Category Archives: CSLB News

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.

The California CSLB Reminds Licensees of New Laws Beginning January 1, 2024

We say Happy New Year to all acting and hopeful California contractors! It’s important – as always – to take a closer look at changes to the law for California contractors in the coming year.

The Contractor State License Board (CSLB) just released a press release outlining the most important pieces of legislation for contractors. There are some big ones this year – so let’s make sure you’re prepared to stay compliant in 2024.

First, we’ll provide the Contractor State License Board’s (CSLB) missive to all contractors, and then we’ll provide a little breakdown of what the text actually means for contractors in the coming year. Let’s check it out!

Sacramento, CA – Heading into 2024, the Contractors State License Board wants to remind licensees of new laws taking effect in the new year.

SB 630 (Dodd)
This bill requires CSLB licensees and applicants to provide an email address, if available, when they obtain and renew licenses. The email addresses are not subject to disclosure under the California Public Records Act. This bill also authorizes the Registrar to automatically reimpose license revocation when probationary conditions placed on a license are not met. (Chapter 153, Statutes of 2023)

AB 336 (Cervantes)
This bill requires licensees with a workers’ compensation policy to provide the top three workers’ compensation classification codes on their workers’ compensation policy when they renew their licenses. Those codes will be posted on the CSLB license lookup webpage. Licenses won’t be renewed without the codes. However, the bill allows for retroactive renewal if the licensee provides the codes within 30 days after receiving notice of the denial. (Chapter 323, Statutes of 2023)

AB 1204 (Holden)
This bill prohibits specialty contractors from subcontracting with two or more contractors in the same classification on the same jobsite unless the subcontractor has employees who perform the work in the relevant classification or are party to a collective bargaining agreement. This bill makes violations of this section cause for disciplinary action. (Chapter 568, Statutes of 2023)

SB 601 (McGuire)
This bill increases the statute of limitations to three years for misdemeanor violations by a licensed contractor for allowing an unlicensed person to use their contractor license. This bill also requires courts to assess the maximum civil penalty for specified home improvement contract violations in declared disaster areas. (Chapter 403, Statutes of 2023)”

SB 630: Contractors’ Email Addresses

SB 630 (Dodd) specifically requires that applicants, registrants, or licensees who possess a valid email address must provide this email to the board at the time of application or renewal. In safeguarding the privacy of individuals involved, the bill stipulates that these email addresses are not subject to disclosure under the California Public Records Act or other similar laws, except in specific circumstances mandated by a court order.

Additionally, SB 630 changes probationary conditions for contractors who have violated the law. It allows for a stay of execution of disciplinary decisions, contingent on the completion of specified probation terms and conditions. Crucially, if these terms and conditions are not fully complied with, it can result in the automatic termination of the stay of execution, thus reinforcing the accountability of licensees under disciplinary action.

The bill also includes provisions for the payment of restitution and the costs of investigation, enrollment in specific coursework, and successful completion of relevant examinations as part of the probationary conditions.

AB 336: Workers’ Compensation Requirements

AB 336 (Cervantes) sounds complicated but it isn’t. It requires any contractor who has Workers’ Compensation to provide to the CSLB three classification codes that are on their insurance policy.

Specifically, contractors need to identify the three classification codes for which the highest estimated payroll is reported on the policy. If there are fewer than three classification codes reported, all the reported codes must be provided.

This bill mandates that the Contractors State License Board (CSLB) include these classification codes in the public license detail on its website when updating for an active renewal. However, the CSLB is not required to verify the accuracy of these codes and is not liable for any misreported classification codes by a licensee.

In essence, AB 336 aims to improve transparency and accountability in the realm of workers’ compensation insurance among contractors. It ensures that the relevant classification codes are readily available and accessible, contributing to better regulatory practices in the industry

AB 1204: Multiple Class C Contractors

AB 1204 (Holden) relates to specific Class C specialty contractors who are prohibited from entering into contracts for work on the same project or undertaking with more than one subcontractor in the same license classification.

  • This restriction is subject to two key exceptions:
    The subcontractor employs persons who are classified as employees to perform work in that license classification on the project.
  • The specialty contractor is a signatory to a bona fide collective bargaining agreement covering the type of work performed on the project and addressing the issue of subcontracting or subletting.

SB 601: A Litany Of Changes

SB 601 (McGuire) makes several important changes to contract law for contractors, specifically aiming at preventing fraud, especially in disaster areas. It covers a few specific areas: home improvement contracts, liens, provisions for bonds, criminal penalties for violations, and restitution for fraud. In greater detail, SB 601 makes changes to:

  • Home Improvement Contracts Requirements: The bill outlines the specific things that are required to be in home improvement contractors. This includes stipulations about the contract being in writing, the inclusion of the full contract amount, separation of finance charges, limitations on down payments, and specific schedules of payments.
  • Payment and Lien Release: Except for a down payment, contractors should not request or accept payment exceeding the value of work performed or material delivered. It also requires contractors to furnish a full and unconditional release from any potential lien claimant for any part of the work for which payment has been made – but only if requested by the client.
  • Provisions for Contractors with Bonds: Contractors furnishing certain types of bonds or joint control approved by the registrar are exempt from some of these requirements and may accept payment before completion of work.
  • Criminal Penalties: The bill outlines the specific misdemeanor charges for violations of these provisions, with increased fines in areas damaged by natural disasters. Furthermore, it specifies a statute of limitations for bringing actions against licensed and unlicensed contractors.
  • Restitution for Fraud in Disaster Areas: In cases of fraud related to natural disaster repairs, the bill mandates full restitution to the victim based on the defendant’s ability to pay, along with potential additional fines.
  • Operative Date: The section concerning home improvement contracts becomes operative on July 1, 2024.

Remember – staying compliant is nobody’s job but yours. Do your diligence and make sure that you’re constantly on top of things, and you’ve got nothing to worry about from Johnny Law!

What Skills Do You Need To Be A Contractor/Builder?

If you’re just starting out in the construction industry, you might wonder what specific skills you’ll need to succeed in your career. Don’t worry – this is a common question that all beginners in any industry have when they’re just starting their careers.

In this guide, we’ll cover the essential skills that any contractor will need to survive as a construction contractor/builder, both now and in the future.

As always, we’ll keep our information specific and relevant to California as that’s our expertise – check in with your local contractor’s licensing board for information in your area.

Let’s begin!

Choose Your Contracting Career Path

When defining what skills you’ll need in your career as a construction contractor, it’s essential you understand what area of construction you’ll be working in.

Sure, anyone can start hammering some nails on a job site, but if you really want to succeed as a contractor, you really need to plan your future appropriately.

Do you want to be a specialist who works in air conditioning? What about a plumber? Maybe you want to be an engineer or maybe you want to oversee entire projects as a general contractor.

Contractor Licenses Across America

Whatever it is you want to do, you should be aware of the license, bonding, insurance, and other legal requirements surrounding the work you do. In many states, you may not need any of these to do work as a contractor. In many more states, like California, you need a license to be a contractor.

In California, the Contractors State License Board (CSLB) is the governmental authority that oversees contractors and makes sure that they stay licensed. Anyone who does construction work over $500 in California without a license faces severe penalties.

The CSLB has three different designations for contractors, based on the type of work they do.

The CSLB Class A, B, and C Licenses

  • Class A (General Engineering Contractor License): This license group is for people who work on specialized engineering projects like overpasses, airports, and highways.
  • Class B (General Building Contractor License): This classification is for general contractors, whose primary role is constructing structures for support, shelter, and enclosure. It requires involvement in at least two unrelated building trades or crafts.
  • Class B-2 (Residential Remodeling Contractor License): This contractor’s license is specifically for remodeling contractors. B-2 license holders can only make improvements to existing residential wood frame structures, involving at least three unrelated building trades or crafts.
  • Class C (Specialty Contractor License): Class C licenses are tradespeople licenses in California – your plumbers, your electricians, your HVAC workers, and so on. The list is long – there are even classifications for tree pruners!

Steps to Obtain a Contractor License in California

Getting a contractor license in California is no easy task – which is why we suggest knowing exactly what contractor area you’d like to work in as your career.

Basic Eligibility Requirements:

  • Minimum age of 18 years.
  • Four years of experience at the journey level or equivalent.
  • Possession of a $25,000 surety bond for consumer and employee protection (updated from $15,000 in January 2023).

Application Process:

  • Submit a detailed application to the CSLB, including business details, license type, and personal information.
  • Undergo a criminal background check, including fingerprints.
  • Pay all fees.

Licensing Exam:

  • Pass the mandatory CSLB licensing exam, made up of two sections: the law and business section and a practical test specific to the applicant’s license type. For example, electricians would get electrical-related questions on their trade exam.

Bonding and Insurance:

  • Provide proof of contractor license bond and workers’ compensation and liability insurance.
  • Pay the initial licensing fee after passing the exam.

Additional Licensing Considerations

  • State Business Licenses: Additional statewide business licenses might be required to operate legally in your state. California has locality-specific licensing. For example, San Francisco requires additional licensing for contractors on specific projects.

Do I Need School As A Contractor?

As we’ve covered many, many times before – no, you do not need a four-year degree to get your contractor’s license, like many jobs.

While formal education is not a mandatory requirement for obtaining a contractor’s license in California, we have to recommend it, especially for the dreaded CSLB exam.

This brutal test takes 3 hours and consists of over 120 questions related to law, business, and your chosen area of expertise. Even the most seasoned contractors have failed it – adding time and energy to their budget.

One of the best things about being a contractor is not having to go to college, but the reality is there are some things you just have to learn in a classroom.

General Skills for Success as a Contractor in California

While every classification has its specific requirements, there are some general areas of expertise that ALL contractors should seek to master if they wish to be successful contractors.

  • Technical Skills: Specific construction skills relevant to your license class. Every license classification has specific tech skills you need to know.
  • Business Management: Skills in project management, budgeting, and client relations are essential to maintaining a business no matter what industry you’re in.
  • Legal Compliance: Understanding state and local regulations, building codes, and safety standards is critical. Fees or jail time await noncompliance.
  • Communication: Effective communication with clients, team members, and other stakeholders – an obvious one, like business management skills. This is so obvious, but many contractors don’t think to develop their communication skills!

Specific Skills For Class A, B, and C License Holders

Skills for Class A License Holders (General Engineering Contractor)

Class A General Engineering Contractors are involved in large-scale and complex projects that require a deep understanding of engineering principles. Here are the key skills they need:

  • Engineering and Technical Skills: Comprehensive, university-level knowledge of civil engineering, structural design, and understanding of infrastructure development.
  • Industrial Plant Construction Skills: You may need skills around building hazardous or critical facilities like refineries and chemical plants, which demand adherence to strict industry-specific standards focused on public safety.
  • Heavy Equipment Operation: Operating heavy machinery for earthmoving, trenching, and other large-scale construction activities. Yes – Class A licenses can do that!
  • Project Management: Overseeing complex projects, coordinating with various subcontractors, managing budgets, and ensuring compliance with safety standards and building codes​​​​​​.

Skills for Class B License Holders (General Building Contractors)

Class B General Building Contractors work on structures for human occupancy, such as homes and office buildings. Their skill set includes:

  • Carpentry and Framing: Proficiency in constructing the structural framework of buildings, which is essential as Class B holders are allowed to take on framing contracts.
  • Basic Electrical and Plumbing Skills: Understanding the basics of electrical and plumbing work for residential and commercial buildings. You don’t perform the work, but you need to know it.
  • Knowledge of Building Codes and Regulations: Ensuring all construction complies with state and local building codes.
  • Versatility Across Trades: Ability to handle multiple unrelated building trades or crafts, such as painting, flooring, and tiling​.

Skills for Class C License Holders (Specialty Contractors)

Class C Specialty Contractors focus on a specific trade, with over 40 distinct categories. Each category requires specific skills:

  • Trade-Specific Expertise: Deep knowledge in your chosen specialty, e.g., electrical systems for electricians (C-10) or plumbing systems for plumbers (C-36).
  • Certifications and Training: Many Class C licenses require trade-specific certifications or formal apprenticeships.
  • Up-to-Date Industry Knowledge: Staying informed about the latest techniques, materials, and regulations relevant to their trade.

The skills and knowledge you gain as a contractor are what makes you — and all of us contractors — worthwhile.

Don’t look at gaining skills and expertise as a negative thing, as an obstacle to be overcome. Instead, view contractor-related skills as a chance for you to build your expertise and capabilities…which will ultimately allow you to demand higher fees and make more money!

General Contractors and Landscaping in California

All across the state, Californians get to enjoy extremely beautiful weather. To capitalize on this benefit, California homeowners tend to design their homes with a mix of indoor/outdoor spaces that maximize the exposure to pleasant weather.

This trend has been and will continue to be a fixture in the state, which means that general contractors can always expect their work to include exterior construction and at least some landscaping.

What Kind of License Is Needed For Landscaping?

In California, contractors need a C-27 license to provide specialized landscaping services. We won’t go too deeply into the C-27 license here – you can check out our post about the class C-27 Landscaping License to brush up on the type of work it covers and how to secure this license.

If you do not have a C-27 license, but you realize that your construction projects are going to veer into landscaping territory, alarm bells might be going off in your head. You need to complete your work, but you may also not be legally cleared to perform the work yourself. In this case, your only option is to hire licensed landscaping contractors to perform the work for you.

Where does general contractor work overlap with landscaping?

When it comes down to it, when does a general contractor need to hire a C-27 license holder to perform contracting work? When can a general contractor do the work themselves?

Here’s some of the most common interactions Class B and C-27 contractors have on builds.

  • Landscape Integration
    A lot of times, construction projects rely heavily on landscaping to enhance the overall aesthetic of a property — especially residential ones, where most general contractors operate. You’ve heard about how important “curb appeal” is to home buyers, especially nowadays. Creating a seamless integration of an outdoor space with a building’s design helps to sell the idea that a structure is safe and inviting to the onlooker.
  • Site Preparation
    Before landscaping work can begin, sometimes there are site prep requirements that fall under the purview of a general contractor. This work can include grading, clearing, or creating a foundation for outdoor structures.
  • Hardscaping
    Both general contractors and landscapers are involved with hardscaping. This work includes the construction of patios, pathways, retaining walls, or outdoor kitchens. This is a highly collaborative job, but the general contractor typically is responsible for the overall execution.
  • Irrigation and Lighting
    When it comes to irrigation and lighting, C-27 license holders need to do the actual installation and design while general contractors build whatever infrastructure is needed for irrigation systems or outdoor lighting.
  • Project Management
    On larger construction projects, a general contractor may be on the hook for crewing up and overseeing various subcontractors, including landscaping contractors. Understanding the demands of the landscaping labor and setting expectations for all parties involved would fall on the shoulders of the general contractor even though they’re not actually performing the landscaping duties.

Where Are General Contractor and Landscaping Duties Separate?

Despite the overlap in work responsibilities, it is important for general contractors to remain aware of the clear line between their work and the landscaping work. The licenses covering each serve distinct and unique purposes, each with specific responsibilities and requirements.

  • General contractors are primarily responsible for overall construction.
    The building’s structure, plumbing, electrical, and HVAC systems all fall to the general contractor. Their Class B license allows them to manage and coordinate various subcontractors, including C-27 license holders. The buck ultimately stops with them.
  • Landscaping contractors specialize in outdoor environments.
    Working with the aesthetics and functionality of plants, trees, irrigation, and outdoor structures all fall to the landscaper. They work under the general contractor’s supervision and perform their duties in accordance with their orders.

Conclusion

General contractors and landscapers have overlapping responsibilities and concerns. Certain issues like noise and nuisance regulations, general construction labor and safety laws, and building codes and permits affect both types of workers in more or less the same ways.

However, there are state and federal regulations that shine a light on the areas where generalized contracting ends and where hyper-specialized landscaping begins.

How To Find Your Contractor’s License Number

If you’re a construction contractor in California, knowing how to find your Contractors State License Board (CSLB) contractor’s license number is essential for winning clients, staying compliant, and, well, pretty much everything you do as a contractor in the state.

In this quick guide, we’ll cover everything you need to know about checking your contractor’s license number – what it is, where to find it, and how to maintain your license status with the CSLB.

The CSLB License: The Basics

In California, a contractor’s license is provided by the CSLB. This certification legally allows you to bid on and work on construction projects that fall under the umbrella of your license classification.

For example, if you’re an electrician, you can only take on electrician jobs, while Class B General Contractor license holders can naturally only take on gen con jobs.

Every CSLB license is tied to a specific contractor license number that is generated and maintained by the CSLB in a central database. This contractor license number is how you are identified by the CSLB, SWIFT, and other authorities when it comes to ensuring compliance with contractor license law.

In addition to legal authorities, many clients will request your contractor license number, so they can do their diligence on you and make sure that you are who you say you are and that you are licensed and capable of doing the job you are bidding for.

Where Is Your Contractor License Number?

When it comes to finding your contractor license, there’s a number of easy ways to locate it. The first and easiest is to check the documents the CSLB gave you – but it’s also easy to check online using the CSLB license checker.

Find Your License Number On CSLB Official Documents

  • CSLB Correspondence: Your license number is mentioned in any official communication from the CSLB. Check your business mailbox or your PO Box and there will almost certainly be a piece of mail from the CSLB with your number on it.
  • License Certificate: The number is displayed prominently on your license certificate. You should always keep your license certificate in a safe place, but somewhere where you can have it on hand as well, just in case you need to show it to someone.

Check Your CSLB License Online

  • The CSLB License Check Tool: Visit the CSLB website and use the Check a License tool. Simply input your name or your business’ name and it will quickly spit out all the details about your license (including your current license status and any potential holds against your license).

Print Your Own Cards

  • Business Cards and Advertisements: It’s a no-brainer to put your license number on your business cards and ads for your business. It’s convenient not only for you but for your customers, as they can quickly make sure that you’re legit and worth their money. In short, having your number front and center immediately separates the wheat (you) from the chaff (sketchy contractors)

Verifying Your CSLB License Status

Having issues finding your CSLB license number and need to find out why? Or maybe you used the CSLB license checker and found

Online Verification

  • Head To the CSLB’s Website: Start by visiting the CSLB’s website.
  • Use the CSLB License Checker Tool: Input your license number in the Check a License tool.
  • Review Details: Ensure your license status is active and check for any compliance issues.

Phone Verification

  • Call the CSLB: Dial 1-800-321-CSLB (2752). The automated system provides license information – all you have to do is tell them your license number and they can provide all the additional information.

Keeping Your License Information Updated

In some cases, you may need to update your license information. Maybe you moved to another city or maybe you removed an operating partner from your business. In any case, the CSLB requires you to promptly and directly update your information to them as soon as possible – or face the consequences of losing your license. Remember, it’s your responsibility to update your information – it is YOUR JOB to make sure your license is correct and valid.

Updating Contact Information

  • Online Update: Use the CSLB website to keep your contact details current.
  • Regular Checks: Regularly check and update your license information to avoid any compliance issues. Good contractors constantly make sure they are licensed.

Renewal and Compliance

  • Timely Renewal: Be aware of the renewal dates and comply with the necessary procedures to keep your license active. Licenses are only active for two years, so make sure you’re keeping your license up to date!

Conclusion

For contractors in California, keeping track of your license number and ensuring it’s active and compliant is crucial for your professional operations. Utilize the CSLB website and maintain up-to-date records for smooth business operations.

Remember, your contractor’s license number is not just a legal requirement, but a representation of your professional credibility in the construction industry in California – one that immediately signals to potential customers that you are worthy of their business.

Regular checks and updates are not only good to do but essential for any contractor worth their salt to make sure they’re staying above board with the CSLB and not operating illegally. Anything related to your license is your responsibility.

Reminder For Contractors: Civil Penalties Have Changed For Contractors Via Section 884

A reminder to all contractors that in August of 2023, the Contractors State License Board (CSLB) in California made crucial changes to Section 884 of Title 16, Division 8, of the California Code of Regulations.

These changes are generally about civil penalties in case of litigation by a client against a contractor, with the CSLB amending a full schedule of changes with associated costs based on the gross amount of damages created by the contractor in a civil suit.

We’ll cover the basics of these changes so contractors can enter 2024 armed with the knowledge to protect themselves from serious penalties.

Overview of Section 884 Amendments

The Key Information: Changes To Civil Penalties

The amendment to Section 884 introduces new penalty ranges for various violations under California law as per the CSLB.

For example, violations under Section 7028 now carry a penalty ranging from $200 to $8,000, while more severe violations, such as those under Section 7114, can attract penalties ranging from $500 to $30,000. There are roughly fifty.

We’ll attach a full civil penalties schedule for Section 884 Amendments at the end of this article.

How Are Civil Penalties Assessed By The CSLB?

The revised regulations allow the Registrar to consider several factors when determining penalties. Most of these are already applied, as the CSLB takes every contractor’s unique case into consideration when determining punishments.

The new changes outline that the Registrar can include the presence of multiple violations, a history of previous offenses, bad faith, the seriousness of the violation, and violations affecting vulnerable populations like seniors or disabled persons when outlining the penalties for civil suits.

Additionally, where a citation lists multiple violations related to the same construction project, the total penalty assessment in each citation is capped at different maximum amounts depending on the nature of the violations, with a general cap of $8,000, but going up to $15,000 or $30,000 for more serious offenses.

What Do Contractors Need To Do To Stay Compliant?

If you’re a contractor who is aware of the changes, you can stay compliant with the changes. As always, contractors who tend to be compliant tend to stay compliant – so you probably don’t have anything to worry about.

Bad actors; however, are in serious trouble with these new fees, as they can become extremely punitive to contractors who have a history of taking advantage of clients. We’re not really writing for those people anyway – chances are they don’t know and don’t care about regulation changes.

However, for good contractors like yourself, regular review of your practices makes sense, so you can ensure that you align with these new CSLB standards.

In addition to the new Section 884 changes, here’s some ways to stay compliant with Section 884 and other related regulations, contractors in California should be aware of the following:

  • Workers’ Compensation Insurance Requirements: Now, certain contractor classifications such as concrete (C-8), HVAC (C-20), asbestos abatement (C-22), and tree service (D-49) are required to have workers’ compensation insurance, regardless of whether they have employees. By January 1, 2026, this requirement will extend to all licensed contractors.
  • Increased Penalties for Permit Violations: Assembly Bill 1747 has increased potential civil penalties to $30,000 for violations of Business and Professions Code Section 7110, which includes disregard for state or local laws related to building permits.
  • Public Disclosure of Letters of Admonishment: The CSLB can now make letters of admonishment public for up to two years, depending on the violation’s severity, contractor’s good faith, and violation history. Another incentive to stay compliant!
  • Fee Reduction for Veteran Contractors: Assembly Bill 2105 allows a 50% reduction in initial license or registration fees for veterans.

Conclusion

As always, it’s critical that you stay informed on all the latest regulatory and compliance changes. It’s on you to be aware of all the laws and codes that regulate contractor law – so make sure you’re constantly staying up to date, both in terms of your knowledge and your application of said knowledge.
There’s no excuse for falling afoul of compliance in 2024 – we all have the internet – so make sure your ship is tight, so you don’t sink under the weight of rules and regs.

Find California Code Section 884 Civil Penalties Schedule Here.

How to Get a Handyman License in California

Is There Such A Thing As A Handyman License?

Are you a handyman in California and want to get your contractor license? You came to the right place!

As you surely know, almost every type of construction or home improvement worker in California is required to have a Contractor State License Board contractors license to practice their profession. Everyone from engineers to roofers is required to have one. But what about handymen?

We’re going to break the news to you right off the bat: there is no Contractors State License Board contractors license for people who do handyman jobs or maintenance workers.

In many ways, that’s good news! You save money on pricey licensing fees, bonds and insurance costs, and all of the legal red tape that comes with costly construction.

The downside is that there is a limit to how much you can make as a maintenance worker or handyman without a license – so you may be thinking about taking on larger jobs that may require a license.

Let’s explore more about how a handyman can take advantage of a contractor’s license.

When Do You Need A Contractor’s License?

In California, a handyman can legally undertake jobs without a license, but only if the combined labor and material cost is less than $500.

For projects exceeding this amount, a contractor’s license is required. It’s important to note that splitting a larger project into smaller parts to avoid licensing requirements is prohibited​​​.

What Kind Of Contractors License Does A Handyman Need?

If you plan to handle projects over $500, you need a CSLB license in whatever trade or profession the job is.

For example, if you are doing AC work, you need an HVAC license; if you’re pouring concrete, you need a concrete license, and so on.

However, the contractor license that makes the most sense for handymen or maintenance workers is a Class B General Building Contractor license.

This license covers a broad range of construction and remodeling activities. With a Class B License, you can perform a variety of general construction tasks from painting to carpentry and beyond.

Read our guide on the Class B License to learn more.

Requirements to Obtain a Contractors’ License in California

  • Journeyman-Level Experience: Aspiring handymen need at least 4 years of journeyman-level experience in their chosen trade, which can be verified by a licensed contractor or other experts.
  • Submit An Application: Complete the contractor’s license application on the CSLB website.
  • Exams: Pass the dreaded CSLB exam, which covers various aspects of construction, safety, and project management, in addition to contractor law and business.
  • Fees: Pay the required licensing fees. These fees are extensive and can add up quickly. See our article for a full rundown.
  • Bonds & Insurance: You must have a contractors’ bond and workers’ compensation insurance to get a contractor license from the CSLB.
  • Background Check: The CSLB will perform a federal background check and a fingerprint check. All applicants’ backgrounds are taken on a case-by-case basis, so don’t be discouraged if, for example, you’re a felon.

Additional Certifications and Training

With a contractor’s license, the scope of projects you can take on as a handyman or maintenance worker expands greatly. You can leverage this new power by strengthening your clients’ trust further in the form of certifications.

Here are some certifications in particular that dovetail nicely with handyman work. Many of these are important to ensure the health and safety of not only yourself but your employees and clients.

  • EPA RRP Lead Safety Certification: This certification is crucial for handling projects involving lead paint​​ – making sure you’re not inhaling or ingesting any carcinogens in the process of removal.
  • Mold Remediation Certification: A valuable certification for handymen, given the health risks associated with mold. Black mold in general is extremely commonplace in the US at the moment, which creates an opportunity for handymen to step in.
  • Professional Home Inspection Certificate: Useful for identifying potential issues in homes, an advantageous skill for handymen involved in property maintenance and repair​.

Conclusion

While California doesn’t have a specific handyman license, anyone undertaking significant repair or remodeling work should consider obtaining a contractor’s license – specifically a general contractor license.

By getting a Class B general contractor license, a handyman or maintenance worker can exponentially expand their offerings to individuals and businesses, to the point where you’re basically starting a new career entirely – without having to really do anything!

Additional Resources

For further details and up-to-date information, it’s recommended to consult the California Contractors State License Board and explore training courses and certification programs relevant to the handyman profession.

What Bonds Do I Need as a California Contractor in 2024?

If you’re a new contractor in California – whether you’re looking to become a Class B general contractor or a Class C specialty contractor or anything in between – you need to know your bonds.

In fact – at the very least, you’ll need to have a contractor’s bond to even get your CSLB contractor’s license.

In this article, we’ll cover all the basics for what bonds you need to start the year off with a shiny new contractor’s license. This article will only cover the essentials – if you want to deepen your understanding of bonds, check out our Comprehensive Guide to Bonds.

Contractors State License Board Bond Requirements

What Is the Contractors State License Board?

The Contractors State Licensing Board (CSLB) is responsible for all contractors’ licenses in California. The CSLB handles all 300,000 contractors in the state of California – which is no small feat.

The CSLB’s main job is to make sure that contractors meet safety and craftsmanship standards to protect consumers and businesses from bad actors. They do this via the CSLB contractor’s license, which ensures a common standard.

Contractors License Bonds

In order to get your CSLB license, one must first meet the CSLB’s bond requirements – which have actually just changed as of January 1 of this year.

The primary bond that all contractors – regardless of classification, trade, tenure, experience, age, or type of work – are required to have at all times is a contractor bond.

The bond guarantees that a contractor will adhere to all contractual obligations laid out in the contract. If the terms are not met due to the contractor’s actions, the surety company covers the debts, up to the amount of the bond.

It’s important to note that even with a contractor’s bond, the contractor is ultimately responsible for repayment of the damages to the bond company. This bond is designed to protect homeowners against sketchy contractors by giving them at least enough money to cover most construction costs – although it’s often not enough.

Thanks to Senate Bill 607, as of January 1, 2023, the CSLB increased the principal bond limits for contractors from $12,500 or $15,000 to $25,000​​​​ for all contractors.

A Word About Insurance

It’s important to note that the CSLB requires additional types of protective measures in the form of insurance.

Insurance operates differently from bonds – covering the amount without needing repayment from the contractor – but offers the same guarantee of payment in the case of an issue.

The CSLB requires one type of insurance in order to receive or renew your license: Workers’ Compensation insurance. There are exceptions to this rule, but it’s de facto necessary.

The Main Types of CSLB Bonds

  • Contractor’s Bond: As we’ve covered, this is the main and most important bond required by the CSLB. Every contractor must have a contractor’s bond to receive their CSLB license. It must be written by a surety company endorsed by the CSLB and must be in the amount of $25,000​.
  • Bond of Qualifying Individual: Required if your license is qualified by a Responsible Managing Employee or Officer who doesn’t own at least 10% of the corporation’s voting stock. This bond also has a $25,000 limit.
  • Disciplinary Bond: Necessary if a contractor’s license has been revoked due to violations. It is an additional bond with a $25,000 limit and must remain in effect for at least two years.
  • Workers’ Comp: For contractors operating as LLCs, a unique $100,000 LLC Employee/Worker Bond is required, providing extra protection for employees and workers.
  • Liability Insurance: For LLCs with five or fewer employees, you need to have liability insurance in the amount of $1,000,000.

Can You Get A Bond With Bad Credit?

Having bad credit can make obtaining a bond more challenging but not impossible – it’s not like buying a house or other situation where you are raked over the coals and cooked until crispy.

On the contrary, the construction industry is filled with competent, good people who have bad credit. You’d be lucky to find a job site without a good number of sub-600 credit scores.

That’s why many surety bond companies offer bonds for applicants with less-than-perfect credit. The trade-off is that you pay a higher premium rate​.

Visit our Comprehensive Bond Guide for more information.

Conclusion

Bonds – specifically contractors bonds – are an essential part of the construction industry in California, creating a safety net for both individuals and businesses looking to get work done.

With a contractor bond, the client will receive some sort of compensation, so that they can at least come away with something in case they run across the small percentage of construction contractors who want to take advantage of people.

If you’re a contractor, make sure you get your bonds from one of the CSLB’s approved list of bond providers. The process should be quick, easy, and streamlined for anyone in the industry.

How To Become A General Contractor After High School In California

What is a General Contractor?

A general contractor in California is responsible for overseeing construction projects, managing subcontractors, and ensuring that a project complies with legal and quality standards.

There are different types of contractor licenses in California, including Class B (General Building Contractor), Class B-2 (Residential Remodeling Contractor), and Class C (Specialty Contractor), each catering to specific aspects of construction work​​.

For this article, we’ll focus on the Class B General Contractors license.

Why Become a General Contractor?

A better question would be – why not? General contractors make good money in California, easily clearing $100k a year in most markets, and becoming a general contractor doesn’t require a 4-year degree or any of the other nonsense that comes along with other high-paying jobs.

For anyone who detests school – but likes building things – being a general contractor is a career that is full of fulfillment and financial rewards. By stepping onto the path to being a Class B licensed general contractor, any high school kid can find themselves in a full-fledged career in just 4 years, making 3-4x what their college-attending peers would.

There’s really so many upsides to being a general contractor – and considering it’s a job that will always be in demand, it’s a great way to futureproof yourself from the rapid change we are all experiencing every day.

What Do You Need To Become a Class B General Contractor?

To become a licensed Class B general contractor in California, you must:

  • Be at least 18 years old.
  • Have four years of experience at the journey level or equivalent.
  • Pass a criminal background check.
  • Pass a licensing exam with a law and business section and a trade-specific section.
  • Possess a $25,000 contractor’s bond.

Straight out of high school, the hardest part of this is gaining the necessary work experience. As you can see, you need at least 4 years of work experience before you can even apply for a CSLB license.

This is going to be the first thing you want to do after you graduate high school – or even if you are still in high school! Four years is the bare minimum here, so getting cracking on your work experience ASAP is critical to becoming a general contractor after high school.

How Long Does It Take To Become A General Contractor After High School

The process of becoming a licensed contractor depends on individual circumstances, such as the amount of relevant experience and the time taken to prepare for the licensing exam, but straight out of high school, with no experience – expect to take at least 5 years until you can become a licensed general contractor.

Generally, four years of industry experience or a combination of work experience and a college degree is required. That means, at the very least, expect to spend at least 4 years working under an experienced GC as you learn the trade to a level where you can set off on your own and become a Class B gen con.

Is College Necessary To Become A General Contractor?

As we’ve covered before – the answer is no.

The beauty of construction work is that you can do the work if you know how to do it and have the correct licensing – there’s no educational requirements or degree requirements to become a general contractor. You only need the proven experience and to prove you know your stuff via the CSLB exam.

That said – while a college degree is wholly unnecessary for recent high school graduates looking to become general contractors, going to school for construction-related education can be hugely beneficial and give you a massive leg-up over your competition. Not only do you learn more hard skills, but university degrees also help you build your network and win more clients through trust.

Degrees like construction management, engineering, or other broad construction degrees can arm you with far more information than you could ever need as a general contractor – fully preparing you for a long and successful career.

Finally, there are even situations where your 4-year degree can stand in for your work experience requirement – contact the CSLB for more information there.

The Quickest Way to Become a General Contractor

The quickest way to become a general contractor after high school is to simply get to work.

Every contractor needs 4 years of experience, so starting work right after you graduate – or even starting work while you’re in school (say, on summer vacation) is the best thing you can do for yourself if you know you want to be a general contractor.

Once you have your 4 years of experience as a journeyman general contractor, the rest is easy. You only have to apply for your license and pass the CSLB exam (which is difficult, to be fair), and before you know it, you’ll be out there as a Class B general contractor!

Additional Documentation For Class B Licensing

You may need to submit additional documentation based on your application’s details, such as statements for any criminal records, unsatisfied judgments, or tax liabilities.

If you have anything that you think the CSLB will flag, either in their background checks or application reviews – anything at all – it’s worth your time to have that paperwork ready to go just in case they request it.

Owner-Builder Certification

If your experience includes “owner-builder” work, you must use a special certification form from the CSLB. If you’re just out of high school, chances are this won’t apply to you – but maybe you did some work with your Dad on your home or something like that, which you can then use towards your work experience.

It’s crucial to be thorough and complete when detailing your work experience, as any inaccuracies or omissions can lead to application rejection, which can add a ton of time.

Educational and Military Experience Credits

As we noted above, educational or apprenticeship programs may grant you credit toward your experience requirement. These are taken on a case-by-case basis by the CSLB and require you to provide substantial paperwork and evidence that this education is actually enough to satisfy the requirements set out by the CSLB.

Similarly, military experience is recognized and can expedite the application process, but unless it’s related to construction work, chances are it won’t be applicable. However, if you were in the military and did some sort of construction work – for example, if you were an engineer in the Seabees – there’s a good chance that can satisfy the experience requirements.

Conclusion

Becoming a general contractor out of high school is one of the safest, smartest career paths an 18-year-old can undertake. Given the perpetual need for general contractors – and the relatively straightforward path to becoming one – there’s no question that a career as a general contractor is a secure one that can reap big rewards for you in the long term.

The key is to get started right away. Work experience is going to take the most amount of time and energy to accrue, so the quicker you can get to working underneath a general contractor, the quicker you can get to becoming a Class B General Contractor. By the time your classmates are graduating college and looking for entry-level jobs, you’ll already be making bank!

C-4 Boiler, Hot Water Heating and Steam Fitting Contractor: A Comprehensive Guide

What is the C-4 License?

The C-4 Boiler, Hot Water Heating, and Steam Fitting Contractor is the license assigned to contractors in California working on jobs involving hot water systems – boiler systems, steamfitting, heat pumps, and so on.

The C-4 License is designated for painting and decorating contractors in California. It encompasses various activities such as scraping, sandblasting, and applying paints, textures, fabrics, pigments, oils, varnishes, shellacs, stains, fillers, and adhesives.

The Contractors State License Board (CSLB)

The CSLB is the state agency in California responsible for licensing and regulating contractors in the construction industry, including the C-4 License. Everything you do related to the C-4 license

  • Application Process: The CSLB manages all the applications for a C-4 contractor
  • Qualifications and Experience: The CSLB sets eligibility criteria, including a combination of education, work experience, and/or apprenticeship training
  • Examinations: The CSLB administers the trade-specific and law & business exams necessary for licensure
  • Background Checks: The CSLB verifies identity and criminal history of all contractors
  • Licensing and Renewal: The CSLB issues and renews all contractor licenses
  • Consumer Complaints and Investigations: The CSLB handles complaints and can take disciplinary action against contractors through their enforcement division, SWIFT.

What Does A Boiler, Hot Water Heating, and Steam Fitting Contractor Do?

Luckily for us, this classification is easy to understand and very straightforward: if you’re painting or decorating a home with materials and labor costing $500, you’re doing C-4 work.

Key Duties

  • Demolishing and removing existing boilers or heating devices.
  • Installation, maintenance, and repair of various boiler systems
  • Testing, audits, and preventative maintenance
  • Design and engineering of advanced mechanical systems
  • Monitoring of boiler and heating systems and emergency services

Most Common Types of Jobs For C-4 Contractors

In your day-to-day work as a C-4 Contractor, you’ll most likely find yourself working on these types of jobs:

  • Boiler Services: Demolishing and removing existing boilers, boiler troubleshooting, and boiler system maintenance, repair, and retrofit.
  • Installation and Engineering: Installation and engineering of advanced mechanical systems, including radiant panel design and engineering, and the installation of new boiler systems after preparing the job site.
  • System Maintenance, Repair, and Retrofitting: Emphasizing the ongoing care and upgrades of boiler systems. In California in particular, retrofitting is an extremely lucrative area for any contractor.
  • Emergency Services: 24/7 emergency services and monthly monitoring for various boiler systems.
  • Environmental and Energy Efficiency Services: Fuel efficiency, energy optimization, and energy audits, for example: AQMD compliance testing.
  • Specialized Hot Water Systems: Specialty systems like hotel steam boilers, school and hospital boiler systems, and residential hydronic boiler systems.
    Hydronics and Heat Transfer Solutions: IRadiant heat systems, heat services, and hydronic baseboard retrofits.
  • Planning, Estimation, and Customer Service: Planning and estimating boiler projects. Communicating with customers, whether gencons or homeowners, is something you’ll do every day.
  • Safety: Ensuring constant personnel and job site safety, including confined space work and handling dangerous materials.
  • Power Boiler Installations: Installation, service, and repair of fire-tube and water-tube steel power boilers and hot-water heating low-pressure boilers.
  • Steam Fitting and Piping: It’s in the name – you’ll be doing a ton of installation and maintenance of steam fitting and piping systems, along with fittings, valves, gauges, and pumps. If it’s high-pressure, you can work on it.
  • Radiators and Convectors: You already know this, but you’ll be working on a ton of radiators, convectors, fuel oil tanks, fuel oil lines, chimneys, flues, and heat insulation.
  • Solar Heating Equipment: The C-4 license also covers work related to solar heating equipment associated with these systems.

Who Needs the C-4 License?

Contractors who do any sort of heating, steam-fitting, or boiler work. If you do any sort of hot water work or work involved in pressurized water involving project costs over $500, you absolutely need a C-4 license.

In reality, that means most anyone doing this work, as anything involving boilers or furnaces or chimneys or anything of that sort will involve expensive materials and labor.

When Do You Need a C-4 License?

Any of the above projects exceeding $500 in labor and materials necessitates a C-4 license. This requirement applies regardless of the project’s complexity or scale.

For smaller projects under $500, a C-4 license is not mandatory. But in reality, that’s rarely applied to anyone working on hot water systems. Considering the cost of most hot water projects, you can expect to need a license.

When it comes to the C-4 license, very few jobs don’t require a C-4 license. You can get away with small jobs like replacing a valve or doing routine testing, but anything beyond basic maintenance will quickly get expensive in California.

How to Get a C-4 License

As established, the CSLB is responsible for licensing, maintaining, and renewing C-4 licenses. There are a number of prerequisites that a contractor must fulfill before the CSLB will assign a C-4 license.

Below you’ll find the requirements for the C-4 License and the Step-By-Step process to get one from the CSLB.

Requirements

  • At least 18 years of age
  • Valid driver’s license or ID
  • Social Security or ITIN number
  • Not on probation or parole
  • Four years of journey-level experience
  • A certifier to verify experience known as the Qualifying Individual
  • Documentation of experience if requested​.

Step-by-Step Process

  • Gain Work Experience: A minimum of four years of experience as a journeyman is required to acquire ANY CSLB license.
  • Get Endorsements: Credible witnesses must testify to the applicant’s background and skills. Usually, this is your boss.
  • Submit A CSLB C-4 License Application: Complete and submit the application with necessary documentation.
  • Pay Fees: Pay all the fees associated with your license.
  • Background Check: Submit fingerprints for a background check.
  • Take the CSLB Exam: This two-part exam has two parts: a painting-specific exam and a law and business exam.
  • Get Bonded And Insured: Obtain a California contractor bond worth $25,000 and Workers’ Compensation insurance for every contractor under the license.
  • Receive Your License And Get To Work!: If you’ve followed all of these steps correctly, expect your license in a few weeks at most.

The C-4 License Application and Exam

The CSLB Exam

In order to get your C-4 license, you must pass the C-4 license examination – a 3.5 hour, 200+ question test that poses a real threat to your C-4 dreams.

The CSLB Exam is notorious for breaking even the smartest, most experienced contractors. This 230-question exam can take up to 6 hours and involves two sections: one on the finer points of painting and decorating, and one section on the business and law of contracting.

Exam Breakdown

  • The exam consists of two parts, each with 115 questions:
    Law & Business Exam: Covering topics like company organization, bidding, cost control, business structures, labor laws, and contractor bonds.
  • Trade-specific Exam: Focusing on planning and estimating, boiler system installation and maintenance, safety, and various other technical aspects of boiler, hot-water heating, and steam fitting.

Timeline From Application To Licensure

It usually takes 6-8 weeks to receive your CSLB license from the time you apply.

The longest period of time you have to wait is waiting for your application to be processed by the CSLB. This currently takes roughly one month but can take up to six weeks. You can check the current status of your application on the CSLB website.

After you apply for your license and receive affirmation from the CSLB, you must pass the CSLB exam. This takes roughly a week.

After you take the test, you’ll know immediately if you passed or failed. If you pass, congratulations! You can deliver your insurance and bonds and get your license!

If you failed the CSLB exam, don’t worry, you can take the test again. Unfortunately, though, you must wait a few weeks before being able to retake the test.

C-4 License Maintenance and Renewal

Renewal Process

The C-4 license must be renewed every two years. If you don’t renew your license in time, it will cost you extra in fees.

Renewal applications must accurately reflect any changes in business information. If you change address, add anyone to your license, or have any changes at all to your C-4 license, make sure you let the CSLB know.

Exam and Re-Examination

  • Exam results are provided immediately after the test, so you’ll know if you passed or not on the day of the exam.
  • Unsuccessful candidates receive a performance breakdown for improvement. If you fail, you’ll know the specific areas that you need to improve upon to pass the exam.
  • If you fail the exam, you can retake the exam as many times as you like. Note that the CSLB charges an examination retaking fee every time you need to retake the exam.

Fees and Costs

There’s a litany of costs associated with getting your C-4 License. At the very least, expect to spend $700 on your license, with fees increasing or decreasing based on your business structure, exam results, and so on.

  • Initial application fee: $500.
  • License fee (sole owner): $200; (non-sole owner): $350.
  • Re-examination fee: $100.
  • Fingerprinting fees: DOJ – $32, FBI – $17​.

Should I Get Multiple Licenses As A C-4 Contractor?

Considering how important and interconnected hot water systems are to the larger construction project, C-4 contractors might find themselves wondering if it makes sense to get additional licenses in order to provide a broader service to your community – and make a little bit of extra money in the process.

The answer is – definitely! If you can handle bigger projects, you can naturally make more money as a contractor, and considering you probably already have broad construction knowledge due to the interconnected nature of hot water systems, it’s absolutely worth it to invest in additional licenses to improve your bottom line.

When it comes to getting additional licenses for C-4 hot water systems contractors, you should look for licenses that are complementary to the C-4 license, involve hot water or heating, or are areas of construction where you have existing knowledge.

Class B General Contractor License: Considering how much you need to know to effectively perform the job of an interconnected hot water system like a boiler or a heat pump, you will naturally learn the skills a gen con needs to succeed as well. Picking up this classification will open up a whole new world of contracting opportunities.

C-36 Plumbing License: Plumbing and heating systems go hand-in-hand on pretty much any project, especially in large buildings like schools or apartment buildings, where heating systems may involve extensive piping. By holding both C-4 and C-36 licenses, you can offer a full range of services related to both plumbing and heating. For example, you can install the boiler, do the pipe installation to the shower, and install the shower piping. If you can do all that for your local community, you will never run out of new clients.

C-20 Warm-Air Heating, Ventilating, and Air-Conditioning License: The C-20 license is for heating, ventilation, and air conditioning – anyone can see how these two skill sets dovetail. Since HVAC systems often need to integrate with boiler and hot water heating systems, especially in giant commercial or residential complexes, holding both C-4 and C-20 licenses is a no-brainer for hiring managers. Any customer can see the value in someone who can install all of the heating and cooling systems for their project. Not only can you save them money, but you can net a much bigger profit, without much added cost.

Conclusion

If you’re a steamfitter or a hot water systems specialist, we don’t have to tell you – there’s money to be made working on these systems!

It’s a no-brainer to get your C-4 license if you work on anything related to hot water projects in California. It’s a tiny investment in what is an extremely lucrative specialty in a state that will have continued needs for hot water systems contractors.