Builder's Book

What you need to qualify for a Contractor License?

1. 18 years of age (min.) 2. 4 years of experience (min.) Experience must be out of the last 10 years. 3. Credit for experience is given only for experience at a journey level or foreman, supervising employee, contractor or owner-builder.

Q.I is a Qualifying Individual

1. A qualifier is a person listed on the CSLB records who meets the experience and examination requirements for the license. 2. A qualifier is required for every classification on each license issued by the CSLB. 3. Every active license must have a designated qualifier.

License Classifications

1. A-General Engineering License 2. B-General Building License 3. C-Specialty Classes License 4. D- Limited License * you can qualify for up to 3 licenses within a 1 year period-provided that you have at least 20% interest in each entity.

License Statuses

1. Active License: Renew every 2 years 2. Inactive License: renew every 4 years 3. Expired License: can be renewed within 5 years of it being expired *if license is not renewed within 5 years of its expiration, the license holder must reapply for the license. 4. Cancelled License: cancellation occurs by written request, by disassociation of partner or by death of the qualifier (license holder) 5. Suspended License: licensee is not entitled to operate during the period of suspension. Depending on the action taken to suspend the license, a disciplinary bond may be required before the license can be reinstated or reused 6. Revoked License: revocation of your license means that your license is taken away. License will not be reissued or reinstated for 1 to 5 years of the effective date of the decision.

THINGS A CONTRACTOR CAN'T AND SHOULDN'T DO

1. CAN'T ABANDON A CONTRACT: Abandoning a contract without a legal excuse constitutes a cause for disciplinary action. It is classified as a "Breach of Contract." 2. CAN'T USE FALSE OR MISLEADING ADVERTISEMENT: It is illegal to misrepresent information-this includes using false, misleading, or deceptive advertisements as an inducement to enter into a contract for a work of improvement. It is considered a Misdemeanor. 3. CAN'T REMOVE ASBESTOS WITHOUT PROPER CERTIFICATION: You must pass an asbestos certification examination developed and administered by the CSLB, obtain certification, and register with the DOSH to be allowed to remove asbestos totaling 100sq. ft or more. 4. CAN'T KNOWINGLY SUB WORK TO UNLICENSED CONTRACTORS: Entering into a contract with an unlicensed contractor is cause for disciplinary action. 5. CAN'T LEND YOUR LICENSE TO OTHERS: You cannot lend your license or license number to another individual. Lending your license is a crime categorized under "Aiding and Abetting" criminal laws. 6. CAN'T TAKE FUNDS FROM ONE PROJECT AND USE THEM FOR ANOTHER: The misuse of funds, including diversion of funds, is prohibited. Diversion/Misuse of funds is illegal, it is categorized under the crime of "Larceny" with punishment ranging from a misdemeanor to a felony.

What does CSLB do?

1. Ensures that construction is performed in a safe, competent, and professional manner. 2. Licensing contractors and enforcing licensing laws. 3. Requiring licensure for any person practicing or offering to practice construction contracting. 4. Enforcing laws, regulations, and standards governing construction contracting in a fair and uniform manner. 5. Providing resolution to disputes that arise from construction activities 6. Educating consumers so they make informed choices.

How many year of experience are required to apply for a Contractors License?

4 full years of experience at a journeyman level or as a foreman, supervising employee, contractor or owner-builder is required. This 4 years must be within the last 10 years. The applicant must fill and submit the Certification of Work Experience form. (COWE)

Incidental and Supplemental Trade Work

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 "incidental and supplemental" to the primary job. Work outside the "incidental and supplemental" must be performed by a licensed subcontractor.

Sole Ownership

A license issued to an individual; a name often given to a qualifying individual possessing a sole owner license. The qualifier can be the Owner or Responsible Managing Employee

Qualifying Partner (Q.P.)

A license qualifier that has entered a partnership (whether general or limited) with another licensed qualifier. Title of the qualifying individual on a partnership license. The alternative qualifier can also be a Responsible Managing Employee

Who must obtain a CA Contractor Licensed?

All who construct or alter either residential or commercial works that cost $500.00 (labor + materials) or more must be licensed by the CSLB.

Continuance

If absence of the qualifier occurs: remaining personnel can continue work-in-progress for 90 days or request up to 1 year to finish the work.

Licensed are issued per entity.

Individual License, Partnership License, Joint Venture License. etc. Each count as a license

Types of Licenses

Licenses are issued per entity either as/an 1. Individual License 2. Partnership License 3. Corporation License 4. Joint Venture License is made up of 2 individual active licenses for a specific purpose.

What happens if you contract without a license?

Misdemeanor charge: Unlicensed contractors face potential sentences of up to six months in jail and or a $500.00 fine, and potential administrative fines of$200.00 to $15,000 because it is illegal to contract without a contractor's license.

Are there educational requirements to obtain a contractor license?

No. However many community colleges and private schools offer instruction in vocational education

Does California recognize contractor licenses issued by other states or countries?

No. It does have reciprocal agreements with some states that recognize the experience qualification.

R.M.E

Stands for Responsible Managing Employee, it is a title of an employee who serves as the qualifying individual on a sole owner, partnership or corporate license.

R.M.O

Stands for Responsible Managing Officer. It is a title of an officer who serves as the qualifying individual on a corporate license.

Contractors State License Board (CSLB)

The CSLB is part of the Department of Consumer Affairs. It consist of 15-member board whose mission is to protect consumers by regulating the construction industry through policies that promote the health, safety, and general welfare of the public in matters of construction

Is anyone exempt from the requirements to be licensed?

Yes. If you do work that is less than 500.00 (material + labor) and you do not advertise yourself as a license contractor.

Can technical training substitute the required experience?

Yes: Education in the trade or technical training and apprenticeship training can substitute the 4 years of experience