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The Contractor License: Who really needs one?

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Who needs to have a license to do contracting work legally?

If you are working in the construction business or any business which advertises construction work for $500 or more in labor and materials total cost, you are required to have a license before you bid the job.

Exemptions

Although you are required to have a license to do most work in construction, there are exemptions. The following are exemptions that do not require you to have a license to do work:

- Oil and gas operations performed by an owner or lessee.
- An owner-builder who is either doing the work him/herself or who pays employees’ wages or who contracts through a licensed contractor. If you are an owner-builder, you cannot resell the residence within a 1-year period. This is also limited to 2 structures within a 3-year period.
- Installation or sale of finished products, which do not become a fixed part of the structure, excluding carpets.
- Public utilities personnel working under specified conditions.
- An employee who is paid wages and does not control the performance of the job or determine the final result of work.
- Security alarm company operators (although fire alarm company operators must be licensed by the CSLB).
- Persons whose activities consist only of installing satellite antenna systems on residential structures or property.

Learn more here: http://www.cslb.ca.gov/Applicants/ContractorsLicense/

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