CALIFORNIA CONTRACTORS LICENSE LAWS AND CLASSIFICATIONS
EXAM QUESTIONS AND ANSWERS
What is a Contractor? - CORRECT ANSWER✅✅A contractor is a person who manages construction
activities, including building, altering, repairing, and demolishing structures.
Who must be licensed as a contractor? - CORRECT ANSWER✅✅Any business undertaking projects with
total costs of labor and materials of $1,000 or more must be licensed.
What are the consequences of contracting without a license? - CORRECT ANSWER✅✅Contracting
without a license may result in financial penalties and jail time.
What are the exceptions to the licensing requirement? - CORRECT ANSWER✅✅Exceptions include
employees paid wages, owner/builders not selling for one year, installers of finished products, security
alarm operators, work under $1,000, and public utilities under specified conditions.
What are the contractor license classifications? - CORRECT ANSWER✅✅'A' General Engineering
Contractor, 'B' General Building Contractor, 'B-2' Residential Remodeling Contractor, 'C' Specialty
Contractor.
What does a General Engineering Contractor do? - CORRECT ANSWER✅✅They work on fixed works
such as public works, irrigation, streets, and roads.
What is a General Building Contractor? - CORRECT ANSWER✅✅They work on structures built for the
shelter of persons or animals requiring more than two unrelated trades.
What is a Specialty Contractor? - CORRECT ANSWER✅✅A contractor whose work requires special skills
and involves specialized building trades.
What is the definition of 'incidental and supplemental' work? - CORRECT ANSWER✅✅Work that is
essential to accomplish the work for which a specialty contractor is classified.
, What types of licenses does the Board issue? - CORRECT ANSWER✅✅The Board issues Original Licenses
and Joint-Venture Licenses.
How are licenses issued? - CORRECT ANSWER✅✅Licenses may be issued as active or inactive, with
active licenses entitled to practice in their classification.
What is a Joint Venture License? - CORRECT ANSWER✅✅A license issued to two or more licensed firms
for large public works projects.
To whom is an original license issued? - CORRECT ANSWER✅✅An original license is issued to a business
entity, which may be an individual, partnership, corporation, or limited liability company.
How long is a license valid? - CORRECT ANSWER✅✅A new license is valid for two years from the last
day of the month in which it was issued.
What is required for an active license? - CORRECT ANSWER✅✅A contractor's bond and proof of
worker's compensation insurance are required for an active license.
What happens if the business entity status changes? - CORRECT ANSWER✅✅A new license is required if
the business entity status changes.
Who is required to qualify a license for a business entity? - CORRECT ANSWER✅✅A qualifying individual
or qualifier is required for each license issued.
What is a qualifier? - CORRECT ANSWER✅✅A qualifier is one who meets the experience and
examination requirements.
Can an individual qualify for more than one license? - CORRECT ANSWER✅✅Yes, an individual may act
as the qualifier on more than one active license if they own at least 20% of each business entity.
EXAM QUESTIONS AND ANSWERS
What is a Contractor? - CORRECT ANSWER✅✅A contractor is a person who manages construction
activities, including building, altering, repairing, and demolishing structures.
Who must be licensed as a contractor? - CORRECT ANSWER✅✅Any business undertaking projects with
total costs of labor and materials of $1,000 or more must be licensed.
What are the consequences of contracting without a license? - CORRECT ANSWER✅✅Contracting
without a license may result in financial penalties and jail time.
What are the exceptions to the licensing requirement? - CORRECT ANSWER✅✅Exceptions include
employees paid wages, owner/builders not selling for one year, installers of finished products, security
alarm operators, work under $1,000, and public utilities under specified conditions.
What are the contractor license classifications? - CORRECT ANSWER✅✅'A' General Engineering
Contractor, 'B' General Building Contractor, 'B-2' Residential Remodeling Contractor, 'C' Specialty
Contractor.
What does a General Engineering Contractor do? - CORRECT ANSWER✅✅They work on fixed works
such as public works, irrigation, streets, and roads.
What is a General Building Contractor? - CORRECT ANSWER✅✅They work on structures built for the
shelter of persons or animals requiring more than two unrelated trades.
What is a Specialty Contractor? - CORRECT ANSWER✅✅A contractor whose work requires special skills
and involves specialized building trades.
What is the definition of 'incidental and supplemental' work? - CORRECT ANSWER✅✅Work that is
essential to accomplish the work for which a specialty contractor is classified.
, What types of licenses does the Board issue? - CORRECT ANSWER✅✅The Board issues Original Licenses
and Joint-Venture Licenses.
How are licenses issued? - CORRECT ANSWER✅✅Licenses may be issued as active or inactive, with
active licenses entitled to practice in their classification.
What is a Joint Venture License? - CORRECT ANSWER✅✅A license issued to two or more licensed firms
for large public works projects.
To whom is an original license issued? - CORRECT ANSWER✅✅An original license is issued to a business
entity, which may be an individual, partnership, corporation, or limited liability company.
How long is a license valid? - CORRECT ANSWER✅✅A new license is valid for two years from the last
day of the month in which it was issued.
What is required for an active license? - CORRECT ANSWER✅✅A contractor's bond and proof of
worker's compensation insurance are required for an active license.
What happens if the business entity status changes? - CORRECT ANSWER✅✅A new license is required if
the business entity status changes.
Who is required to qualify a license for a business entity? - CORRECT ANSWER✅✅A qualifying individual
or qualifier is required for each license issued.
What is a qualifier? - CORRECT ANSWER✅✅A qualifier is one who meets the experience and
examination requirements.
Can an individual qualify for more than one license? - CORRECT ANSWER✅✅Yes, an individual may act
as the qualifier on more than one active license if they own at least 20% of each business entity.
