California State Contractors License Law and Business Test Study
Guide
Study online at https://quizlet.com/_1hj4ms
California State Contractors License Law And Business
Test Study Guide Questions & Proper Answers ( A+
Graded 100% Verified)2024/2025
1. Who must be licensed as a contractor?: Anyone who constructs or alters on any job
that costs 500 dollars or more.
2. How old do your have to be to get a contractors license.: 18
3. What are the types of licenses issued.: Individual, partnership, or corporation
licenses. Joint Venture licenses are made up of 2 individual active licenses for a
specific purpose.
4. Does California recognize contractors licenses from other states or countries?: No
5. What charge is it to contract without a license?: Misdemeanor, meaning potential
jail time, fines and administrative fines
6. Are there educational requirements to obtain a contractors license?: No
7. 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.
8. Are all applicants required to submit to a background check?: Yes
9. What are the total fees I must pay to obtain a contractor license?: $480.00. The
non-refundable processing fee of $300 and the two year initial license fee of $180.
Current fees are printed on the application forms and notices.
10. How often do I have to renew my license?: every two years
11. Will I receive notice before my active license expires?: Yes. 60 days, but
remember it is your responsibility to know and renew without being reminded.
12. What is the active license renewal fee?: $360. You are required to renew every two
years.
13. Is there a fee for renewing an active license: $180.
14. Inactive licenses must be renewed how often?: Every four years
15. What is the minimum operating capital that you must have to qualify to be a
contractor?: $2500
16. 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
17. 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.
18. Can your old license be renewed?: Yes. If your license has been expired between 3
to 5 years.
, California State Contractors License Law and Business Test Study
Guide
Study online at https://quizlet.com/_1hj4ms
.
19. Another name for the qualifier.: The test-taker. Or the person whom the license is
going to be issued.
20. What is the qualifier called if he/she is an individual?: The owner
21. What is the qualifier called if he or she is a partner?: Qualifying Partner.
22 What is the qualifier called if he or she is an officer?: RMO, Responsible Managing
Officer
23. What is the qualifier called if he or she is an employee?: RME, Responsible
Managing Employee
24. How many hours is an RME, Responsible Managing Employee required to
work.: 80% or 32 hours
25. How many licenses can an Owner or Qualifying Partner qualify for at a time.: 3
26. How may licenses can an RME or RMO qualify for at a time?: 1
27. Can you lend your license to someone?: No. That would be punishable by law.
28. Can you abandon a project without a legal excuse?: No. This would be cause for
disciplinary action. It is classified as "Breach of Contract".
29. A contractor is not prohibited from taking and executing a contract involving
the use of two or more crafts or trades, if the performance of the work is _____
and supplemental to the primary job.: Incidental and supplemental to the primary
job. Otherwise it must be performed by a sub.
30. Can you use funds from one project to finish another?: No. This falls under the
category of Larceny and is a misdemeanor or felony.
31. Is it a crime to use false or misleading advertising?: Yes. It is a misdemeanor.
32. What is a joint venture license?: Two or more qualifiers of different licenses who
seek to combine their licenses and expertise for a specific project.
33. How long is a joint venture valid for?: 2 years after first given.
34. 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.
35. If a QP leaves, the remaining party has __ days to report it to the state.: 90 days
36. What must qualifiers do every day regarding to the job site?: visit the site daily.
37. When must the subcontractors be paid?: 7 days after each progress payment by
the owner to the direct contractor.
38. ____ 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
39. Materials, labor, permits, loan fees, subs, are all considered what type of costs?:
Direct Costs
Guide
Study online at https://quizlet.com/_1hj4ms
California State Contractors License Law And Business
Test Study Guide Questions & Proper Answers ( A+
Graded 100% Verified)2024/2025
1. Who must be licensed as a contractor?: Anyone who constructs or alters on any job
that costs 500 dollars or more.
2. How old do your have to be to get a contractors license.: 18
3. What are the types of licenses issued.: Individual, partnership, or corporation
licenses. Joint Venture licenses are made up of 2 individual active licenses for a
specific purpose.
4. Does California recognize contractors licenses from other states or countries?: No
5. What charge is it to contract without a license?: Misdemeanor, meaning potential
jail time, fines and administrative fines
6. Are there educational requirements to obtain a contractors license?: No
7. 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.
8. Are all applicants required to submit to a background check?: Yes
9. What are the total fees I must pay to obtain a contractor license?: $480.00. The
non-refundable processing fee of $300 and the two year initial license fee of $180.
Current fees are printed on the application forms and notices.
10. How often do I have to renew my license?: every two years
11. Will I receive notice before my active license expires?: Yes. 60 days, but
remember it is your responsibility to know and renew without being reminded.
12. What is the active license renewal fee?: $360. You are required to renew every two
years.
13. Is there a fee for renewing an active license: $180.
14. Inactive licenses must be renewed how often?: Every four years
15. What is the minimum operating capital that you must have to qualify to be a
contractor?: $2500
16. 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
17. 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.
18. Can your old license be renewed?: Yes. If your license has been expired between 3
to 5 years.
, California State Contractors License Law and Business Test Study
Guide
Study online at https://quizlet.com/_1hj4ms
.
19. Another name for the qualifier.: The test-taker. Or the person whom the license is
going to be issued.
20. What is the qualifier called if he/she is an individual?: The owner
21. What is the qualifier called if he or she is a partner?: Qualifying Partner.
22 What is the qualifier called if he or she is an officer?: RMO, Responsible Managing
Officer
23. What is the qualifier called if he or she is an employee?: RME, Responsible
Managing Employee
24. How many hours is an RME, Responsible Managing Employee required to
work.: 80% or 32 hours
25. How many licenses can an Owner or Qualifying Partner qualify for at a time.: 3
26. How may licenses can an RME or RMO qualify for at a time?: 1
27. Can you lend your license to someone?: No. That would be punishable by law.
28. Can you abandon a project without a legal excuse?: No. This would be cause for
disciplinary action. It is classified as "Breach of Contract".
29. A contractor is not prohibited from taking and executing a contract involving
the use of two or more crafts or trades, if the performance of the work is _____
and supplemental to the primary job.: Incidental and supplemental to the primary
job. Otherwise it must be performed by a sub.
30. Can you use funds from one project to finish another?: No. This falls under the
category of Larceny and is a misdemeanor or felony.
31. Is it a crime to use false or misleading advertising?: Yes. It is a misdemeanor.
32. What is a joint venture license?: Two or more qualifiers of different licenses who
seek to combine their licenses and expertise for a specific project.
33. How long is a joint venture valid for?: 2 years after first given.
34. 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.
35. If a QP leaves, the remaining party has __ days to report it to the state.: 90 days
36. What must qualifiers do every day regarding to the job site?: visit the site daily.
37. When must the subcontractors be paid?: 7 days after each progress payment by
the owner to the direct contractor.
38. ____ 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
39. Materials, labor, permits, loan fees, subs, are all considered what type of costs?:
Direct Costs
