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Construction Work Regulated?

Who Regulates Construction?

Requirements?

Reciprocal Agreements

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Construction Work Regulated?

In California, any individual or business that constructs, alters, repairs, or improves a building, highway, road, parking facility, railroad, excavation, or other structure must be licensed by the California Contractors State License Board (CSLB) when the total cost of labor and materials for a project is $1,000 or more, when employees are hired, or when permits are required.

All contractors including general contractors, subcontractors, specialty contractors, and home improvement contractors must obtain the appropriate license before submitting bids or performing work. Licenses may be issued to individuals, partnerships, corporations, limited liability companies (LLCs), and joint ventures.

Contractors performing asbestos related work must hold a C-22 Asbestos Abatement license or the required certification. Certification is also required for the remediation of contaminated soil at designated sites and for the installation or removal of underground fuel storage tanks.

Under certain circumstances, property owners who perform work on their own property or who hire licensed subcontractors or general contractors may qualify for exemptions from contractor licensing requirements.

Who Regulates Construction?

Applications for contractor licenses, asbestos related work certification or licensure (for projects exceeding 100 square feet), hazardous substance removal certification, home improvement salesperson registration, and general licensing information are available through:

California Contractors State License Board
9821 Business Park Drive
Sacramento, CA 95827
(800) 321-2752 Fax (916) 255-1958
https://www.cslb.ca.gov

Requirements?

First-time applicants are required to pass both a Business and Law examination and a trade specific examination. Examination results remain valid for five years.

Applicants must also demonstrate at least four years of experience within the past ten years as a journeyman, foreman, supervising employee, or contractor in the classification for which they are applying.

Contractor licenses are issued for a two-year term. For a complete schedule of application and licensing fees, please visit: https://www.cslb.ca.gov/About_Us/Library/Fees.aspx

Application Fee / License Fee / Renewal Fee
$450 / $200 - Sole Owner $350 Non Sole Owner / $450 Active Renewal Sole Owner $700 Active Renewal Non Sole Owner (2 year)

All personnel listed on an application will be required to submit fingerprints.

California contractor licenses may be issued to sole proprietorships, partnerships, corporations, limited liability companies (LLCs), tribal corporations, and joint ventures. Corporations and LLCs must be registered with the California Secretary of State before obtaining a contractor license. Businesses seeking to operate as a joint venture must obtain a separate joint venture license before contract award. While a bid may be submitted prior to licensure, work cannot begin until the joint venture license has been issued.

All active contractor licenses must maintain a $25,000 contractor bond. In addition, a $25,000 Bond of Qualifying Individual is required for certain Responsible Managing Employees (RMEs), Responsible Managing Officers (RMOs), Responsible Managing Managers (RMMs), or Responsible Managing Members (RMMBs). Exemptions may apply to qualifying individuals who own 10% or more of the corporation's voting stock or LLC membership interest. Active LLC licenses must also maintain an additional $100,000 surety bond.

Workers' compensation insurance is required for all licensed contractors who employ workers. Contractors without employees must file an exemption and recertify their exempt status at each license renewal. However, holders of C-8 (Concrete), C-20 (HVAC), C-22 (Asbestos Abatement), C-39 (Roofing), and C-61/D-49 (Tree Service) licenses are required to maintain workers' compensation coverage or a valid Certificate of Self-Insurance regardless of whether they have employees and may not claim an exemption.

LLCs are also required to carry liability insurance. The minimum aggregate coverage is $1,000,000 for licenses with five or fewer personnel of record, with an additional $100,000 required for each additional member, up to a maximum coverage requirement of $5,000,000.

Reciprocal Agreements

California maintains limited reciprocity agreements with Arizona, Louisiana, Nevada, and North Carolina. Additionally, applicants who have held an active contractor license in another state for at least five years and have successfully passed the NASCLA Commercial Builders Examination may qualify for a waiver of the California B-General Building trade examination.

Reciprocity benefits are limited to the trade exam waiver and apply only to applicants seeking a comparable license classification. The out-of-state license must be current, in good standing, and continuously active for the previous five years.

Applicants must still meet all other California licensing requirements, including passing the CSLB Business and Law Examination and providing verification of the required work experience.


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