Overview of Contractor Licensing Law

Overview of Contractor Licensing Law

The statutory provisions governing the licensing of contractors in California are contained in Bus. & Prof. Code §§7000-7173. This comprehensive body of law sets forth the requirements for obtaining a construction license, the penalties for performing work without a license, and the various licensing classifications available.

The purpose of the California licensing law is to protect the public from incompetence and dishonesty in those who provide building and construction services and to guard the public against unskilled workmanship and deception. The case of Asdourian v. Araj, 38 Cal. 3d 276 (1985) was superseded by revisions to the statute cited below, Public Contract Code § 7031, which was passed in response to the expansion of the "substantial compliance" doctrine and effectively curbed that doctrine.

The Contractor's State License Board is the agency responsible for administering the license law and is included within the Department of Consumer Affairs of the State of California. The responsibilities of the Board include reviewing and investigating complaints made against contractors and administering disciplinary action against contractors found to have violated any aspect of the licensing provisions.

It is important to observe that expert witnesses who testify at citation hearings are immune from tort liability to the contractor. Rodas v. Spiegel, 87 Cal. App. 4th 513, 104 Cal. Rptr. 2d 439 (2001).

Under recent legislation, the bond or cash deposit posted with the Contractor's License Board will remain $10,000 until January I, 2007, when it will rise to $l2,500, and $I5,000 or more for those who have had a suspended license, or have been cited for performance of unlicensed work.