CALIFORNIA CONTRACTORS STATE LICENSE BOARD
(CSLB) GENERAL BUILDING CONTRACTOR EXAM,
EXAM QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026 Q&A
| INSTANT DOWNLOAD PDF
1. Which of the following best defines a “general building contractor”
in California?
A. A contractor who performs only residential work
B. A contractor who engages in contracting requiring a license in more
than one trade
C. A contractor who specializes in plumbing
D. A contractor who only performs electrical work
B
General building contractors are licensed to perform projects that
involve multiple trades, unlike specialty contractors who focus on one
trade.
2. Before starting any construction project, what must a contractor
obtain from the CSLB?
A. A tax ID
B. A business license
C. A contractor’s license
D. A permit from the city
,C
A contractor must be licensed by the CSLB to legally perform contracting
work in California.
3. What is the maximum amount a contractor may request as a down
payment for a residential construction project in California?
A. 5% of the contract price
B. 10% of the contract price or $1,000, whichever is less
C. 20% of the contract price
D. 50% of the contract price
B
California law limits down payments for residential projects to protect
consumers from large upfront payments.
4. Which of the following is required to be included in a residential
construction contract?
A. Contractor’s favorite subcontractors
B. Detailed plans and specifications
C. Marketing brochures
D. Employee names
B
A contract must clearly specify the work to be performed, including
detailed plans and specifications.
5. A contractor discovers an error in the building plans after starting
work. What should they do?
,A. Continue working and fix it later
B. Stop work and notify the owner and architect immediately
C. Ignore it if it seems minor
D. Only notify the subcontractor
B
Contractors have a legal duty to notify the owner and relevant
professionals of errors that affect the project.
6. What is the purpose of a mechanics lien?
A. To reduce taxes
B. To secure payment for labor and materials supplied to a construction
project
C. To hire subcontractors
D. To file complaints with the CSLB
B
A mechanics lien provides legal security for contractors, subcontractors,
and suppliers to get paid.
7. When can a contractor legally advertise themselves as “licensed”?
A. Only if currently licensed by the CSLB
B. Always, even if the license is pending
C. Only for residential projects
D. Only for commercial projects
A
Advertising as “licensed” is restricted to those currently holding an
active CSLB license.
, 8. What is the minimum insurance a California contractor must
maintain?
A. Vehicle insurance
B. Workers’ compensation insurance (if employees are used)
C. Health insurance
D. Homeowner’s insurance
B
Contractors employing workers must maintain workers’ compensation
insurance to cover job-related injuries.
9. If a contractor’s license is expired for more than 5 years, what must
they do to renew it?
A. Pay a small fee
B. Retake the exams and meet current requirements
C. Submit a letter explaining the delay
D. Nothing; it automatically renews
B
Licenses expired over a long period require retesting to ensure the
contractor meets current standards.
10. Which of the following is a responsibility of a general contractor?
A. Drafting city ordinances
B. Supervising and coordinating all aspects of a construction project
C. Selling construction equipment
D. Conducting building inspections for the city
(CSLB) GENERAL BUILDING CONTRACTOR EXAM,
EXAM QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026 Q&A
| INSTANT DOWNLOAD PDF
1. Which of the following best defines a “general building contractor”
in California?
A. A contractor who performs only residential work
B. A contractor who engages in contracting requiring a license in more
than one trade
C. A contractor who specializes in plumbing
D. A contractor who only performs electrical work
B
General building contractors are licensed to perform projects that
involve multiple trades, unlike specialty contractors who focus on one
trade.
2. Before starting any construction project, what must a contractor
obtain from the CSLB?
A. A tax ID
B. A business license
C. A contractor’s license
D. A permit from the city
,C
A contractor must be licensed by the CSLB to legally perform contracting
work in California.
3. What is the maximum amount a contractor may request as a down
payment for a residential construction project in California?
A. 5% of the contract price
B. 10% of the contract price or $1,000, whichever is less
C. 20% of the contract price
D. 50% of the contract price
B
California law limits down payments for residential projects to protect
consumers from large upfront payments.
4. Which of the following is required to be included in a residential
construction contract?
A. Contractor’s favorite subcontractors
B. Detailed plans and specifications
C. Marketing brochures
D. Employee names
B
A contract must clearly specify the work to be performed, including
detailed plans and specifications.
5. A contractor discovers an error in the building plans after starting
work. What should they do?
,A. Continue working and fix it later
B. Stop work and notify the owner and architect immediately
C. Ignore it if it seems minor
D. Only notify the subcontractor
B
Contractors have a legal duty to notify the owner and relevant
professionals of errors that affect the project.
6. What is the purpose of a mechanics lien?
A. To reduce taxes
B. To secure payment for labor and materials supplied to a construction
project
C. To hire subcontractors
D. To file complaints with the CSLB
B
A mechanics lien provides legal security for contractors, subcontractors,
and suppliers to get paid.
7. When can a contractor legally advertise themselves as “licensed”?
A. Only if currently licensed by the CSLB
B. Always, even if the license is pending
C. Only for residential projects
D. Only for commercial projects
A
Advertising as “licensed” is restricted to those currently holding an
active CSLB license.
, 8. What is the minimum insurance a California contractor must
maintain?
A. Vehicle insurance
B. Workers’ compensation insurance (if employees are used)
C. Health insurance
D. Homeowner’s insurance
B
Contractors employing workers must maintain workers’ compensation
insurance to cover job-related injuries.
9. If a contractor’s license is expired for more than 5 years, what must
they do to renew it?
A. Pay a small fee
B. Retake the exams and meet current requirements
C. Submit a letter explaining the delay
D. Nothing; it automatically renews
B
Licenses expired over a long period require retesting to ensure the
contractor meets current standards.
10. Which of the following is a responsibility of a general contractor?
A. Drafting city ordinances
B. Supervising and coordinating all aspects of a construction project
C. Selling construction equipment
D. Conducting building inspections for the city
