Category Archives: CSLB News

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 Updating a bathroom can lead to luxurious, spa-like results or it can be as simple as updating a few outdated fixtures and finishes.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

Can an Unlicensed Contractor Sue Me?

Although it might seem like a nearly impossible, worst-case-scenario type of event, you – an innocent homeowner or business owner – are being sued by an unlicensed contractor for issues that happened on your job site. Remain calm. If an unlicensed contractor has threatened to sue you, it’s actually not the end of the world.

In a past blog post, we answered the question Can You Sue an Unlicensed Contractor? and now it is time to take a look at the other side of that same coin and let you know whether or not an unlicensed contractor can sue the client who hired them.
The Unlicensed Contractor Dilemma

You’ve been given the same advice a million times — hire a licensed contractor. If any kind of home repair or construction work exceeds $500 in labor and materials, you need a licensed contractor for the job.

Even though the message to hire licensed contractors is out there, you may have unknowingly hired a slippery, unlicensed contractor who convinced you that they’re the real deal.

It’s upsetting enough to realize that someone is working with you in bad faith, but in addition to that, you’re seeing what a challenge it is to hold unlicensed contractors accountable.

Meanwhile, the unlicensed contractor might lead you to believe that you are liable for damages if anything goes wrong while they are working on your handyman or construction project.

Can they sue you for non-payment? Can they sue you if they get injured or sick on the job? What are your rights? What is your responsibility?

Unlicensed Contractors Have Limited Legal Standing to Sue

The thing that unlicensed contractors want you to forget or fail to realize is that they typically have limited legal standing to sue you for not paying them.

A quick review of the California Business and Professions Code section 7031 shows that unlicensed contractors are prohibited from taking legal action to enforce contracts for services requiring a valid contractor license – so if they don’t have a license, they can’t sue you!

Unlicensed contractors can’t sue you for breaking a contract that they entered fraudulently. This rule exists to discourage unlicensed individuals from advertising illegal services in the first place and this rule also stands to protect consumers from unscrupulous practices.

Exceptions to the Rule

There are extraordinary circumstances that might get a judge to rule in favor of the unlicensed contractor who has sued to recover payment:

Substantial Compliance
In some rare situations, the courts might see that the contractor made a good-faith effort to comply with licensing requirements. “Substantial compliance” might be enough to keep you on the hook for paying this individual.

Minor Work Exemption
For projects valued under $500, certain minor work exemptions do apply. If it is determined that your project qualifies for such exemptions, that may be enough of a legal precedent for you to pay for the labor.

Please note that the above-mentioned scenarios are rare and the risk involved is considerably low compared to the drama and headache that typically comes with hiring an unlicensed contractor to work on structural repairs and other construction work.

How Homeowners Can Protect Themselves

The constant refrain that you’ll get from the Contractors State License Board (CSLB) is to take your time when hiring a contractor and look up their license to verify that it is active and valid.

The CSLB urges the public to report illegal contractor activity to avoid situations where consumers could get swindled and tricked into hiring an unqualified worker leaving shoddy non-compliant construction work in their wake.

One simple way that homeowners can protect themselves is by getting everything in writing from the outset. All agreements and details indicating the scope of work, the costs of the project, and timelines should be documented in a written contract and signed by both parties.

Another easy thing you can do is ask for references from past clients. Checking out a contractor’s work history and gauging the satisfaction of the people who have hired them before can only help you. The more you know the better.

Also, another great way to have your own back is to check your contractor’s proof of insurance coverage. You want to be sure that the contractor carries liability insurance and workers’ comp coverage so that there are no unpleasant surprises later down the line.

We don’t have to tell you that accidents and injuries come up in construction frequently, so before you enter a new contract, make sure you understand the liability that you are taking on.

Conclusion

The take-home advice is to do whatever you can to avoid hiring an unlicensed contractor.

The lack of a license might indicate that your contractor lacks the necessary skills and expertise required for delivering high-quality work.

Substandard, non-compliant workmanship leads to safety issues and legal troubles that you do not need in your life. If you unknowingly hire an unlicensed individual, both you and the contractor could potentially face serious penalties.

While it is not likely that an unlicensed contractor can sue you and win in a court of law, you still risk facing legal consequences eventually just by agreeing to let someone perform contractor work on your property without a license.

Additional Reading

CSLB – Before Hiring a Contractor
CSLB – Owner-Builders Beware!
Unlicensed Contractors: The Good, The Bad, and The Ugly
CSLB – Consequences of Contracting Without a License

Guide to Liability Insurance for Contractors in California

Starting your career as a construction contractor in California? Or maybe you’re a seasoned contractor who has recently had liability issues crop up unexpectedly? Or maybe you’ve got an eye out for legislative changes that will require contractors to have general liability insurance.

At any rate, general liability insurance is something that all construction contractors should be familiar with – no matter your specialization, license classification, or area of operation. If you don’t have general liability insurance for your contracting business, this article will get you up to speed on what it is, why it’s important, and why you must have general liability insurance for all projects and businesses going forward.

What is Liability Insurance?

Liability insurance is a type of insurance policy that protects individuals and businesses against the risk of being held legally liable for actions or inactions that cause injury or damage to third parties.

It can protect individuals or businesses from any sort of damage occurring under one’s purview. In other words, liability insurance makes sure your buns are covered in the case of an on-site disaster.

Liability insurance, in practice, is usually applied in the case of legal proceedings. Liability insurance will usually cover the costs associated with legal defense, settlements, or judgments awarded to the injured party, as well as any additional costs that relate to the incident.

Basically, general liability insurance makes it so you, the contractor, aren’t personally or financially responsible for anything that goes wrong on a job site.

The reality is that it’s not a question of if, but when something goes wrong on a construction site – liability insurance is there to protect you from being personally liable when that happens, protecting you from financial losses.

What is General Liability Insurance And How Is It Different From Regular Liability Insurance?

General liability insurance is a subset of liability insurance. General liability insurance is specifically designed to protect businesses, including contractors and contracting businesses. When a company has general liability insurance, the policy provides coverage for third-party claims of bodily injury, property damage, and personal and advertising injury.

As we’ve previously established, general liability insurance is the type of insurance that contractors should be looking for to protect their contracting business. General liability insurance is essential for contractors as it protects them from financial losses resulting from accidents or injuries that occur on the job site or as a result of their operations – an inevitability in this industry!

Liability Insurance vs. Contractor’s/Surety Bonds

If you’re a contractor, you should already be intimately familiar with contractor’s bonds aka surety bonds – but what’s the difference between a surety or contractor’s bond and liability insurance?

The primary difference between contractor bonds and liability insurance is protected by these legal frameworks.

Surety bonds are required by the CSLB as they protect the consumer from malpractice on a contractor’s side of things. Surety/contractor bonds give the homeowner or property owner legal and fiscal recourse if a contractor does not fulfill their end of the contract, as the contractor bond company pays the client for their losses.

Unlike the contractor’s bond, which exists to protect the consumer, liability insurance is there to protect the contractor. It protects the contractor in the event of injury on a job site where the contractor is usually liable for damages, by essentially taking the responsibility of reward and compensating the parties who are damaged by the accident or issue.

In short: contractor’s bonds protect the client, customer, or consumer of construction services. It ensures that the contractor will fulfill their end of the bargain as laid out in the contract. Meanwhile, liability insurance protects the contractor from being pursued for financial damages in the case of a job site accident.

What Does Liability Insurance Cover?

Liability insurance for contractors typically covers:

  • Bodily Injury: Medical expenses and legal fees associated with injuries to third parties.
  • Property Damage: Costs to repair or replace damaged property belonging to third parties.
  • Product and Completed Operations: Claims related to the contractor’s work after the project is completed. There may be overlap here with a contractor’s bond, in some situations. Liability insurance adds another layer of protection for contractors.
  • Personal and Advertising Injury: Claims of slander, libel, or copyright infringement. This is pretty common in the construction industry, where advertising laws are rarely enforced.

Examples of incidents where liability insurance comes into play in construction include accidents resulting in injuries to clients or bystanders, damage to neighboring properties, and – rarely – legal disputes over advertising practices​​.

Do You Need Liability Insurance to be a California Contractor?

No, contractors in California are not legally required to have liability insurance to operate legally – although the CSLB highly recommends it!

Not having liability insurance for your business as a contractor is practically a guaranteed recipe for disaster. Life-destroying consequences lurk around every corner on construction job sites – leaving you open to extreme pain when something inevitably goes wrong.

Considering the enormous financial costs related to construction job injuries and damages, you could be looking at thousands or even millions of dollars for any issue, liability insurance is a powerful safeguard against financial and legal penalties that come with construction.

There’s also the possibility that these requirements could change in the near future. Considering the recent changes to bond limits and the requirement for all contractors to have workers’ compensation insurance – even without employees – by 2026, there’s a good chance that the CSLB will also require contractors to have liability insurance.

Don’t wait until liability insurance becomes mandatory. Paying for insurance stinks, but the reality is that you will run into a workplace incident at some point in your career, and when the court comes a-calling, you’re going to wish you had liability insurance. Trust us – it’s worth the money!

CSLB News: Humboldt County Sting Operation Busts 4 Unlicensed Contractors

SACRAMENTO – The Humboldt County District Attorney’s Office and the Contractors State License Board (CSLB) worked together in an undercover operation that ultimately exposed contractors for performing construction work without a license.

The severe stormy weather in early February precipitated the increase in demand for home repair work in southern California. As a result, unlicensed contractors began advertising themselves as available for hire for construction contracting services.

In California, it is required by law for unlicensed contractors to state clearly that they are not license holders and that they cannot bid on work contracts valued higher than $500 (including labor and materials).

But in Eureka, CA this month, law enforcement and the CSLB discovered that four unlicensed contractors had submitted bids ranging from $1,400 for a home painting project to $12,000 for deck work. Exceeding the legal limit of $500 is a blatant violation of the standards and regulations put in place by the CSLB.

This undercover sting operation left each of the four unlicensed contractors with a Notice to Appear in criminal court. Their primary offense was allegedly performing contracting activities without the required licenses.

One of the offenders may face an additional obstruction of justice charge. After the accused individual was caught by the sting operation, they took to social media to post information about the crackdown, most likely to warn other unlicensed contractors to help them dodge controversy.

Investigators report that this person was expressly told not to spread information about the undercover operation. Now they and the three other individuals who were suspended for unlawful construction activities are looking at fines and possible jail time.

In a statement to the press, David Fogt from the CSLB Registrar underscored the importance of hiring licensed contractors for home improvement projects. He pointed out how after a storm, unlicensed contractors are more likely to take advantage of the moment and approach people in need of home repair.

Fogt’s message concluded with him saying, “That’s why CSLB educates consumers on how to protect themselves by hiring a licensed contractor — it takes just a few minutes to find a licensed contractor in California.”

Most contractors know that the CSLB operates under the umbrella of the Department of Consumer Affairs. The board licenses and regulates about 285,000 contractors in California and it requires that all of them carry some form of insurance or another to comply with public safety standards and to meet established quality standards.

When unsuspecting clients wind up hiring unlicensed contractors like the four individuals who got caught so recently in Eureka, they are unknowingly taking on a great deal of risk. Because the work of an unlicensed contractor is performed without the CSLB’s endorsement or oversight.

Homeowners hiring unlicensed contractors to perform construction work that exceeds the $500 limit open themselves up to potential legal problems and safety issues. They could be taking on the legal liability for any damages incurred as a result of the unlicensed construction work.

Taking on costs associated with workers’ compensation, building code violations, having to redo shoddy construction work, and other similar costs is wholly unnecessary. The CSLB strongly encourages consumers to plan ahead and hire a licensed contractor to ensure safe, efficient, and high-quality work from contractors.

C-9 Drywall Contractor’s License: A Comprehensive Guide

Looking to become a licensed drywall contractor in California, so you can start making money doing drywall fitting, installs, maintenance, and more?

We’ve got you covered. In our latest comprehensive license guide, we’ll cover everything related to the C-9 license: what it is, who needs it, what kinds of jobs you can do with a C-9 license, and more!

Let’s dig in.

What Does a C-9 Drywall Contractor Do?

A drywall contractor specializes in the installation, taping, and texturing of gypsum wallboard assemblies, including nonstructural metal framing members. Drywall contractors are skilled professionals responsible for installing wallboard panels, which are used to construct walls and ceilings in buildings.

Their work involves measuring, cutting, and fitting these panels into the framework of buildings and ensuring a smooth, finished surface that’s ready for painting or wallpapering. The main day-to-day tasks include taping and applying joint compound to seams between panels, as well as patching and sanding imperfections to create a seamless appearance.

C-9 drywall contractors play a crucial role in both residential and commercial construction by ensuring walls and ceilings are properly installed and finished to meet building standards and aesthetic requirements.

While C-9 drywall contractors install drywall, they may not paint these walls (that’s a C-33 Painter’s License) nor may they build the framing around them (that’s a C-5 Carpenter’s License).

What is a C-9 Drywall Contractor License?

The C-9 Drywall Contractor License is a classification under the California Contractors State License Board (CSLB) that permits individuals or companies to legally perform drywall installation and repair services within the state of California.

This license is a testament to the holder’s expertise in the field, ensuring any C-9 license holder meets the state’s rigorous standards for safety, quality, and professionalism. Without a C-9 license, you cannot do any drywall work on projects over $500.

Who Needs a C-9 License?

Individuals or businesses that undertake drywall projects in California where the total cost (labor and materials) exceeds $500 must possess a C-9 license. If your job is less than $500, you can do drywall work without a C-9 license, but those cases are rare.

Licensure ensures that all parties involved are qualified and capable of adhering to state regulations and building codes – and penalties are serious and severe for people who do work without a contractor’s license.

When Do You Need a C-9 Drywall Contractor License?

As we’ve just covered, you need a C-9 license before bidding on any project that involves drywall work exceeding $500 in California. That’s right – beyond doing the work itself, you need a license to even bid on a project!

Furthermore, a C-9 license whenever doing any sort of drywall work over $500. This involves practically anything related to drywall, including the nonstructural and aesthetic work surrounding an installation.

As previously stated, the main areas that require a C-9 license are:

  • Installation of gypsum wallboard
  • Nonstructural metal framing members
  • Taping and texturing operations

Most Common Types of Jobs for a C-9 Contractor

C-9 Contractors can undertake a variety of projects. Generally speaking, here are the main areas you’ll be working on as a C-9 contractor.

  • Installation & finishing of drywall in new structures and remodels
  • Patching/repairing of drywall
  • Metal stud framing
  • Acoustic ceiling removal
  • Sound control installations
  • Suspended ceilings​.

Digging deeper, here are some more specific types of jobs for C-9 contractors:

  • Fire-rated Drywall Installation: Projects that require fire-resistant drywall to meet building codes and enhance the safety of structures.
  • Moisture-resistant Drywall Installation: In areas prone to moisture such as bathrooms and kitchens, moisture-resistant drywall is essential for preventing mold and water damage.
  • Acoustic Drywall Installation: For buildings where sound insulation is crucial, such as apartments, hotels, and schools, using acoustic drywall helps in reducing noise transmission.
  • Architectural Drywall Features: Creating custom arches, eaves, and other architectural features that require precise drywall shaping and installation techniques.
  • Decorative Texturing: Applying specialized textures to walls and ceilings for aesthetic purposes, including but not limited to, knockdown, orange peel, and smooth finishes.
  • Drywall Art and Sculpting: Crafting artistic elements or sculpted details into drywall, which can include recessed lighting coves or custom relief work.
  • Seismic Retrofitting: Installing or upgrading drywall systems to improve a building’s earthquake resilience, often involving the use of flexible fasteners and reinforced framing.
  • Lead-lined Drywall Installation for X-ray Rooms: In medical facilities, installing lead-lined drywall is necessary to provide protection against X-ray radiation.
  • Egress and Fire Escape Routes: Constructing or modifying walls to ensure compliance with safety codes, including the installation of fire-rated drywall in stairwells and escape routes.
  • Water Damage Repair: Replacing or repairing drywall that has been damaged by water or moisture, including matching textures and finishes in restoration projects.
  • Historic Renovation: Working within the constraints of historic preservation standards to repair or replace drywall in a way that maintains the integrity of the original structure.
  • Crack and Hole Repairs: Addressing structural and cosmetic issues in drywall, from small punctures to larger areas of damage, ensuring a seamless finish.
  • Insulating Drywall Systems: Installing drywall products that come with built-in insulation properties to enhance a building’s thermal performance.
  • Air Sealing: Implementing drywall installation techniques that improve the airtightness of a building, reducing energy loss and improving comfort.

Each of these tasks requires a deep understanding of building codes, materials, and techniques to ensure a high-quality finish that meets or exceeds the client’s expectations.

How to Get a C-9 License in California?

  • Experience Requirement: Applicants must prove a minimum of 4 years of journeyman-level experience in the drywall trade.
  • Age and Identification: Be at least 18 years old with a valid driver’s license or USA Issued Identification.
  • Application Process: Submit a completed application to the CSLB, including proof of experience and a $330 application fee.
  • Examination: Pass the two-part state CSLB exam covering trade-specific knowledge and California business law.

What’s the Difference Between a C-9 Contractor, a C-6 Contractor, and a C-5 Contractor?

The C-9, C-6, and C-5 classifications all fall under the broader category of carpentry and construction but specialize in different aspects.

A C-9 Drywall Contractor is specialized in the installation and finishing of drywall. In contrast, a C-6 Cabinet, Millwork, and Finish Carpentry Contractor specialize in building and installing cabinets, millwork, and other fine woodwork projects. A C-5 Framing and Rough Carpentry Contractor focuses on the framing work that provides the structural support for buildings, including framing systems, sheathing, subflooring, and related tasks.

The key difference lies in the specifics of their trade skills and the materials they work with. C-9 contractors work with gypsum wallboard, C-6 contractors with cabinets and fine woodwork, and C-5 contractors with structural wood framing. Each requires a unique set of skills, knowledge, and experience to meet the standards of their specific trade.

What Types of Contractors’ Licenses Are Good to Have in Addition to a C-9 License?

Holding additional licenses can expand a C-9 contractor’s business opportunities by allowing them to take on a broader range of projects. Here are a few licenses that complement the C-9 license well:

  • C-5 Framing and Rough Carpentry License: Since many drywall projects are part of larger construction projects that involve framing, having a C-5 license allows a contractor to handle both the structural and the finishing aspects of the project.
  • C-6 Cabinet, Millwork, and Finish Carpentry License: This license allows a C-9 contractor to offer comprehensive interior finishing services, including custom cabinetry and detailed millwork, alongside drywall services.
  • C-10 Electrical Contractor License: For projects that require electrical work behind walls before drywall installation, a C-10 license can be beneficial.
  • C-33 Painting and Decorating Contractor License: Since painting often follows drywall installation, having a C-33 license allows a contractor to provide a complete finish package to clients.

Popular Niches For C-9 License Holders

When it comes to being a C-9 contractor, there’s a number of general areas that you can work in. Here are some of the main niches where C-9 contractors can establish a powerful niche.

  • Complete Home Remodels and Renovations: Handling the framing, drywall, and finishing aspects of remodels can make a contractor a one-stop shop for clients.
  • New Residential and Commercial Construction: Being able to manage both the structural framing and the interior drywall and finishes can be a significant advantage.
  • Custom Home Theaters and Soundproofing Projects: With expertise in drywall, a contractor can specialize in creating custom entertainment spaces and soundproofing, areas that require specialized drywall techniques.
  • Energy-Efficient and Green Building Projects: Incorporating energy-efficient techniques in drywall installation, such as using sustainable materials and advanced insulation strategies, aligns with growing trends in construction.

Holding multiple licenses not only broadens the scope of potential projects a contractor can bid on and complete but also enhances their appeal to clients looking for a comprehensive range of services from a single provider.

By following the above guide and meeting California’s strict licensing requirements, anyone can embark on a rewarding career as a C-9 Drywall Contractor. This license not only opens the door to a wide range of projects that you may already be working on in other capacities, but the C-9 license also establishes the contractor’s credibility in an environment that thrives on trustworthiness and integrity.

The Consequences of Doing Unlicensed Contractor Work in California

Tempted to do unlicensed contracting work in California? Thinking you can save money and time by skipping the CSLB’s arduous licensing process by simply making a backroom deal? Maybe you can hire your nephew as a concrete subcontractor under the table and save money on taxes?

Sounds good, right?

Wrong.

When it comes to doing unlicensed contracting work in California, you need to consider the consequences. In California, there are serious consequences for doing unlicensed contracting work on jobs over $500 – including facing time in jail.

Still – you might think you’ll get away with it, but we’re here to tell you: it’s simply not worth the trouble. Why? Let’s find out.

What is a CSLB Contractor’s License?

The CSLB Contractor’s License

The CSLB (California State License Board) contractor’s license is a certification issued by the state of California to individuals and businesses in the construction industry, ensuring they meet the necessary qualifications and standards. It covers various classifications, including general building, specialty trades, and engineering.

The Importance of Licensure

The whole point of a CSLB license is to ensure safety and security when it comes to construction. People need to know they’re safe in their homes, workplaces, bars, restaurants, and go-kart tracks. The CSLB license ensures that you not only have a verified professional doing your job – but that you have a way to fix any issues a contractor may cause you.

A CSLB license signals to clients that you are worth the time and money they’re investing in you – the CSLB serves as a gold standard for construction professionals in the state.

Do I Need a Contractor’s License to Do Contracting Work?

In California, it’s mandatory for any contract over $500 (labor and materials) to be undertaken by a licensed contractor. This requirement safeguards consumers from potential fraud and ensures that all work meets specific safety and quality standards.

While you can stick to jobs under $500 for your whole career – a construction job known colloquially as a handyman – most construction contractors want to reach for the stars and grow their careers and businesses. If you have any ambition as a contractor, you need a CSLB license.

What Happens if You’re Caught Doing Unlicensed Construction Work in California?

Immediate Repercussions

Contractors found working without a license face severe penalties, including fines, cease-and-desist orders, and the possibility of criminal charges – all of which are designed to stop unlicensed activity before anyone can get hurt or suffer losses.

And California is always watching – the CSLB has done at least 10 separate stings just last year, involving over 20 unlicensed contractors operating in the state. Many of these contractors were pulled off the job site, arrested on the spot by local authorities, and compelled to serve jail time.

If you’re doing unlicensed work and someone finds out, they’re going to get you and get you quick!

Who Enforces Contractor’s Licenses in California?

CSLB’s Role

The CSLB is responsible for enforcing contractor licensing laws in California. Through investigations, sting operations, and consumer reports, the CSLB ensures compliance and prosecutes violations.

The CSLB’s license task force is called SWIFT. SWIFT (CSLB’s Statewide Investigative Fraud Team) is responsible for enforcement across the state. They work together with local law enforcement to perform stings against unlicensed contractors operating in the state.

Recent sting operations by the CSLB in counties like Orange and Sonoma have resulted in several unlicensed contractors being caught and facing legal action.

For instance, in June 2023 in Orange County, eight individuals received Notices to Appear in criminal court for contracting without a license, with bids ranging from $7,500 to $36,000 for a painting job​.

Similarly, in Sonoma County, eight suspected unlicensed contractors were cited during a sting operation, with submitted bids exceeding the legal limit of $500, highlighting the ongoing efforts to crack down on unlicensed activities​.

Legal Ramifications for Unlicensed Contracting Work

  • Fines and Penalties: Unlicensed contractors can face fines ranging from $200 to $15,000.
  • Criminal Charges: Engaging in unlicensed contracting work can lead to misdemeanor or felony charges, with potential jail time. Multiple offenders are often placed in jail for six months or longer.
  • Restitution to Consumers: Courts may order unlicensed contractors to pay restitution to harmed consumers. Whenever there are damages to the home or persons, courts will most likely order contractors to make their clients whole.
  • Administrative Actions: The CSLB may issue cease-and-desist orders and place individuals on a public database of violators. If you’re a violator of the CSLB, you will be on their list forever, and you will face much greater scrutiny with everything you try to do through the CSLB.

Conclusion

Operating as an unlicensed contractor in California carries significant risks, including legal penalties, financial liabilities, and damage to one’s professional reputation. The CSLB enforces strict regulations to protect consumers and ensure that only qualified, licensed contractors perform work in the state.

We can’t say this more emphatically – do not do work in California over $500 without a license. There are simply too many consequences and you have too much to lose!

Being caught doing unlicensed contracting work will not only present short-term consequences like jail time and fines, but it also marks you for life in the state – meaning further scrutiny and worse penalties in the future.

What Does It Take to Get a General Contractor License in California?

In these uncertain times, when the job market is constantly changing, we do what we can to take control of our lives. Maybe you’re looking for a career change. Maybe you’re finishing up school and making decisions about what to do next.

No matter what season of life you find yourself in currently, you can look around and be certain that the construction business is strong and consistent in California.

If your career ambitions have begun to steer you toward becoming a contractor, you’re probably thinking, what does it take to get a Class B General Building Contractor License? This article can serve as an easy jumping-off point so that you can decide for yourself if taking this next big step is right for you.

Basic Requirements

Before getting too deep in the weeds about general contractor life, let’s make sure all the basics are covered. Here’s the absolute essential requirements put forth by the CSLB.

  • You must be at least 18 years old.
  • You must be legally allowed to work in the United States.
  • You must have a minimum of 4 years of journey-level experience.
  • Conversely, you may supply the CSLB with proof of three years of college or trade-specific classroom education. You must, however, have at least one year’s on-the-job experience doing general contractor work.

How Much Education Does It Take to Get a General Contractor License?

One thing that sets the general contractor career apart from so many others is the fact that you can build a lucrative future for yourself without having to worry about securing a pricey, seemingly out-of-reach higher ed degree first – and potentially saddling yourself with lifelong debt.

The reality is that the amount of education that you want to take on as you move toward your goals as a general contractor is mostly up to you – but education is always a method to empower oneself.

Basic math and reading comprehension are the main prerequisites that you’ll need in your day-to-day life as a general contractor – think about all the square footage you need to measure and the dozens of emails you have to write – so a high school diploma or an equivalent (like the GED) is enough to get you going.

Of course, you know that knowledge is power, so if you’re so inclined you can enroll in construction management programs, courses focusing on blueprint reading, or business administration classes to build your skill set anytime. Even a university degree can hugely benefit general contractors in this area of work.

General Contractors and Financial Commitments

For a lot of people who are just getting started with becoming a general contractor, the heaviest lift is the financial commitment involved. Take some time and reflect on whether now is the right time to go for your general contractor license. To make this pursuit worthwhile you’ll need:

When it comes to understanding the full schedule of fees, check out some of our recent posts, like How to Obtain a Contractor License with Minimal Fees and our Comprehensive Guide To CSLB Application Fees!

Liability and Mitigating Risk

We mentioned above that having a Contractor’s Bond (and very soon, workers’ comp) is essential as you move toward getting your general contractor’s license.

This is because the Contractors State License Board (CSLB) will not issue an active license, reactivate an inactive license, or renew an active license until these protections are in place.

This fact really gets to the heart of what it takes to become a general contractor. It takes the willingness to take on a hefty amount of liability. It takes someone who isn’t afraid of risk, but who can mitigate risk while on the job.

It takes a commitment to working in compliance with building codes and regulations. Meeting these standards is non-negotiable for a general contractor.

A failure to comply with the guidelines and restrictions set by local authorities inevitably leads to an increase in legal liabilities, financial penalties, and a damaged reputation.

Throughout your four years of required training, you’re likely to make mistakes and you’re likely to learn from those mistakes. But when you’re officially a license-holding general contractor the mistakes will be more costly and possibly more dangerous.

Can you envision yourself working closely with clients and crew members to mitigate risk as you work through your career in construction? Are you prepared to keep a clean paper trail documenting all your contracts, permits, inspections, and transactions?

Networking and Building a Reputation

Sometimes a word-of-mouth testimonial is your best asset. One major pillar that you’ll need to prop up your career as a general contractor is networking and reputation-building skills.

  • Join Trade Associations and participate in industry events, workshops, and seminars. The Associated General Contractors (AGC) or the National Association of Home Builders (NAHB) are great places to seek out networking opportunities.
  • Fix up your online presence and create a professional website for yourself. Link to social media and LinkedIn and include client testimonials there along with details about your industry expertise.
  • Prioritize customer service and nurture lasting relationships with clients. Remain consistent and always deliver high-quality workmanship while also keeping your communication with clients open and honest to maintain mutual trust.

Conclusion

It definitely takes a great deal to become a general contractor. But if you determine that you’re up for the task, it’s nothing you can’t handle.

Meeting the necessary requirements for getting the General Building Contractor license is only the beginning. Beyond that step, you will need to invest in continuing education for yourself and manage your financial responsibilities from job to job and in between jobs.

You will also have to work in compliance with California codes and local ordinances all while keeping up strong and healthy relationships with clients and colleagues.

If you see yourself aligning with this career journey, please check out the CSLB website to get the most current and accurate guidance for the next steps toward your future in construction.

Do You Need Workers’ Compensation Insurance As A Construction Contractor in California?

What Is Workers’ Compensation Insurance?

Workers’ Compensation Insurance – often referred to simply as workers’ comp – is a type of insurance designed to provide financial and medical protection to employees who suffer job-related injuries or illnesses.

This insurance is similar to liability insurance but is specific to people. If (and when) someone gets hurt on a job site, workers’ comp covers a number of costs for the affected worker, including medical care, temporary and permanent disability benefits, supplemental job displacement benefits, and death benefits.

The purpose is to support injured workers in their recovery and return to work while protecting employers from lawsuits by injured employees.

Even though contractors now have to supply another piece of insurance, it really is beneficial to both parties – workers have a safety net when doing sometimes dangerous construction work, while employers are indemnified from being sued for on-site accidents.

Does the CSLB Require Workers’ Compensation Insurance to Obtain a Contractor’s License?

At the time of writing, the California Contractors State License Board (CSLB) does not require that all construction contractors possess workers’ comp to obtain and maintain a contractor’s license; however, in the next few years, all contractors will be required to.

As of January 2024, here’s the classifications and situations where workers’ comp is required:

  • Any contractor who has employees
  • All active C-8 Concrete contractors, C-20 Warm-Air Heating, Ventilating and Air-Conditioning contractors, C-22 Asbestos Abatement contractors, C-39 Roofing contractors, and/or C-61/D-49 Tree Service contractors
  • Your license is qualified by an RME

This mandate is crucial to ensure that all contractors operating in the state are adequately covered for any workplace injuries or illnesses that their employees might encounter.

Recent Changes to Workers’ Compensation Insurance Requirements

The most significant recent change in California’s workers’ compensation insurance requirements is the enactment of Senate Bill 216.

This law, which came into effect in September 2022, expands the workers’ compensation insurance requirements to include all contractors by January 2026 – irrespective of whether they have employees!

This is a massive departure from the previous law, which mandated insurance only for contractors with employees and specific classifications. Now, every contractor – from general contractors with 50 subs on site to handymen – will have to have workers’ comp insurance.

In the meantime, specific contractor trades such as concrete (C-8), HVAC (C-20), asbestos abatement (C-22), and tree service (D-49) are now required to have workers’ comp, regardless if they have employees or not​​​.

Do I Need Workers’ Compensation Insurance If I Don’t Have Employees?

Under the new California law, even contractors without employees are required to have workers’ compensation insurance – but you have until 2026 to take action.

While you don’t need workers’ compensation right now if you don’t have employees, contractors who are sole proprietors or have no employees must still comply with this insurance mandate​​ in two years.

How Much Workers’ Comp Insurance Does a Contractor Need?

The required amount of Workers’ Compensation Insurance for a contractor in California depends on various factors, including the size of the business, the type of work performed, and the level of risk associated with the specific trade.

Contractors can obtain this insurance through a licensed insurance company or opt for self-insurance, which requires state approval, a net worth of at least $5 million, and a net income of $500,000 per year​.

Consequences For Noncompliance

The penalties for failing to carry workers’ compensation insurance in California are severe. They not only include losing your license, but you can even face imprisonment for up to one year, fines of up to double the amount of premium that would have been due, or a minimum fine of $10,000.

Additionally, the California Division of Labor Standards can issue a stop order, legally demanding cessation of all employee labor – which means more money disappearing into thin air. Noncompliance can also result in a misdemeanor criminal offense, punishable by up to 60 days in county jail or by a fine of up to $10,000, or both. In cases where an uninsured worker is injured, the employer may face a penalty of up to $100,000​​​!

In summary, workers’ compensation insurance is a mandatory requirement for all construction contractors in California, by January 2026, regardless of their employee count. Right now, only certain contractor classifications need to have workers’ comp, regardless of employees or not.

If you don’t have workers’ comp yet, you might as well take the plunge – as it’ll be required in two years anyway!

The 10 Most Common Permits for Construction Work in California

You could be just getting started with your career in construction or you could be a seasoned pro – but your knowledge of building permits, codes, and regulations should always continue to grow.

As you do more work, you’ll naturally become familiar with your local laws, but it’s also critical that you know some of the basics in a general sense.

Today, we’ll start with permits! Yeah, we’re excited, too.

These permits will no doubt come up again and again as you work. It may be a good idea to bookmark this page as a reference to make sure all your construction projects are safe and in accordance with local regulations.

Building Permits

Electrical Permit

  • You’ll need an electrical permit anytime you install, alter, repair, replace, or remodel an electrical system. There are a few cases that are exempted by the California Electric Code or by a County Ordinance, but it is safe to assume you’ll need this permit in most cases.
  • When in doubt, check local guidelines for electrical service upgrades and related contractor work.

Plumbing Permit

  • While there are so many different kinds of plumbing services for general contractors to be aware of, any sizable plumbing project or plumbing repair will require a plumbing permit.
  • The Uniform Plumbing Code and local regulations will help you install, repair, and replace plumbing fixtures and piping safely and legally, but make sure you are familiar with your local regulations.

Mechanical Permit

  • This permit works hand-in-hand with other permits for certain construction projects. You’ll need a mechanical permit before doing any ductwork or heating or cooling work.
  • Permit advisors – like Permit Advisors – can help you plan your project according to local building and safety standards.

Grading Permit

  • If any of your construction work involves changing the topography of a property, perhaps cutting or filling space in the earth, you’ll need a grading permit.
  • Class C-27 license-covered landscaping work will often require grading permits. Think about all the hillside construction, flood zone mitigation, and seismic hazard zone mitigation you see happening in California. That’s all grading.

Demolition Permit

  • While it’s true that different jurisdictions have supplemental regulations for the demolition category of construction work, overall you can be sure that you’ll need special permission before tearing down a structure or performing any kind of deep excavation.
  • According to the Department of Industrial Relations, you’ll also need to notify utility companies before demolition so they can accommodate the work by either shutting off or rearranging utility services to protect them from damage.

Environmental Permit

  • The state of California is sincerely invested in environmental conservation efforts, so wherever your construction projects risk affecting water quality, air quality, protected species, and their habitats, your work will involve environmental permits.
  • The California Department of Fish and Wildlife is a great resource for keeping up with the latest environmental reviews and permitting, and this Environmental Permitting Guide might also help you out as well.

Zoning Permit

  • Local zoning regulations dictate how land can be used and which kinds of structures can exist where. It sounds simple, but it can get pretty complicated, especially when you look back at our post about mixed-use construction and the zoning problems involved.
  • Check with your local planning department and review the standards laid out by the California Department of Housing and Community Development to stay informed about land-use rules you might need to know.

Special Use Permit

  • If a construction project involves a temporary structure, a special event, or some kind of unusual land use, that’s where special use permits may come up.
  • These permits exist for the sake of flexibility when certain plans come up within certain zoning districts. You can apply for a special use permit in California right here.

Fire Department Permit

  • Depending on a construction project’s size or scope, permits and clearances from your local fire marshal might be necessary. If you’re a C-16 licensed Fire Protection Contractor you know these permits well.
  • Local fire safety measures will keep you, your team, and your clients safe throughout construction. If you do not obtain the necessary permits, you could be looking at some big fines, major delays, or even a full work stoppage.

In Summary

Of course, there are many more permits you’ll come across throughout your contractor days, but the permits listed above are the ones that will come up repeatedly.

The Contractors State License Board will have all of the information you need when it comes to construction permits in California. Check there and also check with the local governing bodies responsible for the area where you work as regulations and permit requirements will vary depending on your location.

Clients Will Look Up Your Contractor License – Be Prepared!

Maybe you just realized your contractor license is past expiration, but you’re still completing a job. Maybe you’re taking on odd jobs here or there and the classification of your contractor license doesn’t actually cover that category of work. Maybe you’re just curious — Will the people who hire you check up on the validity of your license? Can they even check?

Yes. Clients can and will check to ensure that their contractors and their licenses are in good standing – and why wouldn’t they? Wouldn’t you do your due diligence if you were spending thousands on a new home or millions on an office?

Your clients will 100% check your license, so you need to be prepared to keep your license up-to-date…or failing that, do what you can to fix it. Here’s how.

Keep Your Contractor License Current…Or Else!

One of the first things your clients will do while hiring you is to check the validity and current status of your contractor’s license.

The client is looking for certainty and safety. They want to know that the significant money they are investing into their construction project is going to be put to good use by someone who knows what they’re doing.

In their minds, the outcome of their construction project depends on you and the entire contractor team being fit to work and in good legal standing with the state of California. Not only are they looking to make sure that you’ll deliver a good product, but they also want to know that they’ll be safe living and working in the house you built – two things that are verified by a license.

Not having a valid license will not only scare away potential clients who would much rather go with someone legitimate and licensed, but it will also lead to severe criminal penalties should you take on jobs over $500 without a license.

The state of California does not mess around when it comes to unlicensed contracting. Get a license, or don’t even think about doing construction. It’s that simple.

Anyone Can Check Your Contractor License On The CSLB Website

You can always count on clients visiting the Contractors State License Board (CSLB) website to check the status of your license. And it makes sense too, doesn’t it?

With the CSLB being the governing body responsible for issuing and regulating whatever contractor licenses you hold, they’re likely the first and only place someone might think to search for and verify the documents you hold indicating that you’re eligible for contractor work.

Since anyone can and will check your license at any time, thanks to the magnificence of the internet, it’s more important than ever to maintain your license and make sure you’re in good standing with the CSLB.

What Do Clients Check to Decide if You’re a Safe Choice?

Clients will always do their diligence when it comes to construction projects. If that’s surprising to you, you might consider another field of work.

People will naturally want to make sure the hundreds, thousands, hundreds of thousands, or hundreds of millions of dollars they’re investing in their construction project are being invested wisely and carefully.

Here’s the 5 main things they’ll look for.

  • Your Contractor License Number
    Your business card, website, wherever you advertise your services, or even your licensing documents themselves are a few places from where a person hiring you will grab your license number. Once they have that info, they will run a check on the CSLB website to see if you’re legit.
  • Previous Work
    One of the most obvious things that clients will look at when validating your qualifications is your previous work – especially previous work that is similar to their current project.
  • References
    Contractors – and people in general – first look to references from people they know and trust. As you grow your career, your network and references will grow, creating more opportunities and building your reputation in your niche.
  • Website
    A professional website is essential to creating a positive, professional impression on your potential client. There’s no excuse to not have a simple, beautiful website in 2024. Sure, it’s easier to not set up a website, but you’re just leaving money on the table.
  • Social Media
    The folks hiring you want to know that you have valid worker’s compensation insurance coverage. They’ll want to be sure that they are not liable in case of injuries to you or your employees while you complete their construction projects.
  • Reviews
    Of course, they’ll want to check reviews and the personal testimony of previous clients. How did you do? How was your rapport? Clients work to gather insights and impressions to get a sense of what it might be like to work with you.

Conclusion

Verifying the validity and current status of your California contractor’s license is often a client’s first step toward building trust in you and your work.

While it can be tough to keep renewing licenses and applying for additional licenses depending on the nature of your construction projects, it’s worth it if it means retaining clients and maintaining your reputation as a reliable and capable contractor.

As a contractor, your reputation is everything, and like it or not, a valid contractor license in good standing with the CSLB can make or break your reputation immediately.