Business & LicensingQuestion 1418 of 1605
A contractor breaks a $3,000 job into four separate $750 invoices to avoid the license requirement. Is this permissible?
a.Yes, each invoice is under $1,000
b.Yes, if the customer agrees
c.No, because the aggregate contract price determines whether a license is required
d.Only for home improvement work
Explanation
Under B&P Code section 7048, the exemption looks at the aggregate contract price. Dividing a larger project into smaller amounts to evade licensing is prohibited; the true total ($3,000) requires a license.
Law Reference: B&P Code §7048Practice 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)