Business & LicensingQuestion 433 of 1632
An unlicensed contractor completes a project but is not fully paid, then sues the customer for the unpaid balance. Under §7031, the court will most likely:
a.Award the contractor the full unpaid balance
b.Award the contractor the cost of materials only
c.Bar the contractor from recovering any compensation for the work
d.Order the customer to pay 50 percent of the balance
Explanation
Section §7031 bars an unlicensed contractor from bringing or maintaining an action to collect compensation for work that required a license. The contractor cannot recover the unpaid balance, regardless of work quality.
Law Reference: Bus. & Prof. Code §7031This 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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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)