How to Get a Contractor License in California

Obtaining a contractor license is a critical step in becoming a contractor and enables individuals and companies in the construction industry to build credibility and work on a wider range of projects. Here is an introductory guide for those interested in obtaining a contractor license in the state of California.

Note: This blog post is not meant to serve as legal advice but as a helpful introductory guide for those interested in obtaining a contractor license in the state of California. Most of the information included below was gathered from the California Contractors State License Board’s (CSLB) website.

Why get a contractor license?

Obtaining a contractor license enables individuals and companies in the construction industry to build credibility and work on a wider range of projects. According to California law, “all businesses or individuals who construct or alter 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 (labor and materials) of one or more contracts on the project is $500 or more.” (Source)Although there are some exceptions to this rule such as for owner-builders and workers paid hourly wages, having a license when performing contractor work ensures you are operating within the law. And when it comes to enforcing regulations in the construction industry, the state of California does not mess around. The consequences for performing contract work without a license can be severe and may include steep fines and jail time.

Types of contractor licenses

The CSLB has three types of licensing classifications:

(A) General Engineering

(B) General Building

(C) Specialty

Within the Speciality classification, there are over 40 license categories that enable license holders to perform work in trades such as Carpentry, Electrical, Masonry, Roofing, Plumbing, Drywall, Painting, and Structural Steel.

Qualifications for obtaining a license

If you’re thinking about getting your license, you should be aware of the qualifications that you will be required to meet. To start:

• You must be 18 years of age or older
• You’ll need a Social Security number or an individual taxpayer identification number (ITIN)
• You’ll need to have “the experience and skills necessary to manage the daily activities of a construction business, including field supervision. Specifically, within the ten years immediately before the filing of the application, at least four full years of experience at a journey level, or as a foreman, supervisor, or contractor in the classification for which he or she is applying. (Source)"

Experience and educational requirements for qualification

Again, as was stated above, you must have at least four years of experience, in the class/trade of the license you are applying for, to apply to take the examination. There are no specific educational requirements for obtaining a license, but it is possible to receive credit for up to 3 years of training or education toward the 4 years of required experience. At least one year of experience must be obtained in the field. Here are more details on how the CSLB rewards credit for education and training.

Using a qualified individual

If you don’t meet the requirements for applying for a license, you can still obtain a contractor license by choosing a qualifying individual to represent you. According to the CSLB, a qualifying individual is the person listed on the CSLB records who meets the experience and examination requirements for the license. A qualifying individual is required for every classification on each license issued by the CSLB (Source).  Furthermore, the person serving as the qualifying individual must directly supervise and control the construction operations conducted under the license.

Steps for Applying for a Contractor License

Here’s an overview of the steps required to get your contractor license. In short, you’ll have to pass two examinations to earn your license.

Step 1: Applying for examination

If you think you’re qualified to obtain a contractor license, your next step is to apply for the exam.You will need to complete the Application for Original Contractor’s License and submit it to the CSLB Headquarters. If you are applying for a license and you are not exempt from taking the exam (read more about exemptions here), you may only apply for one license classification at a time. Note that there is a $330 application processing fee.

Step 2: Hear back from the CSLB

Initially, the CSLB will will send you a letter of acknowledgement that they have received your application. This letter will contain a PIN number which you can use to track your application’s status.After some time, the CSLB will report back to you on whether your application for examination has been accepted. If your application is accepted, you will receive a Fingerprinting Live Scan packet and a Notice to Appear for Examination. If your application is returned for correction, you must resubmit it within 90 days or it becomes void, and you’ll have to submit a completely new application.

Step 3: Studying for the test

The examination for obtaining a contractor license has 2 parts — a standard Law and Business examination and a trade-specific examination.

Law and Business Examination

The Law and Business examination consists of multiple choice questions related to business management and construction law. The CSLB provides applicants with information on the topics covered in the examination in the Study Guide for the Law and Business Examination which is included in your Notice to Appear for Examination packet.

Trade Examination

Trade examinations are also multiple choice, and you’ll be informed at the test site about the % of correct answers you need to pass. A trade-specific study guide will also be sent in your Notice to Appear for Examination packet and it will list the topic areas covered by the examination as well as provide recommendations for additional study materials.According to the CSLB, “the examinations are developed with the assistance of industry experts. Most examinations include questions that refer to accompanying blueprints and/or booklets containing drawings.(Source)”

Step 4: Taking the test

To make the examination procedure more convenient for applicants, testing centers are located throughout the state (San Diego, San Bernardino, Norwalk, Oxnard, Oakland, Sacramento, San Jose, and Fresno). The CSLB testing staff use zip codes to assign applicants to the testing center nearest their business address.Your Notice to Appear for Examination will inform you of where your exam will be administered as well as other details such as the date and time of your test.To be admitted to the test center, you’ll need to bring your Notice to Appear for Examination as well as picture ID (a current valid driver's license, Department of Motor Vehicles identification card, or military identification card).Tests are taken on the computer and you’ll know right away whether you’ve passed or failed. You are given 3.5 hours to complete each examination.

Step 5: Getting your license

When you pass the examination, you will be given a bond and fee notification form at the testing site. This form will notify you of what you need to submit to meet your contractor license issuance requirements. The requirements may include the following:

• An initial licensing fee of $200
• Contractor’s bond or cash deposit of $15,000
• Bond of Qualifying Individual (if applicable) of $12,500
• Fingerprinting requirements
• Completed asbestos open-book examination
• Full list available here

To get your fingerprints taken, you’ll need to visit a Live Scan fingerprint station (such as a local police office). The CSLB will provide you detailed info on the process for obtaining and submitting fingerprints. Here’s a link to more info about getting fingerprinted.

Making it official

Once you meet your issuance requirements, the CSLB will mail you “a wall certificate showing the name of the person or company the license has been issued to, the license number, the classification(s) held, and the date of issue, and a plastic pocket card showing the license number, business name, classification(s), and the license expiration date”(Source).Once you receive your wall certificate, you’ll want to hang it in your office as California law actually requires that you do so. Congrats! You are now a licensed contractor. So how long can you expect the license to remain valid?In California, contractor licenses are initially issued for a two-year period. “[A contractor license] will expire two years from the last day of the month in which it was issued. Licenses may be renewed for two years at a time if renewed on active status, or for four years if renewed on inactive status. (Source)”

A stamp of hard-earned expertise

The process of obtaining a contractor license is somewhat time consuming but well worth it for those who wish to further their careers in the construction industry by taking on bigger jobs and more responsibility. Generally speaking, a contractor license is a stamp of hard-earned expertise that enables license holders to bid on the construction projects that match their skills and business goals.

FAQs

Who can get a license?

‍Licenses may be issued to individuals, partnerships, corporations, limited liability companies, or joint ventures (Source).

‍Can I still get a CA contractors license if I live out of state?

‍Out of state individuals can apply for a California License if they meet the qualifications. Several states have reciprocity agreements with California which makes it easier to get a license (Source).

‍Are contractors with an existing license required to re-take the examination to renew their license?

‍No, not if their license is in good standing (Source).