Category Archives: CSLB News

CSLB Application Fees 2023: A Comprehensive Guide

The Contractors State License Board (CSLB) in California manages the licensing of contractors within the state. A critical aspect of this process involves understanding the various fees associated with obtaining and maintaining a contractor’s license.

In 2023, the CSLB has a specific fee structure that applicants and current licensees must be aware of. This guide aims to provide detailed insight into these fees, so contractors can be effective as they plan their future contracting endeavors.

Understanding CSLB Application Fees

What Is The CSLB?

The CSLB is a governmental organization responsible for the licensing and regulation of California’s construction industry by establishing and enforcing the rules around legal construction work.

The CSLB’s main priority is physical and financial safety for the end customer. They accomplish this via their licensing powers, which ensure that only construction contractors who have been verified and licensed by the state of California are allowed to work on construction jobs.

While the CSLB doesn’t technically enforce the rules it lays out – that’s for SWIFT, local authorities, and ultimately, the legal system to handle – it handles every other aspect of contractor laws in California, from setting the legal requirements to becoming a contractor to enshrining the financial and legal penalties for people who run afoul of the law.

Types of CSLB Fees

If you’re applying to become a contractor for the first time in California, buckle up – because the CSLB charges tons of fees. Some would say too many fees (not us, but somebody!).

The CSLB charges fees for everything – applications, renewals, name changes, exams, everything. If there’s any effort at all required by the CSLB, they will charge for it.

All that to say – when you’re applying for a contractor license, or renewing it, or doing anything, expect to spend a good wedge on just fees alone. In the next section, we’ll cover all of those fees in total.

CSLB License Application Fees

Initial Application Fee

  • Fee: $450
  • Description: This fee is for processing a new license application for one singular classification, whether by examination or waiver.
  • Does not include renewals, which have a separate renewal fee. You aren’t charged twice for these. You are only charged an initial application fee for a new application.

Additional Classification Fee

  • Fee: $230 (for existing license); $150 (for new applications)
  • Description: This is the fee for adding an additional classification to an existing license or during the initial application.
  • For example, if you’re a Class B General Contractor holder but want to do your own HVAC work, you’d have to pay this fee to apply for a C-20 license.

CSLB Examination Fees

In order to get your CSLB license, you must pass the CSLB examination. This exam is notoriously difficult for even the most seasoned construction workers, with two separate sections – the Law and Business exam and the Trade exam, which cover general business and law knowledge and trade-specific expertise, respectively.

Luckily, there are no additional fees for the exam – the cost of taking the CSLB exam is included in your application fee.

However, if you fail the exam and have to retake it, there is a $100 fee attached for any examination work.

CSLB Initial Licensing Fees

Initial licensing fees are only applied to new licenses and are only paid once by an individual or corporation for the specific classification they are applying for.

These fees vary and are based on the business structure of the applicant. See our article on Contractor Business Structures for more information.

Licensing Fee for Sole Ownership

  • Fee: $200
  • Description: This is the licensing fee paid by contractor businesses with a sole proprietorship ownership structure upon passing the examination.
  • This fee is paid upon completion of the examination and is one of the last fees you need to pay to get your license.

Licensing Fee for Non-Sole Owners

  • Fee: $350
  • Description: Like the sole ownership fee, this fee is paid upon completion of your examination.
  • This fee is paid upon completion of the examination and is one of the last fees you need to pay to get your license.

CSLB License Renewal Fees

Renewal fees, as the name implies, are the fees required to renew a license. All CSLB licenses must be renewed yearly, so these fees go for both expired licenses and valid licenses – it all depends on the status of your license.

Active License Renewal Fee

  • Fee: $450 for sole owners, $700 for non-sole owners (C-10 contractors will be charged an additional $20)
  • Description: For active license renewals, the fee varies slightly for different types of ownership. It’s $700 for corporations and partnerships, and $450 for sole proprietorships.

Inactive License Renewal Fee

  • Fee: $300 for sole owners, $500 for non-sole owners
  • Description: This fee is lower than active license renewals as it seeks to encourage lapsed license holders to become licensed again. Like the active license renewal fee, this fee is more expensive for partnerships and corporations.

Other Fees

Now that the main application and renewal fees are out of the way, it’s time to go further into the various piecemeal fees.

Home Improvement Salesperson Registration

  • Fee: $200 for application, $200 for timely renewal, and $300 for delinquent renewal
  • Description: This unique fee is applicable only to Home Improvement Salespeople (HIS). This is the only contractor’s license that doesn’t allow the owner to perform any real construction work. This license only allows you to sell services performed by others.

Background Check, Live Scan, and Fingerprinting Fees

  • Dept. of Justice Processing Fee: $32
  • Federal Bureau of Investigation Processing Fee: $17
  • Live Scan Rolling Fees: Varies, but roughly $40
  • Description: All applicants must go through a State and Federal background check. Involved in this process are fees charged by the DOJ and FBI. The Live Scan fee varies based on the location of the applicant, but it’s usually around $40. Check the Live Scan website for more details.

Delinquency Fee

  • Fee: $675 for sole owners, $1,050 for non-sole owners (C-10 contractors will be charged an additional $20)
  • Description: These exorbitant – in our opinion, excessive – fees are charged on renewals that are submitted after the license in question has expired. It’s basically a penalty for not renewing on time.
  • It’s important to note that these fees are not charged on top of the renewal fee for the license, but rather replace them, so you don’t pay this in addition to the renewal fee.

Miscellaneous Fees

These are miscellaneous fees that may or may not apply to your situation and needs.

  • Duplicate/Replacement Pocket/Wall Certificates: $25
  • Business Name Change: $100
  • Certified License History: $67 per name researched
  • General Status Letter: $8
  • Bond Status Letter: $8
  • Copies of Public Documents: $0.10 per page
  • Certified Copies of Public Documents: $2 plus $0.10 per page

Payment Methods and Processing

  • Accepted Payment Methods
  • CSLB accepts checks, money orders, and credit cards. Detailed payment methods can be found on the CSLB website.

Processing Time

  • Processing times vary, especially during times of high volume. We always recommend submitting applications and renewals well in advance of deadlines to avoid any issues.

So… How Much Does It Cost To Get Your CSLB Contractor License?

So, how much can I expect to pay to get my CSLB contractor’s license?

The answer is – it varies. It all depends on what kind of license you need, the status of your license, whether it’s your first license or you’re renewing it, whether your license is expired, and so on.

There’s so many variables to getting your license, and every situation is different. However, here is the general total of the basic fees anyone needs to get their contractor license in California.

Total Estimated Cost of Fees for a New CSLB License

For a Sole Owner:

Application Fee: $450
Initial License Fee: $200
Fingerprinting (DOJ and FBI): $80

Total Fees For Sole Proprietors: $740

For a Corporation or Partnership (or any business structure that involves more than one person):

Application Fee: $450
Initial License Fee: $350
Fingerprinting (DOJ and FBI): $80 (excluding rolling fees)

Total Fees For Corporations Or Partnerships: $900

Conclusion

The most important skill for a California construction contractor is planning. You need to plan your life in advance – doing your apprenticeship work, gaining work experience in your trade, getting your license and ultimately building a successful business all require and understanding of your situation and the career you want.

Don’t overlook fees when planning your future as a CSLB-licensed contractor. These small amounts can really add up quickly – and if you don’t effectively plan not only the cost of these fees but the times that you pay them, you can end up spending far more money than you initially planned.

C-2 Insulation and Acoustic Contractors License: The Complete Guide

Thinking of going into the insulation business? Apprentice insulation professional looking to make the jump and start your own business? Spot a gap and want to corner your area’s soundproofing market?

You’ve come to the right place. This guide provides in-depth information on what a C-2 contractor does, the job types they handle, job examples, limitations, and success strategies, drawing from a range of sources for the most comprehensive overview.

What is A C-2 Insulation and Acoustical Contractor?

A C-2 Insulation and Acoustical Contractor is a specialist who installs insulating media and performs architectural acoustical material for temperature and sound control.

A C-2 contractor handles anything to do with insulation – installing, removing, adjusting, and so on. As the license itself says, this license covers all types of insulation, whether thermal or acoustical.

C-2 contractors usually work on residential installs, but they also find a lot of work in office buildings, working on constructing ceilings for giant offices and data centers. A big niche that falls under this category is soundproofing: an area that has become more and more important as modern life has become louder and more intense than ever – creating a need for builders to soundproof their assets to stay competitive.

Types of Jobs for C-2 Contractors

C-2 Contractors do a number of different roles, many specialized, and many general. The common thread amongst all jobs is they require some structural understanding, along with the obvious insulation and acoustical expertise required.

  • Soundproofing Contractors
  • Ceiling Contractors
  • Insulation Specialists
  • Home Insulation Contractors

Whether you’re installing insulation or soundproofing, you need this license. You can also operate a business that provides both services under the same license – a way to double or triple your income.

Typical C-2 Contractor Jobs

The C-2 license is one of the broadest, most flexible Class C contractor licenses out there. Every house needs insulation, especially in the infernal California heat – but the scope of the C-2 license goes much further than that.

Here are some of the most common jobs a C-2 Contractor does.

  • Suspended Acoustical Ceilings: Implementing overhead sound control systems in buildings.
  • Specialty Ceilings: Designing and installing unique ceiling types for aesthetic and functional purposes.
  • Demountable Partitions: Building modular partitions that can be easily moved or reconfigured.
  • Sound Absorption Insulation: Installing materials specifically designed to absorb and reduce noise.
  • Commercial Insulation: Implementing insulation solutions in commercial buildings for energy efficiency and sound control.
  • Residential Insulation Installations: Providing insulation in homes to improve thermal efficiency and reduce noise.
  • Grid Ceiling Systems: Setting up grid-based ceiling frameworks, often for drop ceilings. Ubiquitous in office parks and data centers.
  • Scaffolds and Ladders for Access: Setting up temporary structures for access to high or difficult-to-reach areas during installation.
  • Air Filtration Prevention: Ensuring buildings are airtight to enhance energy efficiency and control sound transmission.
  • Pipes and Ductwork Insulation: Some C-2 contractors work with HVAC contractors to insulate piping and HVAC ducts to reduce energy loss and noise.

Duties of a C-2 Contractor

What duties does a C-2 contractor have on-site? Here are some of the daily tasks you can expect to be doing as a C-2 contractor.

  • Installing various ceiling systems and insulation boards.
  • Batt, rigid board, and radiant barrier applications.
  • Building sealing for air filtration prevention.
  • Soundproofing and Weatherstripping.
  • Safe job site maintenance
  • Project estimation and financial management​​
  • Customer service

Limitations of C-2 Contractor Work

A C-2 Insulation and Acoustical contractor is legally restricted from bidding on projects outside their specialization, ensuring a focused and expert approach to their field of work​​.

Unless you’re a Class B General Contractor, you can’t perform any jobs outside of insulation or acoustical work without facing legal and potentially criminal penalties via the CSLB.

7 Steps To Success as a C-2 Contractor

How do you set yourself up for success as a C-2 contractor? Here’s some of the fundamentals of growing and maintaining a successful contracting business in the insulation and acoustical industries.

  • Conduct Market Research: You need to do your research when it comes to launching an insulation or acoustical business. Without a basic understanding of your local market, you have no chance of succeeding.
  • Establish a Business Niche: Once you’ve done your research, you can find the opportunities in your area. Find a service with few competitors that you can provide better than anyone else – and make it your specialty.
  • Set Up a Pricing Strategy: Your pricing should cover all costs while being competitive. You’ve already done your research so you should know what this price is, compared against others in your area.
  • Get Your CSLB License and Register Your Business With The S.O.S.: Register your business with the California Secretary of State and obtain the necessary C-2 license. It’s best to work with an attorney to ensure proper paperwork and compliance with state requirements​.
  • Start Marketing: A contractor that isn’t marketing is a contractor who is losing business. Invest in some money towards ads, SEO, and physical marketing – paying an expert to do this will pay off huge dividends.
  • Provide Exceptional Service: The absolute best thing you can do is to provide the best service in the area. If you leave your customers happy, they will be ecstatic and recommend you to others, both in-person and online.
  • Stay Up-to-Date on Industry Trends: Keep abreast of industry trends, especially in energy efficiency. This will help you stay competitive and offer the most current solutions to your clients, while also ensuring you stay compliant with California laws.

How To Get Your C-2 License

In order to get your CSLB C-2 License, you need to fulfill certain requirements. Once you meet all of these, getting your license is easy. Simply apply for your license, pass the exam, provide insurance, and – boom! – you’re a C-2 contractor!

  • Experience: A minimum of four years in the insulation and acoustical field.
  • Qualifying Individual: A manager with four years of relevant experience and a valid C-2 license who can vouch for your experience.
  • Application Submission: Providing detailed work and personal background information to the CSLB.
  • Pass the CSLB Exam: Pass both the Law and Business Examination and the Trade Examination.
  • Pass A Background Check: A comprehensive criminal background check.
  • Obtain And Show Proof of Bonds and Insurance: Obtaining a contractor’s license bond and adequate liability insurance. Note that insurance requirements have changed for California contractors in 2023!
  • Pay Fees: Pay the associated fees to the CSLB.

Conclusion

The C-2 Insulation and Acoustic Contractors License is an often-overlooked option for young people who want to get into construction. Considering how important insulation is – and will only continue to be – in our sun-baked state, there’s never any shortage of jobs for people who can provide good insulation services.

If you do your research, put in the hours, and market yourself well, there’s no reason you can’t be a huge success as a C-2 insulation contractor.

What Jobs Can A General Contractor Do In California?

With over 100,000 license holders in California, Class B General Contractors make up the majority of construction professionals in the state.

As masters of the basics of construction, general contractors know the fundamentals of every aspect of building – and are responsible for making sure the project comes out the way it’s supposed to.

What Kind Of Jobs Can You Take As A General Contractor: A General Overview

In…general…a general contractor can do a wide variety of construction-related tasks, but usually related only to the fundamental and structural aspects of the building.

They’re allowed to take on structural tasks like framing or carpentry jobs, where that’s all they’re hired to do. Once it goes beyond that, they need to subcontract.

While general contractors can do framing and carpentry, they are restricted from doing additional work on their job sites, unless they have the necessary Class C license to perform the work. Jobs like plumbing and electrical are accessible only to those license holders.

In addition to these general rules, there’s also a patchwork of specific bylaws and regulations as to what types of jobs they can do additional work on, which jobs they can’t, what types of trades they can perform, how many, and so on.

What Does The CSLB Say?

When it comes to ensuring your work as a general contractor is legally compliant and totally above board, it’s important to always follow the CSLB codes and regulations to a T.

Here’s what the CSLB has to say when it comes to jobs Gen Cons can do:

“Business & Professions Code

Division 3, Chapter 9. Contractors, Article 4. Classifications 7057.

Except as provided in this section, a general building contractor is a contractor whose principal contracting business is in connection with any structure built, being built, or to be built, for the support, shelter, and enclosure of persons, animals, chattels, or movable property of any kind, requiring in its construction the use of at least two unrelated building trades or crafts, or to do or superintend the whole or any part thereof.

This does not include anyone who merely furnishes materials or supplies under Section 7045 without fabricating them into or consuming them in the performance of the work of the general building contractor.

(b) A general building contractor may take a prime contract or a subcontract for a framing or carpentry project. However, a general building contractor shall not take a prime contract for any project involving trades other than framing or carpentry unless the prime contract requires at least two unrelated building trades or crafts other than framing or carpentry, or unless the general building contractor holds the appropriate license classification or subcontracts with an appropriately licensed specialty contractor to perform the work. A general building contractor shall not take a subcontract involving trades other than framing or carpentry unless the subcontract requires at least two unrelated trades or crafts other than framing or carpentry, or unless the general building contractor holds the appropriate license classification. The general building contractor may not count framing or carpentry in calculating the two unrelated trades necessary in order for the general building contractor to be able to take a prime contract or subcontract for a project involving other trades.

(c) No general building contractor shall contract for any project that includes the “C-16” Fire Protection classification as provided for in Section 7026.12 or the “C-57” Well Drilling classification as provided for in Section 13750.5 of the Water Code, unless the general building contractor holds the specialty license, or subcontracts with the appropriately licensed specialty contractor.
(Amended by Stats. 1997, Chapter 812 (SB 857).”

So…What Types Of Jobs Can A General Contractor Perform?

Sometimes the CSLB can use language that makes your head spin. There’s a lot of legalese and specific, confusing language in there that can have general contractors wondering if they’re staying compliant. So what exactly are they saying here?

The long and short of it is, if you’re a general contractor, you can do framing and carpentry on any job that is framing or carpentry only. Any more than two trades, you gotta hire it out!

If you’re a general contractor with a Class C license, you can do any Class C work on your job.

Wrapping Up

If you’re a general contractor, chances are you’re probably not doing the work yourself. You’re already deeply familiar with your limitations and your expertise – and why get your hands dirty when you can just hire someone else to do the work for you?

When in doubt, though, follow these simple guidelines. General Contractors:

  • Can Perform Construction Work On Framing and Carpentry Jobs
    • General contractors can sign contracts and self-perform work that involves framing or carpentry projects.
    • There is an exception: you cannot do framing or carpentry work if the project involves two or more trades.
  • Can Engage In Licensed Trade Work
    • GCs can also engage in contracts for a single trade, but if they lack the necessary specialty classification for that trade, they are required to subcontract the work to a contractor with the appropriate classification.
    • This does not include carpentry or framing!
  • Can Undertake Multiple Unrelated Trades
    • A general contractor can enter contracts for two or more separate and unrelated trades and self-perform the work if they hold the correct license for each respective trade job.
    • Once again, framing and carpentry cannot be counted as one of the trades – they must be one of the other Class C Classifications!

Contractor Warranties: What California Contractors Need to Know

Implied, express, or contractual – warranties are a critical part of contract law that ALL California contractors need to know to be successful.

Sure, one can say “I’m a contractor and not a lawyer!” and while that’s true, it’s also essential that you understand the basics of a contract, to make sure you don’t get burned by sketchy subcontractors or ruthless clients – both of which want to get the most value for the least money.

With that in mind, let’s take a look at warranties for contractors – what they are, what they do, and why you need to know them to be successful as a California contractor.

What Is A Construction Warranty?

In California, a warranty is a legally enforceable assurance provided by a contractor to a client regarding the quality, functionality, and durability of the work delivered.

Warranties in the construction domain serve to uphold professional standards, protect consumer rights, and provide a framework for action and remuneration in case of construction defects or non-compliance with specified standards.

It serves as a pledge that the delivered project will adhere to the specified standards, and should any issues arise within a stipulated period post-completion, the contractor will rectify them at no additional cost to the client.

In legal terms, a warranty refers to a guarantee or promise enshrined within a contract, under which the contractor assures the quality, performance, or condition of a particular subject matter to the client. Warranties also stipulate the consequences of construction defects, legally outlining what a contractor must do in the case of a construction defect.

What Does A Construction Warranty Do?

Warranties, at their very basic level, are legal protections that protect both the contractor and the client by outlining all of the responsibilities of both parties – and the consequences for violating the terms both parties agreed upon.

  • Contractual Assurance: A warranty is a contractual assurance wherein the contractor guarantees the quality and compliance of the job. This could range from the materials used, the workmanship quality, to the project adhering to local building codes and regulations.
  • Binding Obligation: Once a warranty is stipulated within a contract, it becomes a binding obligation, enforceable in court. The contractor is now legally bound to honor the warranty, failing which could result in legal repercussions.
  • Remedial Action: The primary purpose of a warranty is to provide a remedial course of action in case the delivered work doesn’t meet the specified standards. Warranties exist to protect the client, by outlining the specific steps a contractor must take to fix a contractual violation.
  • Risk Allocation: On the flip side, warranties also protect contractors by defining the extent to which contractors are liable for defects or issues arising post-construction.

Types of Construction Warranties

  • Express Warranty: This is a clearly articulated assurance provided by the contractor regarding specific aspects of the construction project. This is essentially any warranty or guarantee a contractor puts in a contract. It specifically and granularly outlines the things they promise to deliver to the client and the timeframe they’ll fix any problems that crop up.
  • Implied Warranty: Unlike express warranties, implied warranties are not explicitly stated but are implied in the very nature of construction. By taking on any construction job, a contractor is tacitly agreeing to these warranties. There are two types of implied warranties in the United States.
    • Workmanship Warranty: guarantees that any construction project will be built in a good or workmanlike manner, free of major defects. This includes both labor and materials.
    • Warranty of Habitability: guarantees that any construction project will be suitable for the purpose they are intended for and be safe to live in.
  • Statutory Warranty: These are warranties determined by the state. Statutory warranties do one thing: they specifically outline the amount of time that contractors are liable for any construction defects.

Common Construction Warranties In California

Warranties in California cover a spectrum of durations and construction aspects, and they can vary from industry to industry and home to home. Here’s some of the main ones you’ll come across in your career as a California contractor.

General Warranties

  • Mandatory Warranties: Contractors in California are obligated to provide warranties on their work, such as a 4-year warranty on installed items, a one-year warranty on the fit and finish of certain areas, and a guarantee against defects in compliance with building codes and manufacturer requirements​.
  • State Law: Notable legal codes include California Civil Code 900, which requires one-year expressed limited warranties for both new construction and remodeling projects, and the Right to Repair Act (California Civil Code 896, et seq.), which includes implied warranties into the one-year warranty requirement.
  • One-Year Warranties: These short-term warranties cover aspects like “fit and finish” of certain elements, “manufactured products,” compliance with “interunit noise transmission standards,” and irrigation, drainage, and landscaping systems​.
  • Two to Five-Year Warranties: These cover medium-sized problems, like untreated wood posts, dryer ducts, plumbing, sewer, electrical systems, exterior pathways, and paint and stains causing deterioration​.
  • Ten-Year Warranties: Ten-year warranties are all about foundational and structural elements. Ten-year warranties ensure long-term accountability on the construction elements most critical to human safety.

Notable Court Cases Involving Warranties

When it comes to contractor contracts, looking to existing court cases is a good way to learn about the system, so you can prepare yourself for even the worst-case scenario.

1. Moore v. Teed

Moore v. Teed was an interesting case about contractual fraud and construction defects, with a big emphasis on the legal application of Business and Professions Code §7160. In the case, a homeowner was suing a contractor for damages because the contractor severely overpromised… and underdelivered to the tune of $300,000.

This ruling gives homeowners more leverage over contractors who promise the world and don’t deliver. In the case, the court ruled that homeowners are entitled to the “image that the contractor promised” when selling their services. In other words, a contractor is liable for the promise of the project made by the contractor and is due damages equal to the promise made to the client – whether it’s in writing or not.

2. Howard Contracting, Inc. v. G.A. Macdonald Construction Co., Inc.

This landmark case made it to the California Supreme Court and set a precedent that allows subcontractors to recover damages for cost overruns caused by delays and disruptions – even if there’s stipulations in the prime contract barring such claims.

The civil ruling changed things for both subcontractors and contractors in California by giving subcontractors the option to sue for – and receive – damages for any out-of-pocket costs or expense overruns caused by delays. The key thing is that even if the prime contract states the prime contractor isn’t liable for damages, they are still liable for damages.

3. Aas v. Superior Court Of California

In this massive 2000 ruling, the California Supreme Court delineated the boundaries of negligence claims in construction defects scenarios. The court ruled that homeowners could not recover damages for construction defects that hadn’t caused property damage. It seems obvious, but before then, there was no legal precedent protecting contractors against

This ruling set a significant precedent on the scope of liability for contractors and developers, finally establishing precedent that homeowners can’t sue contractors for damages related to construction defects…. without actually suffering damages related to construction defects.

It’s wild that we even have to type that…but here we are. Thanks to this court ruling, contractors and the state of California must have saved millions in legal fees from baseless lawsuits.

California Contractors: Get To Know Your Contracts!

As you can see from these court cases, it’s critical for any contractor to know what’s in their contracts – and what’s excluded from them. Any contractor who is too lazy to learn at least the basics of contract law is a contractor who will find themselves in trouble at some point down the road.

We hope this guide serves as a good jumping-off point for your contracting business – now’s the time for you to dig deeper into your own personal situation to make sure you’re covering all your bases and setting yourself up for success as a California contractor.

Additional Reading

California State Licensing Board
Levelset – Warranty requirements for contractors in California​
Esquire REB – New Construction Warranties Provided By California Law​
Valley Contractors Exchange – New Construction Warranties
Stone Sallus – Construction Defect Claims in California: Understanding Your Options​
FreeAdvice – California Contractor Warranty Form
Smith Currie – New California Construction Laws for 2023

New Laws for California Contractors in 2023

We’re always hearing stories from former clients and current contractors that they’re seeing frequent violations of new contractor laws that just came into effect this year, in 2023.

There are a ton of new laws that are – to be frank – absolutely critical to know as a contractor, no matter your classification, location, or size. Any violation of these new laws carries serious penalties – including time in jail for repeat offenders.

Arm yourself with the knowledge and take the steps necessary to protect your business by becoming familiar with the following pieces of new legislation.

Senate Bill 216 (Dodd)

If you’re a concrete, HVAC, Asbestos or Tree Service contractor in California – listen up!

Senate Bill 216 (SB216), which amends the Business and Professions Code (BPC) Section 7125, is a piece of legislation that requires 5 Class “C” contractors to carry workers’ compensation insurance, even without employees.

This mandate means that contractors with a C-8 Concrete, C-20 Heating, Warm-Air Ventilating and Air-Conditioning, C-22 Asbestos Abatement, or D-49 Tree Service license must have valid workers’ compensation insurance by January 1, 2023.

And as a note to all contractors of all classifications: by January 1, 2026, all contractors must have valid workers’ compensation insurance, irrespective of whether or not they have employees.

The only exception to the new CSLB workers’ comp requirements is joint ventures without employees. Anyone with this structure of business is exempt from SB 216’s workers’ comp requirements.

Senate Bill 607 (Min)

In another insurance-related move, the California Senate passed Bill 607 (SB 607), which marks another important change in the requirements to hold a CSLB license. It updates numerous sections of the BPC – with one huge change in bond amounts.

SB 607 mandates that the CSLB qualifier, license, and minimum disciplinary bonds be raised from $12,500 and $15,000, respectively, to $25,000 for all three bonds as of January 1, 2023.

As a bonus for the families of military members looking to become licensed contractors, SB 216 also requires the Department of Consumer Affairs (DCA) boards and bureaus (including the CSLB) to waive application and license fees for military family members.

What if I Don’t Have Workers’ Compensation Insurance Or My Bond Amount Is Insufficient?

If you are currently in one of the above classifications and you do not have workers’ comp or a sufficient bond amount…well, we’ve got bad news for you: your license is surely suspended.

Don’t panic – just stop doing work entirely if you are still doing it. This is critical as you can face serious legal consequences for working without a license.

Next, you should immediately begin the process of getting the necessary workers’ compensation insurance and/or increasing your bond amount. Once that is sorted out, you can re-apply for your license.

If you’re unsure or don’t remember if you have workers’ compensation insurance, you should immediately check your license status.

Senate Bill 1237 (Newman)

Huzzah for troops-turned-contractors – SB 1237 is here to waive any renewal fees!

Senate Bill 1237 (SB 1237) updates the current law that requires DCA boards, including the CSLB, to waive renewal fees for a licensee who is called to active duty as a member of the U.S. Armed Forces or California National Guard.

This applies if the licensee or registrant is stationed outside of California. The new law expands the definition of “called to active duty” and extends it to licensees on active duty during a “state of insurrection” or a “state of extreme emergency.”

Assembly Bill 2105 (Smith)

In another move that will have veteran contractors excited, Assembly Bill 2105 (AB 2105) mandates a 50% fee reduction for an initial license or registration fee for all veterans!

All you have to do is provide paperwork proving you are a veteran who has served as an active-duty member of the United States Armed Forces, including the National Guard or Reserve components and was not dishonorably discharged.

For HIS contractors, this still applies to you as well! This applies to all initial license fees for anyone acquiring a CSLB license.

Assembly Bill 1747 (Quirk)

Assembly Bill 1747 (AB 1747) increases the civil penalty from $8,000 to $30,000 for every violation of BPC Section 7110 (savvy legal contractors will know these are building code violations) and amends Section 7099.2 (how much in penalties violators will pay).

This bill expands BPC 7110 to include failure to comply with certain health and safety laws, water laws, safe excavation requirements, pest control requirements, illegal dumping, and other state laws related to building and insurance requirements.

Assembly Bill 2374 (Bauer-Kahan)

Bad news for litterbug contractors: your time is up.

Assembly Bill 2374 (AB 2374) amends Penal Code Section 374.3 and now requires courts to notify CSLB or other DCA boards or bureaus when a licensee is convicted of an illegal dumping crime. This is so the board can publish the conviction on their website.

The bill also increases the fines a court may impose for this crime, which is great for everyone everywhere. In a double-swoop of awesome for contractors who like to do the entire job right, it also requires the court to order a person convicted of dumping commercial quantities of waste to remove or pay for the removal of, the waste matter that was illegally dumped. Which, again, is an absolute win for everyone involved.

Assembly Bill 2916 (McCarty)

Assembly Bill 2916 (AB 2916) amends BPC Section 7124.6 and modifies the CSLB Letter of Admonishment (LOA) program to allow CSLB to determine whether it should be issued for one or two years, rather than the current one-year limitation.

In making that determination, CSLB is required to consider the gravity of the violation, the good faith of the licensee or applicant being charged, and the history of previous violations.

This is a pretty technical bill and to be honest, it remains to be seen how it will affect contractors. It seems to really only affect disciplinary actions, which affect only a small number of contractors. We’ll keep you posted on how it develops.

Stay Compliant…Or Else!

These new laws have serious consequences for any contractor that is non-compliant and remember: Ignorantia juris non excusat – ignorance of the law does not mean you are free from the consequences of violating it.

And in the CSLB’s case – the punishments are extremely severe for anyone violating contractor law in California. So don’t do it!

FAQ: CSLB Licensing Workshops

Are you considering becoming a licensed contractor in California? The process can be overwhelming, with what feels like thousands of hoops to jump through and forms to fill out. 

Wisely, the Contractors State License Board (CSLB) has started offering licensing workshops to help guide you through it. 

In this article, we’ll cover the most frequently asked questions about CSLB licensing workshops, including what they are, how they can help you, and how to sign up.

What Are CSLB Licensing Workshops?

The CSLB offers a variety of licensing workshops to assist individuals who are interested in becoming licensed contractors.

These step-by-step guides are short, but highly informational, workshops that really guide you through the entire process of applying for, testing for, and ultimately receiving a California contractor license. 

They cover all sorts of topics and have been shaped by common questions that the CSLB found contractors were asking. Some of the areas covered in these workshops include:

  • A general overview of CSLB licensing requirements
    • What do you need to actually become a contractor?
  • Business and financial management for contractors 
    • How to manage the business side of contracting?
  • Exam preparation and test-taking strategies
    • Basically – how to pass the notorious CSLB exam?
  • Laws and regulations related to contracting in California
    • Learn how to make sure you’re doing work legally
  • How to avoid common mistakes in the licensing process
    • Mistakes can hold up your license for weeks or months. Just don’t!
  • How to file a complaint against a contractor
    • An unfortunate side of the business, but necessary. CSLB professionals can tell you how to best handle an unscrupulous contractor.

How much does the CSLB licensing workshop cost?

These workshops are free! You don’t have to pay a red cent! 

The CSLB started giving these workshops out as a way to help contractors get licensed, so they have no need to charge. They just want to help you become a contractor!

Where and when do I take the CSLB licensing workshop?

The CSLB hosts their licensing workshop on the first Friday of every month at 10:00 a.m.

Usually, these workshops are in-person, but since the COVID pandemic, they’ve shifted these workshops to entirely online. As of April 2023, it seems that these workshops are still fully digital. 

How do I sign up?

The CSLB recommends signing up for their email list to receive access to register.

They encourage you to check the box for “Podcasts and Webcasts” to ensure you receive your invitation, as well. Otherwise, you’ll receive the wrong information (although perhaps still relevant to your license!).

Is the CSLB licensing workshop available in Spanish?

Yes! The CSLB licensing workshop is available in Spanish.

Find out more about taking the licensing workshop here, or watch the video below:

Participa en nuestro workshop para obtener la licencia para construir

Bonus: Get CSLB Exam Study Guides… In Spanish!

Spanish-speaking construction professionals rejoice! The CSLB has released a bunch of brand-new Spanish study guides. 

These study guides cover a variety of topics, including construction law, safety, and business practices, and can help you pass the exam first try.

CHECK OUT OUR ARTICLE HERE to see the full list of new study guides in Spanish. Here are a few of the big ones: 

  • C-6 Cabinet, Millwork and Finish Carpentry
  • C-8 Concrete
  • C-10 Electrical
  • C-15 Flooring and Floor Covering
  • C-20 HVAC

These study guides provide valuable assistance to Spanish-speaking applicants who may struggle with the English language, so check them out!

What To Expect From the CSLB Exam: The Essential Facts

If you’re looking to get a California contractor license from the Contractors State License Board (CSLB), you know one of the most difficult parts of the process is passing the notoriously difficult CSLB exam.

This behemoth of a test is designed to be difficult in order to weed out shoddy contractors, so if you go in without preparing, you’re in for a world of hurt.

In this essential but comprehensive guide, we’ll look at only the most crucial elements of the CSLB exam, so you can know what to expect when you sit down and take the test.

The CSLB Exam: A True Test Of A Contractor’s Knowledge

The CSLB exam is designed to evaluate your competency and expertise in your chosen trade, and it is designed to make you fail if you don’t know what you’re doing. 

It is divided into two main parts. 

The first part of the CSLB exam is the Law and Business section, which is taken by applicants. 

The second part of the CSLB exam is the Trade section, which tests the knowledge of your specific trade. If you’re studying for a C-36 Plumbing License, for example, you can expect plumbing-specific questions on your trade exam.

Law and Business Section

This section focuses on contracting business management and includes topics such as contract law, financial management, and employment laws. 

  • 115 Questions Long
  • Multiple-choice format
  • 2.5 hours allotted time
  • Minimum passing score of 72%
  • Divided into the following sections (percentage of the test in parentheses):
    • Licensing (~15%)
    • Bookkeeping (~15%)
    • Safety (~12%)
    • Contracts~(~10%)
    • Bid Procedures (~12%)
    • Insurance (~3%)

Trade Section

The Trade section targets the technical aspects of your chosen specialty. The number of questions and the required passing score depends on your trade classification. However, most trade exams share the following characteristics:

  • 80 to 125 questions
  • Multiple-choice format
  • 2 to 4 hours allotted time
  • Minimum passing score of 72% for most trades
  • Information contained within depends on your trade

Total Questions and Duration

Overall, you can expect to answer between 195 to 240 questions, depending on your trade. The total exam duration ranges from 4.5 to 6.5 hours, with breaks between sections.

How Do I Physically Take The Test?

You can take the test in person at various testing centers around California. There are currently eight testing centers in California. You can take the CSLB exam in the following cities:

  • Berkeley
  • Fresno
  • Norwalk
  • Oxnard
  • Sacramento
  • San Bernardino
  • San Diego
  • San Jose

The exam itself is administered on a touch-screen computer that immediately gives you the results on completion of your test. 

You can find more information about the test itself in this CSLB pamphlet,

Preparing for the CSLB Exam: Effective Strategies and Resources

To achieve success in the CSLB exam, thorough preparation is key. Here are some valuable resources and strategies to aid in your exam preparation

  1. Study Guides. The CSLB offers study guides for each trade classification, which cover key exam topics and provide useful tips.
  1. Sample Questions. Familiarize yourself with the exam format and question types by reviewing sample questions provided by the CSLB.
  2. Practice Tests. The CSLB provides practice tests to make sure you’re not only familiar with the topics covered but also the software to take the test itself.
  3. Take A Course. There are quite a few schools out there – like industry veterans CSLS – that have proven methods and courses to help you pass the test the first time. 

After the Exam: Moving Forward in the Licensing Process

Once you have successfully passed the CSLB exam, what’s next?

Well, you should receive your exam results right after taking the exam, so you’ll know if you passed the exam and need to take the next steps to get your license.

If you scored less than 72%, you will have to retake the exam. If you passed, congratulations! You are close to getting your CSLB license! Here are the next steps to take!

  1. Submit all the relevant documents to the CSLB (Like Contractor’s Bond, Workers’ Compensation Insurance, Licensing Fees, etc.)
  2. Check your exam status
  3. Receive your license!
  4. Begin working as a licensed California contractor!

The CSLB exam is a notoriously difficult proposition for many contractors – and rightfully so – it’s a test of a contractor’s ability to safely and securely deliver a quality product that protects the public from any issues.

That doesn’t mean it’s impossible to pass – far from it. Preparation is the most important part, so study up and get a guide if you need help getting your license today and becoming a contractor tomorrow.

Contractors State License Board Warns Licensees to Be Aware of Misleading Business Solicitations

Contractors State License Board Warns Licensees to Be Aware of Misleading Business Solicitations
Appeals often look like official government correspondence
SACRAMENTO, CA – The Contractors State License Board (CSLB) wants its licensees to be aware of a warning issued this week by the California State Board of Equalization (BOE).
Licensees are urged to be wary of misleading business solicitations from companies that mimic official correspondence from a government agency.
BOE says businesses have informed the board of notices they have received from the “California Labor Compliance Bureau,” requesting immediate payment of a “processing fee” of $275. The “California Labor Compliance Bureau” is not a government agency. The notices use public information, such as BOE account numbers and industry codes, which give them the appearance of official correspondence.
The “processing fee” is purportedly for labor-related notices that California employers are required to post at their business premises informing employees of their legal rights under the National Labor Relations Act. The notices in question are available free of charge on the National Labor Relations Board’s (NLRB) website.
BOE is not affiliated with the California Labor Compliance Bureau. BOE Correspondence always features the BOE’s title and/or logo and contains contact information. If you receive a notice and question whether it is official BOE correspondence, you should contact your local BOE office or contact the BOE’s Information Call Center at 800-400-7115.
The NLRB can assist licensees with questions regarding required notices at 202-273-0064.

CSLB Bulletin: CSLB and Partners Sting 15 for Contracting Without Licenses

CSLB and Partners Sting 15 for Contracting Without Licenses

 SACRAMENTO — The Contractors State License Board (CSLB) teamed up with the Orange County District Attorney’s Office and La Habra Police Department for a two-day sting operation in La Habra where 15 individuals received notices to appear in court for contracting without a license and other, related charges.

On June 29-30, 2011, members of CSLB’s Statewide Investigative Fraud Team (SWIFT) posed as owners of a home (June 29) and a business (June 30) and sought bids from suspected unlicensed operators for painting, concrete, drywall, cabinet installation, and flooring. Those who bid more than the legal threshold of $500 for labor and materials received notices to appear in court for violating California contracting laws.

Some of the suspects will also face charges for failure to carry workers’ compensation insurance, soliciting an excessive down payment, and illegal advertising. State law requires contractors to have workers’ compensation coverage for all employees. Contractors are also prohibited from soliciting a down payment larger than $1,000 or 10 percent of the project, whichever is less. There is an exception for about two dozen contractors who purchase special bonds for consumer protection and may ask for larger down payments. The law also requires contractors to put their license number in all advertisements. Those who are not state-licensed and work on projects valued at less than $500 must state that they are not licensed in their ads.

The first suspect caught contracting without a license was on parole for drug crimes. During the second day of the operation a licensed contractor arrived at the commercial building. He thanked CSLB for conducting the sting and for other enforcement efforts aimed at unlicensed, uninsured individuals who he says are cutting into his business.

“CSLB routinely conducts operations like this one in La Habra as part of its mission to protect the state’s consumers and the integrity of the construction industry,” said CSLB Registrar Steve Sands. “Many of the complaints received by the board after a project has gone awry could have been avoided had homeowners taken a few minutes to check the license first, and followed CSLB’s Ten Tips available in English and several other languages.”

THE CONTRACTORS STATE LICENSE BOARD (CSLB) ZERO-TOLERANCE ENFORCEMENT POLICY IN 2010 AND NOW ISSUES LEGAL ACTION AGAINST ANY C-10 ELECTRICAL CONTRACTOR WHO WILLFULLY EMPLOYS AN UNCERTIFIED ELECTRICIAN TO PERFORM WORK AS AN ELECTRICIAN

 

CSLB Announces Zero Tolerance Enforcement Policy for C-10 Electrical Contractors. 

—————————————————————————————————

SACRAMENTO – The Contractors State License Board (CSLB) established a zero-tolerance enforcement policy in 2010 and now issues legal action against any C-10 Electrical contractor who willfully employs an uncertified electrician to perform work as an electrician. CSLB is legally required to open an investigation and initiate disciplinary action against the contractor (which may include license suspension or revocation) within 60 days of receipt of a referral or complaint from the Department of Industrial Relations’ Division of Apprenticeship Standards (DAS).

Labor Code Section 3099.2 stipulates that anyone who performs work as an electrician for C-10 Electrical contractors shall hold an electrical certification card issued by DAS; DAS is required by Labor Code Section 3099.2 to report violations to CSLB.

Electricians are defined as those who engage in the connection of electrical devices for C-10 contractors. It is CSLB’s position that electrical work must be performed by either a state-licensed or a certified electrician. An indentured apprentice or state-registered electrician trainee may also perform electrical work if supervised by a state-certified electrician. Trenching, concrete, framing, and other work that does not involve connecting electrical devices may be performed by noncertified workers.

Learn more about electrician certification by visiting the Division of Apprenticeship Standards website

Contact a CSLS School Administrator to assist in purusing your C-10 License today! www.MakeMeAContractor.com