Category Archives: Tips

C-53 Swimming Pool Contractor License Guide

As the warmer months approach, more and more we’ve all got swimming pools on the brain. Soon, all over California, contractors are going to be hit with familiar questions and requests about swimming pool construction, installation, and repairs.

If you’ve been meaning to dive deep into some details about the C-53 swimming pool contractor license then you’ve come to the right place.

This guide highlights information about the application process for the C-53 license, which authorities oversee swimming pool construction, and how it all affects routine workflow for general contractors.

What is the C-53 Swimming Pool Contractor License?

The C-53 Swimming Pool Contractor License is a specialized classification issued by the Contractors State License Board (CSLB).

With this license in hand, contractors are legally cleared to build, install, and repair pools and spas for both residential and commercial projects.

Licensed swimming pool contractors have been required to demonstrate specific expertise in excavation, plumbing, electrical work, concrete pouring, and pool finishing.

The training and exam requirements for this license are rigorous and thorough to ensure the safe and proper installation of swimming facilities.

Getting the C-53 License

Basic Requirements for C-53 Applicants

  • Applicants must be at least 18 years old.
  • They must also have a valid Social Security Number or Individual Tax I.D. Number.
  • They must have relevant work experience or education in swimming pool construction.

The C-53 Exam Requirements

  • Applicants must pass the CSLB’s Law and Business Exam as well as the C-53 Swimming Pool Contractor License Exam, which assesses knowledge of swimming pool construction, safety regulations, and business practices.

Submitting a Complete and Accurate Application

  • Once the applicant has received a passing score of 72% or above, they must submit a complete and accurate license application to the CSLB.
  • Along with their application, the C-53 swimming pool contractor hopeful must also submit supporting documents proving adequate experience, education, and financial stability.

Agreeing to a Background Check

  • The CSLB conducts a background check to verify the applicant’s qualifications and ensure compliance with licensing requirements.

Receiving the C-53 License Issued by the CSLB

  • Upon approval, the CSLB will issue the C-53 Swimming Pool Contractor License, which allows the contractor to get going. At that point, they can legally operate in California.

Do All General Contractors Need the C-53 License?

Seasonally, it sure may seem like every contractor needs the expertise that comes with the C-53 license. But more realistically, the answer is no.

General contractors may have specialized expertise in various construction trades, but it is by no means a requirement for them to secure the C-53 license to carry out their work day-to-day.

When working on a construction project that involves pool-related tasks beyond the scope of their existing licenses, a general contractor has the opportunity to subcontract that labor to ensure compliance with the CSLB.

Any pool-related contractor work exceeding $500 in labor and materials must be handled by C-53 Swimming Pool Contractor Licensees only.

Hypothetically speaking, if a general contractor attempted to take on work that was clearly outside the scope of what their existing license covered, that would be considered unlicensed contractor work.

Performing contractor work like this without the appropriate license is dangerous and illegal. It’s a public safety issue that the CSLB takes very seriously.

The board urges consumers against hiring unlicensed contractors as this practice poses risks such as substandard workmanship, safety hazards, and legal liabilities for property owners.

Authority Over Swimming Pool Construction Codes and Regulations in California

If you’ve ever wondered who is in charge of overseeing swimming pool construction codes and regulations in California it happens to be the California Building Standards Commission (CBSC).

The CBSC adopts and maintains the California Building Standards Code (Title 24 of the California Code of Regulations), which includes regulations governing the design, construction, and safety of swimming pools and spas.

Local building departments enforce these regulations to ensure compliance with state and municipal codes for the sake of public health and safety.

Conclusion

Contractors and businesses intending to work on swimming pool construction in California must apply for the C-53 Swimming Pool Contractor License.

Alternatively, general contractors can hire a C-53 subcontractor to handle any pool-related construction work involved with their projects to ensure that the appropriate expertise and legal and safety compliance are all covered on the job site.

Following the proper licensing process, sticking with all necessary regulations, and upholding professional standards promise high-quality swimming pool contractor services and ensure compliance with state laws and regulations.

The CSLB strongly urges property owners to hire contractors who are licensed in the specific type of construction work that needs to be performed.

So for the safety and integrity of swimming pool projects across California, the CSLB requires that C-53 licensed contractors be brought in for the pool-related jobs.

What Happens If A Contractor Loses Their License?

It’s inconvenient, we know, but it happens. When a contractor loses their license, the situation can stir up panic, concern, and general overwhelm.

Even if you are a licensed contractor in good standing, understanding the implications of losing a license can be extremely valuable to you as you navigate your career.

Being armed with this vital information will help you if you or someone you know suddenly come face-to-face with the frustrating experience of losing a contractor license.

In this guide, we’ll walk you through each possible status for a contractor’s license according to the Contractors State License Board (CSLB). Additionally, we’ll cover common reasons licenses get revoked and key regulations concerning unlicensed contractors in California.

Understanding Contractor License Status

Active

This is where you want to be. Once the CSLB issues you a valid and active contractor license, the hope is that all goes well and you can operate as a contractor, uninterrupted, until it’s time to renew.

Inactive

Sometimes when personal plans or circumstances change, a licensee may voluntarily switch their license status to inactive. This option is for contractors who want to cease contracting activities temporarily while preserving the opportunity to reactivate at a later time.

Suspended

This is where you would rather not be. It’s not the end of the world, but it’s not ideal either. This status means your license has been temporarily revoked. And you get bumped to this status in the wake of a violation or any kind of general non-compliance with regulations.

Revoked

This one is tough. It’s a permanent cancellation of the license. Usually, a licensee gets bumped to this status after a serious violation or criminal activity.

Common Reasons Why a Contractor May Lose Their License

As mentioned above, it’s usually a serious violation or a crime that causes a contractor to lose their license. But here are a few specific reasons that frequently result in license revocation for contractors, just to give you an idea of what to expect:

CSLB Requirements for Reactivating Contractor Licenses

This is the golden information you’ll want to keep handy to help yourself out — or to help whomever it is in your life facing this conflict — when a contractor’s license is no longer valid.

In order to reactivate a license, the contractor to whom that license is issued must meet the following CSLB requirements:

  • Any/all disciplinary actions or violations need to be resolved.
  • Any necessary continuing education courses must be completed.
  • Any necessary fees, including renewal and penalty charges, must be paid.
  • A demonstration of full compliance with CSLB regulations.

Can Unlicensed Contractors Work in California?

If you do not have a contractor’s license or if you lose your contractor’s license, you cannot legally work on construction projects that exceed $500 in labor and materials.

Working as an unlicensed contractor is strongly discouraged and the consequences of doing so involve serious penalties.

Property owners are also strongly discouraged from hiring unlicensed contractors because it’s dangerous, promotes substandard workmanship, and may cause them to take on unnecessary legal liabilities.

The CSLB works hard to enforce laws against unlicensed contracting in California through sting operations and investigations.

The contractor’s board will slap an unlicensed contractor with fines, misdemeanor charges, and injunctions without hesitation.

The CSLB also promotes consumer protection. It provides resources to help consumers educate themselves about the risks of hiring unlicensed contractors.

Conclusion

When a contractor loses their license, it can be terribly inconvenient. But there are manageable ways to rectify the situation if the contractor so chooses.

Developing a solid understanding of license statuses, license reactivation requirements, and CSLB policies could help contractors back in good standing quickly or help them sustain a valid and active status before anything goes awry.

Remaining in compliance with the CSLB and avoiding criminal activity relating to construction will make life easier and help you stand out in a positive way during the hiring process.

Other contractors will recognize your commitment to upholding professional standards as you protect your license and contribute to a safe, responsible work culture in the construction business in California.

5 Most Common Problems for General Contractors

The life of a general contractor is rarely free of conflict. And how could it be when you’re shouldering so much responsibility from job to job?

It’s a high-pressure career path. Everyone’s counting on you to deliver consistent, high-quality workmanship that is compliant on all accounts and always comes in on time and on budget.

With all of this in mind, we decided to put together a guide that lists out the 5 most common problems that general contractors face. In this article, we also provide solutions, career support options, and some salary info to give a numerical representation of how a general contractor’s work is valued in the job market.

5 Most Common Problems for General Contractors

  • Budget Overruns
    • Inaccurate cost estimation, unforeseen expenses, scope creep, you name it! All these nasty surprises have the potential to break a budget and push a project into the red.
    • Fluctuations in material prices, labor costs, and regulatory compliance requirements may also have an ultimately negative impact on a construction project’s budget.
  • Safety and Health Concerns
    • In theory safety and health are the top priorities for general contractors on the job, but in practice, it’s not so simple. Accidents happen. Illness comes up. Recovering from such events costs time, money, and mental strain.
    • The constant routine of ensuring compliance with safety regulations and mitigating risk is time-consuming and stressful. Nobody’s perfect. Slip-ups happen. And when they do, contractors have to deal with legal ramifications and damage control for the sake of their reputation.
  • Miscommunications with Clients and Shifts in Client Expectations
    • Maintaining open and clear communication with clients throughout the lifecycle of a project is the key to a contractor’s success. But oftentimes contractors and their clients fall out of alignment when it comes to certain expectations for the construction work.
    • When clients change their minds or aren’t 100% clear on what they can expect from their contractors, shifts in timeline and quality standards may arise as well as project scope changes and potential disputes and dissatisfaction.
  • Legal Compliance and Meeting Regulatory Standards
    • Complex construction laws, building codes, zoning regulations — navigating all those details, it’s a lot! Tracking all of it is like a full-time job sometimes.
    • Contractors have to make sure that they and their teams are so detailed and meticulous when it comes to these laws and standards or else they risk facing major penalties, fines, project delays, and repercussions for their reputation.

Solutions and Support for General Contractor Common Problems

The range of resources available to general contractors seeking support is vast and varied. Throughout your career in construction, pretty much any challenge is manageable thanks to access to industry info online, new tech solutions, and your robust professional network.

  • Contractors State License Board (CSLB), Legal Counsel, and Financial Advisors
    • The Contractors State License Board is the resource of all resources. The CSLB can guide you when you’re in problem-solving mode and help you know when it’s time to reach out for legal counsel and financial advice.
    • Law experts, especially those specializing in construction law, can help you work through contract-related issues. They can also help you resolve disputes and remain compliant with local regulations and standards.
    • Financial advisors can help you put out budget-related fires at work. They can also help you manage cash flow, tax issues, and retirement saving strategies.
  • Industry Associations
  • New Tech Solutions
    • Things move quickly in construction so don’t waste time with old-school, analog, out-of-date technology. Keep construction management software and project management tools updated to streamline workflow, improve communication, and minimize mistakes.
    • Platforms like Procore, PlanGrid, and BuilderTREND can help you maximize productivity with their project scheduling, budget tracking, document tracking, and collaboration features.

How General Contractors Can Leverage Problem-Solving Skills Into Career Advancement

If the everyday problems of general contractor life don’t scare you away, your ability to work through difficulties on the job could take you far.

  • Specializations in Construction
    • One option is taking on new specializations in niche markets or specific construction trades. For example, taking on new challenges in green construction and sustainable building or historic preservation.
    • You could expand your knowledge and skills and go after special certifications or credentials in specialized areas. Having specialized expertise can help you stand out in the hiring process.
  • Leadership Development
    • When you’re feeling ready, you can take the lessons you’ve learned from all your problem-solving in the field, take on larger projects, and potentially step into management roles within construction firms.
    • You can invest in leadership training and participate in mentorship programs that foster professional development and provide a framework for what career advancement could look like for you.
  • Entrepreneurship
    • After building up endurance and resilience in the construction industry, you might find yourself fully equipped to launch your own construction businesses, pursue joint ventures, or expand into new markets.
    • Your ability to solve problems as a general contractor is a skill that can no doubt transfer to solving problems as a construction business owner, innovator, and strategist.

Average Annual Salary for General Contractors

While the common problems that come up for general contractors on the job can be difficult to manage, the rewarding career opportunities and reliable salary offer positives that counterbalance the negatives.

Of course, the average annual salary for general contractors varies depending on experience level, location, and specialization. However, according to Salary.com, the average Construction General Manager salary in California is $107,483. The range typically falls between $94,329 and $122,772.

This lucrative career path opens up retirement options that are likely to make any mid-career struggles worth it. Contractors can contribute to traditional or Roth IRAs to save for retirement.

Another option is the Simplified Employee Pension (SEP) IRA for self-employed contractors who want to save for retirement while enjoying higher contribution limits than traditional IRAs.

Construction firms may offer 401(k) or 403(b) plans, allowing employees, including contractors, to make pre-tax contributions to retirement savings accounts.

Conclusion

To conclude, there is one thing general contractors can count on as they build their resume throughout their careers and that is conflict.

Whether a contractor has their hands full with construction project management, legal compliance, tracking budgets, or maintaining clear communication across projects and various relationships, they will notice that problems naturally arise.

There are a great many options for reaching out and building a support system for contractors facing difficult professional challenges.

Contractors can leverage industry associations, technology solutions, and mentorship programs to improve their skills and keep their career plans on track. Despite the difficult aspects of the career path, being a general contractor is extremely rewarding, respectable, and a worthwhile endeavor.

The CSLB C-13 Fencing License: A Comprehensive Guide

Looking to jump into the world of fencing in California? You’re in luck.

In this guide, we’ll cover the basic nuts and bolts of getting your C-13 Fencing Contractor license in California, so you can start making money putting up fences in your area today!

What is a C-13 Fencing License?

The C-13 Fencing License is the license issued by the California Contractors State License Board (CSLB) to cover all areas around constructing both permanent and temporary fences.

A C-13 license authorizes contractors to construct, erect, alter, or repair all types of fences, including but not limited to, wood, metal, and vinyl fences, as well as gates, railings, and related structures​​​.

Note that the C-13 license only applies to fences – it does not cover walls or other structural elements that are similar to fences but have additional structural features.

Who Needs a C-13 License?

Any contractors who work on fencing projects where the total cost (labor and materials) exceeds $500 must obtain a C-13 Fencing License in California. There are no exceptions to this rule – if you are building a fence, you need a C-13 license.

If you’re a homeowner constructing your own fence, you still need a C-13 contractor’s license if your construction project costs over $500 in materials and labor. Most fences will cost at least $500 to build, no matter the size or shape of your property, so homeowners will need to hire a licensed C-13 contractor to install their fence, or get their own C-13 license.

Types of Fences Covered by the C-13 License

A C-13 license covers all types of fences in California, including:

  • Wood fences
  • Metal fences (e.g., steel, aluminum)
  • Vinyl fences
  • Chain-link fences
  • Agricultural fences
  • Cattle fences
  • Ornamental fences
  • Gates, doors and other fence-related construction

It’s important to note that the C-13 license doesn’t include walls in any way, shape, or form – that is a license covered by the C-9 Drywall Contractor license, C-29 Masonry Contractor license, or Class B General Contractor license. The C-13 license only covers fences; for anything that is thicker than a fence, is part of the structure of a build, or is a load-bearing structure, an additional license is required.

Construction Jobs You Can Do with a C-13 License

The C-13 license isn’t just about smacking stakes into the ground. There are a ton of small and large jobs that are covered by the C-13 license, from full installation to simple maintenance.

  • Planning and estimating fencing projects
  • Job site layout and marking
  • Post and concrete footing installation
  • Installation, maintenance, and repair of fences and gates, piece-meal
  • Ensuring compliance with safety regulations​​ by subcontractors
  • Temporary fencing installation and removal, such as chain-link fences on job sites

If it involves a fence, you can do work on it – the point is that there are many different small or large jobs to do as a fencing contractor.
Daily Tasks of a C-13 License Holder

Here’s some of the day-to-day tasks you can expect as a C-13 licensed contractor:

  • Consulting with clients to discuss fencing needs and options
  • Measuring and marking fence lines and post locations
  • Digging postholes and setting posts in concrete
  • Attaching fence panels or sections to posts
  • Installing gates and hardware
  • Performing maintenance and repair work on existing fences​.
  • Removing and breaking down temporary fences
  • Dealing with daily logistical and financial details of construction work
  • Budgeting, quoting, negotiating, acquiring, and transporting construction materials

Additional Licenses to Consider For C-13 Fencing Contractors

Like with so many other construction trades, the C-13 license can dovetail very effectively with other contracting disciplines. Here’s some licenses you can hold to easily leverage your C-13 license on a project and pick up multiple revenue streams on a single job.

C-27 Landscaping Contractor License

  • Scope of Work: The C-27 Landscaping license allows contractors to construct, maintain, repair, install, or subcontract the development of landscape systems and facilities for public and private gardens and other areas designed to enhance the appearance of the outdoor environment​.
  • Related Services: Landscaping contractors can offer services such as garden design, irrigation systems installation, outdoor lighting, and hardscaping, which can be integrated with fencing projects for a complete outdoor solution. Since many homeowners are looking to do backyard remodels all at once, being able to package these services together makes it extremely easy for your client.

C-33 Painting and Decorating Contractor License

  • Scope of Work: The C-33 Painting and Decorating license covers the application of paint, wallpaper, and other finishes to protect, maintain, or decorate surfaces of buildings and structures​.
  • Related Services: Painting and decorating contractors can provide services like staining or painting fences, which can be an important aspect of fence maintenance and aesthetic appeal. Most people want painted fences, so you can deliver that to them at the same time you’re installing the fence!

Class B General Building Contractor License

  • Scope of Work: The Class B General Building Contractor license allows contractors to build or remodel buildings or structures, including the installation of fencing as part of a larger construction project​.
  • Related Services: General building contractors can oversee the construction of entire properties, including fencing, decking, and other outdoor structures. Again, by offering clients a comprehensive construction service for their backyard, you can capture revenue that would otherwise go to a different contractor.

How to Become a C-13 Fencing Contractor

Here are the requirements to get your C-13 fencing contractor license:

  • Be at least 18 years old.
  • Have a valid driver’s license or state-issued ID.
  • Have a Social Security or ITIN number.
  • Not be on probation or parole.
  • The CSLB may make an exception as they take criminal records on a case-by-case basis
  • Have 4 years of journey-level experience in fencing, or 3 years’ education in fencing and 1 year on-the-job training
  • Have a certifier – known as the Qualifying Individual – to sign off on your experience.
  • Be prepared to submit documentation supporting your experience if requested by the CSLB​.

These are the basic facts you need to know to start your journey of becoming a licensed C-13 Fencing contractor in California. For more detailed information on the C-13 license (and the world of California contracting), head over to the CSLB’s website – they’ll have everything you need to get started.

General Contractor License Exam Prep: A Comprehensive Guide for 2024

If you’re feeling overwhelmed in anticipation of taking the contractor license exam, fear not! You are not alone! For a lot of us, just the word “exam” is enough to trigger a gag reflex.

The Contractor State License Board (CSLB) offers a ton of great exam prep advice that can help contractor’s license applicants show up and do their best on test day.

As a supplement to that helpful guidance, keep reading to take in some valuable tips and insights from us along with a few additional study resources that should help you ease stress and ace your test.

Understand Your Test-Taking Environment

  • Mentally prepare for the whole situation that you’re walking yourself into. You won’t have a reason to panic if you go into your exam knowing what to expect.
  • Your qualifying exam has to be taken in person at one of the CSLB’s PSI locations.
  • In California, there are test centers in Agoura Hills, Atascadero, Bakersfield, Carson, Diamond Bar, El Monte/Santa Fe Springs, Fresno, Irvine, Lawndale, Redding, Riverside, Sacramento, San Diego, San Francisco, Santa Clara, Santa Rosa, Union City, Ventura, Visalia, and Walnut Creek.
  • When you arrive, you will be asked to provide a form of I.D. Here are the acceptable forms of government-issued I.D. that will be accepted on the day of your test:
    • U.S. Driver’s License (any state)
    • U.S. state-issued I.D. card (any state)
    • Government-issued passport (booklet or card)
    • U.S. Citizenship and Immigration Services Resident Alien Card (AKA green card or permanent resident card)
    • U.S. military I.D.
    • U.S.-issued Employment Authorization Card
  • Just FYI, your contractor license exam will not be a paper test. All exams are taken on a computer. And every test is multiple-choice.
  • You get 3.5 hours to complete your exam, and it’s good to use all the time that you need.

Take Advantage of Study Guides and Practice Tests

There are plenty of study guides online that can help you get ready and pass on the first try.

These study guides include:

  • An overview of the exam content
  • Testing policies and if the exam is open or closed book
  • Test strategy guidance
  • Exam sample questions
  • Additional study resources

And if you’re interested in checking out online practice exams, there are countless options available to you. We recommend getting as much practice as you can so that you can receive a passing score and keep your contractor license application process moving right along.

Attacking the Multiple Choice Exam Format

  • As we mentioned above, the test consists of multiple-choice questions. Here’s a helpful tip that applies to any kind of multiple-choice test:
  • Review every question before you look at any of the multiple-choice answer options.
  • The reason for this? Well, your head is going to be full of information based on what you’ve worked so hard to study and reviewed in your exam prep courses. Your head is already full of correct answers.
  • After reading every question and letting your mind settle into what is actually being asked on the exam, it is good to return to the first question and begin attacking the multiple-choice questions.

Understanding the General Contractor License Exam Content

All of the CSLB exams test qualifying individuals on their knowledge and practical familiarity with the trade they’ve chosen. General contractors who are going for the B – General Building Contractor License must pass both the Law and Business section and the Trade section.

We provide a full breakdown of what is covered on the CSLB exam in regards to the Law and Business and the Trade sections respectively here in our post about What to Expect From the CSLB Exam: The Essential Facts.

If You Pass vs. If You Do Not Pass

If You Pass

  • Congratulations! If you received a passing score of 72% or above, you will know right away at the end of your exam. You will receive a printed report displaying your results.
  • After you’ve passed your exam, you will receive a Bond and Fee letter in the mail that will say what else the CSLB needs from you before issuing you a contractor license.

If You Do Not Pass

  • You will be eligible to retake the exam as many times as necessary within an 18-month window.
  • After you fail a test, you’ll get a re-examination form and instructions on how to pay any necessary fees involved with retaking the exam.
  • cOnce the CSLB receives your fees, it takes at least 3 weeks from your last failed exam to get your exam eligibility sent to PSI. Once that 3 week waiting period is finished, you will be able to reschedule the exam online or by phone at (877) 392-6422.

Conclusion

Tests can be stressful but the CSLB general contractor license exam is nothing you can’t handle.

There is a plethora of resources available online and you can give yourself access to tons of in-person support as well.

Once you’ve taken in your study guides and digested the material from your exam courses, the key is to remain positive and confident in what you know.

And even if your score comes in below 72% and you fail the contractor license exam, the opportunity to retake the exam is there for you.

Be patient, remain calm, and stay committed to this process because on the other side of passing your contractor license exam, a fulfilling career as a licensed contractor awaits.

Additional Study Resources for Contractor License Exam Prep:

CSLB: Studying for the Examination
Builder’s Book, Inc: Contractor’s License Exam
California Contractor General Building (B) Exam: A Complete Prep Guide
Contractors License Study Guide 2024-2025
BNi Building News: License & Exam Prep

How to Get Referrals When You Become a General Contractor

For a lot of us, self-promotion is one of the hardest aspects of day-to-day business. To take some of the pressure off, it helps a great deal if you’ve got people in your network who can talk you up and spread positive messaging about you around the construction industry.

A successful career as a general contractor is about so much more than just technique, skill, and building up knowledge and work experience in the field.

It is also about nurturing relationships with clients and demonstrating your expertise so that they trust you and feel good about recommending your services to others.

In this article, we discuss how general contractors can get referrals to maintain a solid professional reputation while also boosting their business.

Providing High-Quality Workmanship

Actually performing at a high level and delivering high-quality workmanship is the first step toward receiving all that valuable positive feedback that you seek.

When you’re consistently making a good impression on clients, they will want to say good things about your work and they will recommend you to friends, family, and colleagues.

To get specific, here are ways to ensure that you’re making a lasting positive impression with high-quality workmanship:

1. Attention to Detail

A detail-oriented contractor is a very good and very much coveted contractor.

This list on LinkedIn offers some amazing tips for how to display that you pay close attention to detail for the benefit of your clients and collaborators.

2. Use Quality Materials

Invest in high-quality materials that you know will make all the difference to your client. This builds trust with clients and extends the life of their construction projects.

Communicate with clients about how local codes and regulations may affect your decisions when selecting construction materials.

This guide from Indeed covers six steps you can take toward optimal quality control in construction.

3. Communicate Effectively

Maintain open and transparent communication with clients throughout the project. Do not gloss over confusion and instead check-in and help the client stay on the same page.

When clients feel confused or left out of the process, they are less likely to give generous reviews and referrals.

Address concerns promptly and follow up to ensure that the client is satisfied. Check out our post What to Expect from Clients as a General Contractor for more guidance about how to keep optimal communication going between you and your clients.

Leveraging Online Platforms, Trade Organizations, and Referral Services

1. Online Platforms

Online platforms can help you keep your name and the name of your business on the top of everyone’s mind. It’s a great way to tell your story to future clients and help them feel included in your company’s positive narrative and mission.

You can invest in a professional website for you and your company and you can build a presence for your brand on social media.

2. Professional Associations

Joining professional associations are good networking opportunities and as a potential side benefit, they can keep you sharp and competitive among your competition.

Here are a few organizations that help contractors stay in the mix and keep themselves in the know:

3. Contractor Referral Services

According to the Contractors State License Board (CSLB), using contractor referral services is completely legal and within limits.

These referral services function as online marketplaces where clients can shop for licensed contractors — a very useful tool for contractors interested in gathering more referrals for their business.

Here are a few services that can increase visibility and reach for general contractors working on generating referrals:

A few words of caution:
– Referral services cannot solicit or negotiate contracts on behalf of contractors.
– They can’t do anything to suggest that they are licensed to complete construction work valued at over $500 including materials.
– They must leave that business to the license-holding contractors that they are referring!

Garnering Good Reviews and Testimonials

1. Request Feedback

You have to request good feedback to get good feedback. Tell your satisfied clients that you would love to hear from them.

Make it easy by providing links to review platforms or sending follow-up emails requesting a review.

Even if they have constructive criticism to offer, the way you respond to their feedback could prompt an even more positive review from them in the future.

2. Showcase Success Stories

Display testimonials and photo evidence of satisfied clients on your website and social media platforms. It makes it easier for people to recommend you when you tell them verbatim why they should.

Showcasing past successes is also a great way to make a first impression on new clients who stumble upon your page.

3. Provide Exceptional Service

This one is in line with high-quality workmanship, but providing excellent customer service overall is an obvious method for reeling in future referrals.

Go above and beyond to exceed client expectations and you’ll make a lasting positive impression that they won’t be able to stop themselves from sharing with others.

Managing Negative Reviews and Protecting Your Reputation

1. Respond Promptly

It happens. People leave negative reviews online or share negative feedback in person. Address negative reviews promptly and professionally.

Make sure clients feel acknowledged and understood. Invite them to be a part of the solution and show them your willingness to resolve the issue both online and offline.

Demonstrate your commitment to customer satisfaction and you’ll mitigate the impact of a negative review.

2. Learn from Feedback

Negative feedback can actually be a wonderful prompt for improving your product and services.

Identify whatever the issue is that has been flagged and be transparent as you take proactive measures to make adjustments.

Your track record of correcting issues and preventing them from occurring moving forward is a huge asset to your business.

3. Maintain Professionalism

No matter what happens when you receive negative feedback, maintain professionalism. This is not the time to take anything personally. This is not an opportunity to win an argument. This is an opportunity to grow your business.

If you maintain poise and professionalism when you’re hit with a negative review, you build trust with your clients and potentially draw in new positive attention for your brand.

Conclusion

To conclude, generating referrals as a general contractor takes a great deal of effort and patience, but it is worth it.

Try using one tool at a time to see what works for you and your clients and gradually work your way up to relying on more tools for generating referrals from there.

No matter what, you definitely want to deliver high-quality workmanship and the best customer service possible.

Prompt satisfied clients to share their feedback whether it’s good, bad or neutral.

You can learn a lot from client feedback — even if it’s negative — and you can demonstrate your ability and willingness to improve, which could potentially attract even more strong referrals.

Can You Get a Contractor’s License if You’re Not a US Citizen?

Wondering if you can get a contractor’s license in your state, despite not being a US citizen?

We’ve got you covered. In this guide, we’ll cover the basics of whether you can get a contractor’s license in America if you’re not a US citizen, including what you can expect from the licensing process and what documentation you require to get a license.

Let’s dig in.

What is a Contractor’s License?

A contractor’s license is a legal verifier that allows individuals or companies to engage in construction activities within the scope of the law. It’s a way to ensure that contractors meet certain standards of quality, safety, and professionalism, while also ensuring that unscrupulous contractors who can cause physical, environmental, or financial damages are prevented from doing construction work.

Licenses are typically issued by state or local government agencies and may be required for various types of construction work, from general contracting to specialized trades like electrical, plumbing, and HVAC.

Usually, contractors’ licenses are specific to your trade or area of expertise. In California, for instance, you have over 50 different types of construction licenses, from Class B General Contractor licenses to highly specialized Class C licenses covering trades like landscaping and low-voltage electrical.

Do You Need a Contractor’s License to Do Construction?

The requirement for a contractor’s license depends on the state or locality and the type of construction work being performed. In general, most states require a license for major construction projects, especially those exceeding a certain monetary threshold.

For example, in Mississippi, a license is required for general contracting work on projects valued above $50,000. In California, you need a contractor’s license if you do construction work on any job valued over $500 in materials and labor! However, the rules can vary, so it’s important to check the specific requirements in your area.

Consequences of Doing Unlicensed Construction Work

Operating without a valid contractor’s license can lead to serious consequences, including:

  • Heavy fines, damage reparation payments, and other financial penalties
  • Legal action and lawsuits
  • Inability to enforce contracts
  • Damage to reputation and credibility
  • Higher costs and overcharges
  • Jail or prison if you are a repeat offender

Seriously – they can throw you in jail for doing unlicensed contracting work in many states. If your state has a licensing requirement, you should get a contractor’s license. The consequences of not doing so can be life-changing and brutal!

Can You Get a Contractor’s License if You’re Not a US Citizen?

Yes, non-US citizens can obtain a contractor’s license in the United States. However, the specific requirements vary by state.

Generally, you’ll need to meet the same qualifications as US citizens, which may include passing exams, providing proof of experience, and obtaining insurance and bonding. Some states might also require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

However, in many states, it’s absolutely not a requirement to be licensed.

How to Get a Contractor’s License if You’re Not a US Citizen

  • Identify the Requirements: Check with your state’s licensing board to understand the specific requirements for obtaining a contractor’s license. Usually, the requirements include age, experience, bonds and insurance, and examination requirements.
  • Obtain an ITIN: If you don’t have a Social Security Number, you may need to apply for an Individual Taxpayer Identification Number (ITIN) for tax purposes. Almost every contractor’s license will require an SSN, EIN, or ITIN to receive a license.
  • Complete the Application: Fill out the necessary application forms, which may require personal information, proof of experience, and details about your business.
  • Pass the Exams: Most states require passing a general business and law exam and a trade-specific exam to verify your knowledge and experience.
  • Obtain Insurance and Bonding: You’ll likely need to provide proof of general liability insurance and a construction bond to receive a contractor’s license.
  • Submit Your Application: Once you’ve gathered all the required documents, submit your application to the state licensing board, along with any applicable fees.
  • Maintain Your License: Once you’ve obtained your license, ensure you comply with any continuing education requirements and renew your license as needed. Many licenses require renewal every two years, but it could be more frequent, depending on your area.

Many states do not require contractor’s licenses, so if you’re in one of those states, you’re in luck! You don’t have to do any of this!

Conclusion

Obtaining a contractor’s license or doing construction work as a non-US citizen is possible, but it requires careful attention to the specific legal requirements of the state where you plan to work.

The main thing to look out for is contractor’s licenses and the various laws surrounding them. You must follow the proper steps and stay compliant with all rules and regulations surrounding construction, lest you face the very serious consequences of falling afoul of these laws.

For more detailed information, it’s advisable to consult the licensing board or regulatory agency in your state or locality.

Most Common Home Renovation Projects in California

Home beautification is always thriving in sunny California. Maybe you just saw a project on TV or on social media and you’re feeling inspired to take it on. Or maybe you’re someone working hard to increase the property value of your home.

Whatever the case may be, you’re thinking about making some home updates. To help you out while you brainstorm, we created this list which covers the most common home renovation projects in California.

Stick with us until the very end to get details about licenses that you definitely want your contractors to have while modernizing your space and optimizing functionality in your home.

Kitchen Remodeling

Ah, yes. The kitchen — the heart of the home. Why do we think that kitchen remodeling is among the most popular home improvement projects in California?

For one thing, interior design trends for kitchen spaces get updated every year. Even if the practical function of a kitchen stays the same, the popularity of these aesthetic details often changes:

  • Cabinetry
  • Countertops
  • Appliances
  • Flooring
  • Light fixtures
  • Modern tech like smart appliances

For another thing, the kitchen tends to be the keeper of a few big-ticket items that require regular updates if you want to keep the whole house feeling current. Water heater, dishwasher, and garbage disposal replacements are three jobs that help a kitchen remodel go a long way.

Bathroom Upgrades

Everyone loves a bathroom upgrade. Updating a bathroom can lead to luxurious, spa-like results or it can be as simple as updating a few outdated fixtures and finishes.

Here are the most popular upgrades we see in bathrooms:

  • Installing new showers or tubs
  • Replacing old vanities and sinks
  • Plumbing additions and replacements in general
  • Upgrading to energy-efficient fixtures
  • Optimizing storage solutions

Room Additions

Two big issues for California residents are costly real estate and limited space. Room additions are popular home renovation projects because they allow homeowners to get more living space without having to move. Some examples of popular room addition projects are:

  • Adding a new bedroom
  • Expanding the living room
  • Designing a dedicated room for a home office
  • Creating a gym space

These projects require a lot of hard work, including but not limited to:

  • Flooring
  • Carpeting
  • Paneling or ceiling tile replacement
  • Window or door addition or replacement

While room additions are fun and come with amazing benefits, they sometimes come with red tape. We spoke about this a bit in our Comprehensive Guide to ADU Builds.

The main point we intend to underscore here is that homeowners who are interested in room additions must plan carefully and make sure that their project complies with local zoning regulations and building codes.

Outdoor Spaces

Outdoor living spaces get a lot of love in California thanks to the agreeable climate. This means that property owners put extra effort and focus into outdoor home renovation.

A few popular outdoor upgrades that help homeowners boost their entertainment and hospitality game include:

  • Building decks
  • Building patios
  • Erecting pergolas
  • Adding outdoor kitchens
  • Adding fire pits
  • Installing swimming pools

There are a few landscaping upgrades that are super common in California, such as:

  • Adding drought-tolerant plants and sustainable design features
  • Adding or replacing a sprinkler system

Roof Replacement is another outdoor upgrade that frequently comes up for property owners and relates very closely to the final item on our list…

Energy Efficiency Improvements

We’ve mentioned it on the blog before, but Californians are leading the charge in sustainable living.

Adopting solar technology at home has been strongly incentivized which means lots and lots of home renovation projects involving the following:

  • Installing solar panels
  • Upgrading insulation and windows
  • Replacing outdated HVAC systems with energy-efficient models
  • Implementing smart home tech to monitor and control energy usage

Licensing Requirements for Home Remodeling in California

As you probably already know, any construction project going over $500 in labor and materials requires a contractor’s license from the Contractors State License Board (CSLB).

While you might be fairly familiar with the “B” Class General Building Contractor License, you might not be as familiar with the special class licenses that often come in handy for home remodeling.

In an earlier post on the blog, we discussed the B-2 Remodeling Contractors License in depth and we delved into when or why you might need to obtain one. But here is some home remodeling work that most often requires special class licenses to complete:

Structural Work

  • Projects involving structural changes, like adding or removing walls
  • Projects that alter a roofline
  • Projects that expand the footprint of a home

Electrical, Plumbing, and HVAC

  • Any installation or maintenance for electrical, plumbing, or HVAC systems requires special licenses

Any Work Requiring a Permit

  • Even for a small kitchen or bathroom renovation — if a permit is required, you’ll want a licensed contractor to help you maintain compliance with building codes and regulations.

DIY Projects vs. Hired Licensed Contractor Work

Home makeover TV shows and all the social media content flaunting the before and afters often make it seem like home renovation is mostly DIY side-project fun.

In reality, there is a line between DIY projects and licensed contractor work that we must acknowledge. Even for minor renovations, we’re better off working with licensed contractors because they can guarantee:

Expertise

  • Licensed contractors are experts. They have been tested in the field and they have been literally tested on their knowledge through the contractor’s exam that is required for their license.

Legal Compliance

  • Not only do licensed contractors have the skills and expertise, but they are also held accountable by law and must comply with local building codes and permitting requirements, keeping your project safe, efficient, and structurally up to code.

Insurance Coverage

  • Licensed contractors carry liability insurance so you’ll be covered if accidents happen.

Conclusion

The most common home renovation projects in California cover a wide range of categories of contractor work.

Whether you want to update a kitchen or a bathroom, or if you want to add living space to your property, the safest and most efficient way to complete your project is with a licensed contractor on your team.

The CSLB is an excellent resource for anyone who wants to expand their knowledge about contractor license classifications or who simply wants to verify that a contractor’s license is valid and active.

Quickstart Guide To Business Management for California Contractors

California’s construction industry demands that contractors not only excel in their craft, but also in the realms of business administration, strategic planning, and regulatory compliance to stay competitive and thrive.

Many a contractor has to learn the hard way that being a contractor is inseparable from being a business owner. In order to be a successful contractor, you need to be a successful business owner and operator.

With that in mind, this guide covers some of the essential practices that contractors need to know – like financial management, project management, risk mitigation, and so on. While this is just the tip of the iceberg when it comes to business administration, this is a good platform to start from.

Financial Management

Building A Solid Accounting Foundation

  • Implement robust accounting software like QuickBooks Contractor or Xero, enriched with construction-specific features, to capture and automate financial transactions, facilitating real-time insights into financial health, streamlining tax preparation, and supporting strategic decision-making.
  • Regular financial reviews, including monthly analyses of balance sheets, income statements, and cash flow statements, are imperative for maintaining fiscal discipline, identifying discrepancies early, and ensuring the business’s financial stability.
  • Annual audits, conducted internally or by external professionals, play a pivotal role in validating financial practices and compliance with Generally Accepted Accounting Principles (GAAP).

Budgeting and Cash Flow Management

  • Budget preparation, an exercise in forecasting future revenues against projected costs, is fundamental in navigating the financial complexities of the construction industry. This involves a thorough analysis of past financial performance, market trends, and upcoming project pipelines, incorporating a contingency buffer to address the unpredictable nature of construction costs.
  • Positive cash flow, the lifeline of any contracting business, necessitates stringent invoicing protocols, timely billing, and effective negotiation of payment terms with clients and suppliers alike.

Financial Ratios and KPIs

  • Defining your ideal financial goals is critical to success as a contractor. Without accurately predicting your costs and income, you won’t be able to stay afloat.
  • The best KPIs are S.M.A.R.T.
    • Specific: Define clear and precise goals. For instance, rather than aiming to ‘increase sales,’ set a goal to ‘increase new home construction contracts in Southern California by 15% by the end of the fiscal year.’
    • Measurable: Ensure that each goal has a corresponding metric or set of metrics that can be tracked and measured over time.
    • Achievable: Evaluate your current resources and capabilities to assess what can realistically be achieved. If necessary, outline the steps required to develop the capabilities needed to meet your goals.
    • Relevant: Align goals with broader business objectives and market opportunities in California. Each goal should contribute to the long-term success and growth of the business.
    • Time-Bound: Set deadlines for achieving each goal to maintain a sense of urgency and focus. These should be reviewed regularly and adjusted as needed in response to changes in the business environment.
  • Financial ratios, such as liquidity ratios (current ratio, quick ratio) and profitability ratios (net profit margin, return on assets), alongside KPIs like average collection periods and work-in-progress schedules, are indispensable tools for monitoring the financial health and operational efficiency of a contracting business.

Project Management

Project Planning And Execution

  • A comprehensive project plan outlines objectives, scope, resource allocation, and timelines, serving as a blueprint for execution. Key components include the development of a Work Breakdown Structure (WBS), meticulous resource planning, realistic scheduling, and proactive risk management strategies.
  • Project management software solutions, such as Procore, Buildertrend, or PlanGrid, are essential for enhancing project oversight, facilitating seamless communication among stakeholders, and ensuring project deliverables align with client expectations.

Communication And Timelining

  • Clear, concise, and consistent communication strategies are crucial for maintaining stakeholder engagement and ensuring the smooth progression of projects. This encompasses regular updates, transparent sharing of challenges, and collaborative problem-solving.

Risk Management

Comprehensive Risk Assessment and Mitigation

  • In the construction industry, risk management is absolutely essential to success. Any contractor worth their weight will know the risks that come with construction in general – you must be able to manage business risk as well!
  • The best approach to risk management begins with the identification and analysis of potential risks, followed by the development of a detailed risk management plan. You need to have a long list of plans of action, ready to go into effect when things go bad.
  • This risk management plan should outline strategies for risk avoidance, mitigation, or transfer, and include the assignment of responsibilities, budgeting for risk management activities, and ongoing monitoring.

Human Resources

Cultivate a Trustworthy, Skilled Workforce

  • One of the best ways to find reliable contractors is by asking trusted subcontractors or employees for recommendations or referrals. If you can trust them on your construction site, you can probably trust their recommendations – but always use your best judgment.
  • No-call, no-shows are not only possible but highly likely in the construction industry. That’s why trustworthiness and reliability are two of the best characteristics of a construction worker.
  • Investing in ongoing training and development programs ensures that you can stay ahead of the curve without spending a bunch of time and energy yourself while fostering a strong team culture enhances employee engagement and productivity.

Marketing and Client Acquisition

Think Strategically

  • Identifying your target market and differentiating from your competitors is the core of effective marketing strategies. Once you know what you offer and how it’s better than your competitors, you have your marketing strategy.
  • Use a variety of marketing channels to reach your end customer. Don’t just focus your advertising on Angie’s List or Google Ads. If you’re investing in marketing, it’s wise to split your budget across a number of channels to increase visibility and potential for conversion.

Regulatory Compliance

Staying Compliant With California

  • Obtaining and maintaining a California contractor’s license, adhering to state-specific building codes and environmental regulations, and staying informed of legislative changes are non-negotiable aspects of being a contractor. Period.
  • The penalties for non-compliance can include jail time on top of mandatory fines, compensatory damages, hits to your credit and reputation, lost business, and so on.
  • Check with the CSLB for any and all questions related to regulatory compliance.

IT and Construction

Investing In IT Is Essential

  • Adoption of the latest technological tools, from accounting and project management software to CRM systems and advanced design tools, is critical for streamlining operations, enhancing efficiency, and delivering superior client service.
  • Defer to an experienced IT consultant or managed IT service provider for a cutting edge in this area. You can also check with your peers to stay up-to-date with the latest breakthroughs and useful tech for construction.

Resources for Ongoing Support and Information

Contractors State License Board (CSLB): The CSLB is the end-all, be-all when it comes to the business of contracting. Go here for comprehensive resources on licensing, regulations, and consumer protection.
California Department of Industrial Relations (DIR): Provides information on labor laws, workplace safety, and workers’ compensation.
Associated General Contractors of California (AGC CA): A trade association offering advocacy, education, and networking opportunities for general contractors.
California Building Industry Association (CBIA): The CBIA is a great trade association for anyone involved in the industry. The CBIA can help members navigate the complexities of the construction industry in California.
The American Institute of Architects, California (AIA CA): While not construction-related exactly, the AIA can help by providing guidelines and educational resources related to design and building standards.
OSHA Training Institute Education Centers in California: If you’re in construction, you need to be OSHA-compliant. Make sure you know the rules.
Construction Financial Management Association (CFMA): Provides education and networking for construction financial professionals.
SmartMarket Reports by Dodge Data & Analytics: This is a good great place to find insights and trends in the construction industry.

Conclusion

This is just the beginning of the story when it comes to business administration for construction contractors. This is a well that goes deep. Very deep.

The truth is you simply can’t be an uneducated construction worker who goes around and bangs a hammer for twenty bucks and a sandwich these days. If you’re an independent construction contractor, you need to be a business owner as much as you need to know arc welding, or else you’ll never finish first in the race to the top of Construction Mountain.

The CSLB Contractor License And You: A Guide To The Qualifying Individual

When it comes to getting your CSLB contractor license so you can start doing legal construction work in the state of California, one of the biggest areas of confusion is around the concept of “qualifying individuals”.

Qualifying individuals, or QIs, are an essential part of the contractor licensing process – but the actual description of these critical stakeholders leaves a lot to be desired, especially for laymen like you and me.

In this article, we’ll cover the qualifying individual for the CSLB contractor license. What is a qualifying individual? How does it affect the contractor’s license process? Do you need a qualifying individual for your solar panel contractor’s license?

Let’s find out.

What is a “Qualifying Individual”?

A qualifying individual, or “qualifier,” is a person listed in the California Contractors State License Board’s (CSLB) records who meets the experience and examination requirements set by the CSLB and is responsible for the compliance of the contracting business with state regulations.

These are your licensed contractors, who have been through the CSLB wringer and come out the other side, with a polished contractor license and the experience and education to boot! However – they do not need to be licensed contractors themselves!

It’s important to note that every license with the CSLB requires a qualifier. A qualifier takes many forms; they may be a Sole Owner, Qualifying Partner, Responsible Managing Employee (RME), Responsible Managing Officer (RMO), Responsible Managing Manager, or Responsible Managing Member​.

That means that even you, as a one-man construction team, may be a qualifying individual! Likewise, in a giant construction firm, there may be several qualifying individuals who oversee the rest of the construction team and have the qualifications and expertise to do construction work.

In many contexts, a qualifying individual is basically a boss. They’re your foreman or company’s principal contractor – a CSLB license holder who is qualified to oversee construction work in accordance with their license. That means that even “unlicensed” contractors can do work under the supervision of this contractor.

What Does a Qualifying Individual or Qualifier Do?

The qualifier is responsible for exercising direct supervision and control of the employer’s or principal’s construction operations to ensure full compliance with the rules and regulations of the CSLB and local ordinances​.

In plain English, a qualifying individual is where the buck stops with regard to construction projects. A qualifying individual oversees the entire construction process in line with their license, even if they don’t do the work themselves.

For example, maybe a C-10 Electrical Contractor has an electrician’s apprentice working under them. In that scenario, the electrician is a qualifying individual for the C-10 license – and under that agreement, the electrician’s apprentice may perform electrical work, legally.

However, the qualifying individual – the contractor license holder – is ultimately responsible for the end product of the work, and is personally liable for any issues caused by the work of the people they are responsible for.

To use our electrical example again, if an apprentice causes electrical issues for the client, the C-10 electrician is ultimately responsible – not the apprentice!

What’s the Difference Between a Qualifying Individual and a CSLB License Holder?

A CSLB license holder is the entity or individual that holds the contractor’s license, while the qualifying individual is the person responsible for ensuring the license holder’s compliance with state regulations​.

Very often, license holders and qualifying individuals are one and the same. Your contracting company’s business structure will largely dictate your QI situation. Sole proprietors are often both the license holders and qualifying individuals for their own licenses. However, as business structures change and become more complex, who is the qualifying individual and who is allowed to work under their license becomes more challenging.

In many cases, qualifying individuals may be the organization’s head officer, who holds a contractor’s license of their own. Underneath their license, their employees may be able to perform the work outlined in their license classification. In this arrangement, the license holder/qualifying individual is responsible for the work of anyone working under their license!
Who Can Be a Qualifier or Qualifying Individual?

Eligibility for a qualifying individual varies based on the business structure and the level of construction expertise within the company.

A qualifying individual can be a Sole Owner, Qualifying Partner, Responsible Managing Employee (RME), Responsible Managing Officer (RMO), Responsible Managing Manager, or Responsible Managing Member. All of these have different levels of responsibility and liability, but ultimately it all means the same thing – these people hold the license and allow others to work under them under that same license.

Really, almost any management-level contractor can be a qualifying individual, so long as they meet the requirements to be a qualifying individual.

Types of Qualifying Individuals

There’s 7 types of qualifying individuals in the state. All of these have the same power and ability to oversee construction in their various specializations.

  • Responsible Managing Employee (RME): An employee of the contracting firm who is responsible for supervising construction activities and ensuring compliance with regulations. RMEs must be bona fide employees, working at least 32 hours per week or 80% of the total business operating hours per week, whichever is less.
    • It’s critical to note that RMEs cannot be a qualifier on any other active CSLB license. This is the only license they can be responsible for.
  • Responsible Managing Officer (RMO): An officer of a corporation or a member/manager of an LLC who is responsible for the construction activities of the business. These are often retired or promoted construction professionals like general contractors.
  • Qualifying Partner: In a partnership, one of the general partners is designated as the qualifier for the license. They are responsible for the supervision and control of the construction operations of the partnership, while the other partner is allowed to do work under that license.
  • Responsible Managing Manager/Member: In an LLC, a manager is designated as the qualifier for the license. Similar to an RMO, RMMs are responsible for overseeing the construction operations and ensuring compliance with regulations​​.
  • Sole Owner: An individual who owns the contracting business and is responsible for all aspects of the construction operations, including compliance with regulations and standards. This is most construction professionals in the state.

Bond of Qualifying Individual (BQI)

A bond of qualifying individual or BQI is a type of surety bond required for qualifying individuals who are not owners of the business.

This bond is similar to a contractor’s bond, protecting the end customer in the event of a contractor breaching a contract. However, this bond is actually held in addition to a contractor’s bond when acquired via a qualifier.

Like the contractor’s bond, the CSLB requires any license qualified by an RME to hold a QBI bond in the amount of $25,000. This is only for RME-qualified licenses.

If the bond is qualified by an RMO, however, the QBI might not be required. In instances where the RMO does not own at least 10% of the voting stock of the corporation. If they own more than 10%, the RMO must complete a Bond of Qualifying Individual Exemption Certification.

Here’s the additional requirements for the Bond of Qualifying Individual as per the CSLB.

  • The bond must be written by a surety company licensed through the California Department of Insurance.
  • The bond must be for $25,000
  • The business name, license number, and qualifier’s name on the bond must correspond exactly with the information on the CSLB’s records.
  • The bond must have the signature of the attorney-in-fact for the surety company.
  • The bond must be written on a form approved by the Attorney General’s Office.
  • The bond must be received at the CSLB’s Headquarters Office within 90 days of the effective date of the bond.

Do You Need a Contractor’s License to Do Construction Work If Your Boss Is A Qualifier?

In California, anyone who wants to perform work on a project valued at $500 or more for combined labor and materials costs must hold a current, valid license from the CSLB.

However, this is where the beauty of qualifying individuals comes in. If you are an employee working under the supervision of a licensed contractor or qualifying individual, you do not need your own contractor’s license. The qualifying individual, typically your boss, is responsible for ensuring that the work complies with state regulations and standards, and thereby takes responsibility for your work.

Can Employees Without Contractor’s Licenses Do Construction Work Under a Company-Wide Contracting License?

Yes, employees without contractor’s licenses can perform construction work under a company-wide contracting license, as long as the work is supervised by a licensed contractor or a qualifying individual.

As we’ve stated numerous times in this article, the licensed contractor or qualifying individual is ultimately responsible for the quality of work and compliance with state regulations.

Employees do not need individual licenses to work on projects as long as they are working under the umbrella of the company’s license​​ – but they may need additional licenses if the construction work falls outside of the scope of the QI’s license.
Who Is Liable For Damages Under A Qualifying Individual?

If there’s an issue with an employee’s work under a qualifying individual’s license, the qualifying individual (and potentially the licensed contractor or company) is held liable for damages or non-compliance in 99% of cases. This is how the QI system is designed.

The qualifier is responsible for exercising direct supervision and control of the construction operations to ensure compliance with regulations. In case of any disciplinary actions due to non-compliance or poor workmanship, both the license and the qualifier may face consequences, but again, usually, it is the license holder or QI who is responsible for damages.
Do Qualifying Individuals Need A Valid CSLB License?

Surprisingly – no! You do not need to have a contractor’s license to be a qualifying individual!

The only requirement to be a qualifying individual is that you must meet the experience and examination requirements. A qualifying individual does not actually need to have a CSLB license, strangely enough.

Can Someone Else Be a Qualifying Individual for Another Person’s Contractor’s License?

Yes, someone else can be a qualifying individual for another person’s contractor’s license, provided they meet the necessary requirements​.

That’s the entire point of a qualifying individual – it allows people without contractor’s licenses to “borrow” a licensed contractor’s license to perform construction work.
Do I Need to Be a Qualifying Individual to Get a Contractor’s License?

Yes, every CSLB license requires a qualifying individual who has demonstrated knowledge and experience. A qualifying individual can be yourself – so no worries there!

How to Find a Qualifier/RME/RMO?

Finding a qualified RME or RMO involves networking, using recruitment agencies, and exploring online platforms like LinkedIn and industry-specific job boards.

Consulting firms that specialize in providing RME or RMO services for contractors who need a qualifier can also be a resource​​ but are harder to find.

The best way to find a qualifier is your local network – surely you know some licensed contractors in your area that would allow you to do construction work for them! Reach out and see if they’ll help you out!