CSLB California Contractor Law and Regulations 2 — Questions and Answers
Question 1: What must a licensed contractor display on all vehicles used in the course of business?
- CSLB license number only
- Company name only
- Company name and CSLB license number (Correct answer)
- Company name, license number, and bond amount
Correct answer: Company name and CSLB license number
California law requires contractors to display their company name and CSLB license number on all business vehicles.
Question 2: A contractor's license becomes inactive if the licensee fails to:
- File state income taxes on time
- Maintain required bond and workers' compensation insurance (Correct answer)
- Register with the Secretary of State annually
- Attend CSLB continuing education courses
Correct answer: Maintain required bond and workers' compensation insurance
A CSLB license becomes inactive when the required contractor's bond or workers' compensation certificate lapses.
Question 3: Which classification covers general building contractors who construct or alter any structure?
- Class A
- Class B (Correct answer)
- Class C
- Class D
Correct answer: Class B
Class B is the General Building Contractor classification, allowing contractors to build or alter structures under CSLB licensing.
Question 4: A Class A General Engineering Contractor's work must predominantly involve:
- Residential construction
- Engineering infrastructure such as highways, bridges, or utilities (Correct answer)
- Specialty trade work like plumbing or electrical
- Commercial tenant improvements
Correct answer: Engineering infrastructure such as highways, bridges, or utilities
Class A licensees must perform work that is predominantly engineering in nature, such as highways, railroads, bridges, pipelines, or dams.
Question 5: Under California law, how long must a licensed contractor retain project records after project completion?
- 1 year
- 3 years
- 5 years (Correct answer)
- 7 years
Correct answer: 5 years
California contractors are required to retain project records, including contracts and financial documents, for a minimum of 5 years after project completion.
Question 6: What is the required contractor's bond amount for most CSLB licensees as of current regulations?
- $5,000
- $15,000 (Correct answer)
- $25,000
- $50,000
Correct answer: $15,000
Most CSLB licensees are required to maintain a $15,000 contractor's license bond as a condition of licensure.
CSLB California Contractor Law and Regulations 2
What must a licensed contractor display on all vehicles used in the course of business?