By: Phil Cocciante
Former Contractors State License Board Application Technician

Introduction

First of all, thank you for taking the time and the proper steps to obtain your California Contractors License.  The most powerful thing in this world is information. After all, we are in the information age. And the more information you can get your hands on before you apply for your License, the better off you will be.

By reviewing this information you are saying that you want to do what’s right and get all the information you can before you take that steps necessary to become a licensed contractor.

My name is Phil Cocciante, and I am a former Contractors State License Board employee. I split my 5+ years at the Board working in the Enforcement Division, Sacramento Investigations Unit and the Licensing Division RMO/Add Class Unit. Prior to that I worked in the construction industry doing anything and everything construction related. You name it, I probably did it.

While I was at the CSLB, I decided it was time to do something with my life and start my own business. So I took the knowledge and information I gained while working at the CSLB and the years prior construction experience and created Affordable Contractors Information Services, Inc along with an awesome partner, Joan Palley.

It has been our goal to educate and assist people all over the U.S. in obtaining their California Contractors License, provide them with state-of-the-art study materials, expert application processing (provided by yours truly) and provide them with their bond after successfully passing their exams.  Over the last three years we have helped people from New York to Maui and Seattle to San Diego.

I truly hope you find this information to be a great source to you, and as I stated earlier, I will provide you with an email address and phone number that you can use if you’d like to speak to me directly.  I’d be happy to answer your questions, and if I don’t know the answer I’ll know someone who does.  Let’s just say…. I have “insider” information.

Occasionally through out this page you will see this * symbol.  This indicates an inside tip or trick that you won’t read anywhere else.

And one more thing… I’ll share my most favorite tip for the very last. It’s something the CSLB won’t share with you on their website.

So let’s begin with the Licensing Process

Who must be licensed?

The State requires that all businesses or individuals who construct or alter any building, highway, road, parking facility or other structure in CA must be licensed by the CSLB if the total cost including labor and materials is $500 or more. What does that mean exactly? If the materials cost $300, you can only charge the client $200 for your services.  Now that doesn’t mean that you can have multiple contracts with one client to break it up into $500 increments. The CSLB won’t allow that.

What are the advantages to having a contractor’s license?

There are many reasons to get a contractor's license:

  A. You can do jobs that are over $500.

  B. You can take the customer to court if you are not paid.

  C. You can legally advertise your construction business.

     1) You can advertise when not licensed but you must state in your advertising that you are NOT a license contractor.

  D. You can pull building permits.

  E. You are eligible for special discounts from many material suppliers.

  F. You can join builders' associations that offer job boards, plan rooms, and group insurance.

  G. No fear of being caught in a CSLB Sting that could end up costing you hundreds or possibly thousands of dollars!

What are the licensing classifications?

The classifications are broken down into 4 categories.

                1) The A-General Engineering

                2) The B-General Building

                3) The C-Specialty Classes

                4) The D-Limited Specialty Classes

The D Classes are very limited in scope but can be obtained without having to take a trade exam.  When I was reviewing additional classifications as an Application Technician with the CSLB, there was a licensee who applied for every single D Classification there was.  Under the regulations I could not stop him from adding every classification as long as he had a certifier to attest to his experience.  It was about a year and a half before the Licensing Division took any action. He happens to reside in Oregon and his certifier lived in Los Angeles.

What experience is required?

At least four years of journey level experience is required to qualify for the exam. Credit is given for experience as a journeyman, foreman, supervising employee or contractor or a combination of experience and education.  * The Law states that your experience must be at the “Journeyman” level, but the application is not laid out in a way that you have to show that you actually obtained “Journeyman” status.

What if I do not have four years work experience?

You may still qualify by substituting apprenticeship or technical training or other education for work experience. For example, you could receive a credit of up to two years for a college degree in business. You don't necessarily need a college degree, transcripts showing course work in construction technology, drafting, accounting, etc. can also be substituted for a portion of the four-year requirement. Note, you must have at least one year of on-the-job experience.

How do I prove my work experience?

You ask someone in the building trades who has direct knowledge of your work to sign a "work cert" (Certification of Work Experience). You do not need a work cert for each and every job. One person may sign for all four years of required experience.  I get asked quite often if the experience is ever checked or verified.  Other than the Application Technician reviewing your application, the odds of your app be pulled for review by the CSLB is slim to none.  Now the Board is mandated by law to review a small percentage of the applications received (approximately 40,000 per year), but to my knowledge an application has never been pulled for further review.  Am I suggesting that it doesn’t happen? NO!  But the chances of it happening to you are, like I said, slim to none.

Can I qualify with self-employment?

Yes!  The CSLB changed the law years ago to allow applicants the ability to use self-employed experience. They realized that they could not put such a restriction on how people gained their experience.  This is America after all, home of the entreprenuer.

Can I use Owner/Builder Experience?

Yes, but I recommend that you don’t.  * O/B experience is reviewed separately to evaluate the amount of experience time you will be granted. On average, the time you are granted is at least ¾ of what you submitted.  I received O/B experience from an applicant that provided two years of O/B experience and he was granted only 4 months towards the required four years.  He ended up way short of meeting the requirement because he was banking on that O/B experience. That’s why I always council my clients to NOT use Owner/Builder experience.

What happens if my application is not approved?

The application will be returned with a letter asking you to supply additional information or make corrections. You will have 90 days to comply with the letter. After the 90 day period the application will go void and you will have to resubmit and pay the additional $250 filing fee. But if you were to use a service such as mine, I will use my knowledge and experience to complete your application (using the information you provide) to ensure that it does not get rejected.  If it does get rejected, I will do whatever it takes to correct the Board’s mistake.

Is there an Examination requirement?

Yes. The qualifying person must pass the Law & Business and Trade exams, unless he or she meets the requirements for a waiver of either one or both exams.  The “waiver” is a funny thing. There are a few different ways of getting a “wavier.”  But let’s back up for a second…. you only have to take the Law/Business exam once as long as you keep your license clear and active. If your goal is to obtain a license but you don’t have the necessary experience, it is possible to still obtain a license. How, you ask? * You apply for a sole ownership license and if you happen to know someone who already holds the classification (the qualifier) you wish to obtain, then you can apply.  The qualifier does not need to take the exam again, therefore, he obtains a waiver and you get your license.  Of course, the qualifier is responsible for all projects the company does, but the non-qualifier is now five years away from replacing the existing qualifier and also not having to take the exam. Are you shaking your head in a confusing manner? 

Another way to obtain a waiver is called the “Family Waiver.”  Let’s say that John has a sole owner license and wants to retire, or possibly John has passed away. John’s son Steve, needs to continue the business to keep the family afloat.  He applies for the family waiver and becomes the qualifier for the license.  Steve may have to take the Law/Business exam, but he can take over the license with very little effort.

Does everyone take the same exams?

If this is your first license, you will take two exams: the Law and Business exam and the Trade exam. Everyone takes the same Law and Business exam, but you will take the Trade exam that corresponds to your particular trade (e.g., general building, plumbing, electrical).

If I had a license, but it expired, do I have to take the tests again?

Yes and no. If the license has been expired less than five years then you do not have to re-test.  If your license has been expired for over five years, even one day over five years, then you will need to take both the Law and Trade exams again.

What happens if I fail the exams?

The Law and Trade exams are scored separately, and you can take either exam as many times as necessary for 18 months (at $50 per retake). If you don't pass within 18 months, you have to reapply. If you passed one of the exams it still counts for up to 5 years.

Is Workers’ Compensation Insurance Required?

Yes. Unless the entity has no employees, then a certificate of exemption can be filed with the Board. Be careful if you have employees and do not have Workers Comp insurance. The fines for this offense can be extremely hefty, as in thousands of dollars a day.

What is the cost to apply for a license?

The application-filing fee for a new license is $250; the Initial License Fee is $150. Both of these fees can be paid when the application is submitted. If the applicant chooses to remove his or her application after submittal, only the Initial License Fee will be refunded. The fee for adding a classification or replacing the Qualifier on an existing license is only $50.

Can I apply for more than one classification at a time?

No. You need a license number before you can apply for an additional classification. So, for example, first you might get a B license as a general builder, and then later add a classification such as a C-10/Electrician. Don’t put more than one classification on the application because it will get rejected.

Does the CSLB recognize licenses from other States?

Yes. The CSLB has reciprocity agreements with Utah, Nevada and Arizona. It is possible to get a California license if you hold a license in one of these states. You will be required to take the California Law & Business exam. The key is, you must have been licensed in the other State for a minimum of 5 out of the last 7 years and a form must be sent to the other States licensing board to provide verification.

What happens if I get caught operating without a license?

It is a misdemeanor in California, and the fines can range from $200 to $15,000. A citation would be issued that would remain at the Board for up to 10 years. So if or when you apply for your license, your application will be delayed for an extended period of time while they review the circumstances of the citation.  The CSLB’s SWIFT (State Wide Investigative Fraud Team) Unit performs stings through out the State. So beware!

Am I required to be fingerprinted?

Yes. Fingerprints are required for all new applications, adding officers to an existing license, or replacing the qualifier, etc. The prints are taken digitally and electronically sent to the FBI and the California Department of Justice. From there they are sent to the CSLB. If your prints come back clean your application will be processed in a timely manner. If they do not come back clean, they will be trapped in the Board’s Criminal Background Unit or CBU.  You do NOT want to end up there. They have a backlog of up to six months. So even if you had a misdemeanor DUI 10 years ago, your application will end up in the CBU for months.

What can I do if one of the Officers of my new Corporation has a criminal record?

* If you are applying for a new license and an Officer of the corporation has a criminal record, this is what you do….apply for the license and keep that person off the application.  The license goes through the system and a number is issued. The day the number is issued you submit the form (at no cost) adding that officer. He or she will then submit their fingerprints and end up in the CBU for months, but will eventually be added to the license, if the offense was minor of course.

What if I had a misdemeanor conviction before I turned 18 and the record was expunged? Can I still get my license?

Yes.  But your prints will still be in the system and your application will still be delayed in the CBU. Just because the record was expunged does not mean your prints are no longer in the system.

Are there any financial requirements to qualify for a license?

Yes. The CSLB requires that you maintain at least $2500 in working capital. * Do they verify this information? No, or not that I’m aware of.

 

RMO or Responsible Managing Officer is the qualifier for the license and may or may not hold any ownership in the company. An RME or Responsible Managing Employee is the qualifier for the license and may not hold any ownership in the company.

Can an RMO be a qualifier on more than one License?

Yes. An RMO can be the qualifier on up to 3 corporate licenses as long as he or she holds at least 20% ownership in each company.

Can an RME be a qualifier on more than one License?

No. An RME can only qualify one license at a time. He or she may have a Sole Owner license but it must be inactive while the person is acting as an RME.

Can an individual have more than one license?

Yes. An individual can have as many as 10 Sole Ownership licenses.

Can a Sole Owner also be an RMO or Qualifier on another License?

Yes. An individual can be an RMO on another license as long as her she holds at least 10% or more of the company.

Should I incorporate, operate as a Sole Owner or a Partnership?

  a) The differences between these entities are that when a license is issued to a Corporation, it belongs to the Corporation. Qualifiers and Officers can come and go, but the license belongs to the Corporation.

  b) A Sole Owner license does not have the protection that a Corporation has, but the license belongs to the individual.

  c) A Partnership requires at least two members. A Qualifying Partner and a General Partner. If either partner leaves the company the Partnership License is automatically cancelled. I council my clients to refrain from forming Partnerships.  Generally the company is Father/Son, Brother/Brother, Husband/Wife, and if (or more likely when) one of the partners wants to go do his or her own thing the remaining partner is stuck with a contractors license that was just cancelled. So do each other a favor and stay away from the Partnership License.

Can I form a Limited Liability Company or LLC?

No, contractors are not allowed to form LLC’s.

Are there advertising requirements?

Yes. Your license number must be on ALL advertising materials. Your truck signage, your work orders/change orders, invoices, yellow page ad’s, website, business cards, and even yard signs.  Members of the SWIFT Unit have been known to see a yard sign that does not include a license number and take it back to the office to check for licensure.  If the company is not licensed, you may be called to provide a bid to an undercover investigator. So again, beware and follow the law.

Can I advertise that I’m bonded?

No. State law prohibits advertising that you are bonded.

Can I offer Electrical services if I have a Plumbing license?

No. You can not advertise, offer, or enter into a contract to perform services for a classification that you do not hold. If you have a B-General Building license, you can not take contracts for only one trade.  The contract must be for at least 3 trades.  Of course, if you have a C-36 Plumbers license you can only bid on jobs that involve plumbing.

Do I need to have a Framing license if I’m providing Plumbing services and in the course of the job I have to do some framing?

No. Trades that are incidental to the project do not require you to hold that classification, in this example Framing.

Final Note

Well that about covers it.  I hope you found this information to be very helpful. 

If you are ready to get started on obtaining your contractors license, you can purchase a License Package from this site or go to www.Contractor-University.com and select the Licensing Package that best fits your needs. 

If you need study materials, we offer two types including: a CD-Rom Software system called QuickPass (which also can be downloaded at www.Contractor-University.com saving time and money with no tax or shipping) and a printed material system with Audio Cassettes or CD’s called Ja-Set. 

All services can be purchased through our website via our Secure Server. 

If you have any questions about the information in this ebook, don’t hesitate to fire off an email to me at phil@contractor-university.com or call me toll free at 888-346-2247.

Disclaimer

This information is provided as a guide on How To Get Your California Contractors License and may or may not pertain to your particular situation or circumstance.

Some or part of the preceding information was

My Most Favorite Tip! 

Once you have your official CSLB Testing Notification in hand, you don’t need to wait until that date to take your exams. Go to the testing center when you’re ready, and if there is an empty seat…..you’re in! 

Almost on a daily basis people don’t show for their scheduled exam(s), creating vacancies. If you are taking the Law/Business and Trade exam you will have to hope that the Testing Center has a opening coverin two consecutive testing sessions. 

Be sure to take your Testing Notification and a valid I.D.