Category Archives: Contractor Business

Can a General Contractor Do Electrical Work in California?

As a general contractor, you have a broad and diverse skillset that covers many areas of construction, from budgeting to hiring to contracts and more – in addition to the various trade skills you’ve acquired over the years.

General contractors know better than anyone that you need specialist knowledge to operate in the various trades that comprise any construction project and rarely do these expertise overlap. Most roofers can’t install and maintain an HVAC system, for example.

But as a general contractor, you may have specialist knowledge in addition to your GC skills. You may even be a certified contractor in your former area of expertise. Heck, you might even be in a union.

So what if you’re, for example, an IBEW electrician who has, over the years, fallen into a more general contractor position? It’s a common career path for many apprentice electricians – you start wiring systems and within a decade you’re running your own business, hiring electricians to work for you.

With that in mind, as a general contractor in California, can you perform electrical work? Can you say, “Oh, I’ll take care of the electrical” in a new building or a refurb or a commercial project? What are the limits to the electrical jobs you can take as a gen con? 

Let’s take a look.

 

General Contractors vs. Electrical Contractors

A general contractor, often referred to in California as a Class “B” contractor, is a construction professional who oversees a construction project. 

A general contractor manages all aspects of the project, from obtaining building permits to hiring subcontractors, scheduling inspections, and ensuring that the work is completed according to plan.  They are essentially the directors of the project, overseeing every aspect of the project through to completion.

In some cases, general contractors may hold multiple licenses, including trade licenses like electrical or HVAC specialties. Whether or not the general contractor can perform their licensed trade on the same project they are gen conning for depends on a number of factors.

Electrical work, meanwhile, is a Class C license – a specialized field that involves the installation, maintenance, and repair of electrical systems. This work is typically performed by a licensed electrician who is classified as a C-10 contractor in California.

Electrical work is a critical component of any construction project. It involves the installation of wiring and circuits, the placement of outlets and switches, and the connection of electrical appliances. It also includes the installation of lighting fixtures, the setup of electrical panels, and the grounding of electrical systems.

As a general contractor with a background or certification in electrical work, you might be tempted to save some money (and put more money in your pocket) by hiring out your electrical work. You might think: “Hmm, I could probably just do all this myself.” We’ve got one more thing to define, then we’ll find out.

 

The C-10 License

If you’re a general contractor with an electrician’s background, you definitely already know about the C-10 license. 

A C-10 electrical contractor is a professional who has met the specific requirements set by the CSLB for performing electrical work. These requirements include passing a trade examination and having at least four years of journey-level experience in the electrical trade2.

C-10 electrical contractors are experts in their field. They have a deep understanding of electrical systems and the safety protocols that must be followed when working with electricity. They are trained to handle a wide range of electrical tasks, from simple installations to complex wiring projects.

 

Do You Have To Subcontract Out Electrical Work If You’re A GC with A C-10?

With all the definitions out of the way, let’s get down to business. We know that you probably could do your own electrical work as a GC with a C-10 License, without anyone knowing. But can you face legal consequences for doing so?

In other words, can you perform electrical work as a general contractor if you have a C-10 license? Or do you always have to subcontract out that work? 

The good news is that California really doesn’t care. If you are a Class B General Contractor and you have a valid C-10 Electrical Contractor’s License, you can choose whether you want to subcontract out the work or not.

IN short, if you are a C-10 licensed electrician, you are good to go!

 

Pros and Cons of Subcontracting Electrical Work As A General Contractor

Now, you might see the cost savings of doing your own electrical work as a general contractor – but that doesn’t mean you should always do electrical work on every project. There’s always trade-offs when it comes to choosing to do the work yourself or hire it out.

Here’s a few pros and cons for hiring out electrical work when you’re a general contractor with a C-10 license.

 

Pros

  • Up-to-date expertise. Most C-10 holders are electricians – specialists who never go on to become generalists. By their very nature, electricians will have more up-to-date and more cultured expertise than someone who does mostly general contracting work.
  • Efficiency. As a general contractor, your job is to be efficient. Sometimes it just makes sense to hire out the electrical work, so you can focus on other things, especially on bigger projects.
  • Trust. A C-10 electrician has passed the rigorous C-10 exam, which means they meet the strict standards of the CSLB. Any C-10 license holder will be able to meet the qualifications of the client and deliver a final product that meets the standard set by the CSLB – or face the consequences.

 

Cons

  • Costs. Obviously, you’ll save lots of money by not having to hire someone else to do work you can legally and professionally accomplish. You’re not only adding money to your company’s coffers, but you yourself are basically taking the wages you would have spent on hiring out.
  • Additional Expenses. As a C-10 License holder, you may need to pay for extra things like educational programs, IBEW union dues or Electrical Contractors Insurance. Considering how dangerous electrical work can be, many of these expenses are unavoidable – and can add up quickly.
  • Time and energy. Good electrical work requires care and precision – which usually means it’s incompatible with being a general contractor. In most cases, you simply will not have the time or energy to be physically wiring a 10-story apartment while also dealing with vendors, clients and employees (and the 10 million problems that follow).

 

Conclusion

So, can a general contractor do electrical work in California? The answer is yes – but only if that general contractor has a valid and up-to-date C-10 license.

The reality is, though, that in 99% of cases, you will want to hire out your electrical work to a trusted, CSLB-certified C-10 electrician. The reasons for that are manifold, but the one that always sticks out is that it is logistically impossible for all but the smallest projects.

If you’re building a house or refurbishing the garage – then maybe you’re good to do your own electrical work as a Class B gen con. Any project bigger than that, you really should be subcontracting it out.

New Workers’ Compensation Law For C-8, C-20, C-22 and D-49 License Holders In 2023

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!

How To Get Your General Building Contractor License In California

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.

Comprehensive Tips for Home Improvement Contractors

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!

Is it Normal to Pay a Contractor a Deposit?

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.

Can a Felon Get a Contractor’s License in California? A Comprehensive Overview

If you’ve ever wondered: “can a felon get a contractor’s license in California?”, you’re not alone! Construction is an attractive industry to those with criminal records, as it usually dispenses with the bureaucratic red tape you’d find when applying to desk jobs.

In addition, construction is quite simply a lucrative job that almost anyone can learn how to do quickly, so it means you can start making good amounts of money right away after getting out.

That said, there are a number of regulations and laws that all contractors have to follow to perform construction work in California – in addition to all the hoops you may have to jump through as a felon.

Not In this article, we’ll walk through some of the finer points of getting your contractor’s license as a convicted felon.

CSLB Background Checks

There is one problem for felons looking to get their contractor’s license in California, and it’s called the California Contractors State Licensing Board (CSLB). 

In California, the CSLB is responsible for regulating and licensing contractors. If you’re doing construction in California for more than $500, you need a license. That’s anyone working in construction, from general contractors to painters.  If you’re doing 

While having a criminal history can create challenges, it’s essential to understand the specific regulations and requirements that apply to those seeking a contractor’s license in the state. 

By being aware of these guidelines and taking the appropriate steps, individuals with a felony record may still qualify for a license.

Can a Felon Obtain a Contractor’s License in California?

In short, yes, a felon can obtain a contractor’s license in California!

It’s important to note that the CSLB doesn’t accept all former felons into the ranks of licensed contractors. The good news is that the CSLB rejects less than 1% of all contractors who have been convicted of a crime – so chances are, if you’re reading this, you’ll most likely be able to still get your license.

The CSLB applies a number of factors as to whether your application will be accepted or rejected as a convicted felon. The things the CSLB considers when deciding include:

  1. Nature and severity of the crime: The type of crime committed and its gravity. As you may expect, more serious crimes will be handled more harshly.
  2. Time elapsed since the crime: The amount of time that has passed since the conviction may also be considered. The more time that has elapsed, the better the chances of obtaining a license.
  3. Evidence of rehabilitation: Rehabilitation – such as completing a rehabilitation program or demonstrating good behavior or simply following the orders from the court – can positively impact an applicant’s chances of obtaining a license. Make sure to provide proof of any rehabilitation programs to the CSLB.
  4. Relation of the crime to the duties and responsibilities of a contractor: If the crime committed is directly related to the role of a contractor, the CSLB will be more likely to reject your application.

Steps for Felons to Obtain a Contractor’s License in California

For individuals with a felony record who wish to apply for a contractor’s license, the following steps can help increase their chances of success:

  1. Review your criminal record: Before applying, review your criminal record to ensure its accuracy and address any discrepancies.
  2. Gather supporting documents: Collect documents that demonstrate your rehabilitation, such as certificates of completion for rehabilitation programs or letters of recommendation.
  3. Complete the required application: Fill out the necessary application forms2 and include all required documents.
  4. Submit your application: Submit your application to the CSLB, along with the appropriate fees and supporting documentation.

The CSLB Application and The Fingerprinting Process

As part of your application to become a licensed contractor, you will be required to submit to a fingerprint check. You will also be asked to disclose any prior convictions.

Always be honest with your answers throughout this process. The CSLB is clear that if you have hidden prior convictions that are revealed by the CSLB background check, you may have your application rejected.

However, there are some situations where the CSLB says you should not disclose prior convictions. Here are the situations where you should keep that information private:

  • Convictions that were adjudicated in a juvenile court;  
  • Convictions under California Health and Safety Code §11357 (b), (c), (d), or (e) or §11360 (b) that are two years old or older;  
  • Under certain circumstances, some arrests/convictions relating to specified marijuana offenses that occurred prior to January 1, 1976, as provided in Health and Safety Code §11361.5 (b);
  • Under certain circumstances, some arrests/convictions relating to specified drug offenses as provided in Penal Code §1000.

You can find more information about disclosure in this CSLB news release.

Be Smart, Be Strategic

While having a criminal record may present challenges, it’s essential to remember that opportunities still exist for those with a felony record in the construction industry in spades. It’s an industry that is always in demand, and your skills can be put to good use. 

By understanding the licensing requirements and taking the necessary steps, felons can get licensed quickly and efficiently – even as quickly as non-felons. Be honest throughout the process and most likely you will have no issues.

How To Get A CSLB C-27 Landscaping License

California’s landscaping industry is always flourishing –there are lots of customers and they tend to have lots of money. If you’re considering a career in this lucrative field, you’ll need to make sure you’re staying in the lines and playing by the rules – or you could get popped by the authorities.

If you are doing any sort of landscaping work that you can bill for more than $500, you need a California Contractors State License Board C-27 Landscaping License. That means anyone who is making any sort of real money in landscaping needs to have a C-27 license.

In this article, we’ll cover all the things you need to know to get your C-27 license, how to go about getting it, and some tips and tricks to make it as a landscaper in California.

Do I Need A C-27 License?

Who needs a C-27 License? Probably you!

If you’re doing any landscaping work that is valued over $500, you must have a valid C-27 contractor license.That means most landscaping jobs require a landscaping contractor license.

What Qualifies As Landscaping Work? What Does A C-27 License Holder Do?

 According to the CSLB, a C-27 Contractor is anyone who:

“…constructs, maintains, repairs, installs, or subcontracts the development of landscape systems and facilities for public and private gardens and other areas which are designed to aesthetically, architecturally, horticulturally, or functionally improve the grounds within or surrounding a structure or a tract or plot of land. In connection therewith, a landscape contractor prepares and grades plots and areas of land for the installation of any architectural, horticultural, and decorative treatment or arrangement.”

Basically, anyone who does any sort of construction work would qualify for a C-27 license. 

Remember, this only applies to jobs over $500 in value. If you do any landscaping work that is valued at over $500 (including equipment and wages), you do not need a CSLB C-27 License.

How to Get A C-27 License

Here’s a step-by-step guide to securing your license:

  1. Verify your experience: You must have at least four years of journey-level experience in landscaping within the last ten years. Journey-level experience involves working unsupervised and being capable of managing projects.
  2. Submit an application: Complete the Application for Original Contractor’s License and pay the required fees, including a non-refundable $330 application fee and a $200 initial licensing fee.
  3. Pass the exams: You must pass both the Law and Business exam and the C-27 Landscaping exam. The Law and Business exam covers topics such as contracts, financial management, and employment requirements. The C-27 Landscaping exam focuses on trade-specific knowledge.
  4. Secure a bond and provide proof to the CSLB: Obtain a $25,000 contractor’s bond as a guarantee of your financial responsibility.
  5. Provide proof of insurance: Submit workers’ compensation insurance for your employees, if applicable.
  6. Fingerprinting and background check: Complete the fingerprinting process and undergo a criminal background check.

California Landscaping Regulations

Adhering to California’s landscaping regulations is essential for the success and longevity of your business. Key regulations to consider include the following.

Irrigation Efficiency

California’s Model Water Efficient Landscape Ordinance (MWELO) mandates specific water efficiency requirements for new and renovated landscapes. When working on landscaping projects, it’s critical you stay within these boundaries.

Environmental Preservation

California has numerous environmental protection laws aimed at preserving the state’s natural resources. These are both local and on the state level. It’s on you as the contractor to know and to follow these environmental guidelines.

Safety Standards

This goes for ALL contractors, regardless if you’re a landscaper or not – you must always maintain safety standards by adhering to the California Occupational Safety and Health Administration (Cal/OSHA) guidelines. This includes providing adequate training, safety equipment, and hazard communication for your employees.


Everyone has had heard OSHA horror stories – don’t let your landscaping site be one of them!

Additional Licensing Classifications to Consider

While the C-27 Landscaping License is the primary classification for landscaping professionals, there are additional licensing classifications that may be relevant to your business, depending on the range of services you offer1:

  1. C-8 Concrete: This classification allows you to work on projects involving concrete, such as constructing driveways, walkways, and patios.
  2. C-10 Electrical: If you plan to install outdoor lighting or other electrical components, you may need to obtain a C-10 Electrical License.
  3. C-12 Earthwork and Paving: This classification covers earthmoving, excavating, and paving projects, such as grading and preparing land for landscaping.

Obtaining multiple licensing classifications can expand your business offerings, providing additional revenue streams and increasing your appeal to clients seeking comprehensive services.

Embracing Sustainable Landscaping Practices in California

Sustainable landscaping practices are crucial in California, given the state’s ongoing water conservation efforts and commitment to environmental preservation. 

As a landscaping professional, consider incorporating the following eco-friendly strategies into your projects:

  1. Drought-tolerant plants: Utilize native and drought-tolerant plants that require less water, reducing your clients’ water usage and maintenance costs. If it’s not native, don’t plant it!
  2. Efficient irrigation systems: Design and install water-efficient irrigation systems, such as drip irrigation and smart controllers, to minimize water waste. Water is a critical resource – let’s not waste it!
  3. Recycled materials: Use recycled and locally sourced materials for hardscaping projects to reduce your environmental impact and support local businesses. Not only can you save money on materials, but you create a lasting legacy for your children.
  4. Erosion control: Implement erosion control measures, such as retaining walls and proper grading, to protect soil quality and prevent sediment runoff.

By embracing sustainable landscaping practices, you can contribute positively to California’s environment while creating visually appealing and low-maintenance outdoor spaces for your clients.

Conclusion

Obtaining a C-27 Landscaping License and adhering to California’s landscaping regulations are vital for launching and maintaining a successful landscaping business in the Golden State. By understanding the licensing process, C-27 classification, and essential regulations, you can establish a reputable and compliant landscaping business that thrives in this competitive industry. 

Stay up-to-date with industry trends, legal requirements, and environmental best practices to ensure your business remains at the forefront of California’s dynamic landscaping sector. With a strong foundation in licensing and regulations, you can create stunning outdoor spaces that exceed client expectations and contribute positively to the state’s environment.

California Construction Contractors: What to Do When a Client Won’t Pay?

You’re a contractor. You’ve just finished a job (with a contract!) and now, when it comes time for the client to hold up their end of the bargain – nada.

“No worries,” you think. This client seems legit. They’ll pay, they’re just forgetful is all. Yada yada. Days go by, then weeks, and still nothing hits your account number. You check your emails and make sure that everything went through okay.

It’s starting to dawn on you: your client might be “one of those.” Any seasoned contractor has dealt with “one of those” – people who get you to work, and then completely stiffs you when it comes time to get you paid.

So what happens when a client won’t pay a contractor? What recourse do you have as a contractor? What steps do you take to get the money you deserve for the work you’ve completed?

Let’s find out.

The First First Step

The first line of defense against non-payment is a well-established contract. Before you even think about taking the job – you need to make sure you have a comprehensive contract that covers all elements of the job: timing, materials, costs, emergency provisions, and so on. 

It should outline the scope of work, payment terms, and procedures for handling disputes or changes. If anything is unclear, seek clarification before work commences.  Always, always, always hire a lawyer to make sure your contract is iron-clad ahead of time – because it’s going to save you a ton of time and money on the back-end in case of a dispute.

Document. Everything.

In the construction industry, documentation is king. We’re not telling you anything you don’t know, of course.

A good contractor always keeps detailed records of all work performed – including labor hours, materials used, and any changes or additions to the original scope of work. 

Always make sure you get everything – and anything – in writing. If they want to change the scope or the concept, get it in writing. If they want to negotiate price changes, get it in writing. If they want your opinion on a Christmas present for their nephew – get it in writing!

Your client, as much as you may like them, is not your friend. When push comes to shove, you need to act professionally and get every little detail in writing to ensure you’re protected in case of dispute. Your client can be your friend, but consistent documentation is your best friend – and it always will be.

Step 1: The 20-Day Preliminary Notice

In California, a preliminary notice is a legal requirement – and your first step towards securing payment in the case of a default. This notice, which must be served to the property owner and general contractor within 20 days of starting work, informs them of your right to file a mechanic’s lien if not paid.

This is the first piece of groundwork you have to lay in order to get paid, no matter what your role is in the construction. Anyone, from a roofer to a general contractor, can and should file a 20-Day Preliminary Notice on every single job they work on. 

We repeat: there is literally no reason not to file a 20-Day Preliminary Notice. It can only protect you in the case of nonpayment!

Step 2: File A Mechanics Lien

A mechanics lien is a legal claim against a property that has been improved (such as construction or renovation) and for which the work has not been paid. In California, anyone who provides materials or services during construction can file a mechanics lien.

In essence, a mechanics lien is a legal protection for unpaid construction workers. It allows you to place a lien – basically, a legal impediment – upon the property where the unpaid work was performed. While this does not guarantee payment for your work, it does create significant personal issues for the client – usually enough that they decide to pay you.

To file a mechanic’s lien, you must first serve a Notice of Right to Lien. The lien itself must contain specific information, including the owner’s name, a general description of the property and location, the name of the hiring party, a description of the work performed, and the amount of money owed. The lien must be filed in the county recorder’s office in the county where the property is located.

Step 3: Enforce the Lien In The Courts

If payment is not received after filing the lien, the next step is enforcement – and this requires you to file yet another legal action. In this case, it’s legally pursuing the claim to the property after you’ve filed a mechanics lien.

In California, the deadline to enforce a mechanics lien is 90 days after recording the claim. This involves initiating a lawsuit to foreclose on the lien – which can result in the sale of the property to satisfy the debt. Either way, you need to open this lawsuit against the person who has not paid you – if you do not, you will most likely not get paid!

The California Prompt Payment Act

A brand new piece of legislation launched in 2022 strengthened California contractors’ rights when it comes to ensuring payment for services provided.

The California Prompt Payment Act regulates the acceptable amount of time in which payments must be made to contractors and subcontractors, ensuring that everyone on a construction project is paid in a timely fashion. Here’s the basics:

  • For private projects, progress payments from the owner to the prime contractor must be made within 30 days of the payment request, unless the contract says otherwise. 
  • Once the prime contractor receives a progress payment, they have 7 days from receipt to pay their subcontractors or suppliers. 
  • Final payments from the owner to the prime contractor become due within 45 days after the completion of the entire project.
  • For public projects, upon receipt of a progress payment request from the prime contractor, the public entity must release payment within 30 days. 
  • Once a prime contractor has received any payment from the public entity they must pay their subs and suppliers within 7 days.
  • If payment is late or wrongfully withheld, interest will accrue. For late payments to the prime contractor, interest will accrue at 10% (0.833% per month). Late payments to any sub-tier participants will accrue interest at 2% per month.

Stop Payment Notice: An Additional Tool

In California, when there is no bond present on a public construction project, a claimant can send a Stop Payment Notice. 

This notice creates a lien on undisbursed construction funds held by an owner or construction lender. 

If a stop payment notice claimant has not been paid, the claimant can serve a stop payment notice on an owner which requires the owner to withhold funds from a direct contractor or, on lender financed projects, serve a stop payment notice on a construction lender which requires the construction lender to withhold funds from an owner.

Lawyer Up ASAP!

The best piece of advice we can give you is to not take our advice – take a lawyer’s advice.

At the end of the day, the US legal system is a complex pile of increasingly confusing statutes and regulations – something that anyone without legal training is not equipped to deal with. While lawyers can be expensive, in this case, it’s simply a cost of doing business. Without a lawyer, we would argue that it’s almost impossible to navigate the nightmare of paperwork, forms, appearances, summons and all the other confounding nonsense that comes out of the courts in 2023.

Hiring a lawyer is a must in this situation. If you’re facing nonpayment, the first thing you should do is contact a lawyer for a consultation.

The good thing is California has robust laws to protect contractors from nonpayment, so long as you follow the steps above. These laws do require a bit of expert finessing, but receiving payment for uncompleted work is almost guaranteed if you follow the correct pathways and procedures to get there. Good luck!

How to Easily Check if a Contractor is Licensed and Insured in California

Whether you’re a homeowner looking to hire a contractor or a contractor looking to hire a subcontractor – or just someone who saw a contractor doing something shady – it’s important to know how to verify a contractor’s license.

The CSLB has an easy and painless way to look up a contractor’s license so you can protect your house, your team, your business and yourself from the havoc that unlicensed contractors can wreak. 

Why Hiring a Licensed and Insured Contractor is Important

Before we dive into the steps, let’s first discuss why it’s so important to hire a licensed and insured contractor.

  • Licensing: A contractor’s license ensures that they have the necessary knowledge and training to perform the work you need. That way you can rest easy knowing that they won’t rip you off and do shoddy work. Oh yeah, and that the work they perform won’t seriously endanger you or anyone else.
  • Insurance: Hiring an insured contractor protects you from any damage or accidents that may occur on the job. 

Now that we understand the importance of working with a licensed and insured contractor, let’s get into the steps to check their credentials.

Get The Contractor’s Contractor License Number

In order to do anything with regards to checking someone’s CSLB license, you first need the license number.

You can usually find a contractor’s license number on their website – if they’re reputable, you can expect this. If they don’t have a website, ask them directly for their license or their license number. 

If they can’t or won’t provide a license number, that’s an immediate cancellation on your end. You simply cannot do business with someone who can’t provide a CSLB license number.

Check the Contractor’s License

The first step in verifying a contractor’s credentials is to check their license via the CSLB’s lookup tool.

In California, you can do this through the Contractors State License Board (CSLB). Here’s how:

  1. Go to the CSLB License Check Page (https://www.cslb.ca.gov/onlineservices/checklicenseII/checklicense.aspx)
  2. Enter the contractor’s license number or their name and other identifying information
  3. Verify that their license is active and in good standing

It’s important to note that different types of contractors may require different licenses. It’s important to make sure they’re performing the type of work they’re signed on to do. 

There’s precedent for unscrupulous contractors to take advantage of employers and clients by operating under another license for a separate type of work.

Check the Contractor’s Insurance

In addition to checking the contractor’s license, you should also verify that they have insurance. Ask for proof of insurance and follow up directly with their insurance company to confirm coverage. There have been cases of fraudulent insurance coverage in the construction industry.

If you’re a contractor yourself, you already know this, but there are two main types of insurance that contractors need to have to legally operate in California:

  1. General Liability Insurance: This protects you from any damages or injuries that may occur as a result of the contractor’s work.
  2. Workers’ Compensation Insurance: This covers any injuries or illnesses that the contractor’s employees may sustain while on the job.

It’s important to verify that the contractor has both types of insurance and that their coverage is up to date. These are essential things that every contractor must have, regardless of their classification, the business’ size, the type of project or the type of work they’re doing. 

Every contractor must have these two types of insurance. If they don’t, they need to be reported to the CSLB.

Conclusion

By following these simple steps, you can easily check if a contractor is licensed and insured in California. This will give you peace of mind and protect you from potential scams and legal issues. Remember to always verify the contractor’s license and insurance, as well as check for any complaints or disciplinary actions.

Can I Use My Arizona Contractors License in California?

Given California’s close proximity to Arizona, and its constant construction growth of ~17% every year, it’s a tantalizing prospect for Arizona contractors to grow their business and expand operations into California.

But can you work as a contractor in California if you only have an Arizona contractors license? And if so, what do you have to do to get there?

Let’s find out!

Contractor Licenses and Reciprocity Agreements

As you know, contractor licenses are legal permits that allow individuals or companies to undertake construction-related projects within the regulations and rules of the issuing state.

These licenses ensure that contractors adhere to professional standards and regulations with the ultimate goal of protecting consumers from unscrupulous contractors.

In the United States, each state has its distinct regulatory authority for contractor licensing. The two agencies that handle contractors licenses in these states are the Arizona Registrar of Contractors and California’s Contractors State License Board (CSLB).

The Reciprocity Agreement: Arizona and California

Here’s the good news: as an Arizona contractor, you can easily and quickly begin working as a contractor in California through a process known as a Reciprocity Agreement.

This agreement enables a seamless transition for licensed contractors from Arizona to work in California, albeit with certain conditions.

Per the CSLB, here’s the reciprocity requirements for Arizona contractors:

  1. The contractor must be applying for a license in a classification that appears on California’s Reciprocal Classifications List.
  2. The contractor must have held an active license in good standing in Arizona for the previous five years.
  3. The contractor must submit to CSLB the Request for Verification of License form completed by the Arizona Registrar of Contractors.
  4. The contractor must complete the Application for an Original Contractor’s License in California​​.

These requirements ensure that Arizona contractors have a proven track record of professionalism and competence before they can operate in California.

Exploring the Steps to Obtain a California Contractors License

Now that you know what and why, here’s how you can quickly and easily get your California contractors license as an Arizona contractor.

  1. Verify You Can Transfer Your License Classification: Ensure your Arizona license classification matches one on California’s Reciprocal Classifications List.
  2. Gather Evidence of Good Standing: You should have held an active license in good standing in Arizona for the last five years. Be prepared to provide documentation.
  3. Submit Verification Form: Complete the ‘Request for Verification of License’ form, which must be validated by the Arizona Registrar of Contractors, and submit it to the CSLB.
  4. Apply for a California License: Complete and submit the ‘Application for Original Contractor’s License’ to the CSLB.

Remember, the goal is to ensure a high standard of professional competency among contractors operating in California. Therefore, these steps are designed to validate your credentials and professional standing.\

Conclusion

While the process of using an Arizona contractor’s license in California involves jumping through some bureaucratic hoops, it’s entirely possible and manageable. The important thing is to ask if it’s worth it to expand into new territory. 

While California is certainly ripe with opportunities for contractors, it’s also extremely competitive. You may consider staying in Arizona if you have a strong presence in the local community, rather than upping sticks to carve out an entirely new niche – a process that could take years.

With proper planning and understanding of the requirements, Arizona contractors can expand their services to California, providing an opportunity to grow their business and reach new clients.