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California |
With a few exceptions, all businesses or individuals who work on any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the California Contractors State License Board (CSLB) if the total cost of one or more contracts on the project is $500 or more.
To find out if a contractor is licensed in California, click
http://www2.cslb.ca.gov/General-Information/interactive-tools/check-a-license/License+Request.asp.
To apply for a license, contact:
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Contractors State License Board 9821 Business Park Drive Sacramento, CA 95826 (916) 255-3900 (916) 366-9130 http://www.cslb.ca.gov/ |
CSLB has an automated, toll-free number (1-800-321-2752) you can use to order an application or get other information. Forms and applications are also available online at http://www.cslb.ca.gov/services/forms.asp.
To qualify for a license you must verify that you've had at least four years of experience in the last ten years as a journeyman, foreman, supervising employee, contractor, or owner-builder. You may be able to apply from one and one-half to three years of approved education and/or apprenticeship to this requirement. There are also special requirements for contractors who work with asbestos, contractors who remove hazardous substances, and contractors who install or remove underground storage tanks.
Unless you're applying for a joint venture license, you must have more than $2,500 worth of operating capital to apply for a new contractor's license.
CSLB issues these types of licenses to an individual, partnership, corporation, or joint venture:
Class A -- General Engineering Contractor
Class B -- General Building Contractor
Class C -- Specialty Contractor
Class C has these subclassifications:
| insulation and acoustical | lathing and plastering |
| boiler, hot water heating and steam fitting | plumbing |
| framing & rough carpentry | refrigeration |
| cabinet, mill work and finish carpentry | roofing |
| low voltage systems | sanitation system |
| concrete | sheet metal |
| drywall | electrical signs |
| earthwork and paving | solar |
| electrical (general) | general manufactured housing |
| fencing | steel, reinforcing |
| flooring and floor covering | steel, structural |
| fire protection | swimming pool |
| glazing | tile (ceramic and mosaic) |
| warm-air heating, ventilating and air conditioning | water conditioning |
| building moving and demolition | water well-drilling |
| ornamental metals | welding |
| landscaping | limited specialty |
| lock & security equipment | |
| masonry | |
| construction zone traffic control | |
| parking and highway improvement | |
| painting and decorating | |
| pipeline |
These are the Class C Limited Specialty Subclassifications:
| awnings | central vacuum systems |
| concrete-related services | drilling, blasting & oil field work |
| elevated floors | synthetic products |
| hardware locks & safes | machinery & pumps |
| metal products | paperhanging |
| doors, gates & activating devices | pole installation & maintenance |
| pile driving/pressure foundation jacking | pool & spa maintenance |
| prefabricated equipment | scaffolding |
| sand & water blasting | siding & decking |
| service station equipment & maintenance | tree service |
| sign installation | window coverings |
| suspended ceilings | trenching |
| wood tanks | air & water balancing |
| hydroseed spraying | non specialized |
| construction cleanup | |
| weatherization & energy conservation |
You'll have to take the Board's Business and Law Exam to get a license. The Board will review your application and let you know whether you need to take the exam or not.
The exam is closed book and has two parts which each take about two and one-half hours to finish. One part has about 100 multiple choice questions on law and business. Here's a summary of its content:
| Section | Percent of exam |
| Business Practices | 14 |
| Bid Preparation | 18 |
| Contracts | 15 |
| Contract Operations | 19 |
| Safety | 8 |
| Labor | 13 |
| Legal | 13 |
*Percentages are approximate
The other part of the exam will be on whatever specific trade you apply for. The CSLB will send you a study guide for the trade. It'll tell you the topics on the exam, the weight of each topic, and other materials you should study before taking the exam. The study guides are available online at http://www.cslb.ca.gov/studyguides/default.asp
Contractor's license fee: It will cost you
$250 nonrefundable to apply for a license and $50 for each trade you apply for after the
first. The initial license costs $150. However you can't add a trade that requires an exam
until you get your first license. A license is good for two years.
The Board requires a bond before it will give you a license. After you pass the exams they'll notify you how much the bond must be for. This will depend on the type of license you get and which trade it's in. Usually it's $12,500.
The Board may accept your trade experience and/or license in another state. However you'll still have to apply for a license, pass the law and business part of the Board exam, and pay the appropriate fees.
Recommended
reading for the business and
law exam:
Other publications CSLB recommends are: Construction Management Guide -- Basic Business & Project Management for Contractors, National Association of State Contractors' Licensing Agencies, Box 30478, Phoenix, AZ 85046 California Employer's Tax Guide, California Franchise Tax Board Circular E, Employer's Tax Guide, Internal Revenue Service Employment Taxes and Information Returns, Internal Revenue Service How to Succeed with Your Own Construction Business,
Diller, S. & Diller, J., Craftsman Book Company, 6058 Corte del Cedro, P.O. Box 6500,
Carlsbad, CA 92018 Accounting and Financial Management for Builders, National Association of Home Builders, 15th and M Streets NW, Washington, DC 20005 Recommended publications on safety are: California Contractors License Law and Reference Book (1994) Guide to Cal/OSHA Cal/OSHA Guide for the Construction Industry Guide to Developing Your Workplace Injury & Illness Prevention Program You can get these safety books from: Department of Industrial Relations |
Department of Transportation (DOT)
You don't need to be prequalified to bid on Department of Transportation (Caltrans) projects in California. However you do need to be licensed through the Contractors State License Board in the classes of work required to perform the work specified in any contract you bid on. The Department puts out a weekly listing of construction projects called "Advertisement for Bids." To get your name included on the mailing list for this publication, send a request to:
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Department of Transportation Office Engineer/Engineering Service Center 1727 30th Street, MS #43 Sacramento, CA 95816 (916) 227-6287 http://www.dot.ca.gov/ |
Out-of-State Contractors
Out-of-state contractors must register with the California Secretary of State. For information, contact:
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Corporate Filing Support Secretary of State 1500 11th Street, 3rd Floor Sacramento, CA 95814 (916) 657-5448 http://www.ss.ca.gov/ |
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