CALIFORNIA STATE CONTRACTORS LICENSE LAW
AND BUSINESS TEST QUESTIONS & ANSWERS
Who must be licensed as a contractor? - Answer -Anyone who constructs or alters on
any job that costs 500 dollars or more.
How old do your have to be to get a contractors license. - Answer -18
What are the types of licenses issued. - Answer -Individual, partnership, or corporation
licenses. 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? - Answer
-No
What charge is it to contract without a license? - Answer -Misdemeanor, meaning
potential jail time, fines and administrative fines
Are there educational requirements to obtain a contractors license? - Answer -No
Can technical training and apprenticeship training substitute the required training
required for the 4 years needed. - Answer -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? - Answer -Yes
What are the total fees I must pay to obtain a contractor license? - Answer -$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? - Answer -every two years
Will I receive notice before my active license expires? - Answer -Yes. 60 days, but
remember it is your responsibility to know and renew without being reminded.
What is the active license renewal fee? - Answer -$360. You are required to renew
every two years.
Is there a fee for renewing an active license - Answer -$180.
Inactive licenses must be renewed how often? - Answer -Every four years
What is the minimum operating capital that you must have to qualify to be a contractor?
- Answer -$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? - Answer -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. -
Answer -Apply for a new one.
Can your old license be renewed? - Answer -Yes. If your license has been expired
between 3 to 5 years.
Can you abandon a project without a legal excuse? - Answer -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. - Answer -Incidental and supplemental to the primary job. Otherwise
it must be performed by a sub.
Can you use funds from one project to finish another? - Answer -No. This falls under
the category of Larceny and is a misdemeanor or felony.
Is it a crime to use false or misleading advertising? - Answer -Yes. It is a misdemeanor.
What is a joint venture license? - Answer -Two or more qualifiers of different licenses
who seek to combine their licenses and expertise for a specific project.
How long is a joint venture valid for? - Answer -2 years after first given.
If a QP leaves, what can the remaining party file to get more time? - Answer -A
continuance of up to 1 year in order to complete the project.
If a QP leaves, the remaining party has __ days to report it to the state. - Answer -90
days
What must qualifiers do every day regarding to the job site? - Answer -visit the site
daily.
When must the subcontractors be paid? - Answer -7 days after each progress payment
by the owner to the direct contractor.
____ is the task of preparing a detailed cost estimate for the job, including material.
labor, overhead, as well as the profit or mark-up. - Answer -Bidding
Materials, labor, permits, loan fees, subs, are all considered what type of costs? -
Answer -Direct Costs
AND BUSINESS TEST QUESTIONS & ANSWERS
Who must be licensed as a contractor? - Answer -Anyone who constructs or alters on
any job that costs 500 dollars or more.
How old do your have to be to get a contractors license. - Answer -18
What are the types of licenses issued. - Answer -Individual, partnership, or corporation
licenses. 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? - Answer
-No
What charge is it to contract without a license? - Answer -Misdemeanor, meaning
potential jail time, fines and administrative fines
Are there educational requirements to obtain a contractors license? - Answer -No
Can technical training and apprenticeship training substitute the required training
required for the 4 years needed. - Answer -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? - Answer -Yes
What are the total fees I must pay to obtain a contractor license? - Answer -$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? - Answer -every two years
Will I receive notice before my active license expires? - Answer -Yes. 60 days, but
remember it is your responsibility to know and renew without being reminded.
What is the active license renewal fee? - Answer -$360. You are required to renew
every two years.
Is there a fee for renewing an active license - Answer -$180.
Inactive licenses must be renewed how often? - Answer -Every four years
What is the minimum operating capital that you must have to qualify to be a contractor?
- Answer -$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? - Answer -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. -
Answer -Apply for a new one.
Can your old license be renewed? - Answer -Yes. If your license has been expired
between 3 to 5 years.
Can you abandon a project without a legal excuse? - Answer -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. - Answer -Incidental and supplemental to the primary job. Otherwise
it must be performed by a sub.
Can you use funds from one project to finish another? - Answer -No. This falls under
the category of Larceny and is a misdemeanor or felony.
Is it a crime to use false or misleading advertising? - Answer -Yes. It is a misdemeanor.
What is a joint venture license? - Answer -Two or more qualifiers of different licenses
who seek to combine their licenses and expertise for a specific project.
How long is a joint venture valid for? - Answer -2 years after first given.
If a QP leaves, what can the remaining party file to get more time? - Answer -A
continuance of up to 1 year in order to complete the project.
If a QP leaves, the remaining party has __ days to report it to the state. - Answer -90
days
What must qualifiers do every day regarding to the job site? - Answer -visit the site
daily.
When must the subcontractors be paid? - Answer -7 days after each progress payment
by the owner to the direct contractor.
____ is the task of preparing a detailed cost estimate for the job, including material.
labor, overhead, as well as the profit or mark-up. - Answer -Bidding
Materials, labor, permits, loan fees, subs, are all considered what type of costs? -
Answer -Direct Costs
