California Contractor License Law and Business Practices
Core concepts
Understand CSLB licensing: classification C-16 (fire protection), the requirement for a qualifier, and the prohibition on contracting without a license. Know contract requirements (written contracts over $500, notice to owner, three-day right to cancel where applicable), licensing disclosures, and the Contractors State License Board enforcement. Business practices include workers' compensation, bonding, and advertising rules. Also understand lien law, prompt payment, and the difference between an employee and an independent contractor.
Traps in questions
- Assuming a general B license covers fire sprinkler work; C-16 is specific.
- Forgetting the qualifier must be actively involved.
- Overlooking the $500 threshold for written contracts.
- Confusing CSLB with OSHA or the AHJ.
- Ignoring the requirement to include license number in advertising.
Worked example / rule of thumb
A homeowner asks for a $2,000 sprinkler repair. A written contract is required (over $500), the license number must appear in advertising and contracts, and the qualifier must be responsible for the work. Rule of thumb: C-16 for fire protection; written contract over $500; license number everywhere.