Contracts & ExecutionQuestion 204 of 1632

A home improvement contract must disclose the contractor's license number primarily so that the homeowner can:

a.Calculate the contractor tax liability for the job
b.Check license status, classification and complaints at CSLB
c.Determine the contractor profit margin on the job
d.Apply for the building permit in the contractor's name

Explanation

The license number is how the homeowner reaches the CSLB record: whether the license is active, what classification it covers, the bond and workers' compensation on file, and any disciplinary or complaint history — all checkable before work starts. It says nothing about the contractor's tax liability or profit margin, which live in the contractor's own books. And a permit is pulled by the licensed contractor or by the owner as owner-builder; a homeowner cannot apply in the contractor's name just because the number appears in the contract.

Law Reference: B&P Code §7159(d)(1)

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PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
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