California State Contractors License Law and
Business Test Study Guide/227 Answered
Questions A+ Rated
Who must be licensed as a contractor? - -Anyone who offers to or does
construct/alter on any job that costs 500 dollars or more.
-Is anyone exempt from the requirements to have a license? - -Yes. - If
project is less than $500. - Government or other public personnel on public
projects. - Officers of a court within the scope of their office. - Public utilities
under specified conditions. - Oil and gas operations done by owner or lessee.
- Owner-builders who build or improve their own property if THEY do the
work themselves, contract with a licensed contractor, or improve any
item/main residence, resided there over a year prior to work completion, and
prior to sale. - A seller of installed carpets who contracts with a licensed
carpet installer and certifies it - Security alarm companies licensed by BSIS -
Individuals who install Satellite antenna systems at residences
-Do I need to reside in California to get and keep a license? - -No.
-What kind of experience is required for a CA cont's license? - -At least 4
years of journey-level experience in the past 10 years before filing.
-How old do your have to be to get a contractors license. - -18
-What are the types of licenses issued? - -5 types: Sole Owner, Partnership,
LLC, Corporation, & Joint Venture. Joint Venture licenses are made up of 2
individual active licenses for a specific purpose.
-Does California recognize contractors licenses from other states or
countries? - -No! To be a contractor in CA, you must apply for and be issued
a license. CA has reciprocity with AZ, LA, NV, and UT, but you will still have to
take the law & business exam.
-What charge is it to contract without a license? - -Misdemeanor, meaning
potential jail time, fines and administrative fines
-Are there educational requirements to obtain a contractors license? - -No
-What are the contractor's license classifications? - -Class A - Engineering.
Class B - Building. Class C - Specialty
-Can technical training and apprenticeship training substitute the required
training required for the 4 years needed. - -Yes. As long as the applicant has
a minimum of 1 year of practical experience.
,-Are all applicants required to submit to a background check? - -Yes
-What are the total fees I must pay to obtain a contractor license? - -
$480.00. The non-refundable processing fee of $300 and the two year initial
license fee of $180. Current fees are printed on the application forms and
notices.
-How often do I have to renew my license? - -every two years
-Will I receive notice before my active license expires? - -Yes. 60 days, but
remember it is your responsibility to know and renew without being
reminded.
-What is the active license renewal fee? - -$360. You are required to renew
every two years.
-Is there a fee for renewing an active license - -$180.
-Inactive licenses must be renewed how often? - -Every four years
-What is the minimum operating capital that you must have to qualify to be
a contractor? - -$2500
-If you are changing the business name or address, or changing the
personnel or business type, how long do you have to notify the state of those
changes? - -90 days
-If you change owners or the business entity, changing the license structure,
can you renew your license at the end of the year or do you need to apply for
a new one. - -Apply for a new one.
-Can your old license be renewed? - -Yes. If your license has been expired
between 3 to 5 years.
-Another name for the qualifier. - -The test-taker. Or the person whom the
license is going to be issued.
-What is the qualifier called if he/she is an individual? - -The owner
-What is the qualifier called if he or she is a partner? - -Qualifying Partner.
-What is the qualifier called if he or she is an officer? - -RMO, Responsible
Managing Officer
, -What is the qualifier called if he or she is an employee? - -RME,
Responsible Managing Employee
-How many hours is an RME, Responsible Managing Employee required to
work. - -80% or 32 hours
-How many licenses can an Owner or Qualifying Partner qualify for at a time.
- -3
-How may licenses can an RME or RMO qualify for at a time? - -1
-Can you lend your license to someone? - -No. That would be punishable by
law.
-What must be on file with CSLB before an active contractor's license can be
issued? - -A current contractor bond($15,000 required for all classifications)
or cashier's check
-A qualifying individual must have a $12,500 bond or cashier's check for: - -
1. Each RME. 2. Each RMO, unless the RMO owns 10%+ voting stock. 3. Each
RME/RMO, unless they own 10%+ of the membership interest in the LLC
-Can you abandon a project without a legal excuse? - -No. This would be
cause for disciplinary action. It is classified as "Breach of Contract".
-A contractor is not prohibited from taking and executing a contract
involving the use of two or more crafts or trades, if the performance of the
work is _____ and supplemental to the primary job. - -Incidental and
supplemental to the primary job. Otherwise it must be performed by a sub.
-How many bonds can be in effect at a time? - -Only one.
-What happens if your surety company cancels a required bond? - -Your
license will be suspended.
-What happens if the RMO is no longer at least 10% voting stock, a
payment/judgment reduces the amount of a bond, or you fail to maintain a
disciplinary bond? - -Your license will be suspended.
-How soon are you required to report a construction-related civil court
judgment to CSLB? - -Within 90 days of the judgment date
-Under what conditions may you add a classification to your license? - -Only
if your license is renewed and in good standing
-In drawing up contracts, contractors should pay strict
Business Test Study Guide/227 Answered
Questions A+ Rated
Who must be licensed as a contractor? - -Anyone who offers to or does
construct/alter on any job that costs 500 dollars or more.
-Is anyone exempt from the requirements to have a license? - -Yes. - If
project is less than $500. - Government or other public personnel on public
projects. - Officers of a court within the scope of their office. - Public utilities
under specified conditions. - Oil and gas operations done by owner or lessee.
- Owner-builders who build or improve their own property if THEY do the
work themselves, contract with a licensed contractor, or improve any
item/main residence, resided there over a year prior to work completion, and
prior to sale. - A seller of installed carpets who contracts with a licensed
carpet installer and certifies it - Security alarm companies licensed by BSIS -
Individuals who install Satellite antenna systems at residences
-Do I need to reside in California to get and keep a license? - -No.
-What kind of experience is required for a CA cont's license? - -At least 4
years of journey-level experience in the past 10 years before filing.
-How old do your have to be to get a contractors license. - -18
-What are the types of licenses issued? - -5 types: Sole Owner, Partnership,
LLC, Corporation, & Joint Venture. Joint Venture licenses are made up of 2
individual active licenses for a specific purpose.
-Does California recognize contractors licenses from other states or
countries? - -No! To be a contractor in CA, you must apply for and be issued
a license. CA has reciprocity with AZ, LA, NV, and UT, but you will still have to
take the law & business exam.
-What charge is it to contract without a license? - -Misdemeanor, meaning
potential jail time, fines and administrative fines
-Are there educational requirements to obtain a contractors license? - -No
-What are the contractor's license classifications? - -Class A - Engineering.
Class B - Building. Class C - Specialty
-Can technical training and apprenticeship training substitute the required
training required for the 4 years needed. - -Yes. As long as the applicant has
a minimum of 1 year of practical experience.
,-Are all applicants required to submit to a background check? - -Yes
-What are the total fees I must pay to obtain a contractor license? - -
$480.00. The non-refundable processing fee of $300 and the two year initial
license fee of $180. Current fees are printed on the application forms and
notices.
-How often do I have to renew my license? - -every two years
-Will I receive notice before my active license expires? - -Yes. 60 days, but
remember it is your responsibility to know and renew without being
reminded.
-What is the active license renewal fee? - -$360. You are required to renew
every two years.
-Is there a fee for renewing an active license - -$180.
-Inactive licenses must be renewed how often? - -Every four years
-What is the minimum operating capital that you must have to qualify to be
a contractor? - -$2500
-If you are changing the business name or address, or changing the
personnel or business type, how long do you have to notify the state of those
changes? - -90 days
-If you change owners or the business entity, changing the license structure,
can you renew your license at the end of the year or do you need to apply for
a new one. - -Apply for a new one.
-Can your old license be renewed? - -Yes. If your license has been expired
between 3 to 5 years.
-Another name for the qualifier. - -The test-taker. Or the person whom the
license is going to be issued.
-What is the qualifier called if he/she is an individual? - -The owner
-What is the qualifier called if he or she is a partner? - -Qualifying Partner.
-What is the qualifier called if he or she is an officer? - -RMO, Responsible
Managing Officer
, -What is the qualifier called if he or she is an employee? - -RME,
Responsible Managing Employee
-How many hours is an RME, Responsible Managing Employee required to
work. - -80% or 32 hours
-How many licenses can an Owner or Qualifying Partner qualify for at a time.
- -3
-How may licenses can an RME or RMO qualify for at a time? - -1
-Can you lend your license to someone? - -No. That would be punishable by
law.
-What must be on file with CSLB before an active contractor's license can be
issued? - -A current contractor bond($15,000 required for all classifications)
or cashier's check
-A qualifying individual must have a $12,500 bond or cashier's check for: - -
1. Each RME. 2. Each RMO, unless the RMO owns 10%+ voting stock. 3. Each
RME/RMO, unless they own 10%+ of the membership interest in the LLC
-Can you abandon a project without a legal excuse? - -No. This would be
cause for disciplinary action. It is classified as "Breach of Contract".
-A contractor is not prohibited from taking and executing a contract
involving the use of two or more crafts or trades, if the performance of the
work is _____ and supplemental to the primary job. - -Incidental and
supplemental to the primary job. Otherwise it must be performed by a sub.
-How many bonds can be in effect at a time? - -Only one.
-What happens if your surety company cancels a required bond? - -Your
license will be suspended.
-What happens if the RMO is no longer at least 10% voting stock, a
payment/judgment reduces the amount of a bond, or you fail to maintain a
disciplinary bond? - -Your license will be suspended.
-How soon are you required to report a construction-related civil court
judgment to CSLB? - -Within 90 days of the judgment date
-Under what conditions may you add a classification to your license? - -Only
if your license is renewed and in good standing
-In drawing up contracts, contractors should pay strict
