Contracts & ExecutionQuestion 204 of 690

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

a.Calculate the contractor's tax liability
b.Verify the license status, classification, and complaint history with the CSLB
c.Determine the contractor's profit margin
d.Apply for a building permit on the contractor's behalf

Explanation

Listing the license number lets the homeowner check the CSLB record to confirm the license is active and properly classified and to review any disciplinary or complaint history before work begins.

Law Reference: Bus. & Prof. Code §7159

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