Category Archives: CSLB News

The Consequences of Doing Unlicensed Contractor Work in California

Tempted to do unlicensed contracting work in California? Thinking you can save money and time by skipping the CSLB’s arduous licensing process by simply making a backroom deal? Maybe you can hire your nephew as a concrete subcontractor under the table and save money on taxes?

Sounds good, right?

Wrong.

When it comes to doing unlicensed contracting work in California, you need to consider the consequences. In California, there are serious consequences for doing unlicensed contracting work on jobs over $500 – including facing time in jail.

Still – you might think you’ll get away with it, but we’re here to tell you: it’s simply not worth the trouble. Why? Let’s find out.

What is a CSLB Contractor’s License?

The CSLB Contractor’s License

The CSLB (California State License Board) contractor’s license is a certification issued by the state of California to individuals and businesses in the construction industry, ensuring they meet the necessary qualifications and standards. It covers various classifications, including general building, specialty trades, and engineering.

The Importance of Licensure

The whole point of a CSLB license is to ensure safety and security when it comes to construction. People need to know they’re safe in their homes, workplaces, bars, restaurants, and go-kart tracks. The CSLB license ensures that you not only have a verified professional doing your job – but that you have a way to fix any issues a contractor may cause you.

A CSLB license signals to clients that you are worth the time and money they’re investing in you – the CSLB serves as a gold standard for construction professionals in the state.

Do I Need a Contractor’s License to Do Contracting Work?

In California, it’s mandatory for any contract over $500 (labor and materials) to be undertaken by a licensed contractor. This requirement safeguards consumers from potential fraud and ensures that all work meets specific safety and quality standards.

While you can stick to jobs under $500 for your whole career – a construction job known colloquially as a handyman – most construction contractors want to reach for the stars and grow their careers and businesses. If you have any ambition as a contractor, you need a CSLB license.

What Happens if You’re Caught Doing Unlicensed Construction Work in California?

Immediate Repercussions

Contractors found working without a license face severe penalties, including fines, cease-and-desist orders, and the possibility of criminal charges – all of which are designed to stop unlicensed activity before anyone can get hurt or suffer losses.

And California is always watching – the CSLB has done at least 10 separate stings just last year, involving over 20 unlicensed contractors operating in the state. Many of these contractors were pulled off the job site, arrested on the spot by local authorities, and compelled to serve jail time.

If you’re doing unlicensed work and someone finds out, they’re going to get you and get you quick!

Who Enforces Contractor’s Licenses in California?

CSLB’s Role

The CSLB is responsible for enforcing contractor licensing laws in California. Through investigations, sting operations, and consumer reports, the CSLB ensures compliance and prosecutes violations.

The CSLB’s license task force is called SWIFT. SWIFT (CSLB’s Statewide Investigative Fraud Team) is responsible for enforcement across the state. They work together with local law enforcement to perform stings against unlicensed contractors operating in the state.

Recent sting operations by the CSLB in counties like Orange and Sonoma have resulted in several unlicensed contractors being caught and facing legal action.

For instance, in June 2023 in Orange County, eight individuals received Notices to Appear in criminal court for contracting without a license, with bids ranging from $7,500 to $36,000 for a painting job​.

Similarly, in Sonoma County, eight suspected unlicensed contractors were cited during a sting operation, with submitted bids exceeding the legal limit of $500, highlighting the ongoing efforts to crack down on unlicensed activities​.

Legal Ramifications for Unlicensed Contracting Work

  • Fines and Penalties: Unlicensed contractors can face fines ranging from $200 to $15,000.
  • Criminal Charges: Engaging in unlicensed contracting work can lead to misdemeanor or felony charges, with potential jail time. Multiple offenders are often placed in jail for six months or longer.
  • Restitution to Consumers: Courts may order unlicensed contractors to pay restitution to harmed consumers. Whenever there are damages to the home or persons, courts will most likely order contractors to make their clients whole.
  • Administrative Actions: The CSLB may issue cease-and-desist orders and place individuals on a public database of violators. If you’re a violator of the CSLB, you will be on their list forever, and you will face much greater scrutiny with everything you try to do through the CSLB.

Conclusion

Operating as an unlicensed contractor in California carries significant risks, including legal penalties, financial liabilities, and damage to one’s professional reputation. The CSLB enforces strict regulations to protect consumers and ensure that only qualified, licensed contractors perform work in the state.

We can’t say this more emphatically – do not do work in California over $500 without a license. There are simply too many consequences and you have too much to lose!

Being caught doing unlicensed contracting work will not only present short-term consequences like jail time and fines, but it also marks you for life in the state – meaning further scrutiny and worse penalties in the future.

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

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

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

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

Basic Requirements

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

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

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

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

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

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

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

General Contractors and Financial Commitments

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

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

Liability and Mitigating Risk

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

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

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

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

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

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

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

Networking and Building a Reputation

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

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

Conclusion

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

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

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

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

Do You Need Workers’ Compensation Insurance As A Construction Contractor in California?

What Is Workers’ Compensation Insurance?

Workers’ Compensation Insurance – often referred to simply as workers’ comp – is a type of insurance designed to provide financial and medical protection to employees who suffer job-related injuries or illnesses.

This insurance is similar to liability insurance but is specific to people. If (and when) someone gets hurt on a job site, workers’ comp covers a number of costs for the affected worker, including medical care, temporary and permanent disability benefits, supplemental job displacement benefits, and death benefits.

The purpose is to support injured workers in their recovery and return to work while protecting employers from lawsuits by injured employees.

Even though contractors now have to supply another piece of insurance, it really is beneficial to both parties – workers have a safety net when doing sometimes dangerous construction work, while employers are indemnified from being sued for on-site accidents.

Does the CSLB Require Workers’ Compensation Insurance to Obtain a Contractor’s License?

At the time of writing, the California Contractors State License Board (CSLB) does not require that all construction contractors possess workers’ comp to obtain and maintain a contractor’s license; however, in the next few years, all contractors will be required to.

As of January 2024, here’s the classifications and situations where workers’ comp is required:

  • Any contractor who has employees
  • All active C-8 Concrete contractors, C-20 Warm-Air Heating, Ventilating and Air-Conditioning contractors, C-22 Asbestos Abatement contractors, C-39 Roofing contractors, and/or C-61/D-49 Tree Service contractors
  • Your license is qualified by an RME

This mandate is crucial to ensure that all contractors operating in the state are adequately covered for any workplace injuries or illnesses that their employees might encounter.

Recent Changes to Workers’ Compensation Insurance Requirements

The most significant recent change in California’s workers’ compensation insurance requirements is the enactment of Senate Bill 216.

This law, which came into effect in September 2022, expands the workers’ compensation insurance requirements to include all contractors by January 2026 – irrespective of whether they have employees!

This is a massive departure from the previous law, which mandated insurance only for contractors with employees and specific classifications. Now, every contractor – from general contractors with 50 subs on site to handymen – will have to have workers’ comp insurance.

In the meantime, specific contractor trades such as concrete (C-8), HVAC (C-20), asbestos abatement (C-22), and tree service (D-49) are now required to have workers’ comp, regardless if they have employees or not​​​.

Do I Need Workers’ Compensation Insurance If I Don’t Have Employees?

Under the new California law, even contractors without employees are required to have workers’ compensation insurance – but you have until 2026 to take action.

While you don’t need workers’ compensation right now if you don’t have employees, contractors who are sole proprietors or have no employees must still comply with this insurance mandate​​ in two years.

How Much Workers’ Comp Insurance Does a Contractor Need?

The required amount of Workers’ Compensation Insurance for a contractor in California depends on various factors, including the size of the business, the type of work performed, and the level of risk associated with the specific trade.

Contractors can obtain this insurance through a licensed insurance company or opt for self-insurance, which requires state approval, a net worth of at least $5 million, and a net income of $500,000 per year​.

Consequences For Noncompliance

The penalties for failing to carry workers’ compensation insurance in California are severe. They not only include losing your license, but you can even face imprisonment for up to one year, fines of up to double the amount of premium that would have been due, or a minimum fine of $10,000.

Additionally, the California Division of Labor Standards can issue a stop order, legally demanding cessation of all employee labor – which means more money disappearing into thin air. Noncompliance can also result in a misdemeanor criminal offense, punishable by up to 60 days in county jail or by a fine of up to $10,000, or both. In cases where an uninsured worker is injured, the employer may face a penalty of up to $100,000​​​!

In summary, workers’ compensation insurance is a mandatory requirement for all construction contractors in California, by January 2026, regardless of their employee count. Right now, only certain contractor classifications need to have workers’ comp, regardless of employees or not.

If you don’t have workers’ comp yet, you might as well take the plunge – as it’ll be required in two years anyway!

The 10 Most Common Permits for Construction Work in California

You could be just getting started with your career in construction or you could be a seasoned pro – but your knowledge of building permits, codes, and regulations should always continue to grow.

As you do more work, you’ll naturally become familiar with your local laws, but it’s also critical that you know some of the basics in a general sense.

Today, we’ll start with permits! Yeah, we’re excited, too.

These permits will no doubt come up again and again as you work. It may be a good idea to bookmark this page as a reference to make sure all your construction projects are safe and in accordance with local regulations.

Building Permits

Electrical Permit

  • You’ll need an electrical permit anytime you install, alter, repair, replace, or remodel an electrical system. There are a few cases that are exempted by the California Electric Code or by a County Ordinance, but it is safe to assume you’ll need this permit in most cases.
  • When in doubt, check local guidelines for electrical service upgrades and related contractor work.

Plumbing Permit

  • While there are so many different kinds of plumbing services for general contractors to be aware of, any sizable plumbing project or plumbing repair will require a plumbing permit.
  • The Uniform Plumbing Code and local regulations will help you install, repair, and replace plumbing fixtures and piping safely and legally, but make sure you are familiar with your local regulations.

Mechanical Permit

  • This permit works hand-in-hand with other permits for certain construction projects. You’ll need a mechanical permit before doing any ductwork or heating or cooling work.
  • Permit advisors – like Permit Advisors – can help you plan your project according to local building and safety standards.

Grading Permit

  • If any of your construction work involves changing the topography of a property, perhaps cutting or filling space in the earth, you’ll need a grading permit.
  • Class C-27 license-covered landscaping work will often require grading permits. Think about all the hillside construction, flood zone mitigation, and seismic hazard zone mitigation you see happening in California. That’s all grading.

Demolition Permit

  • While it’s true that different jurisdictions have supplemental regulations for the demolition category of construction work, overall you can be sure that you’ll need special permission before tearing down a structure or performing any kind of deep excavation.
  • According to the Department of Industrial Relations, you’ll also need to notify utility companies before demolition so they can accommodate the work by either shutting off or rearranging utility services to protect them from damage.

Environmental Permit

  • The state of California is sincerely invested in environmental conservation efforts, so wherever your construction projects risk affecting water quality, air quality, protected species, and their habitats, your work will involve environmental permits.
  • The California Department of Fish and Wildlife is a great resource for keeping up with the latest environmental reviews and permitting, and this Environmental Permitting Guide might also help you out as well.

Zoning Permit

  • Local zoning regulations dictate how land can be used and which kinds of structures can exist where. It sounds simple, but it can get pretty complicated, especially when you look back at our post about mixed-use construction and the zoning problems involved.
  • Check with your local planning department and review the standards laid out by the California Department of Housing and Community Development to stay informed about land-use rules you might need to know.

Special Use Permit

  • If a construction project involves a temporary structure, a special event, or some kind of unusual land use, that’s where special use permits may come up.
  • These permits exist for the sake of flexibility when certain plans come up within certain zoning districts. You can apply for a special use permit in California right here.

Fire Department Permit

  • Depending on a construction project’s size or scope, permits and clearances from your local fire marshal might be necessary. If you’re a C-16 licensed Fire Protection Contractor you know these permits well.
  • Local fire safety measures will keep you, your team, and your clients safe throughout construction. If you do not obtain the necessary permits, you could be looking at some big fines, major delays, or even a full work stoppage.

In Summary

Of course, there are many more permits you’ll come across throughout your contractor days, but the permits listed above are the ones that will come up repeatedly.

The Contractors State License Board will have all of the information you need when it comes to construction permits in California. Check there and also check with the local governing bodies responsible for the area where you work as regulations and permit requirements will vary depending on your location.

Clients Will Look Up Your Contractor License – Be Prepared!

Maybe you just realized your contractor license is past expiration, but you’re still completing a job. Maybe you’re taking on odd jobs here or there and the classification of your contractor license doesn’t actually cover that category of work. Maybe you’re just curious — Will the people who hire you check up on the validity of your license? Can they even check?

Yes. Clients can and will check to ensure that their contractors and their licenses are in good standing – and why wouldn’t they? Wouldn’t you do your due diligence if you were spending thousands on a new home or millions on an office?

Your clients will 100% check your license, so you need to be prepared to keep your license up-to-date…or failing that, do what you can to fix it. Here’s how.

Keep Your Contractor License Current…Or Else!

One of the first things your clients will do while hiring you is to check the validity and current status of your contractor’s license.

The client is looking for certainty and safety. They want to know that the significant money they are investing into their construction project is going to be put to good use by someone who knows what they’re doing.

In their minds, the outcome of their construction project depends on you and the entire contractor team being fit to work and in good legal standing with the state of California. Not only are they looking to make sure that you’ll deliver a good product, but they also want to know that they’ll be safe living and working in the house you built – two things that are verified by a license.

Not having a valid license will not only scare away potential clients who would much rather go with someone legitimate and licensed, but it will also lead to severe criminal penalties should you take on jobs over $500 without a license.

The state of California does not mess around when it comes to unlicensed contracting. Get a license, or don’t even think about doing construction. It’s that simple.

Anyone Can Check Your Contractor License On The CSLB Website

You can always count on clients visiting the Contractors State License Board (CSLB) website to check the status of your license. And it makes sense too, doesn’t it?

With the CSLB being the governing body responsible for issuing and regulating whatever contractor licenses you hold, they’re likely the first and only place someone might think to search for and verify the documents you hold indicating that you’re eligible for contractor work.

Since anyone can and will check your license at any time, thanks to the magnificence of the internet, it’s more important than ever to maintain your license and make sure you’re in good standing with the CSLB.

What Do Clients Check to Decide if You’re a Safe Choice?

Clients will always do their diligence when it comes to construction projects. If that’s surprising to you, you might consider another field of work.

People will naturally want to make sure the hundreds, thousands, hundreds of thousands, or hundreds of millions of dollars they’re investing in their construction project are being invested wisely and carefully.

Here’s the 5 main things they’ll look for.

  • Your Contractor License Number
    Your business card, website, wherever you advertise your services, or even your licensing documents themselves are a few places from where a person hiring you will grab your license number. Once they have that info, they will run a check on the CSLB website to see if you’re legit.
  • Previous Work
    One of the most obvious things that clients will look at when validating your qualifications is your previous work – especially previous work that is similar to their current project.
  • References
    Contractors – and people in general – first look to references from people they know and trust. As you grow your career, your network and references will grow, creating more opportunities and building your reputation in your niche.
  • Website
    A professional website is essential to creating a positive, professional impression on your potential client. There’s no excuse to not have a simple, beautiful website in 2024. Sure, it’s easier to not set up a website, but you’re just leaving money on the table.
  • Social Media
    The folks hiring you want to know that you have valid worker’s compensation insurance coverage. They’ll want to be sure that they are not liable in case of injuries to you or your employees while you complete their construction projects.
  • Reviews
    Of course, they’ll want to check reviews and the personal testimony of previous clients. How did you do? How was your rapport? Clients work to gather insights and impressions to get a sense of what it might be like to work with you.

Conclusion

Verifying the validity and current status of your California contractor’s license is often a client’s first step toward building trust in you and your work.

While it can be tough to keep renewing licenses and applying for additional licenses depending on the nature of your construction projects, it’s worth it if it means retaining clients and maintaining your reputation as a reliable and capable contractor.

As a contractor, your reputation is everything, and like it or not, a valid contractor license in good standing with the CSLB can make or break your reputation immediately.

The California CSLB Reminds Licensees of New Laws Beginning January 1, 2024

We say Happy New Year to all acting and hopeful California contractors! It’s important – as always – to take a closer look at changes to the law for California contractors in the coming year.

The Contractor State License Board (CSLB) just released a press release outlining the most important pieces of legislation for contractors. There are some big ones this year – so let’s make sure you’re prepared to stay compliant in 2024.

First, we’ll provide the Contractor State License Board’s (CSLB) missive to all contractors, and then we’ll provide a little breakdown of what the text actually means for contractors in the coming year. Let’s check it out!

Sacramento, CA – Heading into 2024, the Contractors State License Board wants to remind licensees of new laws taking effect in the new year.

SB 630 (Dodd)
This bill requires CSLB licensees and applicants to provide an email address, if available, when they obtain and renew licenses. The email addresses are not subject to disclosure under the California Public Records Act. This bill also authorizes the Registrar to automatically reimpose license revocation when probationary conditions placed on a license are not met. (Chapter 153, Statutes of 2023)

AB 336 (Cervantes)
This bill requires licensees with a workers’ compensation policy to provide the top three workers’ compensation classification codes on their workers’ compensation policy when they renew their licenses. Those codes will be posted on the CSLB license lookup webpage. Licenses won’t be renewed without the codes. However, the bill allows for retroactive renewal if the licensee provides the codes within 30 days after receiving notice of the denial. (Chapter 323, Statutes of 2023)

AB 1204 (Holden)
This bill prohibits specialty contractors from subcontracting with two or more contractors in the same classification on the same jobsite unless the subcontractor has employees who perform the work in the relevant classification or are party to a collective bargaining agreement. This bill makes violations of this section cause for disciplinary action. (Chapter 568, Statutes of 2023)

SB 601 (McGuire)
This bill increases the statute of limitations to three years for misdemeanor violations by a licensed contractor for allowing an unlicensed person to use their contractor license. This bill also requires courts to assess the maximum civil penalty for specified home improvement contract violations in declared disaster areas. (Chapter 403, Statutes of 2023)”

SB 630: Contractors’ Email Addresses

SB 630 (Dodd) specifically requires that applicants, registrants, or licensees who possess a valid email address must provide this email to the board at the time of application or renewal. In safeguarding the privacy of individuals involved, the bill stipulates that these email addresses are not subject to disclosure under the California Public Records Act or other similar laws, except in specific circumstances mandated by a court order.

Additionally, SB 630 changes probationary conditions for contractors who have violated the law. It allows for a stay of execution of disciplinary decisions, contingent on the completion of specified probation terms and conditions. Crucially, if these terms and conditions are not fully complied with, it can result in the automatic termination of the stay of execution, thus reinforcing the accountability of licensees under disciplinary action.

The bill also includes provisions for the payment of restitution and the costs of investigation, enrollment in specific coursework, and successful completion of relevant examinations as part of the probationary conditions.

AB 336: Workers’ Compensation Requirements

AB 336 (Cervantes) sounds complicated but it isn’t. It requires any contractor who has Workers’ Compensation to provide to the CSLB three classification codes that are on their insurance policy.

Specifically, contractors need to identify the three classification codes for which the highest estimated payroll is reported on the policy. If there are fewer than three classification codes reported, all the reported codes must be provided.

This bill mandates that the Contractors State License Board (CSLB) include these classification codes in the public license detail on its website when updating for an active renewal. However, the CSLB is not required to verify the accuracy of these codes and is not liable for any misreported classification codes by a licensee.

In essence, AB 336 aims to improve transparency and accountability in the realm of workers’ compensation insurance among contractors. It ensures that the relevant classification codes are readily available and accessible, contributing to better regulatory practices in the industry

AB 1204: Multiple Class C Contractors

AB 1204 (Holden) relates to specific Class C specialty contractors who are prohibited from entering into contracts for work on the same project or undertaking with more than one subcontractor in the same license classification.

  • This restriction is subject to two key exceptions:
    The subcontractor employs persons who are classified as employees to perform work in that license classification on the project.
  • The specialty contractor is a signatory to a bona fide collective bargaining agreement covering the type of work performed on the project and addressing the issue of subcontracting or subletting.

SB 601: A Litany Of Changes

SB 601 (McGuire) makes several important changes to contract law for contractors, specifically aiming at preventing fraud, especially in disaster areas. It covers a few specific areas: home improvement contracts, liens, provisions for bonds, criminal penalties for violations, and restitution for fraud. In greater detail, SB 601 makes changes to:

  • Home Improvement Contracts Requirements: The bill outlines the specific things that are required to be in home improvement contractors. This includes stipulations about the contract being in writing, the inclusion of the full contract amount, separation of finance charges, limitations on down payments, and specific schedules of payments.
  • Payment and Lien Release: Except for a down payment, contractors should not request or accept payment exceeding the value of work performed or material delivered. It also requires contractors to furnish a full and unconditional release from any potential lien claimant for any part of the work for which payment has been made – but only if requested by the client.
  • Provisions for Contractors with Bonds: Contractors furnishing certain types of bonds or joint control approved by the registrar are exempt from some of these requirements and may accept payment before completion of work.
  • Criminal Penalties: The bill outlines the specific misdemeanor charges for violations of these provisions, with increased fines in areas damaged by natural disasters. Furthermore, it specifies a statute of limitations for bringing actions against licensed and unlicensed contractors.
  • Restitution for Fraud in Disaster Areas: In cases of fraud related to natural disaster repairs, the bill mandates full restitution to the victim based on the defendant’s ability to pay, along with potential additional fines.
  • Operative Date: The section concerning home improvement contracts becomes operative on July 1, 2024.

Remember – staying compliant is nobody’s job but yours. Do your diligence and make sure that you’re constantly on top of things, and you’ve got nothing to worry about from Johnny Law!

What Skills Do You Need To Be A Contractor/Builder?

If you’re just starting out in the construction industry, you might wonder what specific skills you’ll need to succeed in your career. Don’t worry – this is a common question that all beginners in any industry have when they’re just starting their careers.

In this guide, we’ll cover the essential skills that any contractor will need to survive as a construction contractor/builder, both now and in the future.

As always, we’ll keep our information specific and relevant to California as that’s our expertise – check in with your local contractor’s licensing board for information in your area.

Let’s begin!

Choose Your Contracting Career Path

When defining what skills you’ll need in your career as a construction contractor, it’s essential you understand what area of construction you’ll be working in.

Sure, anyone can start hammering some nails on a job site, but if you really want to succeed as a contractor, you really need to plan your future appropriately.

Do you want to be a specialist who works in air conditioning? What about a plumber? Maybe you want to be an engineer or maybe you want to oversee entire projects as a general contractor.

Contractor Licenses Across America

Whatever it is you want to do, you should be aware of the license, bonding, insurance, and other legal requirements surrounding the work you do. In many states, you may not need any of these to do work as a contractor. In many more states, like California, you need a license to be a contractor.

In California, the Contractors State License Board (CSLB) is the governmental authority that oversees contractors and makes sure that they stay licensed. Anyone who does construction work over $500 in California without a license faces severe penalties.

The CSLB has three different designations for contractors, based on the type of work they do.

The CSLB Class A, B, and C Licenses

  • Class A (General Engineering Contractor License): This license group is for people who work on specialized engineering projects like overpasses, airports, and highways.
  • Class B (General Building Contractor License): This classification is for general contractors, whose primary role is constructing structures for support, shelter, and enclosure. It requires involvement in at least two unrelated building trades or crafts.
  • Class B-2 (Residential Remodeling Contractor License): This contractor’s license is specifically for remodeling contractors. B-2 license holders can only make improvements to existing residential wood frame structures, involving at least three unrelated building trades or crafts.
  • Class C (Specialty Contractor License): Class C licenses are tradespeople licenses in California – your plumbers, your electricians, your HVAC workers, and so on. The list is long – there are even classifications for tree pruners!

Steps to Obtain a Contractor License in California

Getting a contractor license in California is no easy task – which is why we suggest knowing exactly what contractor area you’d like to work in as your career.

Basic Eligibility Requirements:

  • Minimum age of 18 years.
  • Four years of experience at the journey level or equivalent.
  • Possession of a $25,000 surety bond for consumer and employee protection (updated from $15,000 in January 2023).

Application Process:

  • Submit a detailed application to the CSLB, including business details, license type, and personal information.
  • Undergo a criminal background check, including fingerprints.
  • Pay all fees.

Licensing Exam:

  • Pass the mandatory CSLB licensing exam, made up of two sections: the law and business section and a practical test specific to the applicant’s license type. For example, electricians would get electrical-related questions on their trade exam.

Bonding and Insurance:

  • Provide proof of contractor license bond and workers’ compensation and liability insurance.
  • Pay the initial licensing fee after passing the exam.

Additional Licensing Considerations

  • State Business Licenses: Additional statewide business licenses might be required to operate legally in your state. California has locality-specific licensing. For example, San Francisco requires additional licensing for contractors on specific projects.

Do I Need School As A Contractor?

As we’ve covered many, many times before – no, you do not need a four-year degree to get your contractor’s license, like many jobs.

While formal education is not a mandatory requirement for obtaining a contractor’s license in California, we have to recommend it, especially for the dreaded CSLB exam.

This brutal test takes 3 hours and consists of over 120 questions related to law, business, and your chosen area of expertise. Even the most seasoned contractors have failed it – adding time and energy to their budget.

One of the best things about being a contractor is not having to go to college, but the reality is there are some things you just have to learn in a classroom.

General Skills for Success as a Contractor in California

While every classification has its specific requirements, there are some general areas of expertise that ALL contractors should seek to master if they wish to be successful contractors.

  • Technical Skills: Specific construction skills relevant to your license class. Every license classification has specific tech skills you need to know.
  • Business Management: Skills in project management, budgeting, and client relations are essential to maintaining a business no matter what industry you’re in.
  • Legal Compliance: Understanding state and local regulations, building codes, and safety standards is critical. Fees or jail time await noncompliance.
  • Communication: Effective communication with clients, team members, and other stakeholders – an obvious one, like business management skills. This is so obvious, but many contractors don’t think to develop their communication skills!

Specific Skills For Class A, B, and C License Holders

Skills for Class A License Holders (General Engineering Contractor)

Class A General Engineering Contractors are involved in large-scale and complex projects that require a deep understanding of engineering principles. Here are the key skills they need:

  • Engineering and Technical Skills: Comprehensive, university-level knowledge of civil engineering, structural design, and understanding of infrastructure development.
  • Industrial Plant Construction Skills: You may need skills around building hazardous or critical facilities like refineries and chemical plants, which demand adherence to strict industry-specific standards focused on public safety.
  • Heavy Equipment Operation: Operating heavy machinery for earthmoving, trenching, and other large-scale construction activities. Yes – Class A licenses can do that!
  • Project Management: Overseeing complex projects, coordinating with various subcontractors, managing budgets, and ensuring compliance with safety standards and building codes​​​​​​.

Skills for Class B License Holders (General Building Contractors)

Class B General Building Contractors work on structures for human occupancy, such as homes and office buildings. Their skill set includes:

  • Carpentry and Framing: Proficiency in constructing the structural framework of buildings, which is essential as Class B holders are allowed to take on framing contracts.
  • Basic Electrical and Plumbing Skills: Understanding the basics of electrical and plumbing work for residential and commercial buildings. You don’t perform the work, but you need to know it.
  • Knowledge of Building Codes and Regulations: Ensuring all construction complies with state and local building codes.
  • Versatility Across Trades: Ability to handle multiple unrelated building trades or crafts, such as painting, flooring, and tiling​.

Skills for Class C License Holders (Specialty Contractors)

Class C Specialty Contractors focus on a specific trade, with over 40 distinct categories. Each category requires specific skills:

  • Trade-Specific Expertise: Deep knowledge in your chosen specialty, e.g., electrical systems for electricians (C-10) or plumbing systems for plumbers (C-36).
  • Certifications and Training: Many Class C licenses require trade-specific certifications or formal apprenticeships.
  • Up-to-Date Industry Knowledge: Staying informed about the latest techniques, materials, and regulations relevant to their trade.

The skills and knowledge you gain as a contractor are what makes you — and all of us contractors — worthwhile.

Don’t look at gaining skills and expertise as a negative thing, as an obstacle to be overcome. Instead, view contractor-related skills as a chance for you to build your expertise and capabilities…which will ultimately allow you to demand higher fees and make more money!

General Contractors and Landscaping in California

All across the state, Californians get to enjoy extremely beautiful weather. To capitalize on this benefit, California homeowners tend to design their homes with a mix of indoor/outdoor spaces that maximize the exposure to pleasant weather.

This trend has been and will continue to be a fixture in the state, which means that general contractors can always expect their work to include exterior construction and at least some landscaping.

What Kind of License Is Needed For Landscaping?

In California, contractors need a C-27 license to provide specialized landscaping services. We won’t go too deeply into the C-27 license here – you can check out our post about the class C-27 Landscaping License to brush up on the type of work it covers and how to secure this license.

If you do not have a C-27 license, but you realize that your construction projects are going to veer into landscaping territory, alarm bells might be going off in your head. You need to complete your work, but you may also not be legally cleared to perform the work yourself. In this case, your only option is to hire licensed landscaping contractors to perform the work for you.

Where does general contractor work overlap with landscaping?

When it comes down to it, when does a general contractor need to hire a C-27 license holder to perform contracting work? When can a general contractor do the work themselves?

Here’s some of the most common interactions Class B and C-27 contractors have on builds.

  • Landscape Integration
    A lot of times, construction projects rely heavily on landscaping to enhance the overall aesthetic of a property — especially residential ones, where most general contractors operate. You’ve heard about how important “curb appeal” is to home buyers, especially nowadays. Creating a seamless integration of an outdoor space with a building’s design helps to sell the idea that a structure is safe and inviting to the onlooker.
  • Site Preparation
    Before landscaping work can begin, sometimes there are site prep requirements that fall under the purview of a general contractor. This work can include grading, clearing, or creating a foundation for outdoor structures.
  • Hardscaping
    Both general contractors and landscapers are involved with hardscaping. This work includes the construction of patios, pathways, retaining walls, or outdoor kitchens. This is a highly collaborative job, but the general contractor typically is responsible for the overall execution.
  • Irrigation and Lighting
    When it comes to irrigation and lighting, C-27 license holders need to do the actual installation and design while general contractors build whatever infrastructure is needed for irrigation systems or outdoor lighting.
  • Project Management
    On larger construction projects, a general contractor may be on the hook for crewing up and overseeing various subcontractors, including landscaping contractors. Understanding the demands of the landscaping labor and setting expectations for all parties involved would fall on the shoulders of the general contractor even though they’re not actually performing the landscaping duties.

Where Are General Contractor and Landscaping Duties Separate?

Despite the overlap in work responsibilities, it is important for general contractors to remain aware of the clear line between their work and the landscaping work. The licenses covering each serve distinct and unique purposes, each with specific responsibilities and requirements.

  • General contractors are primarily responsible for overall construction.
    The building’s structure, plumbing, electrical, and HVAC systems all fall to the general contractor. Their Class B license allows them to manage and coordinate various subcontractors, including C-27 license holders. The buck ultimately stops with them.
  • Landscaping contractors specialize in outdoor environments.
    Working with the aesthetics and functionality of plants, trees, irrigation, and outdoor structures all fall to the landscaper. They work under the general contractor’s supervision and perform their duties in accordance with their orders.

Conclusion

General contractors and landscapers have overlapping responsibilities and concerns. Certain issues like noise and nuisance regulations, general construction labor and safety laws, and building codes and permits affect both types of workers in more or less the same ways.

However, there are state and federal regulations that shine a light on the areas where generalized contracting ends and where hyper-specialized landscaping begins.

How To Find Your Contractor’s License Number

If you’re a construction contractor in California, knowing how to find your Contractors State License Board (CSLB) contractor’s license number is essential for winning clients, staying compliant, and, well, pretty much everything you do as a contractor in the state.

In this quick guide, we’ll cover everything you need to know about checking your contractor’s license number – what it is, where to find it, and how to maintain your license status with the CSLB.

The CSLB License: The Basics

In California, a contractor’s license is provided by the CSLB. This certification legally allows you to bid on and work on construction projects that fall under the umbrella of your license classification.

For example, if you’re an electrician, you can only take on electrician jobs, while Class B General Contractor license holders can naturally only take on gen con jobs.

Every CSLB license is tied to a specific contractor license number that is generated and maintained by the CSLB in a central database. This contractor license number is how you are identified by the CSLB, SWIFT, and other authorities when it comes to ensuring compliance with contractor license law.

In addition to legal authorities, many clients will request your contractor license number, so they can do their diligence on you and make sure that you are who you say you are and that you are licensed and capable of doing the job you are bidding for.

Where Is Your Contractor License Number?

When it comes to finding your contractor license, there’s a number of easy ways to locate it. The first and easiest is to check the documents the CSLB gave you – but it’s also easy to check online using the CSLB license checker.

Find Your License Number On CSLB Official Documents

  • CSLB Correspondence: Your license number is mentioned in any official communication from the CSLB. Check your business mailbox or your PO Box and there will almost certainly be a piece of mail from the CSLB with your number on it.
  • License Certificate: The number is displayed prominently on your license certificate. You should always keep your license certificate in a safe place, but somewhere where you can have it on hand as well, just in case you need to show it to someone.

Check Your CSLB License Online

  • The CSLB License Check Tool: Visit the CSLB website and use the Check a License tool. Simply input your name or your business’ name and it will quickly spit out all the details about your license (including your current license status and any potential holds against your license).

Print Your Own Cards

  • Business Cards and Advertisements: It’s a no-brainer to put your license number on your business cards and ads for your business. It’s convenient not only for you but for your customers, as they can quickly make sure that you’re legit and worth their money. In short, having your number front and center immediately separates the wheat (you) from the chaff (sketchy contractors)

Verifying Your CSLB License Status

Having issues finding your CSLB license number and need to find out why? Or maybe you used the CSLB license checker and found

Online Verification

  • Head To the CSLB’s Website: Start by visiting the CSLB’s website.
  • Use the CSLB License Checker Tool: Input your license number in the Check a License tool.
  • Review Details: Ensure your license status is active and check for any compliance issues.

Phone Verification

  • Call the CSLB: Dial 1-800-321-CSLB (2752). The automated system provides license information – all you have to do is tell them your license number and they can provide all the additional information.

Keeping Your License Information Updated

In some cases, you may need to update your license information. Maybe you moved to another city or maybe you removed an operating partner from your business. In any case, the CSLB requires you to promptly and directly update your information to them as soon as possible – or face the consequences of losing your license. Remember, it’s your responsibility to update your information – it is YOUR JOB to make sure your license is correct and valid.

Updating Contact Information

  • Online Update: Use the CSLB website to keep your contact details current.
  • Regular Checks: Regularly check and update your license information to avoid any compliance issues. Good contractors constantly make sure they are licensed.

Renewal and Compliance

  • Timely Renewal: Be aware of the renewal dates and comply with the necessary procedures to keep your license active. Licenses are only active for two years, so make sure you’re keeping your license up to date!

Conclusion

For contractors in California, keeping track of your license number and ensuring it’s active and compliant is crucial for your professional operations. Utilize the CSLB website and maintain up-to-date records for smooth business operations.

Remember, your contractor’s license number is not just a legal requirement, but a representation of your professional credibility in the construction industry in California – one that immediately signals to potential customers that you are worthy of their business.

Regular checks and updates are not only good to do but essential for any contractor worth their salt to make sure they’re staying above board with the CSLB and not operating illegally. Anything related to your license is your responsibility.

Reminder For Contractors: Civil Penalties Have Changed For Contractors Via Section 884

A reminder to all contractors that in August of 2023, the Contractors State License Board (CSLB) in California made crucial changes to Section 884 of Title 16, Division 8, of the California Code of Regulations.

These changes are generally about civil penalties in case of litigation by a client against a contractor, with the CSLB amending a full schedule of changes with associated costs based on the gross amount of damages created by the contractor in a civil suit.

We’ll cover the basics of these changes so contractors can enter 2024 armed with the knowledge to protect themselves from serious penalties.

Overview of Section 884 Amendments

The Key Information: Changes To Civil Penalties

The amendment to Section 884 introduces new penalty ranges for various violations under California law as per the CSLB.

For example, violations under Section 7028 now carry a penalty ranging from $200 to $8,000, while more severe violations, such as those under Section 7114, can attract penalties ranging from $500 to $30,000. There are roughly fifty.

We’ll attach a full civil penalties schedule for Section 884 Amendments at the end of this article.

How Are Civil Penalties Assessed By The CSLB?

The revised regulations allow the Registrar to consider several factors when determining penalties. Most of these are already applied, as the CSLB takes every contractor’s unique case into consideration when determining punishments.

The new changes outline that the Registrar can include the presence of multiple violations, a history of previous offenses, bad faith, the seriousness of the violation, and violations affecting vulnerable populations like seniors or disabled persons when outlining the penalties for civil suits.

Additionally, where a citation lists multiple violations related to the same construction project, the total penalty assessment in each citation is capped at different maximum amounts depending on the nature of the violations, with a general cap of $8,000, but going up to $15,000 or $30,000 for more serious offenses.

What Do Contractors Need To Do To Stay Compliant?

If you’re a contractor who is aware of the changes, you can stay compliant with the changes. As always, contractors who tend to be compliant tend to stay compliant – so you probably don’t have anything to worry about.

Bad actors; however, are in serious trouble with these new fees, as they can become extremely punitive to contractors who have a history of taking advantage of clients. We’re not really writing for those people anyway – chances are they don’t know and don’t care about regulation changes.

However, for good contractors like yourself, regular review of your practices makes sense, so you can ensure that you align with these new CSLB standards.

In addition to the new Section 884 changes, here’s some ways to stay compliant with Section 884 and other related regulations, contractors in California should be aware of the following:

  • Workers’ Compensation Insurance Requirements: Now, certain contractor classifications such as concrete (C-8), HVAC (C-20), asbestos abatement (C-22), and tree service (D-49) are required to have workers’ compensation insurance, regardless of whether they have employees. By January 1, 2026, this requirement will extend to all licensed contractors.
  • Increased Penalties for Permit Violations: Assembly Bill 1747 has increased potential civil penalties to $30,000 for violations of Business and Professions Code Section 7110, which includes disregard for state or local laws related to building permits.
  • Public Disclosure of Letters of Admonishment: The CSLB can now make letters of admonishment public for up to two years, depending on the violation’s severity, contractor’s good faith, and violation history. Another incentive to stay compliant!
  • Fee Reduction for Veteran Contractors: Assembly Bill 2105 allows a 50% reduction in initial license or registration fees for veterans.

Conclusion

As always, it’s critical that you stay informed on all the latest regulatory and compliance changes. It’s on you to be aware of all the laws and codes that regulate contractor law – so make sure you’re constantly staying up to date, both in terms of your knowledge and your application of said knowledge.
There’s no excuse for falling afoul of compliance in 2024 – we all have the internet – so make sure your ship is tight, so you don’t sink under the weight of rules and regs.

Find California Code Section 884 Civil Penalties Schedule Here.