Business & LicensingQuestion 1464 of 1605
A licensed contractor's license lapses due to suspension during part of a project. Under section 7031, what risk does the contractor face regarding pay for work done while unlicensed?
a.No risk; licensure is irrelevant
b.A guaranteed bonus
c.Being barred from recovering compensation for the period they were not duly licensed
d.Only a small fine
Explanation
Under B&P Code section 7031, a contractor must be duly licensed at all times during performance. Work performed while unlicensed (even temporarily) can bar recovery of compensation for that work and expose the contractor to disgorgement.
Law Reference: B&P Code §7031Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)