CONTRACTORS LICENSING – INFORMATION
The are many benefits to getting your contractor’s license, including the ability to make more money and take bigger jobs, working to build a business for you instead of your boss, avoiding fines for working illegally, and protecting yourself legally in case of a job dispute with a customer or subcontractor.
Who must be licensed as a contractor?
All businesses or individuals who construct or alter any buildings, roads, excavations or other structures in California must be licensed if the total cost (labor and materials) of one or more contracts on the project is $500 or more.
What are the qualifications to become a licensed contractor?
You must be at least 18 years of age (however applicant MUST have 4 years of experience at journeyman level), have a valid social security number or ITIN, and also satisfy some job experience requirements. One of our associates can give you more information on this.
Can you get more than one license?
Yes. Some General Building Contractors for instance, may choose to obtain a supplementary specialty license so he or she can legally perform “single trade jobs” in a particular trade.
Are you automatically disqualified from getting a license if you have been convicted of committing a crime?
No. However, you are required to do livescan fingerprinting in order to comply with criminal background.
How difficult is the state exam?
There is quite a bit of material covered on the exam, so it can be hard to prepare for on your own. Most people need some outside help, whether it’s some kind of a study guide, books, or a license preparation school.
How many questions are on the state exam?
There are two separate tests you must pass in order to get a license: the Law and Business test, and the Trade test. Each test consists of about 110 questions, and you must answer approximately 66-70% of the questions correctly to pass each test.
What kinds of questions are on the tests?
All of the questions are multiple choice where you must choose the best answer from three or four different choices. The Business and Law test has questions pertaining to subjects such as contracts and liens, business management, safety and labor codes, prevailing wages, etc. The Trade test has questions pertaining to your specific trade; i.e., plumbing, roofing, masonry, electrical, etc.
How much time do you get to take the tests?
You are allowed up to two and a half hours to complete each test.
What happens if you fail the test?
You are allowed to retest if needed for up to 18 months from the first time you take the test. There is a fee of $100 each time you apply to take the test again. If you pass one of the tests but not the other, you don’t have to retake the one you passed. For example, if you pass the law test but not the trade, you only have to take the trade test again.
How long does it take to get a license?
It usually takes 5-6 weeks for CSLB to approve your application. Once your application has been approved, the applicant can contact PSI (third party testing company) to schedule a test date. There is also a wait time of 4 weeks after passing exams for them to issue license number.
How much does it cost?
As of January 1st, 2022 the application fee is $450. You will need to send a check or money order with your application in order for it to be processed and approved. After you pass your test, there is a $200 license fee if applying for sole owner license or $350 if applying for partnership/corporation/LCC license. Finally, you must secure a contractor’s surety bond before the state will issue your license, which is easy to obtain. The cost will vary depending on the term of the bond and what license classification you are getting. Ask one of our associates for more information.
