California has a strict code for persons operating as contractors in the state. Though many 'contractors' try to skirt the system, operating as a contractor in California without a license has never been a good idea; and with the state's renewed commitment to protecting homeowners through strict enforcement of state contracting laws, (especially in the fire stricken areas of Southern California) the importance of getting a California contractor's license is growing all the time.
Why Is A California Contractor's License Important?
The intent of the laws of the Contractors State License Board (CSLB) is to protect the consumer by ensuring that all contractors in the state meet a minimum set of standards, thereby ensuring the quality and level of service of work performed by those professionals.
For both regulatory reasons and for personal/professional reasons, getting a California contractor's license is important for people in the business.
o Odds are increasing those unlicensed operators will be caught! The CSLB's Statewide Investigative Fraud Team (SWIFT) performs undercover stings to catch violators in the act; 43 stings were conducted in 2006 (most recent CSLB reporting), during which a total of 311 people were cited for operating as contractors without the appropriate license. o California imposes strict fines for unlicensed contractors; fines can range from a $500 up to $15,000. In addition, fines can carry a six-month jail sentence. The fines for repeat offenders are even more serious ($4500 or 20% of contract price, mandatory 90 days jail time). o Felony charges may apply if it is proven that the unlicensed contractor attempted to commit fraud.
Legalities aside, though, there are a great number of benefits to completing contractor education and obtaining the right California contractor's license; contractor education through a good contractors license school can greatly increase the profitability of a business.
o Holding a California contractor's license give the licensee the ability to bid on bigger and better jobs, including state jobs and projects endorsed by emergency management agencies (state and federal). o A contractor's license grants legal protection; consumers do not have to pay unlicensed contractors, and without a license a contractor cannot sue clients for non-payment. o A contractor's license gives the licensee the ability to work independently and increase rates as he or she sees fit. o A contractor's license gains access to business loans, tax write-offs, and business contacts. o It is more professional to hold a license (and more trustworthy!) A California contractor's license lends a level of prestige, which translates into higher profits.
How Do I Get My Contractors License?
Thanks to the Internet, unlicensed contractors in California no longer have to wonder "…how do I get my contractor's license?" Contractor's license schools, like Contractor University, offer highly educational contractor education programs that not only help operators get their license, but gain valuable knowledge and skills in the meantime.
The contractor education programs available online prepare individuals for examination, and some also offer complete licensing packages. (One contractors license school, Contractor University, provides a full-service program that helps prospective licensees through every step of the process, including downloadable exam study materials, application filing; bonds and contractors general liability insurance is offered, too.)
Professional Education, Professional Protection
In California, operating as a contractor without a license, whether expressed or implied, is no longer an option. For the protection of the contractor and his or her consumers, it is absolutely imperative that people operating in California as contractors obtain the license to back them up, and gain the contractor education needed to get that license with confidence and ease.
It may seem outlandish, or maybe not at all, that surety bonds and payment bonds are so important in a society that has become so unpredictable and downright untrustworthy.?In essence, a surety bond is for company owners who want to ensure that all legal terms stated in the contract and agreement are respected.
Surety bonds play many roles within our society today, but are most relevant in the construction industry.?Often time s contractors are compelled to provide owners with a bond that issues a guarantee to finish the job and respect the terms stated in the contract.?Likewise, contractors can request a payment bond from owners to ensure that the suppliers and construction crew receives payment on time.
The whole reasoning behind a contractors license surety bond is for safety.?There have been far too many construction sites that have gone uncompleted, which has made surety bonds almost necessary for every project.?In fact, an investigation showed that over 60,000 contractors in the construction industry failed to respect the contract agreements over the last 10 years.?This is an astounding number that can be avoided with a contractor s license bond.
While it is troubling that the project was never completed, what is even more troubling is the $18 billion dollars that was lost by canceling the projects.?Surety bonds are now almost always considered when closing large deals, and not just for construction, as it enables project owners to minimize their financial risks.
As contractors license bonds have become more common since they emerged, they have evolved considerably.?There are now reliable and efficient services that will ensure each party that the contract is properly respected.?No longer do you have to worry about the job being completed or getting paid by the project owner.?
Because they have evolved over the years, you can find subcategories underneath a contractors license surety bond to narrow it down even further.?One of the most common is bid bonds, which provides financial assurance that the will respect the contract at the price bid and pre-negotiated payment bonds.
Whether you are on the construction crews side or are a project manager, having surety bonds is absolutely necessary when closing such a large financial deal.?Sadly, there are far too many untrustworthy people in society and too many unpredictable events that occur.?Having a contractors license surety bond ensures you that all of the work will be completed as stated in the contract and payment bonds ensure that you as a contractor will be paid in timely fashion.
Both Phil Cocciante & Groshan Fabiola are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Phil Cocciante has sinced written about articles on various topics from The Internet. Phil Cocciante is the only former CSLB application technician in the licensing industry within California. He worked in construction for 6 years prior to working at the CSLB for 5 years. His current company, Affordable Contractors Information Services, In. Phil Cocciante's top article generates over 720 views. to your Favourites.
Groshan Fabiola has sinced written about articles on various topics from Woman Menopause, Medical Condition and Health. It may seem outlandish, or maybe not at all, that and a. Groshan Fabiola's top article generates over 6120000 views. to your Favourites.