Business & LicensingQuestion 418 of 1632
A prime contractor awards part of a project to a subcontractor without checking whether the subcontractor is licensed. The subcontractor turns out to be unlicensed. The prime contractor:
a.Bears no responsibility, since the subcontractor signed a contract
b.Is protected because the property owner approved the subcontractor
c.May face disciplinary action for using an unlicensed subcontractor
d.Faces consequences only if the subcontractor's work is defective
Explanation
Under §7068.1 and related law, the prime contractor must verify subcontractor licensure. Using an unlicensed subcontractor can expose the prime contractor to discipline against its own license, regardless of work quality.
Law Reference: Bus. & Prof. Code §7068.1This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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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)