28 Things That Will Get You in Trouble with the CSLB

Posted on July 12, 2013 in Law & Business
28 Things That Will Get You in Trouble with the CSLB
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So you finally got your contractors license and now you're doing construction projects of all sizes. Work is steady and pretty soon you become slammed with all the projects lined up on your schedule.

It may be easy to fall into the trap of working so much that we neglect the rules of the game and cut corners to save time and money, when in reality, cutting corners may actually cost us more in the long run.

Getting your contractors license is one thing, but protecting your contractors license is another. Read our list and found out how contractors commonly get themselves into trouble with the Contractors State License Board.


The following items are a cause for disciplinary action against your contractor’s license:

1. Contracting jointly without a joint venture license.

2. Abandonment of a contract without legal excuse.

3. Misuse of funds. If the amount is over $1,000 then you could also be fined $10,000 and/or get up to 1 year in jail. If the amount is less than $1,000 then you could be guilty of a misdemeanor.

4. Failure to pay subcontractors within 10 days of receiving a progress payment.

5. Willful disregard to plans or specifications.

6. Violation of any safety order resulting in a serious injury or death.

7. Willful disregard of any building laws of the state or any subdivision thereof.

8. Violation of any labor code.

9. Failure to keep records of contracts for 5 years.

10. Failure to cooperate in the investigation of a complaint.

11. Misrepresentation in getting a license, in contracting, or advertising.

12. Failure to complete a project for the price specified in the contract.

13. Conducting business with an unlicensed contractor.

14. Falsifying your experience certificate on your license application.

15. Personal variances on a contract.

16. Contracting with an inactive or suspended license.

17. Employment of non-registered home improvement sales people.

18. Kickbacks of any kind over $5 in value.

19. Failure to include the name, address, and license number of the contractor and license number of the real estate sales person on any contract.

20. Failure to pull a building permit in your name. In other words, you cannot pull a permit in the homeowners name without their written consent.

21. Requiring a consumer to sign a waiver of their 3-day cancellation rights on non-emergency work.

22. Requiring a subcontractor, employee, or material supplier to sign a waiver of their lien rights.

23. Using a name style that is not compatible with your license classification.

24. Willful and fraudulent use of a contractor’s license number that is not yours. This can result in a $10,000 fine and/or a punishment of one year in jail.

25. Contracting without a license. This is a misdemeanor and you can be fined up to $4,500 or be imprisoned for up to 6 months.

26. You must report your Workers Compensation carrier to the Registrar within 10 days of receiving your policy. Failure to do this is a misdemeanor.

27. It is a misdemeanor to engage in false or deceptive advertising.

28. Contracting with an uncertified asbestos contractor. First offense fines can be from $1,000 to $3,000. Subsequent offenses can be fined from $3,000 to $5,000 and up to 1 year in jail.


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