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CALIFORNIA CONTRACTOR LICENSE EXAM LATEST
2025 COMPLETE GRADED A+ WITH SOLUTIONS
- Who must be licensed as a contractor? Anyone who offers to or does construct/alter on any job that costs 500 dollars or more.
- Is anyone exempt from the requirements to have a license? Yes. - If project is less than $500. - Government or other public personnel on public projects. - Officers of a court within the scope of their office. - Public utilities under specified conditions. - Oil and gas operations done by owner or lessee. - Owner-builders who build or improve their own property if THEY do the work themselves, contract with a licensed contractor, or improve any item/main residence, resided there over a year prior to work completion, and prior to sale. - A seller of installed carpets who contracts with a licensed carpet installer and certifies it - Security alarm companies licensed by BSIS - Individuals who install Satellite antenna systems at residences
- Do I need to reside in California to get and keep a license? No. What kind of experience is required for a CA cont's license? At least 4 years of journey-level experience in the past 10 years before filing. How old do your have to be to get a contractors license. 18
What are the types of licenses issued? 5 types: Sole Owner, Partnership, LLC, Corporation, & Joint Venture. Joint Venture licenses are made up of 2 individual active licenses for a specific purpose. Does California recognize contractors licenses from other states or countries? No! To be a contractor in CA, you must apply for and be issued a license. CA has reciprocity with AZ, LA, NV, and UT, but you will still have to take the law & business exam. What charge is it to contract without a license? Misdemeanor, meaning potential jail time, fines and administrative fines Are there educational requirements to obtain a contractors license? No What are the contractor's license classifications? Class A - Engineering. Class B - Building. Class C - Specialty Can technical training and apprenticeship training substitute the required training required for the 4 years needed. Yes. As long as the applicant has a minimum of 1 year of practical experience. Are all applicants required to submit to a background check? Yes
If you are changing the business name or address, or changing the personnel or business type, how long do you have to notify the state of those changes? 90 days If you change owners or the business entity, changing the license structure, can you renew your license at the end of the year or do you need to apply for a new one. Apply for a new one. Can your old license be renewed? Yes. If your license has been expired between 3 to 5 years. Another name for the qualifier. The test-taker. Or the person whom the license is going to be issued. What is the qualifier called if he/she is an individual? The owner What is the qualifier called if he or she is a partner? Qualifying Partner. What is the qualifier called if he or she is an officer? RMO, Responsible Managing Officer
What is the qualifier called if he or she is an employee? RME, Responsible Managing Employee How many hours is an RME, Responsible Managing Employee required to work. 80% or 32 hours How many licenses can an Owner or Qualifying Partner qualify for at a time. 3 How may licenses can an RME or RMO qualify for at a time? 1 Can you lend your license to someone? No. That would be punishable by law. What must be on file with CSLB before an active contractor's license can be issued? A current contractor bond($15,000 required for all classifications) or cashier's check A qualifying individual must have a $12,500 bond or cashier's check for:
- Each RME. 2. Each RMO, unless the RMO owns 10%+ voting stock. 3. Each RME/RMO, unless they own 10%+ of the membership interest in the LLC
Only if your license is renewed and in good standing In drawing up contracts, contractors should pay strict attention to the requirements for of notices and disclosures? Print typeface and point size Text in any printed form shall be in at least - point type 10 - point type Can you use funds from one project to finish another? No. This falls under the category of Larceny and is a misdemeanor or felony. May a home improvement salesperson work for more than one contractor? Yes What are the qualifications for a home improvement salesperson? at least 18 years old. What are the main duties of a contractor who is also a manager? to plan and direct the major activities of the business; coordinate employee work and materials; and train, direct, and advise employees in supervisory and non-supervisory positions
The Functional Areas of Management Include: Planning - DecisionMaking/Delegation - Standarization(efficiency/routine/pattern) - Controls(to warn manager when actual outcome is different than expectation) The Behavioral Aspects of Management Include: Human Relations - Cooperation - Responsibility - Communication - Executive Ability Who is responsible for making sure that the information that informs business decisions is complete and accurate? The manager What are the 6 Forms a business can take? Sole Ownership - General Partnership - Limited Partnership - Corporation - "S" Chapter Corp - LLC What is required to sell tangible personal property? A Seller's Permit For a work-incurred injury/illness, an employer-contractor is REQUIRED to provide and. Weekly benefit payments (indemnity) and necessary medical/hospital treatment If the employer has one or more employees, even part-time, they are required to insure for worker's compensation claims
revenue is recognized when cash is actually received, and expenses are deductible in the year paid (unless they should be taken in a different period to clearly reflect income) What is "Accrual Basis of Accounting" recognizes revenues when earned and expenses when incurred, regardless of when payment is received or made. Thus, this method allows the matching of revenues and associated expenses for individual periods of time. What does Direct Labor Burden include? all payroll taxes, insurance, and employee benefits associated with the labor payroll. How do you determine Pretax Income? the total operating expenses are subtracted from the sales of residences What is working capital? The difference between the total current assets and the total current liabilities Can a contractor collect more than the percentage already completed on the contract? NO What are the 2 sources of financing? Equity Funds(supplied by investors who acquire some control of the business & share of future profits) and Debt
What are the four types of contractual agreements between the builder and owner? the lump-sum, the cost-plus, the unit-price, and the guaranteed-maximum cost contract. How long is a joint venture valid for? 2 years after first given. If a QP leaves, what can the remaining party file to get more time? A continuance of up to 1 year in order to complete the project. If a QP leaves, the remaining party has days to report it to the state. 90 days What must qualifiers do every day regarding to the job site? visit the site daily. When must the subcontractors be paid? 7 days after each progress payment by the owner to the direct contractor. is the task of preparing a detailed cost estimate for the job, including material. labor, overhead, as well as the profit or mark-up. Bidding
Where is the best place to look for bidding advice? Recent job history. Do sales tax costs need to be included in the bid estimate? Yes If the subs bid is too low, should you let him know? Yes, it is ethical and good practice to call the sub and inform him when the bid is too high or low. Should you build against code if the customer insists? No. It is illegal to build against code. Should you bid against other companies or against the job? Always bid against the job. Doing otherwise will cause you troubles in paying subs, materials, and equipment needed. Should you take your time and double check everything before leaving a quote or just get it done quickly? Take your time and be critical, ensure you understand all aspects of the plan, walk the job and double check the bid estimate. An agreement with specific terms between two or more people for performance and compensation.
Contract A contract is not enforceable unless it has signatures?
- The customer and the contractor. What is the standard contract used by customers and contractors? Home Improvement Contract. It establishes and agreement between the customer and the contractor for the work being done. What is the required down payment for a contract? 10% or $1000. Whichever is less. Time given to the customer to cancel the contract? midnight of the 3rd business day. Time given to the contractor to return all money given by the customer back to him/her. 10 days, beginning on the day he or she cancels the contract. days given to the customer to make all materials left on the property available for pick up. 20 days
Can you record a Mechanic's Lien and a Stop Payment Notice on private work? Yes Can you record a Mechanic's Lien and a Stop Payment on public work? No. A Mechanic's Lien is limited to private work. What must be filed to keep the right to a Mechanic's Lien? How many days do you have to file it? A Preliminary Notice Form must be filed within 20 days of signing the contract. Subcontractors, suppliers and anyone else who is going to participate in the job must also file a Preliminary Notice if they want to keep their right. Who files the Notice of Completion? How long does that person have? The owner. 15 days to file it. How many days does the contractor have to file a Mechanic's Lien? If the owner does not file a Notice of Completion within 15 days, contractor has 90 days. If the owner files within the proper time, Contractor has 60 days. Small claims courts can only handle cases that are less than what amount? An individual or small business owned by an individual can file up to 2 cases a year under $7500. Businesses and Corporations can file up to 2 cases a year under $ Can you appeal a decision mad in small claims court? Yes.
Can you appeal a decision made in an arbitration hearing? No. In addition to Mechanic's Lien and a Stop Payment Notice you may also file a for Breach of Contract. Civil Suit Whats the name of the form that notifies people there is a pending lawsuit on their property. Lis Pendens If you file a lien, but then get paid, what should you do? File a lien release form. Awarding Authority is: the owner or the agent of the owner who awards an original building or construction contract, also known as the prime contract. This term is usually used with public works. Bonded Stop Notice is a bond that accompanies a stop notice to a construction lender and must be in a sum equal to 1-1/4 times the amount of the claim. must be delivered by certified mail or in person A Claimant is
a written notice, signed/verified by owner/agent stating: 1. Date job finished; 2. Name/address of owner; 3. Nature of the interest/estate 4. Street address of site 5. Name contractor The Notice of Completion must be recorded within 10 days Notice of Non-Responsibility is a written notice signed/verified by person who owns/has interest in the property, stating: 1. Desc of site 2 Name and nature of title/interest 3.name of purchaser/lessee 4.Statement that they will NOT be responsible for any claims If changes are made to the job and the original job is not complete yet, what form should be filed? A Contract Change Order Who has to ensure that the subcontractors are licensed and insured? Direct Contractor How many bathrooms must be provided for every 20 employees? One Are workers required to bring their own water to work? No. The work site is responsible for providing clean and accessible drinking water to employees.
Does there need to be an emergency kit on site? Yes Labor must have ceased for at least days before the owner is entitled to record a Notice of Cessation 30 Should the contractor review the plan and specifications with his subs. Is it necessary to write every little detail down for them? Yes, and Yes, as detailed as possible. Can a contractor receive payment for work that has not been completed? No. Progress payments cannot exceed the value of the work performed at any given time. When must you pay the subs? within 7 days of receiving progress payment. What is the term given to a worker in training? Apprentice What is the term given to a worker who is able to perform trade work unsupervised? Journeyman
