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Contractor's License Questions
and Answers
Listed below are questions and answers regarding licenses and
other matters regarding contractors state law.
"A" General Engineering
"B"
General Building Contractor
C-27
Landscaping Contractor
C-36
Plumbing Contractor
C-8
Concrete Contractor
C-53
Swimming Pool Contractor
C-39
Roofing Contractor
C-16
Fire Protection
C-45
Sign Installation
Minor
Work Exemption
Agriculture
Exemption
Owner/Builder
Exemption
Multiple
Classes for a Project
Structural
Pest Control Operator
Alarm
Company Operator
Contractor
Advertising
Workers'
Compensation Verification
Contractor's
License Verification
Amount
of Down Payment
"A" General Engineering
Can a General Engineering
Contractor contract to perform the work of a single trade (specialty work) if that specialty work is an integral
part of the scope of work for a general engineering contractor? For example, a
General Engineering contractor can build a freeway and this can include
pouring concrete and putting up fences. Can the "A" contractor take
a contract for concrete work only or to build a fence only?
A General Engineering Contractor can contract to perform all or any part of
a project that falls under the "A" classification. California Code
of Regulations section 834(a) states "...a general engineering contractor
shall operate only within those areas defined in Section 7056 of the [B&P]
Code." Therefore a contractor could take a contract to build a fence or
pour concrete if the work was originally or currently part of the type of
projects listed in B&P Code section 7056 (airports, roads and similar
"fixed works").
"B" General Building Contractor
How is a "B" contractor defined in Contractor's License Law?
Section 7057(a) broadly defines general building contractor as a contractor
whose principal business is to perform or supervise all or any part of a
project in connection with a structure that shelters people, animals or
property, the construction of which requires at least two unrelated building
trades. Subsections (b) & (c) of section 7057 specifically define the
situations in which a "B" contractor may take a prime contract or
subcontract.
The last part of the first paragraph of section 7057 states "...or to
do or superintend the whole or any part thereof." What does this mean?
This language clarifies that regardless of whether an individual is going
to actually perform the work described in section 7057 or superintend
(supervise) the work, a "B" license would be required. (Permissive -
may perform or subcontract the work.)
How does the CSLB differentiate between a prime contract and a
subcontract?
A prime contract is a contractual relationship made between the owner of
the property and the contractor. A subcontract is when the contractor does not
have a direct contractual relationship with the owner of the property.
What prime contracts or subcontracts can a "B" contractor take?
A "B" contractor can take a prime contract or
subcontract for:
- framing or carpentry projects; or
- projects that require at least two unrelated building trades
other than framing or carpentry (cannot count framing or carpentry as one
of the two unrelated trades); or
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any specialty projects (even if less than two unrelated trades)
for which the "B" contractor also holds the required specialty
class.
Can a "B" contractor take a "prime contract" for a
single specialty trade?
A "B" contractor may take a prime contract for any specialty
project (even if less than two trades); if the "B"
contractor holds the specialty classification or subcontracts the work to an
appropriately licensed specialty contractor.
Can a "B" General Building Contractor take a
"subcontract" for work involving a single trade if he plans to sub
the work out?
No. As provided in B&P section 7057(b), a "B" contractor
cannot take any subcontract (a subcontract is when the "B" does not
have a direct contractual relation with the owner of property) for any single
trade project (excluding framing or carpentry), unless he/she
holds the required specialty license classification.
Can a "B" contractor take a contract for fire protection or well
drilling work?
Section 7057 (c) prohibits a "B" contractor from taking a
contract for any project that includes work covered under a C-16 (Fire
Protection) or C-57 (Well Drilling) classification, unless
the "B" contractor either holds the C-16 or C-57 class or
subcontracts the work to a properly licensed specialty contractor.
Can a "B" contractor obtain a roofing permit when the work
involves replacing facia board, painting eaves and applying a new roof cover?
If the work is part of an overall general building project then yes the
"B" contractor could obtain a roofing permit and perform, or sub
contract, the work.
The first paragraph of B&P section 7057 refers to
"chattels." What are chattels?
Webster's Collegiate Dictionary defines chattels as: "an item
of tangible movable or immovable property except real estate, freehold, and
things (as buildings) connected with real property." Example: A tool or
equipment shed is a structure that is designed to house "chattels."
C-27
Landscaping Contractor
Can a C-27 Landscaping Contractor pull permits and perform work involving
gas lines and/or electrical circuits? This is sometimes the case when yard
lighting or a pre-manufactured spa or an outdoor barbecue is part of the
landscaping contract.
A C-27 contractor may obtain permits and contract for such work provided
the work is part of or incidental to an overall landscaping project.
Can a C-27 Landscaping Contractor contract and pull permits for patio
covers or outdoor decks?
A C-27 contractor may contract and pull permits for "non
watertight" patio covers or outdoor decks. A "watertight" patio
cover (or roof) would require a "B" license.
If a patio cover is attached to the house, what
classification(s) can
build it?
Patios with lattice type covers can be built by either a "B"
General Building, C-5 Carpentry, or C-27 Landscaping Contractor. Patios with
solid covers can only be built by "B" General Building contractors.
Are there any restrictions on the size, height, or type of deck that a
C-27 Landscaping Contractor can contract or pull permits for?
Generally, there are no restrictions on the size, height, or type of deck
that a C-27 contractor can contract or pull permits for. However, certain
structural work may be precluded. A review will be made on a case by case
basis.
Can a C-27 Landscaping Contractor build a perimeter wall?
Only if the perimeter wall is part of a total landscaping project.
Can a C-27 Landscaping Contractor do a single trade, i.e. concrete,
masonry, carpentry?
A C-27 Landscaping Contractor may undertake any single trade contract
provided such work is a part of:
"...landscape systems and facilities...which are designed to
aesthetically, architecturally, horticulturally, or functionally improve the
grounds within or surrounding a structure or a tract or plot of land..."
(Board Rule 832.27)
If a wall is built outside simply for its aesthetic value, what
classification is required?
A C-27 Landscaping, "B" General Building, or C-5 Carpentry
Contractor would be appropriate if carpentry skills are required. A masonry
wall would require either a C-27 Landscaping or C-29 Masonry Contractor.
C-36
Plumbing Contractor
Can a C-36 Plumbing Contractor contract and pull permits for the
installation of a seepage pit or other components of a septic system?
A C-36 Plumbing Contractor may contract and pull permits for installation
of a seepage pit or other components of a septic system. An "A"
General Engineering or C-42 Sanitation System Contractor may also perform this
work. All three licenses are appropriate to install or repair all septic
systems.
What license classifications are allowed to install or repair building
sewers?
"A" General Engineering, C-36 Plumbing, C-42 Sanitation System,
and C-34 Pipeline Contractors may install and/or repair building sewers. A
"B" General Building Contractor may perform this work if it falls
within the scope of work of a general building contractor as defined in
B&P section 7057.
What license or certification is appropriate for removal of underground
storage tanks?
Removal of underground storage tanks requires the Hazardous Substance
Certification in addition to the appropriate license classification.
An "A" General Engineering Contractor is appropriate to install
and/or remove underground storage tanks for any purpose whatsoever at any
location.
A C-36 Plumbing Contractor is appropriate to install and/or remove any
underground storage tank that provides a service to a building. This includes
storage tanks for service stations.
A C-61/D-40 Limited Specialty Service Station Equipment Contractor is
appropriate to install and/or remove fuel underground storage tanks at service
stations or any other site up to a capacity of 20,000 gallons.
A "B" General Building Contractor is appropriate to install
and/or remove an underground storage tank only if such work is performed
within the meaning of B&P section 7057.
C-8
Concrete Contractor
Can a C-8 Concrete Contractor contract and pull permits for a lattice
patio cover?
No. A C-8 contractor can only work with wood when it is part of a formwork
for concrete.
C-53
Swimming Pool Contractor
Can a C-53 Swimming Pool Contractor contract and pull permits for a patio
cover?
No. A C-53 contractor cannot contract or pull permits for a patio cover.
Assembly Bill 2697 (regarding swimming pool safety) was signed by the
Governor in 1998. Among other things, the bill requires all dry-niche and
wet-niche light fixtures operating at more than 15 volts to be protected by a
ground-fault circuit interrupter (GFCI). Who can perform the installation and
inspection of this work?
The installation and inspection of electrical work in public swimming pools
(required by Senate Bill 873) may be done by either an "A"
Engineering, C-10 Electrical, C-53 Swimming Pool, or a C-61/D-35 Pool &
Supply Maintenance Contractor.
C-39
Roofing Contractor
Can a C-39 Roofing Contractor pull a repitch/reroof permit including the
framing and structural work that is involved?
Generally, structural changes are inappropriate for the C-39 contractor on
a reroof/repitch. However, certain projects may require special consideration
and a determination will be made on a case by case basis.
C-16
Fire Protection
What is the proper license to install fire protection systems?
B&P section 7026.12 is very specific. It states:
"The installation of a fire protection system, excluding an electrical
alarm system, shall be performed only by a contractor holding a fire
protection contractor classification..." as defined in the California
Code of Regulations section 832.16 Fire Protection Contractor "...or by
an owner-builder of an owner-occupied, single-family dwelling, if not more
than two single-family dwellings on the same parcel are constructed within one
year...".
C-45
Sign Installation
What classification of license is appropriate for installation of signs?
If the installation of a sign falls under the definition of contracting
(B&P 7026), the following licenses would be appropriate:
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C-10 Electrical or C-45 Electrical Sign would be required for electrical
signs;
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C-45 Electrical Sign or C-61/D-42 Limited Specialty would be required
for non-electrical signs.
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(Note: Installation of any sign that comes under the purview of the Outdoor
Advertising Act [California Administrative Code, Title 4, Chapter 6] does not
require a contractor's license. Billboards are the most common and these types
of installations require registration with the Department of Transportation.)
Minor
Work Exemption
Is it true a contractor's license is not required if the work to be
performed is under $500?
B & P section 7048 Small Operations provides an exemption from
licensure for minor work if the aggregate contract price, including labor,
materials, etc. is less than $500. However, at the time of bid or prior to
entering into a contractor to perform work, the person performing the work
must provide a written statement of non-licensure to the customer.
Requirements for the notice are very specific (B&P 7048(b)). This
exemption does not apply if the "minor work" is part of a larger
project. Example: A homeowner is having a kitchen remodeled at a total cost of
$6,000 and decides to sublet the flooring work which is only $300. The person
doing the flooring would not be exempt from licensure because
the overall cost of the project was over $500.
Agriculture
Exemption
What is agriculture exempt?
B&P section 7049 provides an exemption from licensure for any
"construction or operation incidental to the construction and repair
of...farming, dairying, agriculture, viticulture, horticulture...".
Section 7049 does not apply to licensed contractors.
Owner/Builder
Exemption
Who is considered an owner/builder?
Any individual, or group of individuals, who own the property on which they
plan to construct, alter, repair, improve, or remodel a building or structure.
Is an owner/builder required to have a license?
An owner/builder is exempt from licensure, but there are limitations. A
license is not required if:
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The owner/builder does the work himself or herself or through
his or her own employees with wages as their sole compensation and
the structure(s) is/are not intended for sale.
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The owner/builder contracts with properly licensed subcontractor(s). This exemption applies to the construction of a
single-family residential structures and limits the number of structures
intended or offered for sale to four or fewer in a calendar year.
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Number of structures is unlimited if the owner/builder
contracts with a General Building "B" contractor.
Is a homeowner required to obtain a license if he/she wants to improve
his/her home?
A homeowner improving his or her principal place of residence is exempt
from licensure if all of the following exist:
- The work is performed prior to sale;
- The homeowner resided in the residence for the 12 months prior
to completion of the work; and,
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The homeowner has not taken advantage of this exemption on more
than two structures more than once during any three-year period.
Are there any trades that property owners are prohibited from performing
themselves?
Property owners are prohibited from performing work covered under the C-57
Well Drilling classification.
Does the owner/builder exemption apply to an individual who builds homes
for resale (spec homes) and are there any limitations?
Yes. The owner/builder exemption would apply to an individual who builds
homes for resale under any of the following conditions:
- Licensed tradesmen are hired to perform all work on the
project. (No more than four structures per calendar year are intended for
re-sale.)
- A licensed general contractor is hired to perform and/or
subcontractor the completion of all work on the project. (No
restriction on the number of structures completed per calendar year.)
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The owner/builder performs the work, all or in part, and
resides in the completed structure for one year prior to re-sale. (Not
more than two structures in a three year period.)
Multiple
Classes for a Project
Is it possible that more than one classification could be appropriate for
a single project?
Yes. Example: Grading and paving a road can be performed by either an
"A" General Engineering or a C-12 Earthwork and Paving Contractor.
Structural
Pest Control Operator
Is a licensed Structural Pest Control Operator required to have a
contractor's license when making structural repairs caused by wood destroying
pests or organisms?
Structural Pest Control Operators are not required to hold
a contractor's license when operating within the scope of their license. Only
a Branch 3 Licensed Structural Pest Control Operator may contract and pull
permits for the repair or replacement of wood damaged by wood destroying pests
or organisms. (Structural Pest Control Act, Chapter 14, Article 1 Section 7505
and Article 4 Section 8560). The key is replacement of damaged members.
Alarm
Company Operator
Is an alarm company operator required to be licensed by the Bureau of
Security and Investigative Services (BSIS) and the Contractors State license
Board?
Individuals who install, maintain, monitor, sell, alter or service
"burglar" alarm systems are exempt from licensure under the
Contractors License Law (B&P section 7054) provided they are licensed by
BSIS. "Fire" alarm work is subject to Contractors License Law and
requires a C-10 Electrical license.
(Information corrected Mar 3, 2000)
Contractor
Advertising
Are licensed contractors required to include their license number in
advertisements?
Any time a licensed contractor advertises his services whether on paper,
over the air waves, or on the Internet a license number must appear. This
includes but is not limited to letterhead, business cards, any type of
directory listing, airwave transmissions, newspaper ads, or any form of
advertising.
Is it against the law for an unlicensed individual to advertise
construction services?
No, as long as the advertisement includes a statement that the individual
does not hold a contractor's license (B&P 7027.2).
Workers'
Compensation Verification
Are local jurisdictions required by State law to verify workers'
compensation prior to the issuing of a permit?
Under Labor Code Section 3800 subsection (a) city and county building
departments "...shall require that each applicant for the permit sign a
declaration under penalty of perjury verifying workers' compensation coverage
or exemption from coverage as required by Section 19825 of the Health and
Safety Code."
Does the Board maintain a record of workers' compensation coverage for
licensed contractors?
The CSLB is required to maintain a record of workers' compensation coverage
or exemption. This information is available on the automated phone response system
(1-800-321-2752).
Contractor's
License Verification
Are local jurisdictions required by State law to verify a contractor's
license prior to the issuance of a permit?
Any city or county which requires the issuance of a permit shall also
require a written and signed statement from a licensed contractor stating that
he/she is licensed, the number of the license and that it is in full force and
effect. Contractors are required by law to provide this information. (B&P
section 7031.5)
Is there a similar requirement for unlicensed individuals who want to pull
a permit?
If the individual pulling the permit is exempt from licensure under the
Contractors License Law then he/she must provide a written and signed
statement giving the basis for the alleged exemption.
Amount
of Down Payment
Is the amount of a down payment fixed by law?
B&P section 7159(d) states that a down payment for any home improvement
contract (except swimming pools) may not exceed $1,000 or ten percent of the
contract price (excluding finance charges), whichever is less; and, the down
payment for a swimming pool shall not exceed $200 or 2 percent of the contract
price (excluding finance charges), whichever is less.
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