a government contractor license. Just like the CSLB, this is a process that requires verification and certification by a regulatory body.

The way to do that is through the United States Small Business Association (SBA) – this is the federal organization responsible for providing resources and regulation for small businesses across the nation – including issuing federal government licenses.

If you want to work on government contracts, you’ll need a federal government license, just like you’d need a CSLB contractor’s license to do any construction work over $500 in California.

Keep the SBA’s website in your back pocket. As you continue down the path of getting your government license as a contractor, you’ll be constantly in contact with the SBA, and constantly visiting their website over and over again as you jump through the endless hoops of paperwork and bureaucracy.

 

The Steps To Getting Your Government Contractor License

To be completely honest, the process of obtaining a government contractor license is long and arduous. This is the tradeoff of working with the government – everything takes much longer and requires a lot more work than it should.

Step 1: Establish Your Business

The first step on this journey is to establish your business legally. In most cases, you’ve already gotten this taken care of – these are all the basic elements of forming your business in the state of California.

This involves several sub-steps, including registering your business with the appropriate state agency (in this case, the California Secretary of State and the CSLB), obtaining an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), and setting up a DUNS number through Dun & Bradstreet. 

As we’ve said, most of these are basic steps of owning a business, and in many cases, you will already have done these.

 

Step 2: NAICS and PSC Codes

Once your business is legally established, the next step is to identify your North American Industry Classification System (NAICS) codes and Product Service Codes (PSC). 

These codes are part of a database that the government uses to categorize the types of products or services that businesses offer. In our case, we’ll be submitting construction-related services, including sourcing, engineering, and general contracting. 

 

Step 3: Register Your Company With SAM

You’ve done it – you’re now ready to start winning some business! With your NAICS and PSC codes in hand, you’re ready to register your business with the System for Award Management (SAM). 

SAM is the sole system where companies can bid for contracts – and the sole way that the government awards contracts. Once you’re in the system, you’ll be able to start bidding on and winning contracts with the government. 

 

OPTIONAL STEP: Get Certified 

While not strictly necessary, obtaining certain certifications can significantly increase your chances of winning government contracts, especially in the realm of construction. 

If you’re a minority-owned business or a woman-owned business, for example, you can get certified as a disadvantaged business, which means you’ll have a better chance of winning contracts over more established competitors!

 

Step 4: Start Winning Government Contracts!

With your business established, your codes identified, your SAM registration complete, and your certifications (if any) in hand, you’re finally ready to start searching for contract opportunities.

The king of all websites when it comes to finding and bidding on government contracts is, as you probably guessed, the SAM website. Visit sam.gov/search to find federal contracts that fit your area of expertise – then start bidding on them!

 

Why Bother With A Government Contractor License?

There are so many incredible benefits of being a contractor who has worked and continues to work on, government jobs.

Here are just a few benefits of working on government contracts as a construction contractor:

• Dependable – government contracts will always pay out according to the terms
• Lots of work – there’s always work to be done for the federal government. 
• Good pay – the government is notorious for paying way over the odds for routine work
• Reputation boost – working for the government automatically stamps a seal of approval on your work. If the government trusts you, people will trust you, too.
• Networking – working on government contracts opens you up to a whole new world of work opportunities. 

 

Is It Worth It?

Getting your government contractor’s license is no walk in the park – it can take months of paperwork wrangling and bureaucratic navigation to get your license for federal work.

But the objective reality is that getting your government contractor’s license is absolutely worth it to any contractor. Not only do you get access to more, better-paying jobs, you significantly increase your chances of booking other work with an increase in your network and in the trust your current network will have in you.

If you’re on the fence about whether it’s worth it to take the plunge into government contract land, stop sitting up there and jump on in! It’s worth it on the other side!

For many contractors (most contractors), the most difficult part of getting your Contractors State License Board (CSLB) contractor license, so you can start working as a licensed contractor in California. .

The 200+ question, 3+ hour CSLB exam is a notoriously difficult examination designed to test the skills of even the most prepared and experienced construction professionals. That’s why we always recommend leaning on the expert guidance of a trusted contractor license exam school – through proven courses, these classes can make taking the test much, much easier.

But let’s say you don’t have the time nor the money to take a contractor’s license course from a trustworthy school. Is there a way to get your license without taking the CSLB exam? Let’s find out.

 

First Off, What Is The CSLB Exam Like?

To California contractors, taking the CSLB exam is like taking the SAT or the LSAT or MCAT exam for prospective college students, lawyers or doctors – this long, arduous trial decides whether or not you’ll be able to work as a contractor in California.

Clocking in at around 200 questions and taking up to 4 hours, the CSLB exam is, by design, not a joke. It’s meant to separate the wheat from the chaff when it comes to contractors and will test even the most seasoned construction expert if they’re not prepared.

 The CSLB requires most applicants to pass two examinations:

1. Trade Examination: Tests your knowledge of your chosen license classification.
   1. This can be either a Class A, Class B, Class B-2, or specific Class C speciality license – like plumbing or electrical.
2. Law and Business Examination. This part of the exam covers California’s contracting laws and business management principles.

See our comprehensive guide on the CSLB exam for a deep dive on what you can expect from the CSLB exam process.

 

Is It Possible to Skip the CSLB Exam?

The short answer is no! 

The majority of applicants must score a 72% passing grade on both the CSLB Trade and Law and Business exams to obtain a contractor’s license in California. 

However, there are a few exceptions and alternative paths to explore:

1. License Reciprocity Agreements

California has reciprocity agreements with Arizona, Nevada, and Utah for certain classifications, allowing licensed contractors who currently hold a valid license from those states to bypass the Trade exam and only pass the Business and Law exam to get their California contractor license.

Contractors who qualify for the reciprocity agreement still have to take the Business and Law exam, which covers – you guessed it – California-specific business and law. You know, stuff like construction codes and financial obligations for contractors in the State.

To qualify, applicants must:

• Hold an active license in good standing for at least five years
• Submit a Verification of License form from the reciprocal state
• Pass the California Law and Business exam

 

Keep in mind that not all classifications are eligible, and applicants are still required to meet the basic experience and financial requirements put forth by the CSLB and the state of California.

2. Waivers for the Trade Examination

The CSLB may grant a waiver for the Trade exam in specific circumstances, such as:

• Adding a new classification to an existing license (if the qualifying individual has the required experience)
• Replacing a qualifier in an existing license (if the new qualifier meets the experience requirements)
• Applying for a license within five years of the expiration date of a previous California contractor’s license in the same classification

Note that like those who are able to take advantage of California’s reciprocity agreement with other states, applicants still have to score a 72% passing grade on the Business and Law exam.

 

You Can Never Skip the CSLB Law and Business Exam

You’ll notice that in both of the scenarios where you can skip the CSLB trade exam – via reciprocity agreement or waivers – you are never allowed to skip the Law and Business portion of the CSLB exam.

We repeat: there are no ways – we’ve checked – to skip the CSLB Law and Business exam. It is not worth your time to even pursue a way of skipping it. Just study and pass it – you need to know the information anyway!

 

Alternative Paths to Working in the Construction Industry

If skipping the CSLB exam isn’t an option for you, consider alternative paths to work in California’s construction industry:

1. Become a construction laborer. Gain hands-on experience in the field without obtaining a contractor’s license. If you work on jobs less than $500, you can gain experience toward your CSLB exam. It can also help you build valuable skills and industry knowledge, so you’ll be more prepared when it comes time to take the CSLB exam.
2. Find a Sponsor: Find a mentor or senior person to help you gain the necessary work experience in your classification. These experienced, CSLB-licensed professionals can not only help you acquire he skills and experience needed to get your CSLB license, they can help you learn all the other soft and hard skills associated with construction.
3. Get A Degree or Certification: Obtain a degree or certification in a field related to your specialty, like construction management. This education can sometimes qualify you to be waived for the exam or to waive other CSLB requirements.

While facing the CSLB exam can seem like little David facing up a 50’ tall Goliath, it is well within any dedicated contractor’s reach to pass the exam and get their contractor license.

Unless you’re an out-of-state contractor that can take advantage of the reciprocity agreement, or you can find another exemption, you have to just bite the bullet. With a good plan and dedication, anyone can pass the CSLB exam

Introduction

Like almost every other industry on Planet Earth, the construction industry is witnessing a seismic shift as it embraces the power of artificial intelligence (AI) to revolutionize processes and outcomes.

One of the biggest technological breakthroughs in human history, late 2022 and early 2023 has seen the emergence of AI so sophisticated it is finally becoming widely adopted across industries and business sizes. 

The construction industry is no exception to this changing landscape. Several groundbreaking AI technologies are emerging and taking the sector by storm, leading to increased efficiency, enhanced safety, and innovative designs.

Those contractors who don’t adopt AI into their construction pipelines are sure to be left behind – don’t be hopelessly stuck in the past!

In this article, we will help you identify which AI technologies are worth keeping an eye on or even adding to your workflow immediately as a California contractor, so you can gain a competitive edge over your competition.

 

Types of AI and Use Cases for Construction

Generative Design

AI-driven generative design software is revolutionizing the way architects and engineers approach building design. By inputting specific design constraints and objectives, such as materials, budget, and desired energy efficiency, generative design software rapidly produces a multitude of design options. 

This technology operates at lightning speed compared to traditional design – increasing the efficiency of optimizing layouts for structural integrity, cost-effectiveness, and environmental impact, and providing a more sustainable and efficient approach to construction planning.

 

Autonomous Vehicles 

Construction sites are increasingly deploying autonomous vehicles, such as self-driving bulldozers and excavators, to do more precise, more efficient work. 

These machines leverage advanced sensors, LIDAR, and GPS technology to perform tasks with minimal human intervention. They significantly improve efficiency and reduce the risk of accidents, contributing to a safer working environment and better allocation of human resources.

 

Drones

Drones are increasingly becoming commonplace on construction sites, with their ability to seamlessly and easily give a different perspective to your project.

AI-powered drones are becoming an indispensable tool for construction site surveillance and monitoring, allowing you to continue working on other areas of the business while they do their thing without your constant surveillance. 

They collect real-time data and generate 3D maps, providing accurate progress reports and identifying potential hazards. Drones also assist in site inspections and reduce the need for manual labor in dangerous or hard-to-reach areas, increasing safety and cost-efficiency.

 

3D Printing

3D printing has helped revolutionize building in the past decade, and now AI is pushing the capabilities of this process even further.

AI-powered 3D printing technology has made considerable advancements in recent years, enabling the creation of complex architectural structures with precision and speed. This technology reduces waste, minimizes construction costs, and has the potential to revolutionize affordable housing by making the construction of custom designs more accessible.

 As 3D printing technology continues to advance, it is expected to play an even more significant role in the construction industry, shaping the way we build our cities and infrastructure with more efficient building materials.

 

Robotics

From bricklaying robots to robotic arms for welding and cutting, AI-enabled robotics are transforming the construction industry. 

These advanced machines perform repetitive and intricate tasks with greater accuracy and speed, improving overall productivity and reducing human error, increasing efficiency and safety at the same time. 

The adoption of robotic technology is also expected to enhance the quality and durability of structures, as precise and consistent workmanship becomes the new norm.

 

Predictive Analytics

The construction industry generates massive amounts of data daily. AI-powered predictive analytics tools harness this data to provide valuable insights into project management and safety.

They can predict potential delays, identify areas of improvement, and develop preventive measures for safety hazards. 

With the power of predictive analytics, construction professionals can proactively address challenges and reduce the risk of cost overruns, ensuring that projects are completed on time and within budget. This is an ABSOLUTELY CRITICAL tool for correctly budgeting for costs and calculating your end profit.

 

Digital Twins

Digital twin technology involves creating a virtual replica of a physical asset or project. These digital representations are updated in real time, allowing construction professionals to monitor project progress, detect issues, and make informed decisions. 

By simulating different scenarios, digital twins can help optimize resource allocation, schedule maintenance, and predict potential problems. The integration of digital twins in construction projects is expected to streamline workflows, enhance collaboration, and ultimately lead to higher-quality outcomes.

 

Wearable Technology

Wearable devices, such as smart helmets and vests equipped with sensors, are enhancing safety and productivity on construction sites. 

These AI-driven wearables can monitor workers’ vital signs, track their location, and detect potential safety hazards. Additionally, they facilitate improved communication between team members and offer real-time feedback on work performance. The implementation of wearable technology in the construction industry is poised to significantly reduce the number of workplace accidents, ensuring a safer and more productive environment.

 

Machine Learning and Building Information Modeling (BIM)

Machine learning algorithms are being applied to Building Information Modeling (BIM) systems to enhance construction processes.

BIM integrates architectural, structural, and engineering data into a single digital model, providing a comprehensive view of the project. Machine learning allows for the automated analysis of BIM data, helping professionals identify patterns and correlations that might have otherwise gone unnoticed. This, in turn, results in more efficient construction processes and optimized decision-making.

 

AI-driven Project Scheduling and Resource Management

AI-powered software tools are enabling more efficient project scheduling and resource management within the construction industry. 

By analyzing vast amounts of historical data, AI can predict the duration and resource requirements for specific tasks, resulting in a more accurate project schedule. This technology also assists in identifying potential bottlenecks and optimizing resource allocation, ensuring that projects are completed efficiently and within budget constraints.

 

Conclusion

The construction industry is experiencing a paradigm shift as emerging AI technologies pave the way for a safer, more efficient, and innovative future. 

As we embrace the AI revolution, the construction industry will continue to evolve and grow, driving progress and prosperity in the built environment. 

Embracing these innovative technologies will not only result in improved project outcomes, but it will also create new opportunities for construction professionals within the industry to develop and expand their skillsets – bringing in more value for you while increasing efficiency and the amount of money you can make on each project as your skillsets broaden and deepen.

There are over 50 different contractor’s licenses for California contractors to obtain, but among the most common types of contractor licenses are Class B General Contractors’ licenses – which allow any contractor to take on GC work in the state of California.

While every different construction project has different parameters, needs, and requirements – every type of construction project requires a robust contract that outlines what is expected from both the homeowner and the contractor. 

Residential remodeling projects in California are no exception. Home improvement remodelers need to know what to include in a contract given to a client.

In this article, we’ll cover all the essential ingredients of creating a Home Improvement contract, so you can start taking on remodeling projects right away.

Please note that this is not financial or legal advice. Always consult a legal professional before creating or delivering a contract to any client.

The B-2 License: The Home Improvement Contractor License in California

If you work in home improvement, you’ll be very familiar with the Class B General Contractor license, specifically its sub-license – the B-2 Residential Remodeling license.

The B-2 License allows you to take on any residential remodeling, home improvement or other construction project involving a residential property under 3 stories tall. A B-2 license is commonly used by remodeling contractors who want to do jobs like bathroom remodels, siding teardowns and refurbs, and so on.

Learn more about the B-2 Home Improvement Contractor license in our blog post on the subject.

Do You Need A Home Improvement Contract?

The answer is yes – in most cases.

In California, a “home improvement” is legally defined as an agreement between a contractor and a homeowner or tenant for work to be performed at the owner’s or tenant’s home on projects with a value over $500.

Whether you are installing a new kitchen, adding a second story, or simply painting a room, if the cost of the project exceeds $500 – you need a home improvement contract and a CSLB-certified B-2 Remodeling Contractor to perform the work.

All home improvement projects that are less than $500 are excluded from CSLB rules. You don’t need a registered contractor, nor do you need a contract. Basically, anyone doing remodeling work under $500 is good to go, no additional paperwork or certs required.

Essential Requirements of a Home Improvement Contract

Clarity and Legibility

First and foremost, a home improvement contract should be clear and easily readable. This legal standard ensures that all parties understand their commitments and obligations and that the contract isn’t entered into under deceitful, misleading, forceful, or other circumstances of bad faith.

This means that any handwritten portions of the contract must be legible. While technically verbal contracts are binding – heck, you could have a contract on the back of a paper napkin – you should save yourself the bother of this requirement and just type out all of your contracts.  

It’s 2023, there’s no excuse for any contractor to not produce typed contracts. Not that it matters anyway, as no client will sign on with a contractor whose contracts are written in pen.

When writing your contract, pay attention to the font size. Preprinted sections, including any headings of a contract in California, must be in at least a 10-point typeface.

First Page Information

The first page of the contract should include crucial information like the name of the project, the name of your contracting company, the date the homeowner signed the agreement, the name and address of both the homeowner and the contractor, as well as any name or address where you will receive project-related mail like cancellation notices.

Mechanic’s Lien and Down Payment Stipulations

A mechanic’s lien is a legal claim against a property that has been remodeled or improved. This legal instrument allows contractors to protect themselves against nonpayment – this usually covers things like material costs or wages if the homeowner cancels the project.

On the other side of the coin, homeowners who are protected in Home Improvement Contracts must include a statement indicating that upon completion of each phase of the project, the contractor will provide an unconditional release from any potential mechanic’s lien claimants.

Moreover, the contract should include a clear stipulation about down payments. California law caps the down payment at 10% of the total project price or $1,000 – whichever is less. 

This law is designed to protect homeowners from paying too much upfront – only to be stuck with an unfinished project when an unscrupulous contractor skips town.

Change Orders and Bonds

Change orders are modifications to the original contract regarding the scope of work, materials, or cost. 

The contract should contain a statement indicating that change orders will become part of the contract once they’re signed. 

This protects both the contractor and the homeowner, ensuring that any changes to the work are documented and agreed upon by both parties.

Additionally, the contract should state that the homeowner has the right to require the contractor to have a performance bond. 

A performance bond is a type of surety bond that ensures a contractor will complete a project according to the terms of the contract. If the contractor fails to complete the project, the bond compensates the homeowner.

Contractor’s Information

The contract must include the contractor’s name, business address, and license number. This protects homeowners from unscrupulous contractors as there’s a paper trail they can follow to recoup any potential costs from bad construction work.

On the flip side, it puts the homeowner at risk as well as hiring an unlicensed contractor is illegal. They can face penalties for hiring them, as well as putting themselves at the risk of having no legal recourse should the unlicensed contractor make a meal of things.

Detailed Description of the Work

The contract should contain a detailed description of the work to be performed. 

This description should be so comprehensive that it leaves no room for ambiguity or misunderstanding. It should specify the materials to be used, the process to be followed, and the expected result of the project – down to the last nail and screw.

For instance, if the project involves installing new flooring, the contract should detail the type and brand of the flooring, the pattern for installation, and any preparatory and finishing work that will be done. You’re a contractor – you know what a description of work is and what’s required!

Project Price and Payment Schedule

The total price of the project should be clearly stated in the contract, and it should be broken down to demonstrate where the money will be spent.

This price should include the contractor’s labor costs, the cost of materials, and any applicable fees, such as permit fees or Homeowner Association (HOA) fees.

In addition to the total project price, the contract should also include a payment schedule.

This schedule outlines when the homeowner will make payments to the contractor, typically upon completion of specific project milestones. This not only ensures that the contractor is paid promptly but also gives the homeowner some control over the project’s progress.

Start and End Dates

The contract should specify both the approximate start date and completion date of the project. Obviously, this is construction and things can change – and often do. 

The point of including these dates is to set expectations for both parties and provide a timeline for the project for everyone to be familiar with and understand.

While not necessary, it is often beneficial to include a list of acceptable delays to these dates to ensure clarity in the event of unforeseen circumstances that might cause the project to be delayed.

Warranties & Additional Covenants

Finally, the contract should provide a description of available warranties. These warranties might be product warranties, which are offered by manufacturers to ensure that the equipment, fixtures, or products used in the project work as intended. 

Additionally, the contract may include project guarantees, which are assurances from the contractor about the quality and longevity of their work. This is not required many reputable contractors

Conclusion

California is a state notorious for its endless labyrinths of red tape – but the bureaucracy and legal frameworks exist for a reason: to protect homeowners and contractors.

A quality home improvement contract does exactly this: it outlines all of the details of the project and sets expectations accordingly, while also detailing the penalties and consequences of either party violating their contract.

Finding the right contractor to work on your swimming pool is similar to hiring any contractor – it’s an often-confusing process involving tons of uncertainty, doubt, and confusion as you try to identify someone who not only has the skills to nail your pool construction but also is someone you know you can trust to complete the job.

The good thing is that most pool jobs aren’t life-and-death, in most cases, a pool installation won’t cause your roof to collapse on you while you’re sleeping. That’s also the dark side of pool installation – the lack of serious health concerns means it’s a ripe opportunity for sketchy contractors to sneak in and bluff their way to a pool job that’s beyond them.

So how do you save yourself the time, money, and energy that comes along with getting your pool built? Here’s a simple guide.

 

Swimming Pool Contractors: Just As Important As Others

Sure, a swimming pool is a luxury item – a construction project that exists solely for the pleasure and relaxation it provides – but that doesn’t mean it isn’t a significant investment.  Ask anyone who’s had a pool built – it’s an often grueling process that takes days, weeks or months to complete.

The right contractor can not only make the entire process easier through professional skill and good communication, but they can also ensure that your investment yields dividends by delivering a pool that not only meets your expectations but also enhances your property’s aesthetic appeal and value. 

According to Pool Pricer, a well-constructed pool can add as much as 7% to your home’s value. That’s nothing to sniff at! 

What Makes A Good Pool Builder?

When selecting a swimming pool contractor, several factors should be at the forefront of your decision-making process:

• Experience: Experience is probably the most critical factor to consider, especially when it comes to pools. They’ve likely encountered and overcome every possible challenge that can arise when throwing a pool in, so they know how to deal with any issues quickly and effectively, decreasing costs and the time it takes to install your pool
• Reputation: Contracting is a local business, and your contractor’s reputation will speak volumes to the work they deliver to people like you. Online reviews and references are invaluable resources when assessing a contractor’s reputation. Look on Google and on their personal website for testimonials or other reviews straight from the horse’s mouth.
• Licenses and Insurance: It’s essential to verify that your contractor is licensed and insured. In most states, this is a legal requirement – and knowingly hiring an unlicensed contractor can put you in hot water legally. In states where it’s not a legal requirement, it’s still advisable to ensure these two pieces are in place to protect you and your home.
• Portfolio: A contractor’s portfolio provides insight into the quality and style of their work. Especially considering the high aesthetic needs affixed to pools, having someone who can fit the style you’re going for is important.
• Communication: Last but certainly not least is effective communication. Your contractor should be responsive, open to your ideas, and able to articulate their plans clearly. This is perhaps the most underrated aspect of an effective contractor and can be the difference between a good and a great pool install.

Where to Find Pool Builders?

Finding the right pool contractor starts with knowing where to look. Here are a few places to start your search:

 

• Online: Websites like HomeAdvisor and Angie’s List provide directories of contractors in your area, complete with ratings and reviews. This is a great place to start your search – but it always requires a little more legwork to verify their quality.
• Referrals: Ask friends, family, or neighbors who have recently installed pools for their recommendations. Chances are that someone in your community has a pool contractor they can trust.
• Local Home Shows: Home shows are a great place to meet contractors face-to-face and see examples of their work in real-time. These are rare, so stay abreast of any coming to you locally.
• Pool Stores: Local pool stores often have relationships with contractors and can provide recommendations. Be wary, these relationships often come with jacked-up prices as they’ve got to cover their own referral costs.

How to Negotiate the Best Price?

Negotiating the best price with your pool contractor requires a balance between ensuring you get a fair deal and understanding that lower costs can sometimes mean lower quality. Here are some tips:

• Get Multiple Quotes: This will give you a sense of the average cost and provide leverage in negotiations. By having a baseline of understanding what it will cost, you can understand who is trying to take advantage of you.
• Understand What’s Included: Make sure you know exactly what each quote includes, down to the color tile on the walls. This will prevent surprises down the line and help you compare quotes accurately as well. 
• Be Upfront About Your Budget: Letting contractors know your budget from the start can help them tailor their proposals to meet your financial needs. You can be as firm as you need to be, as most contractors want the work and will be flexible to book your job.
• Don’t Be Afraid to Ask: If a quote seems high, don’t be afraid to ask the contractor to explain the costs. There may be areas where you can compromise to lower the price while still getting the same quality.

The Selection Process

Initial Research

Begin by conducting thorough research on local contractors. Examine their websites, review their portfolios, and read online reviews. According to a survey by HomeAdvisor, homeowners on average reach out to four contractors before making a decision.

Interviews

After narrowing down your options, schedule interviews with each contractor. This is your chance to ask detailed questions about their process, timeline, and costs. Pay attention to their communication style and level of interest in your project.

Quotes

Following the interviews, request a detailed quote from each contractor. The quote should include all costs, such as materials, labor, and any potential extras. This will enable you to compare contractors effectively. 

According to HomeAdvisor, the average cost to build a pool is $35,000, with most homeowners spending between $28,000 and $55,000. Pay attention to this ballpark, as it’ll help you anchor a price and establish boundaries.

Decision

With all the information gathered, it’s time to make your decision. Remember, the cheapest quote isn’t always the best choice. Consider all factors, including experience, reputation, and your impressions from the interview!

In many cases, it’s worth it to pay more for a contractor whom you can trust. You’re already spending thousands on something that is frankly not essential to your life, so why not spend a few more on the right person?

What To Do If Your Pool Contractor Doesn’t Meet Expectations

So what if, despite all your best efforts, you still end up with a pool contractor who has no idea what they’re doing, or worse yet, knows what they’re doing (when it comes to taking your money and running)?

In many cases, you’re left with a half-finished pool – usually no more than just a big hole with a mound of dirt next to it – in your backyard, and you’re often out thousands of dollars.

In that case, it’s important you not only report your contractor to your state’s regulatory agency – like the CSLB in California – so that you can begin the process of reclaiming your funds, and flagging this contractor so no one else gets burned like you did.

Once the contractor is reported to the regulatory agency in your state, usually they will also have a pathway to open a civil suit against the contractor. In this situation, you’d take the contractor to small claims court to reclaim the money you sunk into the contract that was not fulfilled by the contractor.

Once a judge has ruled in your favor and your contractor is legally required to pay you back for your costs, this is where your journey ends, unless there are serious consequences to the project like bodily injury or death. In that situation, you will probably be involved in a criminal case against the contractor. 

If you’re a concrete, HVAC, asbestos abatement, or tree service contractor, you probably know about SB 216 and its impact on your trade. 

SB 216 was signed into law in 2021, but became effective on January 1, 2023, and if you’re a part of 

The new law says that contractors with the C-8, C-20, C-22, and D-49 license classifications will be required to have workers’ compensation insurance – even if you don’t have any employees! 

That’s right – if you fall into any of these trades, it is now mandatory for you to have workers’ comp insurance in the State of California, as enforced by the CSLB, and the punishments are severe.

Don’t worry though – there’s plenty of time to make sure you comply with the law and continue on with your Class C or Class D license. Here’s all you need to know about SB216 – and how you can stay compliant.

 

Which Contractors Are Affected by the New Law?

As mentioned earlier, only certain Class C and Class D contractor license classifications are affected by SB 216. 

These classifications include:

• C-8: Concrete
• C-20: Warm-Air Heating, Ventilating and Air-Conditioning
• C-22: Asbestos Abatement
• D-49: Tree Service

What is Workers’ Compensation Insurance?

Workers’ compensation insurance is a type of insurance that provides benefits to employees who are injured or become ill as a direct result of their job. 

In California, employers are required to carry workers’ compensation insurance for their employees. The coverage includes medical expenses, lost wages, and other benefits.

 

How Much Workers’ Compensation Insurance Coverage is Required?

The amount of workers’ compensation insurance coverage, as outlined in the CSLB bulletin from November of last year, says that “for every $100 in payroll, a contractor must have $1.57 in workers’ compensation insurance coverage.” 

If you’re a solo contractor, the math is easy. For example, if you make $10,000 a month, you’d have to cover $1,570 in workers compensation. That doesn’t mean you’re paying $1,570 per month, only that you need that much coverage. The cost of monthly coverage is a fraction of the actual coverage amount.

 

When Does SB 216 Go Into Effect And What Happens If You’re Caught Without Workers’ Comp Insurance?

Although technically SB 216 is in effect right now, you will not face any penalties until July 1, 2023 – when the new law becomes enforceable. If you are without insurance right now, but need to get it, it’s okay, you’ve got time!

According to the CSLB, failure to comply will result in the suspension or revocation of their license. Contractors who do not comply with the law may also be subject to penalties and fines, in addition to any legal punishments that come from doing unlicensed work.

At the end of the day, it’s not worth it to avoid following the new law. If you take the CSLB at their word, they will be watching contractors with these licenses like a hawk to make sure you have workers’ compensation insurance. 

 

The Bottom Line

If you have a C-8, C-20, C-22, and D-49 license classification, you must have workers’ compensation insurance coverage in place by July 1, 2023, to avoid penalties and fines. 

It’s essential that you understand the requirements of this new law and take the necessary steps to comply with it. You have plenty of time to get the requisite insurance – but don’t procrastinate, as you could lose your license quickly!

Are you considering a career as a licensed general contractor in California? 

Congratulations – you’re joining 100,000+ licensed general contractors in the state working to build everything from new apartments to interchanges on the I-5. These are people who have put in the time and effort to become experts at general contracting and you should be honored to even consider joining their ranks.

The path to becoming a licensed general contractor in California is somewhat long, and it can be difficult – especially if you don’t prepare yourself with knowledge and expert guidance along the way – but it’s far from impossible, even for people who never got along with traditional school and learning pathways.

In this article, you’ll find the essential information you’ll need to get your California Contractor State Licensing Board (CSLB) general contractor license!

 

General Contractor License: The CSLB Class “B” License

If you’re a general contractor in California, you must hold a CSLB Class “B” License to do your job. 

The State of California requires anyone who oversees the construction, remodeling, and repair of residential and commercial structures to hold a Class B General Contractor License. This license allows you to oversee and manage all trades involved in a project, such as electrical, plumbing, and HVAC work – but not perform any of the work yourself.

For example, a “B” license holder cannot perform electrical work like installing wiring, nor can they even do less complex work, such as painting large spaces.

There are exceptions though. It is possible for a general contractor to do the work if they hold the appropriate specialty license (a Class “C” specialty license). They can, of course, also subcontract a licensed specialty contractor to perform the work (duh, you say!).

Examples of projects a “B” license holder can undertake include:

• New residential or commercial building construction
• Home additions and renovations
• Commercial tenant improvements
• Kitchen and bathroom remodeling
• Structural repairs and alterations

Projects that require additional licensing or subcontracting include:

• Electrical wiring and panel installation
• Plumbing system installation or repair
• HVAC system installation or repair
• Roofing installation or repair

Fulfill the Experience Requirement

To qualify for a “B” license, you must have at least four years of journey-level experience within the last ten years in the construction industry. This experience can include working as a journeyman, foreman, supervisor, or contractor. 

The CSLB will consider a combination of experience and education, such as a degree in construction management when evaluating your qualifications. In many cases, education can stand in for the requisite experience, especially if the education involves hands-on training for a significant period of time.

 

Take and Pass the Exams

The CSLB requires “B” license applicants to pass two exams: the Law and Business Exam and the Trade Exam. 

The Law and Business Exam covers topics like California construction law, business management, and ethics, while the Trade Exam tests your knowledge of trade-specific skills and techniques. In this case, the Trade portion of the exam will cover general contractor skills – ranging from things like large-scale construction math to OSHA complaints on your job site.

To help you prepare, the CSLB offers study guides, examination resources, and practice tests on their website.

Learn more about the CSLB exam – what to expect, how long it takes, what’s on it – here!

 

Step 4: Submit a Thorough Application

After passing the exams, you’ll need to complete the Application for Original Contractor License. This application includes details about your experience, business structure, and financial responsibility. 

These are the essential fees and materials necessary to pass this step.

• A $330 application processing fee
• A $200 initial license fee (upon approval)
• Proof of workers’ compensation insurance (per employee)
• A $25,000 contractor’s bond

 

Step 5: Keep Your License in Good Standing

Once you’ve obtained your “B” license, you must renew it every two years. Staying informed about changes to California construction laws and industry best practices is essential to maintaining your license. 

Additionally, individual projects may require local permits and licenses, so familiarize yourself with local requirements in the areas where you plan to work.

 

Licensed General Building Contractor in California

Embarking on a career as a licensed general contractor in California is an exciting opportunity. By following the steps in this guide and staying informed about the latest industry developments, you’ll be well on your way to a successful career in the construction industry.

Introduction

The California home improvement market is seemingly always booming – even in the face of inflation and recession.

As a remodeling, renovation, or home improvement contractor, there’s a seemingly endless pool of opportunities for contractors to take advantage of – pools being built, roofs needing repair, structures needing sustainability upgrades, and so on.

But with opportunity comes competition, Here’s some ways you can gain a competitive edge against your competition as a home improvement contractor in California.

 

Understanding the Market

Analyzing Demand

California, with its diverse architectural styles and EXTREMELY tight housing market, presents a unique opportunity for home improvement contractors, especially with interest rates rising.

While sales have thinned to a trickle amidst inflation fears and rising interest rates, the state’s home improvement market is holding strong, with projections reaching $91.3 billion by 2025! \

It’s not just about the numbers. The demand for home improvement services in California is as robust, but also extremely diverse. 

From modernizing century-old Victorian homes in San Francisco to building sleek, eco-friendly residences in Los Angeles, the needs of the California homeowner are varied and constantly evolving – which can present great opportunities to vigilant B-2 Contractors.

 

Competition

However, with opportunity comes competition. California is home to over 100,000 licensed contractors. 

This means that for every potential job, you could be competing with dozens of other contractors, sometimes hundreds. Make no mistake – while there are opportunities aplenty, every bid for every single job in California is hotly contested, even in rural areas.

In such a competitive landscape, differentiation is key. This could be in the form of a unique skill set, a niche market, or exceptional customer service. As we touched on before, maybe you’re a Victorian restoration expert or maybe you specialize in sustainability upgrades to existing structures. The goal is to give potential clients a compelling reason to choose you over your competitors – offering something that no one else can is a great way to do that.

 

Regulatory Compliance

Licensing

In California, all home improvement jobs valued at $500 or more (including labor and materials) must be undertaken by a licensed contractor. For remodeling jobs, your daily costs will often be 3-4x that amount. In short: you need a license.

As a remodeling contractor, you’ll need to secure a B-2 Remodeling License to perform any remodeling work. This is a legal requirement in California and there is no way around it.

Obtaining a license involves passing an exam and proving at least four years of experience at a journey level or higher. This process, while rigorous, ensures that only qualified individuals are entrusted with the responsibility of improving California’s homes.

 

Building Codes

Staying up-to-date with California’s building codes is another crucial aspect of regulatory compliance. These codes, which cover everything from structural safety to energy efficiency, are designed to ensure that all construction work in the state meets a certain standard. Non-compliance with building codes can lead to penalties, fines, or even the loss of your license. 

These rules are constantly evolving, especially as California becomes more threatened by climate change. Staying up to date with these changing codes is critical for you to succeed as a home improvement contractor.

It’s on you to know and abide by your local codes. It’s not all bad, though – these changing regulations can be HUGE opportunities for home improvement contractors, as homeowners will need to hire B-2 contractors to update their homes to comply with updated regulations.

 

Building a Reputation

Quality Workmanship

Obviously, you need to first and foremost do a good job. Quality workmanship is the cornerstone of a successful home improvement business. This whole business, as we’ll touch on in a second, is reliant on your customer being satisfied with the work you produce. Anything less than perfect is wrong.

A well-executed job can speak volumes about your skills, attention to detail, and commitment to excellence. Therefore, focusing most of your energy on delivering quality in your work is critical to succeeding as a B-2 Remodeling contractor.

 

Customer Service

Excellent customer service can set you apart in the competitive home improvement industry. So many contractors completely neglect the customer service aspects of their business, thinking they can do the job, and that’s enough. 

Truth is, providing good customer service is the single most important thing for a successful contractor. After all – the customer is the one that makes or breaks your business, especially in the home improvement industry.

In the digital age, a positive or negative customer review can make or break your reputation. Therefore, providing exceptional customer service is not just about satisfying clients, but also about protecting and enhancing your reputation in the industry.

 

Financial Considerations

Pricing

Pricing your services correctly is a delicate balance, especially with fluctuating material costs, inflation, and rising interest rates. 

The key is to understand the value you provide and price your services accordingly – and ALWAYS over-communicate with your clients. This involves taking into account all your costs(including materials, labor, overheads, and your desired profit margin), as well as understanding what the market is willing to pay for your services.

 

Insurance

Having adequate insurance is non-negotiable. In California, contractors are required to have a contractor’s bond of $25,000. This bond protects homeowners in case the contractor fails to fulfill the contract, doesn’t pay for permits, or fails to meet other financial obligations.

In addition to the bond, contractors are also required to have liability insurance (to cover any damages caused during construction) and workers’ compensation insurance (if they have employees). These insurance policies provide a safety net in case things go wrong, protecting both the contractor and the homeowner.

You may also want to consider adding specific insurance for your classification, especially for Class C license holders. 

 

Staying Current

Trends

As we touched on above with regulations and codes, staying up-to-date on all industry trends can give you an edge in the competitive California market. Whether it’s eco-friendly practices, smart home technology, or the latest design trends, being able to offer the latest trends can make you more attractive to potential clients.

One of the easiest ways to stay on top of your industry is by joining a trade association like the Associated General Contractors or AGC. The entire value of these associations is to keep you in the loop and help you succeed as a remodeler. Simply by joining up with them, you’ll gain access to a huge wealth of consistent, relevant information for your business.

 

Continuing Education

Continuing education is not only mandatory in many classifications – it’s an essential part of building your business.

Many contractors rest on their laurels after they get their B-2 License, happy with the knowledge they have – these contractors are going to be left behind quickly as the world continues to change rapidly with technology making exponential leaps every year.

A lot of this continuing education ties into staying on top of trends. For example, you could take a course on green building practices, learn about the latest advancements in construction technology, or even get certified in a specialized area like solar panel installation. 

Look toward the future and find ways to always, always stay relevant to the changing world. As we stated earlier, home improvement contractors will be those most impacted by the advent of green technology and eco-friendly practices – so learn about them and bring them into your wheelhouse!

Well? Is it?

In this article, we’ll take a quick look at contractor deposits, from both a client and contractor perspective: what they do, why they exist, and how they can benefit both parties in the long run.

 

Are Contractor Deposits Normal?

In a word, yes. If you’ve ever had work done on your home – or if you’re a contractor yourself – you know that almost every construction job involves a deposit of some sort. 

This initial payment is typically a percentage of the total project cost. providing the contractor with the necessary funds to procure materials and pay workers. 

According to a report by HomeAdvisor, homeowners often pay between 10%-20% upfront, depending on the size and complexity of the project.

However, this is not set in stone. A survey conducted by Construction Business Owner Magazine found variances in deposit percentages, with some contractors requiring up to 50% of the project cost upfront, especially for more specialized or custom jobs.

 

Legal Considerations and Regulations

The legality of contractor deposits differs from region to region, so always check your local laws regarding deposits. In most states, contractor deposits will be handled by that state’s contractor licensing board, or by the specific contractor classification board.

Visit the National Association of Contractors Licensing Agencies (NASCLA)’s website for more.

For example, in some states, like California, the law stipulates that for home improvement projects exceeding $500, a contractor cannot ask for a deposit of more than 10% of the total cost or $1,000, whichever is less. 

In contrast, other jurisdictions may not have such stringent laws, leaving room for negotiation between contractors and clients when it comes to contractors. 

Whether you’re a contractor or a client, it’s important you enter negotiations for deposit structure armed with knowledge of your local and state laws regarding deposits. Any research you do will only strengthen your ability to get the best deal for your side – client or contractor.

 

Deposit Payment: A Matter of Trust

Paying a deposit is often seen as a gesture of trust between the homeowner and contractor. It not only funds initial project costs but also shows commitment from the homeowner’s side. Contractors can gauge the seriousness of a project based on this initial financial commitment, leading to a smoother working relationship.

Factors Influencing Deposit Amounts

Several factors can influence the amount of deposit a contractor might ask for.

 These include:

1. Project size and complexity: Larger or more complicated projects may require a higher deposit due to increased material costs and labor requirements.
2. Custom work: Projects involving custom-made components often command a higher deposit. This helps cover the risk of these unique pieces that might not be usable in other projects.
3. Contractor’s financial standing: Smaller contractors or those with less financial stability may require larger deposits to manage cash flow.

 

Key Benefits Of Contractor Deposits

There are a ton of benefits to deposits – both for clients and customers. Here are some of the key ones.

 

Client Benefits of a Contractor Deposit

1. Financial Protection: The biggest benefit of a deposit is simply that you don’t expose yourself to the total financial risk of any project. By using a deposit, you guarantee that at the very least, you only lose some of your investment in the case of a breach of contract.
2. Lock-in Your Contractor: By paying a deposit, you effectively reserve a contractor’s time and resources for their project. When you put that deposit down, the project is no longer just a pipe dream – it’s coming together. It’s going to happen!
3. Ensures Maximum Quality: By only paying a little bit of the total value of the project, you ensure that they’ll deliver the best possible quality they can. If they don’t meet the contract’s expectations, you can simply hold onto the rest of the payment until they deliver what was promised in the contract.

 

Contractor Benefits of a Contractor Deposit

1. Guarantees Payment: A deposit provides assurance that the contractor will be paid for their work – even if the client pulls out. Any contractor knows how important this is, as one of the main reasons contractors use deposits is to cover your materials and subcontracting costs. This way, you don’t sink substantial amounts into a project that won’t be finished.
2. Covers Initial Costs: As we just mentioned, contractors are usually the ones required to purchase materials, hire equipment, or pay for labor in the early stages of a project. Deposits are usually used to cover these out-of-pocket expenses.
3. Protects From Losses: If a client changes their mind about the project, or if they run into financial difficulties, they may not receive full payment for their work. This is life and it happens – but with a deposit, at least you aren’t on the hook for the whole project’s cost, with no revenue generated.
4. Signals Client Is On-Board: Clients can be like cats – easily spooked and often equally spooky. A deposit is the clearest sign that you have someone who is actually committed to the project and will pay you to do your job.

 

Common Construction Deposit Structures

Here are some common deposit structures you’ll see (or have seen) in the construction world:

• 50/50 Deposit: Note that this will usually only be seen on smaller projects – jobs like simple repairs or paint jobs, etc.  An initial deposit is made to cover materials, permits, and possibly labor, while the final payment wraps up the profits and other expenses. 
  • For example, let’s say you hire someone to do your back deck for $3,000. The contractor might request $1,500 upfront (half the total cost), with the final $1,500 paid upon completion. 
  • This method ensures the contractor doesn’t have to front all of the cash on their own for material costs, while the homeowner doesn’t have to worry about someone scamming them for the whole amount. It keeps both sides financially invested in the project’s success.
• Progress Payments: Also known as milestones, this method is commonly used for medium to large-size construction projects, involving multiple phases of substantial construction. Deposits in this structure are broken up into milestones – payments set out in a contract that trigger at specific points throughout the project. 

• Time-based Payments: With this method, the payment schedule breaks up the contract amount into equal distributions, usually established as monthly payments with set dates. These contracts make payment amounts and intervals clear but can require some adjusting if change orders and delays emerge.
  • Note that this format often benefits the contractor at the expense of the client – a bad contractor can simply continue delaying the project to siphon off these payments.
• Milestone-based Payments: A better version of time-based payments, milestone-based deposits pay out specific amounts when specific stages of the project wrap up. 
  • For instance, a payment could be due to the contractor when they finish clearing the property or when the driveway work wraps up. This payment schedule is ideal when a large construction project is really just a series of smaller, separate projects​ that constitute a bigger whole.
• Completion-based Payments: Similar to milestone payments, but less tied to specific completions of specific phases of a project, a completion-based deposit breaks the payments up into discrete, uniform intervals. 
  • For example, payments could be due at every 10% of the project’s completion​ throughout the process. 
  • This method can be vague and confusing – which is why most medium-to-large projects simply use a milestone deposit system.

• Retainer: Giant companies working on several projects at once often deploy this type of payment for contractors they trust. Essentially, in a retainer system, you are contracted for a certain amount of hours of your time per month – and you are paid that amount, whether you do work or not.
  • This type of payment is usually only set out by contractors who have a big reputation in their field and a lot of cultural cache in the construction industry. Companies pay a premium just to keep them around in case they need their unique skills.

Deposits Protect Both Parties

At the end of the day, a deposit exists to create a layer of protection for both the contractor and the client. 

A deposit not only protects the financial end of things for both parties – but a deposit also creates a modicum of trust between both parties. With both sides wanting to save money AND deliver a good final product, a deposit helps incentivize both sides to act in good faith and take care of the project together. 

As any experienced contractor will tell you – being on the same page as your client is perhaps the biggest thing when it comes to nailing every project you work on as a contractor.