VERIFIED QUESTIONS AND SOLUTIONS
◉How often must contractor licenses be renewed? Answer: A:
Every 2 years.
◉What happens if a license is not renewed on time? Answer: A: It
becomes inactive or expired.
◉What must appear in the contractor's business name if operating
as a corporation? Answer: A: Corporation, Inc., or similar
designation.
◉What must contractors do if they change their business address?
Answer: A: Notify CSLB.
◉What must appear on contractor advertisements? Answer: A:
Contractor license number.
◉What must follow the license number in ads? Answer: A: "Lic. #".
, ◉Where must license numbers appear? Answer: A: All
advertisements, contracts, and business cards.
◉What is illegal advertising for contractors? Answer: A: Advertising
without a valid license number.
◉What must home improvement contracts be in? Answer: A:
Writing.
◉What must every home improvement contract include? Answer:
A: Description of work and total price.
◉What must contracts include regarding start and completion?
Answer: A: Estimated start and completion dates.
◉What is the maximum down payment allowed for home
improvement contracts? Answer: A: 10% or $1,000 (whichever is
less).
◉Why are down payments limited? Answer: A: To protect
consumers from fraud.
◉What must progress payments reflect? Answer: A: Work
completed.