Guide to Contractor Licensing in California
California has long been known as the land of opportunity. With its booming construction market, the path for employment in the industry is becoming more and more attainable. The big question lies in whether you are qualified to dive into such a rewarding career. That is where the California Contractors State License Board comes into play.
The California Contractors State License Board, also known as the "CSLB", is the state of California’s agency responsible for issuing and regulating contractor licenses. Not only does CSLB write regulations governing contractors, but they also set standards for materials, labor, performance, service, safety, and fair advertising in the industry. For a person to be considered a licensed contractor under California law and to be legally able to perform construction projects over $500, he or she must be registered with the CSLB and maintain a valid contractor license.
Whether you are an applicant looking to become a contractor or a homeowner searching for a professional, it is beneficial to know what qualifications exist for licensed contractors in California.
In order to obtain a license, every applicant must pass two major exams. The first is the "Trade Exam" where you demonstrate your knowledge on the technical side of your trade. Next is the "Law & Business Exam" where applicants are tested on regulations that govern the construction industry in California.
Every 2 years, the license must be renewed by providing proof of continuing education-in the amount of 32 hours. If license holders are found to be negligent, or have violated any construction regulation, CSLB has the power to suspend or revoke a contractor’s license.
There are 44 license classifications for contractors in California, and they each cover a different area of work. There are the more popular classes like B-General Contracting, C-8 Concrete, and C-27 Landscaping, but many are less common. Before applying for a license , you must select which area of work you wish to be licensed for. To familiarize yourself with all of the classifications, visit CSLB’s official list of classifications.
It should be noted that tradesman do not need to be a licensed contractor to practice. California law provides an exemption to the licensing requirement, allowing unlicensed persons to perform specific types of work for under $500, including the cost of materials and labor. In addition, individuals performing work on their own property, working for free, or working as an employee of a licensed contractor, are not required to have a contractor license.
Finally, it is important to note that the license classification system does not guarantee general practitioner status to any one contractor. In order to view a complete list of approved license classifications, visit CSLB’s official website.
Not only does licensing ensure a minimum level of skill and general knowledge, but it creates professionalism and creates a sense of trust between licensed contractors and consumers.
Most importantly, having a contractor license is required by the State of California in order to practice legally. Licensed Contractors are also protected by the State of California. They can pursue legal remedies through the CSLB against any residential or commercial customers, neighbors, or business competitors that may have caused them damages as a result of any unfair practices.
Because California requires contractors to be licensed, consumers do not have to worry about hiring unqualified individuals. By performing work illegally, unlicensed individuals who pose as a licensed contractor are potentially breaking the law. Generally, unlicensed contracts are not binding and cannot be enforced by either party because the law does not recognize an agreement where a license is required. Nothing under the law provides a means for a person to recover any amount paid to an unlicensed contractor.
What to Seek When Hiring the Top Contractor License School
When it comes to choosing a contractor license school in California, there are a number of important criteria you should consider. First and foremost, the school should be properly accredited, ensuring that your course of study is recognized by industry standards and relevant government authorities. Additionally, look for a program that covers the specific areas of knowledge that will be tested on the state’s licensing exam, including the relevant industry codes and regulations. Experienced instructors are another key component of a quality contractor license school. The best programs bring an experienced faculty to bear, with instructors who are knowledgeable and qualified in all areas of the curriculum. When you can benefit from the perspectives of multiple industry professionals, you gain a valuable edge over students who are receiving instruction from a single, less experienced teacher. Another consideration is the availability of educational technology in the classroom, such as how the classroom materials translate to the actual test. Finally, be sure to research the graduation and employment rates at each school you are considering before making your decision. The best programs are those that prepare you for a high passage rate on the California contractor exam -and most importantly, for a successful long-term career in the construction industry.
California Contractor License Schools
Contractor Institute Founded by a 3rd generation contractor, Contractor Institute has been training California contractors since 1998. They have expanded their contractor license school to 41 cities across California, 23 of which are brick and mortar locations. They offer a 4 hour weekend contractor license exam prep course for the 15 school coordinated city locations. Some classes are offered on weekends, so you can fit it in your busy schedule. Contractor State License Center There are several Contractor State License Centers across California. Several of the certified schools are located inside of the CSLB schools for your convenience. Classes offered range from the required seminars to exam prep courses. In addition, they offer free contractor school applications with registration to get you one step closer to obtaining your license.
Trade-Tech Institute Trade-Tech Institute has been helping contractors pass the California license exam since 1990. They specialize in all Trade school courses as well as a multitude of business courses. They also have online study programs to fit your busy schedule.
California Contractor School At California Contractor School you can decide between a traditional classroom environment or online program to obtain your California Contractors License. They have several locations throughout California as well as online programs all over the USA. They offer several package deals including course material, practice test and final examination to get you on the right track with your contractor license prep.
Contractor License School: Online or Classroom?
When choosing a school, it’s important to carefully weigh the advantages and disadvantages of online or in-person programs. In this digital age, it’s certainly enticing to consider the convenience and flexibility of online programs. However, candidates should be sure to consider whether they will be able to stay focused and on-track outside of an instructor’s structured lessons. It’s also crucial to consider that there are many in-person programs that provide the added benefit of building industry connections, in addition to the possibility of one-on-one tutoring and less distractions.
In addition to the benefits of convenience and flexibility, another advantage of online programs is that they might cost less than in-person classes. This is not always the case, however. For example, some schools require you to purchase additional books, study guides, and supporting materials on top of course fees. And, if you’re looking for test preparation courses, the costs of these programs can also vary widely. While in-person programs may be more expensive, they can also be the way to go if you have a hard time motivating yourself to stay on top of your studies. Many students find it easier to stay on track when they are committing to a set schedule. Additionally, a school may give you access to updated industry contacts that could help with future job opportunities.
Using the Licensing Exam to Guide Your Learning
The California contractor licensing test is taken on a computer and is offered in both English and Spanish. It is a closed book, two part examination consisting of 115 questions on general law and contractor law and trade knowledge. There is a 3 hour time limit on the first portion of the exam and 5 hour time limit on the second portion. To pass, the applicant must correctly answer 70% of the questions. For the law and business portion, there are 20 questions on business organization and management, 34 questions on bonds, notes and liens, safety and insurance issues, 10 questions on accounting principles, 10 questions on accounting principles and job cost estimates and 10 questions on payroll, personnel and purchasing policies and practices . The subjects of the section also includes bookkeeping, business math, contract preparation and execution, contractor licensing requirements, contractor responsibilities, estimating on new construction, estimating on renovation, bidding practices and contracts, collection and lien practices and guarantees and warranties. The trade exam also covers a wide spectrum of topics and subtopics. For example general engineering contractors deal with topics such as woodworking, building materials, concrete and masonry, demolition, electrical and plumbing, land surveyors, grading and drainage, heavy civil, paving, concrete formset and scafolding, shotcrete application, underground utility contractors, well drilling, and welding. In fact excess of 40 specialties are covered by general engineering and general building contractors. Other contractor classifications cover the entire range of construction fields.
Funding Your Future as a Contractor
Most of us think of scholarships and financial aid as a way for students to pay tuitions for four-year colleges or two-year trade schools. But education for contractors in California, both on-line schools and in-person institutions, may also offer financial aid. In addition, there’s the potential for tax breaks and credits that can help your family out with the payment for school.
The Department of Veterans Affairs provides educational assistance to veterans. There are several programs to provide education for contractor licenses to veterans, including the Disabled Veterans Outreach Program and the Veterans Retraining Assistance Program (VRAP). VRAP allows qualifying veterans to receive up to $1,500 a month for a year or less. The program is only available for individuals who haven’t retired and who didn’t receive unemployment benefits during the last 180 days. This program is also only available while the government continues to fund it.
Obtaining a contractor’s education through the GI Bill is another way to increase your chances of approval for financial aid. The bill provides a monthly housing allowance for students enrolled in residential training that is about the amount of the average education benefit for full-time, college students. Vocational training or apprentice programs can also qualify.
The types of schools available to obtain a contractor’s education in California include:
students enrolled in on-line institutions for contractor education can qualify for student loans as well. The federal Direct Loan program offered through the Department of Education provides money for a range of post-secondary school, vocational school, and graduate school. Interest rates are low, but there are strict repayment schedules. Students still remain responsible even if they drop out of school or do not finish their program of choice.
Scholarships are also available for students obtaining a contractor’s education from other places, including:
Beginning in 2017, any fees — like licensing premiums — paid out of pocket may be deductible as a tuition and fees deduction. Individuals with an AGI of less than $65,000, or married couple’s income of less than $130,000 will qualify. The deduction is not refundable — meaning that you can’t take a deduction for more than what you owe in taxes.
As you can see, there are lots of options available to help contractors obtain a contractor’s education. Finding the right option will be dependent upon your situation — so take your time to review your choices with a well-informed expert.
Interview: How One Student Became a Licensed Contractor
The personal stories of those who attended some of the top California contractor license schools are truly inspiring. Long-time contractor license attorney Michael Gaddibonce, former client and current student, reflects on his learning experience: "While I work hard to maintain my own law practice specializing in California contractor licensure, I know I can always turn to my classes for the tools to stay on top of an ever-changing industry. With five years practicing contractor law, I have built a thriving practice. The list of clients includes individuals completing their own home remodels, and general contractors who handle everything from solar panels to electrical. I continually recommend the school to my clients for the incredible breadth of online topics." Some of these clients also come back to obtain contractor continuing education credits. Another former student studied online while working as a cost analyst at aerospace giant Northrop Grumman. He is now a project manager at a large electrical contractor. He says: "In class, I learned the industry jargon that flows like water, even in the office. I know how to lead a meeting with subcontractors and talk to inspectors without delay in language they respect. Here, I was not seen as a clerk or ‘man with calculator.’ It is a blessing to have such a quality program in my back yard." A woman who took an extensive 12-course series at the school is now an estimator for an a heavy civil contractor, setting up large industrial jobs. She states: "I am so move by the quality of instruction; I wanted to give back, so now I teach courses myself. I remember thinking I was too poor to go to the school, and wished financial aid could help. Now I recommend it to everyone. As an estimator I have flexibility I never would have had picking up estimates at a law firm. None of this would have occurred if I hadn’t sacrificed my lunch breaks to study when I did." The school’s most touched students make an even greater commitment. A woman who started as a secretary moving all the manpower around at a small builder is now a project manager—and the General’s sister. The tips she learned for communicating contractors select subcontractors were invaluable to the success of her company. She states: "Without the ability to develop the most important personalities in California construction, my family’s practice would not have survived. Now, I train to become a general contractor on the weekends. I already obtained the top grade for the exams, and I am looking ahead.
Career Opportunities After Becoming a Contractor
Once you have successfully tackled the state exam and been issued a license number, a new world of possibilities opens up for you. You may choose to become a licensed contractor, run a business or work for an existing one. If you decide that owning your own business is not for you, you are not out of luck. There are many firms that hire contractors as employees to work on a variety of projects in diverse locations.
If you pursue the path to becoming a licensed general contractor , you will have the option of specializing in a specific area. Licensed contractors may choose to focus on various residential or commercial construction trades. Some examples include home improvement (involving repairs or renovations for residential property), plumbing, electrical contracting, landscaping and trenching. The division that issues California contractor licenses categorizes these trades into 44 different classes. This gives general contractors a broad range of choices with which to build their reputations and expertise.