CALIFORNIA CONTRACTORS LICENSE LAW CHAPTER 1
EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT ANSWERS) A+ GRADE ASSURED
Who can be a licensed contractor? - To qualify, and individual must:
-be at least 18 years old
-Have a valid SSN or ITIN
-
Have the knowledge, experience, and skills to manage daily activities of a construction business or be rep
resented by someonePelse with the knowledge, experience, and skills, who serves as the "qualifier"
What is needed before filing an application for a qualifier? - -
At least 4 years of experience within the past 10 years as a journeyman, foreman, supervising employee, o
r contractor in the trade being applied for
-Experience mustPbe verifiable and be provided on the "Certification of Work Experience" form
What are theP5 types of business entities CLSB issues licenses for? - 1. Sole Owner
2. Partnership
3. Corporation
4. Joint Venture
5. Limited Liability Company (LLC)
Who is required to be a licensed contractor? -
All businesses or individuals who construct or alter, or offer to construct or alter, any building, highway, r
oad, parking facility, railroad, excavation, or other structure in California must be licensed by CSLB if the
total cost of the project is $500 or more. It is illegal to divide a job into smaller parts to get around the $5
00 limit.
Can you submit a bidPwithout aPlicense in the business of home improvement? -
No, Contractors, including subcontractors, specialty contractors, and people engaged in the business of h
ome improvement must be licensed before submittingPbids.
, Who is exempt from the requirement to have a contractors license? - -
WhenPthe combined cost of the project is less than $500
-Gov or other public personnel working on public projects
-Officers of a court acting within the scope of their office
-Public utilities working under specified conditions
-Oil and gas operations by an owner or lessee
-Owner Builders (with certain restrictions)
-Seller of installed carpets who holds a retail furniture
dealer's license butPwho contracts with a licensed carpet installer for installation
-Security alarm company operators
-Individuals who install satellite antenna systems on
residential structures or property
Owner Builder restrictions with a contractors license - -Owner builders who:
1. Build or improve structures on their own property (if the owner does not intend to offer the structure f
or sale within a year of completion)
2. Build or improve structures on their own property if they contract with a licensed contractor.
3. Improve their main residence or any item attached to the property
Do you havePto reside in California to maintain a CSLB contractors license? - No
Does California recognize contractor licenses issued by
other states or countries? -
No. To work as a contractor in California, you must apply for and be issued a license by CSLB.
Reciprocity Agreements with: Arizona, Louisiana, Nevada, and Utah.
What happens if I contract without a license? -
Contracting for work valued at $500 or more without a license can leadPto misdemeanor charges. Unlicen
sed contractors face a first offense sentence of up to six months in jail and/or a $5,000 fine, and potential
administrative fines of $200 to $15,000. Subsequent
violations can result in increased criminal penalties andPfines. In addition, you may face felony charges if
you contract without a license when one is required inPan area covered by a state of emergency or disaster
proclaimed by the governor or the president. Felony
EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT ANSWERS) A+ GRADE ASSURED
Who can be a licensed contractor? - To qualify, and individual must:
-be at least 18 years old
-Have a valid SSN or ITIN
-
Have the knowledge, experience, and skills to manage daily activities of a construction business or be rep
resented by someonePelse with the knowledge, experience, and skills, who serves as the "qualifier"
What is needed before filing an application for a qualifier? - -
At least 4 years of experience within the past 10 years as a journeyman, foreman, supervising employee, o
r contractor in the trade being applied for
-Experience mustPbe verifiable and be provided on the "Certification of Work Experience" form
What are theP5 types of business entities CLSB issues licenses for? - 1. Sole Owner
2. Partnership
3. Corporation
4. Joint Venture
5. Limited Liability Company (LLC)
Who is required to be a licensed contractor? -
All businesses or individuals who construct or alter, or offer to construct or alter, any building, highway, r
oad, parking facility, railroad, excavation, or other structure in California must be licensed by CSLB if the
total cost of the project is $500 or more. It is illegal to divide a job into smaller parts to get around the $5
00 limit.
Can you submit a bidPwithout aPlicense in the business of home improvement? -
No, Contractors, including subcontractors, specialty contractors, and people engaged in the business of h
ome improvement must be licensed before submittingPbids.
, Who is exempt from the requirement to have a contractors license? - -
WhenPthe combined cost of the project is less than $500
-Gov or other public personnel working on public projects
-Officers of a court acting within the scope of their office
-Public utilities working under specified conditions
-Oil and gas operations by an owner or lessee
-Owner Builders (with certain restrictions)
-Seller of installed carpets who holds a retail furniture
dealer's license butPwho contracts with a licensed carpet installer for installation
-Security alarm company operators
-Individuals who install satellite antenna systems on
residential structures or property
Owner Builder restrictions with a contractors license - -Owner builders who:
1. Build or improve structures on their own property (if the owner does not intend to offer the structure f
or sale within a year of completion)
2. Build or improve structures on their own property if they contract with a licensed contractor.
3. Improve their main residence or any item attached to the property
Do you havePto reside in California to maintain a CSLB contractors license? - No
Does California recognize contractor licenses issued by
other states or countries? -
No. To work as a contractor in California, you must apply for and be issued a license by CSLB.
Reciprocity Agreements with: Arizona, Louisiana, Nevada, and Utah.
What happens if I contract without a license? -
Contracting for work valued at $500 or more without a license can leadPto misdemeanor charges. Unlicen
sed contractors face a first offense sentence of up to six months in jail and/or a $5,000 fine, and potential
administrative fines of $200 to $15,000. Subsequent
violations can result in increased criminal penalties andPfines. In addition, you may face felony charges if
you contract without a license when one is required inPan area covered by a state of emergency or disaster
proclaimed by the governor or the president. Felony
