Ca Contractors

A Guide to California Contractor License Classifications The CSLB has four primary license classification tiers. There are also several specific classifications within the C and D classifications. Learn more here.  <p>In California, there are multiple state agencies dictating construction laws, however, there is only one agency in charge of enforcement, including proper licensing of businesses and adherence to classification requirements. That entity is known as the <a rel="noreferrer noopener" href="https://www.cslb.ca.gov/" target="_blank">Contractors State License Board</a> (CSLB), a division of the Consumer Protection Agency. </p>   <p>The CSLB also promotes policies intended to help maintain the health, safety, and welfare of the public with regard to contractors. As a result, the CSLB requires all contractors to carry a <a href="https://jetsurety.com/california/contractor-bond?gclid=CjwKCAjw2K6lBhBXEiwA5RjtCeMoqpaaCclKRplXCun97JpbUtop_cS0jqH7KUBn398PasrfZkIbbRoCScsQAvD_BwE">$25,000 Contractor Bond</a> to be properly licensed. As part of the application process, contractors must specify what classification they are applying for. </p>   <p>The CSLB has identified four primary <a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/" target="_blank">license classification</a> tiers. They are:</p>   <figure class="wp-block-image size-large is-resized"><img src="https://production-laravel-media.s3.us-west-1.amazonaws.com/files/shares/CA/CA_CLB_License_Classification_Graphic_1%20%282%29.png" alt="California Contractor License Classification" width="400" height="400"/></figure>   <p class="has-medium-font-size"><strong>Class A Licenses</strong></p>   <p>The <a href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/A_-_General_Engineering_Contractor.aspx" target="_blank" rel="noreferrer noopener">A License Classification</a> is for general engineering contractors whose primary business is connected to fixed works that require specialized engineering knowledge and skill. The fixed works in mention include the following:</p>   <ul><li>Dams and hydroelectric projects </li><li>Levees, river control, and reclamation works </li><li>Streets and roads </li><li>Parks, playgrounds, and other recreational works </li><li>Excavating, grading, trenching, paving, and surfacing work </li></ul>   <p>The A License Classification is different from the other tiers because contractors with this designation are only allowed to work on projects that fit within the scope of their license. They cannot do any supplemental work on the project if it falls outside of the license specifications.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <p class="has-medium-font-size"><strong>Class B Licenses</strong></p>   <p>The <a href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/B_-_General_Building_Contractor.aspx" target="_blank" rel="noreferrer noopener">B License Classification</a> (General Building Contractor) is for contractors whose business is in connection with any structures that are built, being built, or planned to be built for the shelter of any people, animals, or movable objects. The construction must utilize at least two non-related construction trades. This does not include anyone that only provides supplies or materials and does not utilize them during the performance of the work. according to <a href="https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=7045.&lawCode=BPC" target="_blank" rel="noreferrer noopener">Section 7045 of the Business and Professions Code</a>. </p>   <p>Introduced in <a href="https://www.cslb.ca.gov/Resources/IndustryBulletins/2021/B-2_classification.pdf" target="_blank" rel="noreferrer noopener">2021</a>, the <a href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/B-2_-_RESIDENTIAL_REMODELING_CONTRACTOR.ASPX" target="_blank" rel="noreferrer noopener">B-2 Classification</a> offers a pathway to licensure for those individuals that may not qualify for the more complicated work of a B license. B-2 licensing allows the contractor to work on remodeling and small home improvement projects that don’t involve framing or carpentry. Like the B classification, projects performed with a B-2 class also require the use of at least three unrelated building trades or crafts for a single contract. This contractor may take a prime contract for trades or crafts which may include, but are not limited to the following:</p>   <ul><li>Drywall</li><li>Finish Carpentry</li><li>Flooring</li><li>Insulation</li><li>Painting</li><li>Plastering</li><li>Roof Repair</li><li>Siding</li><li>Tiling</li><li>Installing, repairing, or replacing <span style="text-decoration: underline;">electrical fixtures</span> including fans, lights, outlets, and switches</li><li>Installing, repairing, or replacing <span style="text-decoration: underline;">plumbing fixtures</span> including faucets, sinks, and toilets </li><li>Installing, repairing, or replacing <span style="text-decoration: underline;">mechanical fixtures</span>. This includes air filters, air delivery, and return grills</li></ul>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <p class="has-medium-font-size"><strong>Class C Licenses</strong></p>   <p>The <a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C_-_Specialty_Contractor.aspx" target="_blank">C Classification</a> (Speciality Contractor) is the most robust classification the CSLB offers and encompasses forty different specialty trades, including: </p>   <ul><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-2_-_Insulation_and_Acoustical_Contractor.aspx" target="_blank">C-2 - Insulation and Acoustical Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-4_-_Boiler,_Hot_Water_Heating_and_Steam_Fitting_Contractor.aspx" target="_blank">C-4 - Boiler, Hot Water Heating and Steam Fitting Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-5_-_Framing_and_Rough_Carpentry_Contractor.aspx" target="_blank">C-5 - Framing and Rough Carpentry Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-6_-_Cabinet,_Millwork_and_Finish_Carpentry_Contractor.aspx" target="_blank">C-6 - Cabinet, Millwork and Finish Carpentry Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-7_-_Low_Voltage_Systems_Contractor.aspx" target="_blank">C-7 - Low Voltage Systems Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-8_-_Concrete_Contractor.aspx" target="_blank">C-8 - Concrete Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-9_-_Drywall_Contractor.aspx" target="_blank">C-9 - Drywall Contractor</a></li></ul>   <div class="wp-block-image"><figure class="alignleft size-large is-resized"><img src="https://production-laravel-media.s3.us-west-1.amazonaws.com/files/shares/CA/ca_clb_electrician.png" alt="Electrical Contractor " width="89" height="89"/></figure></div>   <p></p>   <p></p>   <ul><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-10_-_Electrical.aspx" target="_blank">C-10 - Electrical Contractor</a><ul><li>The C-10 electrical contractor places, installs, or connects any electrical wires, fixtures, appliances, etc. which generate or utilize electrical energy in any form or for any purpose. In accordance with the <a rel="noreferrer noopener" href="https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=LAB&division=1.&title=&part=&chapter=4.5.&article" target="_blank">CA Labor Code Division 1 Chapter 4.5</a>, electricians working underneath a C-10 contractor must also be certified electricians. They must follow the Electrician Certification Program requirements listed by the <a rel="noreferrer noopener" href="https://www.dir.ca.gov/DLSE/ECU/EleCat.html#1" target="_blank">CA Department of Industrial Relations</a>.</li></ul></li></ul>   <p></p>   <ul><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-11_-_Elevator.aspx" target="_blank">C-11 - Elevator Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-12_-_Earthwork_And_Paving.aspx" target="_blank">C-12 - Earthwork and Paving Contractors</a><ul><li>Contractors with this classification are able to move, dig and place rock, dirt, or other surface materials. They are however unable to operate on any sources of water. In order to perform jobs involving water, the contractor would need a Class A license as well. </li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-13_-_Fencing.aspx" target="_blank">C-13 - Fencing Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-15_-_Flooring_And_Floor_Covering.aspx" target="_blank">C-15 - Flooring and Floor Covering Contractors</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-16_-_Fire_Protection.aspx" target="_blank">C-16 - Fire Protection Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-17_-_Glazing.aspx" target="_blank">C-17 - Glazing Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-20_-_Warm_Air_Heating_Ventilating_And_Air_Conditioning.aspx" target="_blank">C-20 - Warm-Air Heating, Ventilating and Air-Conditioning Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-21_-_Building_Moving_And_Demolition.aspx" target="_blank">C-21 - Building Moving/Demolition Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-22_-_Asbestos_Abatement.aspx" target="_blank">C-22 - Asbestos Abatement Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-23_-_Ornamental_Metal.aspx" target="_blank">C-23 - Ornamental Metal Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-27_-_Landscaping.aspx" target="_blank">C-27 - Landscaping Contractor</a><ul><li>Contractors with this classification can construct, install, or maintain landscape systems and facilities for both public and private gardens. However, they are not able to install PVC piping for irrigation or drainage purposes. In order to do this, they would need to carry a D-12 Synthetics Contractor License as well. Furthermore, in order to prune and remove trees, limbs, or stumps and engage in tree or limb staking, the contractor would also need to carry a D-49 Tree Service license. </li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-28_-_Lock_And_Security_Equipment.aspx" target="_blank">C-28 - Lock and Security Equipment Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-29_-_Masonry.aspx" target="_blank">C-29 - Masonry Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-31_-_Construction_Zone_Traffic_Control.aspx" target="_blank">C-31 - Construction Zone Traffic Control Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-32_-_Parking_And_Highway_Improvement.aspx" target="_blank">C-32 - Parking and Highway Improvement Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-33_-_Painting_And_Decorating.aspx" target="_blank">C-33 - Painting and Decorating Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-34_-_Pipeline.aspx" target="_blank">C-34 - Pipeline Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-35_-_Lathing_And_Plastering.aspx" target="_blank">C-35 - Lathing and Plastering Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-36_-_Plumbing.aspx" target="_blank">C-36 - Plumbing Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-38_-_Refrigeration.aspx" target="_blank">C-38 - Refrigeration Contractor</a></li></ul>   <div class="wp-block-image"><figure class="alignleft size-large is-resized"><img src="https://production-laravel-media.s3.us-west-1.amazonaws.com/files/shares/CA/ca_clb_house.png" alt="Roofing Contractor " width="90" height="90"/></figure></div>   <ul><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-39_-_Roofing.aspx" target="_blank">C-39 - Roofing Contractor</a><ul><li>Contractors with this designation can install products and repair surfaces that seal, waterproof and weatherproof structures. This work is performed to prevent water or other liquids or solids from bypassing the covering and accessing the structure behind it. Additionally, per Senate Bill 216 (Chapter 978, Statutes of 2022), all C-39 roofing contractors must carry workers’ compensation insurance, regardless of whether they have employees. </li></ul></li></ul>   <ul><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-42_-_Sanitation_Systems.aspx" target="_blank">C-42 - Sanitation System Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-43_-_Sheet_Metal.aspx" target="_blank">C-43 - Sheet Metal Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-45_-_Sign.aspx" target="_blank">C-45 - Sign Contractor</a><ul><li>Contractors with this classification are able to construct and install both electrical and nonelectrical signs, including signs attached to walls, posts, and painted wall signs.</li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-46_-_Solar.aspx" target="_blank">C-46 - Solar Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-47_-_Manufactured_Housing.aspx" target="_blank">C-47 - General Manufactured Housing Contractor</a><ul><li>It is important to note that for this classification, the CSLB requires the contractor to complete a federally approved initial installer program. The training program must be administered by a U.S. Department of Housing and Urban qualified trainer  A certificate of completion for the course is required to be submitted along with the application. For more information on this requirement, see <a rel="noreferrer noopener" href="https://www.law.cornell.edu/regulations/california/16-CCR-825.5" target="_blank">16 CCR section 825.5</a>.</li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-50_-_Reinforcing_Steel.aspx" target="_blank">C-50 - Reinforcing Steel Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-51_-_Structural_Steel.aspx" target="_blank">C-51 - Structural Steel Contractor</a></li></ul>   <div class="wp-block-image"><figure class="alignleft size-large is-resized"><img src="https://production-laravel-media.s3.us-west-1.amazonaws.com/files/shares/CA/ca_clb_pool.png" alt="Swimming Pool Contractor " width="90" height="90"/></figure></div>   <ul><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-53_-_Swimming_Pool.aspx" target="_blank">C-53 - Swimming Pool Contractor</a><ul><li>Contractors with this classification can construct swimming pools, spas or hot tubs, They can also install solar heating equipment using appropriate trades or skills necessary for such construction. However, they are excluded from replacing, repairing, or installing any pool motors or pumps. In order to be qualified to do this, the contractor will also need to carry a C-61/D-35 license. </li></ul></li></ul>   <ul><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-54_-_Ceramic_And_Mosaic_Tile.aspx" target="_blank">C-54 - Ceramic and Mosaic Tile Contractor</a><ul><li>Contractors with this classification can install mosaic, ceramic, and other simulated rock slabs. However, the contractor would need to also carry a C-29 license to install baked clay, glass, and natural stone, such as marble. </li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-55_-_Water_Conditioning.aspx" target="_blank">C-55 - Water Conditioning Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-57_-_Well_Drilling.aspx" target="_blank">C-57 - Well Drilling Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-60_-_Welding.aspx" target="_blank">C-60 - Welding Contractor</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/C-61_Limited_Speciality/Default.aspx" target="_blank">C-61 - Limited Specialty</a><ul><li>A C-61 Limited Specialty Contractor performs work that requires special skill and involves the use of specialized building, trades, or crafts. What differentiates the C-61 classification from the other C-class specialty licenses is that the CSLB does not require the contractor to take a trade examination (<a rel="noreferrer noopener" href="https://www.cslb.ca.gov/Resources/GuidesAndPublications/2023/CSLB-2023-Law-and-Reference-Book.pdf" target="_blank">§ 7065.01. Contractors License Law Reference Book</a>).</li></ul></li></ul>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <p class="has-medium-font-size"><strong>Class D Licenses</strong></p>   <p>Due to the broad range of applications, the C-61 classification has been further broken down by the CSLB into “D” subcategories. The addition of the “D” subcategories was created by the CSLB for administrative purposes but also serves to specify what type of work the specialty contractor can conduct. Below is a list of the current subcategories.</p>   <ul><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-3_-_Awnings.aspx" target="_blank">D-3 - Awnings</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-4_-_Central_Vacuum_Systems.aspx" target="_blank">D-4 - Central Vacuum Systems</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-6_-_Concrete_Related_Services.aspx" target="_blank">D-6 - Concrete Related Services</a><ul><li>Contractors with this license can install reusable steel concrete sections or interlocking precast pavers. It also allows the contractor to perform concrete restoration and operate a concrete pumping service. However, it does not allow the contractor to form, pour, place, or install the concrete. For these acts, the contractor would need to carry a C-8 Concrete Contractor license as well. </li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-9_-_Drilling_Blasting_and_Oil_Field_Work.aspx" target="_blank">D-9 - Drilling, Blasting and Oil Field Work</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-10_-_Elevated_Floors.aspx" target="_blank">D-10 - Elevated Floors</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-12_-_Synthetic_Products.aspx" target="_blank">D-12 - Synthetic Products</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-16_-_Hardware_Locks_And_Safes.aspx" target="_blank">D-16 - Hardware, Locks and Safes</a><ul><li>Contractors with this designation can install, modify, and repair both powered and manually operated door/window locks, built-in safes, and vaults. </li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-21_-_Machinery_And_Pumps.aspx" target="_blank">D-21 - Machinery and Pumps</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-24_-_Metal_Products.aspx" target="_blank">D-24 - Metal Products</a><ul><li>Contractors with this designation can install, modify, or repair metal cabinets, lockers and modular storage structures such as non structural prefabricated gutters or fascia. </li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-28_-_Doors_Gates_And_Activating_Devices.aspx" target="_blank">D-28 - Doors, Gates and Activating Devices</a><ul><li>Contractors with this designation are authorized to install, modify, and repair all types of residential, commercial or industrial doors including overhead or sliding door assemblies. </li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-29_-_Paperhanging.aspx" target="_blank">D-29 - Paperhanging</a><ul><li>A paperhanging contractor applies all types and varieties of decorative wall coverings, including paper and vinyl goods, cork, burlap and carpet-type wall coverings. Contractors of this classification are prohibited from applying any paint, oils, or paneling. They would need to apply for a C-33 Painting and Decorating license to do this. </li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-30_-_Pile_Driving_and_Pressure_Foundation_Jacking.aspx" target="_blank">D-30 - Pile Driving and Pressure Foundation Jacking</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-31_-_Pole_Installation_And_Maintenance.aspx" target="_blank">D-31 - Pole Installation and Maintenance</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-34_-_Prefabricated_Equipment.aspx" target="_blank">D-34 - Prefabricated Equipment</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-35_-_Pool_And_Spa_Maintenance.aspx" target="_blank">D-35 - Pool and Spa Maintenance</a><ul><li>Contractors with this classification can install, replace, or repair pool motors, pumps, filters, and any above ground piping in connection with pools. This is in contrast with the C-53 classification that allows contractors to construct swimming pools, spas or hot tubs, Contractors will need both in order to complete pool construction.</li></ul></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-38_-_Sand_And_Water_Blasting.aspx" target="_blank">D-38 - Sand and Water Blasting</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-39_-_Scaffolding.aspx" target="_blank">D-39 - Scaffolding</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-40_-_Service_Station_Equipment_And_Maintenance.aspx" target="_blank">D-40 - Service Station Equipment and Maintenance</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-41_-_Siding_And_Decking.aspx" target="_blank">D-41 - Siding and Decking</a></li><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-42_-_Non-Electrical_Sign_Installation.aspx" target="_blank">D-42 - Non-Electrical Sign Installation</a><ul><li>Contractors with this classification are able to fabricate and install non-electrical signs, such as signs attached to walls, posts and painted wall signs. This is in contrast to the work performed with a <a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-45_-_Sign.aspx" target="_blank">C-45</a> license. A contractor would need to carry a C-45 in order to fabricate and install both electrical and non-electrical signs. </li></ul></li></ul>   <div class="wp-block-image"><figure class="alignleft size-large is-resized"><img src="https://production-laravel-media.s3.us-west-1.amazonaws.com/files/shares/CA/ca_clb_roof.png" alt="Tree Trimming and Landscape Contractor " width="110" height="110"/></figure></div>   <ul><li><a rel="noreferrer noopener" href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-49_-_Tree_Service.aspx" target="_blank">D-49 - Tree Service</a><ul><li>Contractors with this classification can prune and remove trees, limbs or stumps and engage in tree or limb staking. This however does not mean they can construct or maintain landscape systems and facilities. For this ability, the contractor would need to carry a Landscape Contractor (C-27) license as well. Additionally, the CSLB has proposed implementing a new classification, <a href="https://www.cslb.ca.gov/Resources/LawsAndRegulations/2021/CCR_832_49_ISOR_2021_02_19.pdf" target="_blank" rel="noreferrer noopener">C-49</a>. This class would make sure contractors are properly prepared or equipped to deal with the dangers associated with palm trees specifically. This classification is effective as of January 1, 2024. </li></ul></li></ul>   <ul><li><a href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-50_-_Suspended_Ceilings.aspx" target="_blank" rel="noreferrer noopener">D-50 - Suspended Ceilings</a></li><li><a href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-52_-_Window_Coverings.aspx" target="_blank" rel="noreferrer noopener">D-52 - Window Coverings</a></li><li><a href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-53_-_Wood_Tanks.aspx" target="_blank" rel="noreferrer noopener">D-53 - Wood Tanks</a></li><li><a href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-56_-_Trenching_Only.aspx" target="_blank" rel="noreferrer noopener">D-56 - Trenching Only</a></li><li><a href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-59_-_Hydroseed_Spraying.aspx" target="_blank" rel="noreferrer noopener">D-59 - Hydroseed Spraying</a></li><li><a href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-62_-_Air_And_Water_Balancing.aspx" target="_blank" rel="noreferrer noopener">D-62 - Air and Water Balancing</a></li><li><a href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-63_-_Construction_Clean-Up.aspx" target="_blank" rel="noreferrer noopener">D-63 - Construction Clean-up</a><ul><li>Contractors with designation are authorized to remove or clean up any debris from building grounds/structures including but not limited to: concrete, dirt, scrap lumber, drywall, and any paint or adhesive products from windows, floors, ceramic tile.</li></ul></li><li><a href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-64_-_Non-Specialized.aspx" target="_blank" rel="noreferrer noopener">D-64 - Non-specialized</a></li><li><a href="https://www.cslb.ca.gov/About_Us/Library/Licensing_Classifications/C-61_Limited_Speciality/D-65_-_Weatherization_And_Energy_Conservation.aspx" target="_blank" rel="noreferrer noopener">D-65 - Weatherization and Energy Conservation</a></li></ul>   <p>Occasionally, these D sub-classifications will be deemed obsolete, or they will be redefined, converted, or absorbed to fit into existing and more fitting license classifications based on the scope of work.</p>   <p>The CSLB will review and determine which classifications can be consolidated. Once the board has come to an agreement, the decision is sent to the <a rel="noreferrer noopener" href="https://oal.ca.gov/" target="_blank">CA Office of Administrative Law</a> for final review before being approved and amended into the California Code of Regulations. These specialized classifications will then be added to other licenses to allow those existing contractors a larger breadth of work. </p>   <p>Below listed are some examples of classifications that consolidated the D subcategory to another classification.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h3>Consolidated CSLB License Classifications</h3>   <figure class="wp-block-table is-style-stripes t-max-700"><table><thead><tr><th><strong>Number</strong></th><th><strong>Name</strong></th><th><strong>Is Now Under</strong></th></tr></thead><tbody><tr><td>D-1</td><td>Architectural Porcelain</td><td>D-64</td></tr><tr><td>D-2</td><td>Asbestos Fabrication</td><td>C-2</td></tr><tr><td>D-5</td><td>Communication Equipment</td><td>C-7</td></tr><tr><td>D-7</td><td>Conveyors-Cranes</td><td>D-21</td></tr><tr><td>D-8</td><td>Doors and Door Services</td><td>D-28</td></tr><tr><td>D-11</td><td>Fencing</td><td>C-13</td></tr><tr><td>D-13</td><td>Fire Extinguisher Systems</td><td>C-16</td></tr><tr><td>D-14</td><td>Floor Covering</td><td>C-15</td></tr><tr><td>D-15</td><td>Furnaces</td><td>A or C-20</td></tr><tr><td>D-17</td><td>Industrial Insulation</td><td>C-2</td></tr><tr><td>D-19</td><td>Land Clearing</td><td>C-12 or A if license is required</td></tr><tr><td>D-20</td><td>Lead Burning and Fabrication</td><td>D-64</td></tr><tr><td>D-22</td><td>Marble</td><td>C-29</td></tr><tr><td>D-23</td><td>Medical Gas Systems</td><td>C-36</td></tr><tr><td>D-25</td><td>Mirrors and Fixed Glass</td><td>C-17</td></tr><tr><td>D-26</td><td>Mobile Home Installation and Repairs</td><td>C-47</td></tr><tr><td>D-27</td><td>Movable Partitions</td><td>D-34</td></tr><tr><td>D-32</td><td>Power Nailing and Fastening</td><td>D-64</td></tr><tr><td>D-33</td><td>Precast Concrete Stairs</td><td>C-29</td></tr><tr><td>D-36</td><td>Rigging and Rig Building</td><td>A</td></tr><tr><td>D-37</td><td>Safes and Vaults</td><td>D-16</td></tr><tr><td>D-43</td><td>Soil Grouting</td><td>C-32, C-12 or A</td></tr><tr><td>D-44</td><td>Sprinklers</td><td>D-12</td></tr><tr><td>D-45</td><td>Staff and Stone</td><td>C-29</td></tr><tr><td>D-47</td><td>Tennis Court Surfacing</td><td>C-12 or A</td></tr><tr><td>D-48</td><td>Theater and School Equipment</td><td>D-34</td></tr><tr><td>D-54</td><td>Rockscaping</td><td>C-15 or C-27</td></tr><tr><td>D-55</td><td>Blasting</td><td>C-12 or A</td></tr><tr><td>D-57</td><td>Propane Gas Plants</td><td>A</td></tr><tr><td>D-58</td><td>Residential Floating Docks</td><td>A</td></tr><tr><td>D-60</td><td>Striping</td><td>C-32</td></tr><tr><td>D-61</td><td>Gold Leaf Gilding</td><td>D-64</td></tr></tbody></table></figure>   <p>At Jet Insurance, we are dedicated to helping California contractors get bonded quickly and easily. Call us at <a rel="noreferrer noopener" href="tel:+19168365330" target="_blank">(916) 836-5330</a> or email us at <a rel="noreferrer noopener" href="mailto:cacontractors@jetsurety.com" target="_blank">cacontractors@jetsurety.com</a> and our team of Underwriters will assist with any questions you have.</p>

B or B-2 License: Which One is Right for You? New CSLB classification B-2 (Residential Remodeling) offers new opportunities for California contractors who wish to take on home remodeling projects.  <p>Recently, the California State License Board (CSLB) created their first new classification in over a decade: the<strong> B-2 Residential Remodeling Classification</strong>. What’s the difference between the B and B-2 classifications? Are there any limitations with the B-2 classification? Why does California even need the B-2 classification? The Jet team has gathered all the details to understand this updated classification.</p>   <p><strong>Key Differences</strong></p>   <div class="wp-block-image size-large"><figure class="aligncenter is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Class%20B%20vs.%20B2%20-%20Main%20Differences%20%285%29.png" alt="Infographic outlining the main differences between a Residential Remodeling contractor and a General Building contractor." width="575" height="1438"/></figure></div>   <p><strong>What Is a Class B Contractor?</strong></p>   <p>According to the <a href="https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=7057.">CSLB</a>, “a general building contractor is a contractor whose principal contracting business is in connection with any structure built, being built, or to be built, for the support, shelter, and enclosure of persons, animals, chattels, or movable property of any kind, requiring in its construction the use of at least two unrelated building trades or crafts, or to do or superintend the whole or any part thereof.” </p>   <p>In simpler terms, a Class B contractor (or General Building Contractor) is a contractor who builds structures. The construction of these structures, whether commercial or residential, must involve at least two or more unrelated trades or crafts that either you or another licensed subcontractor perform. As a Class B contractor, you must also directly supervise the project.</p>   <p>B contractors are able to take primary contracts (or sub-contracts) for any framing or carpentry project, even if the project does not entail additional trades or crafts. </p>   <p>For primary contracts that do have additional trades needed, a Class B contractor can take the contract <em>ONLY IF</em> they meet at least one of these three conditions:</p>   <ol><li>The written contract includes two or more trades related to framing or carpentry.</li><li>If the written contract only encompasses one trade, then the Class B contractor must hold that specific license classification. An example would be a Class B contractor receiving a contract with only house painting listed as the work to perform. In order to take this single-trade contract, the B contractor would need to have the C-33 (painting class) separately or include two additional trade jobs in the contract. </li><li>If the Class B contractor hires subcontractors who hold the appropriate classifications that are needed.</li></ol>   <p>Additional limitations to a Class B contractor classification include being prohibited from taking on any contracts involving Fire Protection or Well Drilling unless the contractor either has those specific classifications themselves or hires subcontractor(s) licensed with those classifications.</p>   <div class="wp-block-image size-large"><figure class="aligncenter"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Class%20B%20vs.%20B-2%20Blog%20-%20Contractor%20Bob%20%283%29.png" alt="Infographic showing example of what projects a General Building contractor can legally take."/></figure></div>   <p><strong>What Is a Residential Remodeling Contractor (Class B-2)?</strong></p>   <p>A Class B-2 contractor, or a Residential Remodeling Contractor, is a licensed contractor who is restricted to only make changes to existing residential wood frame structures. In order for a Residential Remodeling contractor to take any projects or contracts, they must ensure the project involves at least three different trades or crafts, similar to that of a General B contractor.</p>   <p>Unlike Class B contractors, who need four years of framing or carpentry experience, a Residential Remodeling contractor only needs four years of journey-level <strong>home remodeling experience</strong> as their qualifying experience. A person gains journey-level experience after they have either completed an approved apprenticeship program or has enough hands-on experience in a specific trade to perform the work without any supervision. Applicants applying for an original contractor license are also able to substitute up to three years of this experience requirement with qualifying education. </p>   <p>This updated classification allows contractors with years of non-structural remodeling experience to get their contractor license with the CSLB.  Now these newly licensed contractors can legally take on larger projects and avoid the risk of being fined for being unlicensed. As home remodeling projects are so common and largely handled by inexperienced home owners, it can be easy to forget that you must have a license to perform any contracting work that exceeds $500 (at least in California)! </p>   <p>A Residential Remodeling contractor can accept kitchen and bathroom remodeling projects, such as cabinet replacement, new paint and flooring, and even the replacement of electrical or plumbing fixtures. </p>   <p>Like Class B contractors, Residential Remodeling contractors are subject to their own classification limitations too. Residential Remodeling contractors cannot make any type of structural changes to the existing structure or perform mechanical, electrical, or plumbing work behind the wall. They also cannot install or replace HVAC systems. Lastly, Residential Remodeling contractors are limited to working on existing residential wood frame structures, which means no working on commercial buildings.</p>   <p><strong>Why Do We Need the Distinction?</strong></p>   <p>With housing prices at an all-time-high, it makes sense that most homeowners are opting to remodel their current homes instead of purchasing new builds. Moreover, those who are actually in the market are considering buying fixer-upper homes rather than buying turnkey. In spite of the continually growing availability of remodeling jobs, California maintains the low limit allowance regarding construction work performed. </p>   <p>In recognition of the fact that no home renovation project in California comes with a price tag under $500, an attempted bill aimed at raising this limit was introduced but failed to be approved by the California Assembly. Consequently, the alternative approach was to create the B-2 contractor classification—enabling handymen to lawfully undertake home remodeling exceeding $500 without ramifications.</p>   <p></p>

California Construction Updates for 2025 Legislative changes will be made in 2025 that impact all CA contractors.  <p>With the new year just around the corner, there are some changes that all our California contractors should know about. Below are some of the notable changes that will impact either yourself or a contractor you know. </p>   <h2><strong><span class="has-inline-color has-black-color">AB 2622: Handyman Limit Increase from $500 to $1,000</span></strong></h2>   <p>Updates to <a rel="noreferrer noopener" href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2622" target="_blank">AB 2622</a>, approved by Governor Newsom on September 14th, 2024 allow handymen in California to take construction projects totaling up to $1,000. The previous limit for handymen of $500 had not been updated since 2005. The work done by unlicensed handymen must be “<a rel="noreferrer noopener" href="https://jetsurety.com/articles/detail/ab-2622-update" target="_blank">casual, minor, and inconsequential</a>,” according to the <a rel="noreferrer noopener" href="https://www.cslb.ca.gov/" target="_blank">Contractors State License Board.</a> </p>   <h2><strong><span class="has-inline-color has-black-color">Minimum Wage Increases to $16.50 Per Hour </span></strong></h2>   <p>The statewide <a href="https://www.dir.ca.gov/dlse/minimum_wage.htm" target="_blank" rel="noreferrer noopener">minimum wage increase to $16.50 per hour</a> will apply to all employers, affecting payroll expenses for contractors with employees. For contractors who have employees, it is important to take this into consideration when planning for the financial future ahead. If you are curious what the difference between an independent contractor and an employee is, you can learn more about that distinction on the <a href="https://www.dir.ca.gov/dlse/faq_independentcontractor.htm" target="_blank" rel="noreferrer noopener">CA Department of Industrial Relations</a> website. </p>   <h2><strong><span class="has-inline-color has-black-color">SB-988: Freelance Worker Protection Act </span></strong></h2>   <p>Beginning January 1st, 2025, <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB988" target="_blank" rel="noreferrer noopener">SB-988</a> will go into effect. This bill will require written contracts be provided to independent contractors who are hired for professional services that are equal to or greater than $250. This means that your subcontractor(s), even those that you may have hired previously, will now need to be supplied a formal written contract as opposed to only given a work invoice for a completed job. </p>   <h1>As 2025 progresses, there are some potential legislative changes from the CSLB to keep an eye out for as well. </h1>   <h2><strong><span class="has-inline-color has-black-color">Accessory Dwelling Units (“ADUs”) may be added to the definition of “home improvement” in Contractor Law</span></strong></h2>   <p>As discussed in the <a href="https://www.youtube.com/live/pLqMXIJBvCk" target="_blank" rel="noreferrer noopener">December 12th CSLB board meeting</a>, adding ADUs to the definition of "home improvement" in Contractor Law* will ensure that contractors engaging in ADU construction must fully comply with existing home improvement regulations. This includes adhering to contract requirements, disclosure obligations, and licensing and local permitting standards. </p>   <p>*<em>Contractor Law refers to the California Contractors License Law established by the California State License Board. The 2024 California Contractors License Law & Reference Book can be found directly from the CSLB website at no cost. </em></p>   <h2><strong><span class="has-inline-color has-black-color">Raises in Enforcement Fine Minimums</span></strong></h2>   <p>Potential updates to Business and Professions Code sections <a href="https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=7099.2.#:~:text=(a)%20The%20board%20shall%20promulgate,The%20gravity%20of%20the%20violation." target="_blank" rel="noreferrer noopener">7099.2</a> and <a href="https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=7028.7.&lawCode=BPC" target="_blank" rel="noreferrer noopener">7028.7</a> will raise the minimum fines for violations, including unlicensed contracting activity and failure to comply with CSLB regulations. Contractors may face steeper financial penalties for non-compliance, increasing the financial risk of operating without proper licenses, insurance, or adherence to contract laws. </p>

Contractor Kickstart! Part 1: Budgeting & Pricing Budget and pricing how-to guide for new and seasoned construction contractors.  <p>Hey, aspiring contractors! If you've found your way to this blog post, chances are you're embarking on your journey of owning and running a successful independent construction company and have some questions on where to start. The team at Jet Insurance is committed to ensuring you’re well-prepared as you dive into the exciting world of contracting. </p>   <p>This is the first installment of a six-part blog series called “Contractor Kickstart!” where Jet passes on the knowledge of how to become a contractor. This series will cover topics like how to save your hard-earned cash, make savvy investments in top-notch tools, and efficiently manage your projects. </p>   <p>In this piece, we're tackling budgeting and pricing. We get it—starting out as a contractor means opening that wallet up wide, and we're here to help you do it right.</p>   <h2>Budgeting: The Nitty-Gritty</h2>   <p>It’s no question that becoming a contractor isn’t a walk in the park. On top of the hours of hands-on training and exams to complete, it also costs a pretty penny while you’re getting licensed.</p>   <p class="has-text-align-center"></p>   <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Starting%20Out%20as%20a%20Contractor%20%28Budgeting%29%20Expenses%20for%20Contractors.png" alt="Expenses for contractors, such as the application fee to the contractors state license board, license fees, and contractor license bond. " width="641" height="480"/></figure>   <p>The best way for a contractor to ensure they’re being smart with their money is to account for all the money coming in and going out, known commonly as creating a budget. Budgets are typically a part of your initial business plan. Don’t worry—we will go more in-depth with how to create a formal business plan in a future installment of “Contractor Kickstart!” </p>   <p>Every independent contractor’s budget is going to look different, especially when considering that every specific classification has its own unique needs. If you’re curious about all the different license classifications that exist, Jet has whipped up a <a href="https://jetsurety.com/articles/detail/ca-clb-license-classifications">handy guide</a> outlining the classifications in depth.</p>   <p class="has-text-align-center"></p>   <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Starting%20Out%20as%20a%20Contractor%20%28Budgeting%29%20Budget%20Considerations.png" alt="Budget considerations for beginners. Different considerations include income, fixed costs, and variable costs. " width="646" height="484"/></figure>   <h2>Definition of Cost Types </h2>   <ol><li><strong>Income</strong>: Money that you earn as a result of working or other means. This can be split into two different categories. <ol><li><strong>Net income</strong>: the total amount of money that you make from a job. </li><li><strong>Gross income</strong>: the amount of money that you’re able to pocket after all the expenses are paid for (e.g. supplies, wages, etc.)</li></ol></li><li><strong>Fixed Cost</strong>: an item that has one set price. If you need to purchase a fixed-cost item multiple times, you may have heard of this referred to as a “recurring” cost, which means that this is a purchase that repeats over a period of time. </li><li><strong>Variable Cost</strong>: an item that has a constantly-changing price tag every time you purchase it. </li></ol>   <p>When it comes to fixed costs, it’s handy to think about how often you’ll need to purchase the items. For example, a contractor license bond will typically need to be purchased at least once a year, unless you purchase a multi-year bond. For variable costs, it’s helpful to calculate both a high end and a low end for those costs so that you have an idea of the cost range you might fall into. If you’re a brand new business with no income yet, you can estimate your financial projections based on the different types of jobs you might take on or what your competitors price their services at. </p>   <p>After a budget is created, you want to make sure you’re reviewing the budget from time to time. A good rule of thumb for budgeting beginners is to review your budget every month. As you get more familiar with what you’re spending your money on and the income you bring in, you can reduce this review to once every quarter (roughly every three months). This allows you to have a good amount of financial data to work off of, create more robust projections and ultimately see if you are on track to hit the monetary goals laid out for your business within your budget.</p>   <h2>If you don’t have any clients yet…</h2>   <p>A critical budget consideration is the invoiced prices for the services your company will offer. Of course, you don’t want to overprice your services to the point where clients don’t even consider hiring you. On the flip side, you don’t want to make the mistake of what new contractors and small business owners sometimes do by underpricing themselves. </p>   <p>It may seem tempting in the beginning to offer services for less than competitors, especially to get bids and contracts for jobs when you’re initially unknown in the local market. Still, it’s important to consider the necessity to set prices high enough to cover the cost of the job AND make a profit (at the very least). Don’t fall victim to underpricing yourself, taking on a contract, and then not being able to afford to get the job done. </p>   <p>What’s even worse is that you undervalue your work; it can send the wrong message to your new clients. You know the saying, “you get what you pay for?” People <em>can </em>equate cheap prices with cheap labor, so make sure your prices don’t look too good to be true. </p>   <p>Similar to individualized budgets, how you price your services will differ from other contractors. You might have a good idea of what your pricing should be after working alongside different contractors during apprenticeships, but here are some things you may overlook. </p>   <p class="has-text-align-center"></p>   <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Starting%20Out%20as%20a%20Contractor%20%28Budgeting%29%20Factors.png" alt="Different factors to consider when determining how to price your services include overhead costs, competitor pricing, billable hours, years of experience, your desired profit margin, and labor costs (if any). " width="636" height="476"/></figure>   <ol><li><strong>Overhead</strong>: What are the different costs that are involved in order for you to start and sustain your business? </li><li><strong>Competitor Pricing</strong>: Conduct some market research to see what your competitors price themselves at so you can ensure you are pricing yourself competitively. </li><li><strong>Billable Hours</strong>: You’re not going to want to work forever, so consider how many hours you want to put in per week, month, year, etc. Are you pricing your services at a price that fits in with the lifestyle you want to live? </li><li><strong>Experience</strong>: Newer contractors are going to have different prices than seasoned professionals. More than likely, when you’re starting out, your prices are going to be lower than a contractor who has over 25 years of experience in the field. </li><li><strong>Profit Margin</strong>: Because your contracts and bids include all the prices necessary to get the job done, think about what percentage of your contract amount you want to take home as profit.</li><li><strong>Labor Costs</strong>: If you have any employees or subcontractors that you’ve hired for some jobs, factor in the prices necessary to keep them employed!</li></ol>   <p>Budgeting is just one part of the equation for new contractors to think about. One of the best parts about working for yourself is that you have 100% control of where your money goes—for better or worse. Figure out your priorities early on so as to save yourself the headache of addressing any potential financial crises. Questions like, “do I want to spend more on my everyday tools or do I want to spend more on ads?” can save you a ton of time and hassle in the long run.</p>   <p class="has-text-align-center"></p>   <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Starting%20Out%20as%20a%20Contractor%20%28Budgeting%29%20Piggy%20Bank.png" alt="Understanding how to divide your money is important. Things like marketing, tools and equipment, emergency funds, and miscellaneous costs all play a role in where your money should go." width="644" height="482"/></figure>   <p>That brings us to the end of our first installment of “Contractor Kickstart!” We trust that you've discovered valuable insights on effectively managing your budget, whether you’re a freshly licensed contractor or a seasoned pro. Your financial success is key to your professional journey, and we're here to support you every step of the way. </p>   <p>Access other Contractor Kickstart! articles:</p>   <p><a href="https://jetsurety.com/articles/detail/contractor-kickstart-part-2-credit"><strong>Contractor Kickstart! Part 2: Credit</strong></a></p>

Contractor Kickstart! Part 2: Credit The necessity for construction contractors to have credit and how it affects their business.  <p>This is the second of six installments in the blog series “Contractor Kickstart!” in which the team at Jet Insurance intends to pass on helpful knowledge to aid in your venture to become a successful contractor. The other installments can be accessed from the blog home page or at the bottom of this article.</p>   <p>In the world of business, they say “Cash is king.” Although having cash is good, as a society, financial institutes need standardized ways to distinguish between those who manage their finances responsibly and those who do not. In this edition of “Contractor Kickstart!”, we’ll be diving into the world of individual credit and why it is essential as you are solidifying yourself in the journey of becoming a contractor. </p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2><strong>The Essentials of Credit</strong></h2>   <p>The most important area of focus in your credit journey is your credit score. This score is attributed to you as an active user of credit, measuring your creditworthiness. This determination directly affects how banks and lenders perceive your credit-handling abilities. The higher the credit score, the more trustworthy you are in the eyes of financial institutions and other areas of business that utilize credit as a judgment factor (e.g. landlords and employers). </p>   <p>Before getting into the finer details, let’s define some key credit terms. Keep in mind this is not an exhaustive list of credit terms.</p>   <figure class="wp-block-table is-style-stripes t-max-1000"><table><thead><tr><th class="has-text-align-left" data-align="left"><strong>TERM</strong></th><th class="has-text-align-left" data-align="left"><strong>DEFINITION</strong></th></tr></thead><tbody><tr><td class="has-text-align-left" data-align="left"><strong>Credit Score / FICO Score</strong></td><td class="has-text-align-left" data-align="left">Credit score and FICO score are commonly used interchangeably. <br><br>Many different types of credit scores exist, FICO score being just one of them. Ultimately, credit scores and a FICO score are both scores representing a person’s creditworthiness to lenders and financial institutions. Read more about FICO and credit scores in this <a href="https://www.investopedia.com/fico-score-vs-credit-score-5214435" target="_blank" rel="noreferrer noopener">Investopedia article</a>.</td></tr><tr><td class="has-text-align-left" data-align="left"><strong>Tradeline</strong></td><td class="has-text-align-left" data-align="left">A tradeline is an individual account listed on your credit report. From accounts like auto loans to credit cards, these count as individual tradelines that can be seen by anyone who pulls your credit inquiry report.</td></tr><tr><td class="has-text-align-left" data-align="left"><strong>Credit History</strong></td><td class="has-text-align-left" data-align="left">Credit history outlines how you’ve managed your credit in the past, including any active tradelines, bankruptcies, or missed payments. <br><br>How long you have had active credit lines affects your credit history—a longer amount of time with established credit is viewed as more reliable than newer credit.</td></tr><tr><td class="has-text-align-left" data-align="left"><br><br><strong>Credit Utilization</strong></td><td class="has-text-align-left" data-align="left">Credit utilization is how much credit you’ve used relative to how much total credit you have available. (e.g. you have a total credit limit of $1,000 and you’ve used $100, then you have used 10% of your total credit utilization.)</td></tr><tr><td class="has-text-align-left" data-align="left"><br><br><strong>Credit Check / Credit Inquiry</strong></td><td class="has-text-align-left" data-align="left">A credit check, otherwise known as a credit inquiry, is when you or an authorized party looks at your credit report. There are two main types of credit inquiries: <strong>soft inquiries</strong> and<strong> hard inquiries</strong>.<br><br><strong>Soft Inquiry:</strong><br>A soft inquiry happens during pre-approval when the application has not officially started yet. The lender/company wants to get an idea of where your credit stands to see what you may qualify for. Soft inquiries also occur when you check your credit score. A soft inquiry <strong>does not</strong> impact your credit score.<br><br><strong>Hard Inquiry:</strong><br>A hard inquiry happens when applying for a new, specific line of credit or loan (like a mortgage or car loan). Hard inquiries impact your credit score because each review/pull lowers your score by a few points.<br></td></tr></tbody></table></figure>   <p>As mentioned earlier, you want to pay attention to your credit score because this is a major factor for most applications requiring any type of credit check. Your score is not arbitrary; it is made up of five major factors, which we break down below.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Credit%20Score%20Make-Up%20%282%29.png" alt="credit score factors" width="644" height="480"/></figure>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <p>Because your credit score is made up of these different considerations, most places requiring a credit check will do so to assess your history of handling finances. One benefit of a credit check is if you’ve been responsible with your credit and finances over time, you would most likely be eligible for the lower rates on company necessities like insurance policies and bonds. </p>   <p>Alternatively, if someone has a low credit score due to late/missed payments on credit cards or loans, it is seen as a red flag, as this suggests the person may not repay borrowed money. This raises the risk for the lenders and companies, and as a result, they may require extra stipulations such as charging higher premiums or interest rates to compensate for the increased risk. </p>   <p>When it comes to construction bonds, an individual’s credit score plays a substantial role in overall cost. What the bond companies provide is essentially a line of credit you never want to use. If you have a low credit score, it signals to bond companies you may not pay back your debts on time, making it much riskier for them to give you money. Think about it—would <em>you</em> want to loan out thousands of dollars to someone who’s not known for paying people back on time? It’s important to note that should a bond claim happen and be paid out for you, you are liable to pay the surety company back for the full claim amount.  Check out Jet’s <a href="https://jetsurety.com/surety-bonds">surety bond guide</a> for more information.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Credit%20and%20Bond%20Pricing%20%281%29.png" alt="how credit score affects bond price" width="644" height="482"/></figure>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <p>So now you might be thinking, “well…I don’t want to risk having a low credit score. What if I just don’t use credit at all?” While it’s your choice whether or not to be a user of credit, the truth is that it will affect pricing on business expenses such as insurance and surety bonds. Without credit, lenders and bond companies may ask for additional information such as previous financial statements to prove your ability to pay back debt. Still, having no credit score is better than having a bad credit score. </p>   <p>Aim to keep your credit score high and you should be in good standing with lenders to get the best rates on what you’ll need to get your contracting business started. If you don’t have any credit right now, one of the easiest ways to build your score is by opening up a secured credit card at your local financial institution. A secured credit card is different from a traditional credit card in that the secured card requires you to provide a cash deposit to open up the account.  </p>   <p>Once you have some type of way to establish credit, here are some tips to follow to make sure you keep your score high: </p>   <ol><li>Always pay your credit card back on time. While you can make the minimum payments to avoid any late fees or penalties, aim to pay back your balance in full each month to keep your credit utilization low. 35% of your credit score depends on your on-time payments, so make sure this takes priority!</li><li>Aim to have your total credit utilization percentage be 30% or lower. To do this, you should know what your credit limits are across all your different credit cards (if you have multiple) and aim to spend no more than 30% of the limit amount.</li><li>The longer the history of credit you have, the better the chance of keeping a high credit score. This is with the exception you have a <strong>good</strong> credit history, of course. However, because how long you’ve had credit does matter, it does help to have your accounts open for as long as possible. Credit cards should be closed in rare circumstances. Even if you aren’t using the card, consider keeping the account open because closing a credit card to open a new one later on can negatively affect the credit age factor.</li></ol>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2><strong>FAQs about Credit</strong></h2>   <h3>What if I only deal in cash?</h3>   <p>Speaking to those who prefer to pay for everything in cash, while there is nothing wrong with doing this, there are certain consequences to be aware of. As it is an industry standard for places like bond companies, lenders, and financial institutions to use a personal credit score as one of their risk evaluation tools, not having a credit score might mean you most likely will not qualify for the lowest rates possible. To easily remedy this, work to consistently have one active tradeline to establish some type of credit score and establish creditworthiness. </p>   <p>When it comes to your surety bonds specifically, not having a credit score is going to affect your premium pricing, but the severity of the impact is going to be different from company to company. In California, the alternative to purchasing a bond is to<a href="https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_alternatives.aspx"> put up a $25,000 cashier’s check</a> with the California State Licensing Board (CSLB). Keep in mind the $25,000 remains in the care of the CSLB. In the event of a claim payout, you are responsible for replenishing the account to its full limit.</p>   <h3>I haven't used credit in years. How does this affect my premium on a bond?</h3>   <p>Surety companies have rates for contractors who have not used credit in a while. Keep in mind not using credit for an extended period and not having a credit score are completely different scenarios. People who have not used credit in over six months or have opened up a very new account less than six months old will generate either a 9002 or 9003 credit score in place of a traditional credit score ranging from 300 to 850. </p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/9002%20vs.%209003%20Credit%20Score%20%284%29.png" alt="difference between 9002 and 9003 credit" width="644" height="482"/></figure>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <p>A 9002 score means there has been no activity on the credit report for the past six months. This can happen if you have no debt or loans to pay off and are not actively using credit cards to make purchases. A 9003 score means the credit accounts are younger than 6 months and indicate a lack of full history to generate a credit score, but there is a tradeline under your profile. Since these 9002/9003 credit scores fall outside of the normal credit score range, they have specific underwriting criteria to adhere to. The only way to know for sure what your premium is going to be is to get a <a href="https://jetsurety.com/bondquote">bond quote</a> for your specific needs.</p>   <h3>My credit score is not great right now, so I’ve been getting high quotes everywhere I go. Will my premium for bonds always be this high?</h3>   <p>No, if your credit score improves at the time of your bond renewal, surety companies will look at an updated credit activity and establish if you are eligible for lower premiums. As mentioned earlier, credit scores are refreshed roughly every 30 days. Let’s say you purchase a bond for a one-year term and you aggressively pay off debts for the next 12 months. Upon renewal, your premium may drop significantly as your credit score rises. Keep in mind if your initial bond premium is high due to low credit, many companies will not review credit on the bond every 30 days to see if your credit has improved, this will happen upon the annual renewal.</p>   <p>This brings us to the end of our credit portion of Contractor Kickstart! We hope this piece sheds some light on important credit topics and imparts some wisdom that will be helpful on your independent contracting journey. </p>   <p>In the next edition of Contractor Kickstart!, we’ll be talking about investing in tools that might make your day-to-day as a construction contractor easier and much more efficient.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <p><strong>Access other Contractor Kickstart! articles:</strong></p>   <p><a href="https://jetsurety.com/articles/detail/contractor-kickstart-budgeting-pricing">Contractor Kickstart! Part 1: Budgeting & Pricing </a></p>

CSLB Advertisement Guidelines for Contractors Avoid costly mistakes—learn the CSLB's advertising rules to protect your contractor license from fines or suspension. Stay compliant and safeguard your business.  <p>Imagine this: you’ve spent the last four years getting journeyman experience for your contractor license, taken all the exams, and paid all the fees. You finally get your contractor license and you are ready to start getting clients. You start advertising your business and all of a sudden, your license is suspended because you unknowingly advertised your business illegally. You might know your trade like the back of your hand, but do you know how to run your business to Contractor State License Board (CSLB) standards? </p>   <p>The CSLB has very specific guidelines when it comes to advertising your construction business. We’ll outline some common marketing mistakes contractors make in this post. You can also access the information directly from the <a href="https://www.cslb.ca.gov/resources/guidesandpublications/advertisingguidelines.pdf" target="_blank" rel="noreferrer noopener">CSLB website</a>. </p>   <figure class="wp-block-image is-resized"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdX1ap0ztE376_sqyC0-iyklKoDVdI8Fgxh1Z7C3gjYzBP99anXnAvKZA72W-nBpkLUDW2U_devtIBgxmaj2Tg_wJUF8Quyb4BQLdmu9HU_oK-kzT4cASl_Xcc7jo66VCNkFqeY6A?key=XRYlL6gOKYiBrlIpLAQIYWhu" alt="" width="674" height="505"/></figure>   <p>A common misconception is your ability to advertise your business using whatever name you would like. In reality, the name you choose to do business under must be the same as the name printed on the license. <strong><em>Even if you have filed a specific business name with the state, your advertising must reflect what is on your license</em></strong>. If the name printed on your license is only your legal name, then you must file a “<a href="https://www.cslb.ca.gov/Contractors/Maintain_License/Change_Name_Or_Address.aspx" target="_blank" rel="noreferrer noopener">Name Change</a>” form with the CSLB and pay the appropriate fees before you can operate under your desired business name. </p>   <p>For instance, a newly licensed contractor, Sean John, has his legal name listed on his license but he wants to do business under “Sean’s Construction.” Unless Sean changes the name listed on with the CSLB as “Sean’s Construction,” he legally cannot advertise his business as such as it violates the Business and Professions Code (BPC) 7083, which has a minimum fine of $100.*</p>   <p>Another mistake commonly seen is the lack of a license number visible on company advertisements. If you send out any digital marketing, have a website, and/or have any social media accounts, they must all include your license number in some way per BPC 7027.1. This provides transparency for your clients to locate your license on the CSLB website and do their due diligence ensuring they hire licensed contractors. </p>   <p>This last common violation might seem counterintuitive, but you actually cannot advertise that you are bonded and insured. The reason is to protect the public from thinking they have higher levels of protection than what is actually available. Stating you are bonded and insured is a violation of BPC 7071.13. </p>   <p>What we have listed is not a comprehensive list of all advertising violations set by the CSLB, so be sure to do your due diligence and research these limitations accordingly. To set yourself up for contracting success, be sure to follow the proper protocol to steer clear of any violations being put on your license! </p>   <p><br><em>*A list of BPC violations and their associated fine amounts <a href="https://govt.westlaw.com/calregs/Document/ID72C27534C8111EC89E5000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)" target="_blank" rel="noreferrer noopener">can be found here</a>.</em></p>

CSLB Letters of Admonishment Now Have Financial Consequences Discover the CSLB's latest update on Letters of Admonishment—now lasting up to two years and requiring contractors to reimburse industry expert costs. Stay informed and protect your business!  <p>The Contractors State License Board (CSLB) has <a rel="noreferrer noopener" href="https://www.cslb.ca.gov/Resources/IndustryBulletins/2024/SB%201455%20changes.FINAL.pdf" target="_blank">released a new update</a> for all contractors regarding letters of admonishment. A letter of admonishment is one of multiple forms of correction the CSLB can issue to contractors that violate Contractor License Law and/or the Business and Professions Code.</p>   <p>Previously, letters of admonishment were perceived as a warning to the contractor and did not result in financial penalties. The letter of admonishment itself was displayed on a contractor’s license for up to one year to inform the general public that there was/were a minor violation(s) that the contractor incurred, but that’s it. </p>   <p>With this new update, if a contractor is given a letter of admonishment, the contractor is now legally obligated to pay back any industry expert costs that accumulate with their particular case. </p>   <h2><strong><span class="has-inline-color has-black-color">What is a Letter of Admonishment?</span></strong></h2>   <p>As previously stated, a letter of admonishment is a formal corrective action issued by the CSLB for minor violations of California’s contractor laws and regulations. It serves as a written warning rather than a more severe disciplinary action, like a citation or license suspension. When a contractor receives a letter of admonishment, they must comply with any remedial measures outlined by the CSLB, usually coming from the recommendation by a hired industry expert. </p>   <p>In January 2023, the CSLB extended the amount of time a letter of admonishment appears on a contractor’s license; the letter of admonishment <a href="https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=7124.6.&lawCode=BPC" target="_blank" rel="noreferrer noopener">may be displayed for up to two years</a>, should the CSLB deem that length of time necessary. This policy change was intended to increase transparency for the general public and ensure that consumers seeking contractors have greater access to disciplinary records.</p>   <h2><strong><span class="has-inline-color has-black-color">Previous Impact vs. New Impact</span></strong></h2>   <p>Before this update, letters of admonishment had relatively small long-term consequences for contractors. Letters of admonishment were often seen as “a slap on the wrist” that did not heavily impact a contractor’s ability to attract new clients or be awarded bids. Additionally, consumers and industry professionals rarely viewed letters of admonishment as serious disciplinary actions. </p>   <p>With the change in the law, contractors face more substantial consequences when receiving a letter of admonishment. The biggest consequence is the financial ramification associated with receiving a letter of admonishment. The costs associated with these expert evaluations are now the financial responsibility of the contractor receiving the letter of admonishment.</p>   <p>If you are unfamiliar with the <a rel="noreferrer noopener" href="https://www.cslb.ca.gov/Resources/GuidesAndPublications/IndustryExpertProgram.pdf" target="_blank">Industry Expert Program</a>, the CSLB created this unique program to address a <a rel="noreferrer noopener" href="https://www.cslb.ca.gov/Newsletter/2015-16%20winter/images/IEapp.pdf" target="_blank">backlog of consumer complaints they were receiving</a>. One of the primary issues leading to this backlog was the difficulty in securing expert witnesses for contractor disputes. The CSLB enlists licensed professionals with relevant expertise to evaluate complaints and provide their expert testimony. </p>   <p>Ultimately, the changes to the letter of admonishment were made to increase contractor accountability for minor infractions as well as allow the CSLB to continue their mission as a consumer protection against those acting in bad faith. </p>

Death of a Contractor: End of the Road or a New Beginning The State of California has specific ways to deal with a death of an active contractor. Read about the ways here.  <p class="has-medium-font-size">Death of a Contractor: End of the Road or a New Beginning?</p>   <p>The state of California requires all contractors to maintain an active license to conduct business and related construction activities, including bidding on jobs and accepting project contracts. Without an active license, business operations come to a halt, leading to reputational damage, and prevention of providing continued support to current clients. Different conditions cause a license to become inactive or suspended, from not having a surety bond on file to the death of the contractor.</p>   <p>The loss of a family member is a difficult and confusing time. When the deceased is a contractor, along with many other tough decisions to be made, the family must choose to maintain the contractor’s business to carry on their legacy or close the business for good. Either way, it puts the family between a rock and a hard place, so Jet’s Construction Team is here to help guide families through it.</p>   <p>If the remaining partners or family plan to cancel the license, the Contractors State License Board (CSLB) must be notified within 90 days with a written <a href="https://www.cslb.ca.gov/Resources/FormsAndApplications/CancellationNoticeLicenseOnly.pdf">cancellation request</a> and a copy of the death certificate. This comprehensive guide details the steps to manage the passing of a contractor in California with specifics related to the business’s entity type.</p>   <p class="has-medium-font-size">Sole Proprietorship</p>   <p>Should the sole owner pass away, the license must be canceled, as there are no partners to take over. To do so, a family member of the deceased will need to complete and file a <a href="https://www.cslb.ca.gov/Resources/FormsAndApplications/CancellationNoticeLicenseOnly.pdf">voluntary cancellation form</a> and include a copy of the death certificate or the obituary. The CSLB will also allow an administrator of the estate to file the necessary documents.</p>   <div class="wp-block-image is-style-default"><figure class="alignright size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/CA/noun-contractor-2768172.png" alt="Contractor Hard Hat" width="250" height="250"/></figure></div>   <p>An immediate family member of the deceased can request a temporary license continuance from the CSLB to finish any current projects. Immediate family members include: </p>   <ul><li>Parents</li><li>Siblings</li><li>Spouses</li><li>Children</li><li>Step children</li><li>Sons/daughters-in-law</li></ul>   <p>The <a href="https://www.cslb.ca.gov/Resources/FormsAndApplications/RequestForLicenseContinuance_13L-14.pdf">continuance</a> form must be submitted to the CSLB within 90 days of the death date recorded on the certificate. Once the continuance is approved, current projects can continue to be worked on and new projects may be taken, within a reasonable time as set by the Board. </p>   <p>In certain instances, a sole owner license can be reassigned pending a written request sent to the CSLB, along with a completed <a href="https://www.cslb.ca.gov/Resources/FormsAndApplications/ApplicationForOriginalContractorsLicenseLLC.pdf">contractor license application</a> form. The license can be reassigned as long as the person requesting the reassignment is an immediate family member of the deceased and the license is needed to continue the existing business. For example, if the contractor passes away, but his son wants to keep the business going under the same license number, the son could apply for the reassignment. Some of the benefits of keeping the same license number are maintaining the established business reputation and retaining the license history, which ultimately aids in acquiring future jobs.</p>   <p class="has-medium-font-size">Partnerships</p>   <p>Partnerships are entities that have two or more general partners associated. The license is issued on the basis that these partners will operate the business together. In the event one of these general partners passes away, the license will be canceled. The remaining partner(s) must send a <a href="https://www.cslb.ca.gov/Resources/FormsAndApplications/CancellationNoticeLicenseOnly.pdf">written notice</a> to the CSLB within 90 days of the death. Failure to notify the License Board within the prescribed timeframe will result in disciplinary action. </p>   <div class="wp-block-image is-style-default"><figure class="alignright size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/CA/noun-group-2643795.png" alt="Partners" width="200" height="200"/></figure></div>   <p></p>   <p>The remaining partner(s) can send a request for <a href="https://www.cslb.ca.gov/Resources/FormsAndApplications/RequestForLicenseContinuance_13L-14.pdf">license continuance</a> to the CSLB to continue operating the business in the interim. Once approved by the CSLB, the continuance period will be up to a maximum of one year. If the remaining partners wish to continue the business after the continuance period has ended, a new license number will need to be applied for. Furthermore, if any new partners are added on, a new license will need to be issued for the new partnership structure.</p>   <p class="has-medium-font-size">Limited Liability Companies </p>   <div class="wp-block-image is-style-default"><figure class="alignright size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/CA/noun-conference-room-46945.png" alt="" width="230" height="230"/></figure></div>   <p>Limited Liability Companies (LLC) are a specific type of partnership in the eyes of the Contractors State License Board. These entities are made up of partners classified as either “general” or “limited” partners. </p>   <p>General partners are the people who make most of the operating decisions for the business. Limited partners typically consist of investors that serve a more passive role when it comes to decision making. If a general partner passes away, the license will be canceled. Any remaining partners wishing to continue doing business will need to apply for a new license. </p>   <p>However, in the case of a limited partner, their death will not affect the status of the license so long as two conditions are met: </p>   <ol><li>There are other general partners </li><li> A minimum of one additional limited partner is on the license </li></ol>   <p>Any remaining partners can request a <a href="https://www.cslb.ca.gov/Resources/FormsAndApplications/RequestForLicenseContinuance_13L-14.pdf">continuance</a> to finish any projects that are currently in progress, but they are prohibited from taking on any new contracts. Once the continuance period ends, the remaining partners will have to file for a new license to continue contracting. In the event the business only has one limited partner and that person passes away, then the license is canceled upon their death.</p>   <p class="has-medium-font-size">Corporations </p>   <div class="wp-block-image is-style-default"><figure class="alignright size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/CA/noun-company-1716816.png" alt="" width="250" height="250"/></figure></div>   <p>Unlike Limited Liability Companies (LLC), corporations are unique. Corporations, unlike other structures, are considered their own independent entity and thus can hold the license. Therefore, any death or dissociation of officers does not affect the status of the license. Similarly, new officers can be added on without any disruption of the license. In the event the corporation dissolves or there is a change in their registration number, as issued by the California Secretary of State, a new contractor license will need to be issued.  </p>   <p>Let Jet Surety assist you with any licensing questions. Feel free to reach out to us via email at <a href="mailto:cacontractors@jetsurety.com">cacontractors@jetsurety.com</a> or <a href="tel:9168365330">(916) 836-5330</a> and we can answer any of your questions. </p>

Factors That Determine Your Surety Bond Cost Discover what determines the cost of surety bonds and how to get the surety bond you need in this quick 5-minute article.  <h2>Discover what determines the cost of surety bonds and how to get the surety bond you need.</h2>   <p>With over 9,000 surety bond types in the United States, there are several factors that determine the price you’ll pay for your bond—including the bond type, bond limit, credit score, business experience, and more.</p>   <p><img src="https://lh4.googleusercontent.com/T25n0eAySX0_BbgD4b78MoGL-hkDko_9VhqmlUlyYG8RAy20p1uDDXVkmaAZBaCXnw8stWFSOsBQ5zLJ5CsFIBeFkv1Zgd32DiGPvQh7Iisvt5u9K3OHiW0cySF13gibhOMcESRDYUoyo6P1CdUMIGV6ZOWVr5WS8d_FVXT5jkiDkjYcpkuuwYIMJ0g1AA" width="589" height="441"></p>   <p></p>   <p>The surety bond provides a way for financially harmed individuals or entities to receive compensation after a regulated business or individual has been negligent or committed fraud.</p>   <p>This article covers all the details you need to understand surety bond pricing.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2>Bond Type and Limit</h2>   <p>The type of bond you’re required to obtain has the biggest impact on the price. There are various industries, professions, and jobs that require surety bonds to afford fiscal protection to the public when dealing with licensed businesses and individuals. Some of these include notary publics, contractors, motor vehicle dealers, and court/probate cases. </p>   <p>In addition to the type of surety bond, the bond limit (aka the bond amount) is another leading factor in the price. Generally, bonds with larger limits carry more risk due to there being more compensation capacity available for claim payouts—this often leads to higher bond costs. </p>   <figure class="wp-block-image is-resized"><img src="https://lh3.googleusercontent.com/91bRAFt67AkLpWvWMP7DHvhbShcYWVaGmYtqLBdRurz_ri_-knkJGHriTj4cmQNsQcPahuVQPtT0Dc_9guYddga6grx2W5XKajPmZUJLMHRQvDmGSp2iVfuQwN9VcPYOiKAw005hPrvMwUIuKUz071LBxNwr611um098yuM8Fe7mry0f74C97v0-gzlRIw" alt="" width="571" height="139"/></figure>   <p>The bond limit is the total dollar amount that claims can be filed for in a bond’s term. For example, if a contractor files a $25,000 bond annually, the bond can pay claimants up to $25,000 each year.</p>   <p>For more information on bond claims, read the <a href="https://jetsurety.com/articles/detail/surety-bond-claims-guide">Surety Bond Claims Guide</a>. </p>   <p><strong><span style="text-decoration: underline;">Examples</span></strong></p>   <p>Notary Bond limits vary from state to state but are generally between $500 and $2,500. Notary bonds have a fixed rate and don’t require a credit check to be approved. Read Jet’s <a href="https://jetsurety.com/notary-bonds">Notary Bonds</a> page for more information.,<a href="https://jetsurety.com/notary-bonds"> </a></p>   <p><a href="https://jetsurety.com/contractor-license-bonds">Contractor License Bond</a> limits are determined by the obligee (regulatory agency). The obligee sets the limit based on (1) a set amount for all contractors, (2) the type of construction work being completed, or (3) the dollar amount of work being performed annually.  </p>   <p>Bond limits for motor vehicle dealers depend on how much financial protection the State believes is needed for the dealership, generally ranging from $5,000 to $100,000. The type of vehicles (new, used, wholesale) being sold has a factor on the bond limit in addition to other factors. Read more information on our <a href="https://jetsurety.com/auto-dealer-bonds">Auto Dealer Bonds</a> page.</p>   <p><a href="https://jetsurety.com/court-bonds">Court Bonds</a> and <a href="https://jetsurety.com/probate-bonds">Probate Bonds</a> are required in certain instances where a guardian or fiduciary is appointed to represent a person and/or their estate. The bond limit is determined by the local court primarily based on estate assets and the complication of the case.</p>   <p>Bonds needed for contract/performance bonds have limits based on the size of the project.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2>Personal Credit Score</h2>   <p>Surety companies often look at your financial health through a soft credit check. This isn’t mandatory for all surety bonds, though. Examples of bonds that are “instant issue”, meaning there is no credit check required, include notary bonds, lost title bonds, and low-limit contractor license/permit bonds.</p>   <p>For the bonds that do require a credit check, which is the majority, it’s a soft credit check. A soft credit check doesn’t pull a full report and doesn’t affect credit scores. Instead, it simply takes a “snapshot” of the applicant’s credit portfolio. The credit check helps the surety company determine the risk of writing the surety bond. </p>   <figure class="wp-block-image is-resized"><img src="https://lh6.googleusercontent.com/_yw2MoLu4y9pCpGyKYY5WN5Z9wwKuBewgcyRyJvhXW2HGujUR4bkNNiix447TXKrV5eEwQ97qq5CtX1vM0QmcnC-0lj-gg5tEQp6evyG6mBOA9T00Msz6byZh0d_boXiKejDJBdUwcxbybaqbdUwBY4iansF2WAW407XIbu6tAp57gUbIdlBqqCZv9dRuA" alt="surety bond credit check" width="686" height="386"/></figure>   <p>Think of your surety bond as a line of credit—if it is used, you are required to restore it by repayment to the surety company. Your credit history will give an idea of whether you will be more likely to comply with claim reimbursement. </p>   <p>Showing that you make payments in a timely manner, having a longer credit history, and showing several good-standing accounts are just a few things that will qualify you for a lower rate.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2>Years in Business + Financial Health</h2>   <p>Being able to show many successful years in business helps you qualify for competitive rates for certain bond types. For example, there are a large number of motor vehicle dealerships across the US. Several new businesses are opening each year, and alternatively, large numbers of dealerships are closing. If you have great credit and 5+ years in business, this will show the surety company you are serious about your company’s success and will qualify you for a lower bond premium.</p>   <p>If you’re a new business, don’t fret. This just means you will qualify for a lower rate the longer that you’re in business, as long as you keep that credit looking good.</p>   <p>Additionally, a company that has had years of experience in the industry is aware of the different claims that arise, so they may better understand the requirements to avoid them. </p>   <figure class="wp-block-image is-resized"><img src="https://lh5.googleusercontent.com/stJj9H59M2hHKxN9q_6sH0epSpAHe5ecVrN7k6El_ciyurUB6pNd_JMAWKyCS5GOrWkClQUZE1dn-rVTH350OO09iHyovMiqrrDuyXqhgLk9uBL3PACe8CSzjMqX0qmYrlbgSjGPjdiNS9wFSQ-ML358GsM4mmD0iy4byqKBD3PgdXmccihv6VDC-ay-Zw" alt="" width="559" height="157"/></figure>   <p>The financial status of your business is important for surety companies to look into in some cases. This will help show if you have the assets in the case a claim is filed, that you will be able to pay the surety company back for the “line of credit” if a claim occurs.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2>History of Bond Claims</h2>   <p>If your business has experienced any bond claims in the past, the surety company will take that into account when offering you a surety bond rate. The surety bond's history also plays into the bond premium. If a bond type has a history of losses, then rates are higher due to the risk experienced.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <figure class="wp-block-image is-resized"><img src="https://lh3.googleusercontent.com/g9IV3RF5gZb9ISlLPtSvqZ5IgR6VVcKfYuFgbEzJ5iuRlHyLM7feuuzi0vLQ3P3beqtK8alaEeQRuwazrJ1ak-t7QRc3VNKTBE5pT0il-bLNoMA9OvlmFfXBcY30M1eSnfEQ386aKjqM_PxUAyfTQa8Vm8GBtRkxlV1CiJJHDb1IFxd7uXmrZrfWNK764w" alt="surety bond claim" width="597" height="122"/></figure>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <p>The more claims and other disciplinary actions that your business has gives a glance into your risk as a customer to the surety company. It is important that you are ethical in your business practices and ensure you are staying within the guidelines of your bond and license to prevent this from affecting your cost, or even the revocation or suspension of your license.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2>Conclusion</h2>   <p>Now that you know the many factors that affect the cost of your surety bond, get the bond you need in minutes: </p>   <div class="wp-block-buttons"> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="https://jetsurety.com/bondquote" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">QUOTE</a></div> </div>   <p>Each bond offered by Jet has been thoroughly analyzed. We scrutinize the underwriting process to bring competitive rates to underserved principals.</p>

How Much Does a California Contractor License Bond Cost? This article goes into how Jet Insurance prices their California contractor license bonds. By using a unique underwriting process, we are able to offer the most competitive prices for your bond.  <p>A common question we get at Jet is, “how much does your bond cost?” A formal bond quote at Jet will require an industry-standard soft credit check, a review of the contractor’s license history, and the completion of our business-specific underwriting questions. </p>   <p>This comprehensive application allows us to keep contractor license bond premiums low. As the amount of bond claims increases, the solution most sureties opt for is raising the overall price of the bond or exiting the market completely. The Jet team didn’t think it was fair for a few bad actors in the construction industry to cause a major premium increase for the 95% of honest contractors. That is why Jet’s unique underwriting ensures the most competitive prices for your contractor license bond. </p>   <p><strong><span class="has-inline-color has-black-color">There are three components to Jet’s application process for our CA contractor license bonds. </span></strong></p>   <figure class="wp-block-image size-large is-resized is-style-default"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/CA/Factors%20that%20Make%20Up%20CA%20Contractor%20License%20Bond%20Price%20%281%29.jpg" alt="A infographic depicting the three factors that go into Jet's CA Contractor License Bond application: soft credit check, contractor license review, and business underwriting questions." width="667" height="501"/></figure>   <h2><span class="has-inline-color has-black-color"><strong>Soft Credit Check</strong></span></h2>   <p>These specific license bonds are based on the personal credit of the licensee, not the business credit. The industry does this to ensure bond claims are paid back. Should the company dissolve yet there is a bond claim, sureties are able to process the claim fully, including collect the funds back from the contractor that may be paid out for valid claims. </p>   <p>During the application process, a soft credit check will be conducted and a review of the credit report is performed. Since this is a legal requirement of offering the bond, sureties are able to perform this review as a soft check, meaning there will be no impact to your credit score.</p>   <h2><span class="has-inline-color has-black-color"><strong>Contractor License Review</strong></span></h2>   <p>Jet underwriters also take a look at the license or application fee on the <a href="https://www.cslb.ca.gov/" target="_blank" rel="noreferrer noopener">California State License Board (CSLB)</a> website. Some items we look for are current bond status and whether the license has complaint disclosures listed.</p>   <h2><strong><span class="has-inline-color has-black-color">Business Underwriting Questions</span></strong></h2>   <p>Our business underwriting questions is what sets Jet apart from all the other sureties. We know that a credit report and your license history don't tell the whole story of you as a contractor. In order to get an idea of how your business runs and reward claim-avoidant business practices, the Jet team asks a series of questions related to the business operations of your specific business. </p>   <p><em>The entire application, from start to finish, takes minutes to complete. Give us a call at <a href="tel:19168365330">916-836-5330 </a>to get started or fill out our online application for an instant quote! </em></p>

How to Get a Surety Bond Surety bonds are required in all 50 states for many reasons such as obtaining a license, fulfilling a court requirement, etc. Learn how to get a bond quickly.  <p>Getting a bond shouldn’t be hard—and with Jet, it’s not! Let’s dive into how to get a surety bond fast and stress-free. If you want to get right into the bond process, click the button below or call us at <a href="tel:8552962663">855-296-2663</a>!</p>   <div class="wp-block-buttons"> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote" style="border-radius:6px;background-color:#0abb01">QUOTE</a></div> </div>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2>The Surety Bond Process With Jet</h2>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <figure class="wp-block-image size-large is-resized"><img src="https://production-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Get%20a%20Surety%20Bond.png" alt="how to get a surety bond" width="498" height="498"/></figure>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <p></p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <p><strong>Step 1: Find Your Bond</strong></p>   <p>Jet’s application helps you find your bond with ease, either using a type-ahead feature or by looking through the bond database for the state you're located in. You can find more details on the types of surety bonds in our <a href="https://jetsurety.com/surety-bonds">Surety Bonds Guide</a>. Once you find and confirm the bond you need, there are a few quick steps to follow before your bond can be purchased. </p>   <p><strong>Step 2: Apply</strong></p>   <p>Some basic information is collected, including your business name, address, phone number, and social security number for a soft credit check (don't worry, it won't affect your score). Regardless of the type of bond you need, the application can be completed in under five minutes!</p>   <p><strong>Step 3: Pay</strong></p>   <p>After the required information is submitted, there are two scenarios: (1) the approved rates will be shown on the screen, or (2) the application will be sent to an underwriter for a quick review.</p>   <p>In the first scenario, you can select your bond term and continue to payment. In the second scenario, a link will be emailed to you shortly after submission which will take you to your approved rates so you can complete the bond process.</p>   <p>With certain surety bonds, you’ll have the option to pay monthly, annually, or for multiple years upfront. Other bonds may only have one pricing option.</p>   <p>Following payment, a copy of your bond and the receipt are available for download.</p>   <p><strong>Step 4: File</strong></p>   <p>When it comes to filing your bond, requirements vary, but when possible Jet will file the bond for you! Sometimes, the regulator requires the original bond with a surety seal to be mailed to them. Other times, electronic filing is accepted, via email or an online portal.</p>   <p><strong>Step 5: Renew</strong></p>   <p>Don’t forget to renew your bond! License bonds must be active for the duration of operations. Court bonds and permit bonds for construction projects are generally for a set term, so renewal is only required until obligations are fulfilled. </p>   <p>Luckily, Jet is here to help with a quick and painless renewal. You will receive a renewal reminder via email. All you have to do is click the link to fulfill payment for the upcoming term. If you chose monthly payments, you can skip this part! Your bond stays active until cancelation is sought. </p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2><strong>Ready to get your surety bond?</strong></h2>   <p>At Jet, our customers are our first priority. We have built a custom and seamless bond experience for you. <a href="https://jetsurety.com/articles/detail/jet-cuts-out-the-middleman">Jet cuts out middlemen </a>agents and brokers to deliver your bond directly to you, eliminating hidden fees and commissions. </p>   <div class="wp-block-buttons"> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote" style="border-radius:6px;background-color:#0abb01">QUOTE</a></div> </div>   <p>Questions? <a rel="noreferrer noopener" href="tel:8552962663" target="_blank">Call Jet</a> to speak with a live representative.</p>

Preliminary Notices: A Necessity for Mechanics Liens Obtain a preliminary notice by the subcontractor or vendor for a mechanics lien to be valid.  <p>Whether you’re a homeowner wanting to remodel your home, a subcontractor hired by a General for a job, or a vendor providing materials for a specific job, mechanics liens should be something to consider before starting a project.</p>   <p>Mechanics liens are a big deal—and for good reason. As defined by the <a href="https://www.cslb.ca.gov/consumers/legal_issues_for_consumers/mechanics_lien/What_Is_A_Mechanics_Lien.aspx" target="_blank" rel="noreferrer noopener">California State License Board</a>, “a mechanics lien is a ‘hold’ against your property, filed by an unpaid contractor, subcontractor, ...or material supplier, and is recorded with the county recorder's office. If unpaid, it allows a foreclosure action, forcing the sale of the property in lieu of compensation.” </p>   <p>For a homeowner, this means that in the event a mechanics lien is filed against your home, the lien will not be lifted until the unpaid party (whether it be a contractor or a vendor) is paid. If left unpaid, the home could potentially be foreclosed upon so the unpaid parties can receive their payment. </p>   <p>While this might sound intimidating, rest assured that mechanics liens placed by subcontractors and vendors have to be valid before they can be acted upon. For this lien to be valid, a Preliminary Notice must be given to the homeowner either before the project begins or within 20 days after the project starts. Always check with the general contractor what constitutes the start date for the project, as that should be included in the project contract. </p>   <p><strong>If a project begins without the Preliminary Notice being delivered, then the subcontractor and/or the supplier is only entitled to the amount owed 20 days before the notice was delivered and the days thereafter<em>. </em></strong></p>   <p>To put it in action, the example below shows how big of a difference giving the Preliminary Notice can make. </p>   <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/2160361/Mechanics%20Lien%20Infographic.png" alt="" width="642" height="803"/></figure>   <p>Note that the general contractor is NOT obligated to deliver a Preliminary Notice to the homeowner, as the contract for the project is already required to contain a <a href="https://codes.findlaw.com/ca/business-and-professions-code/bpc-sect-7164/" target="_blank" rel="noreferrer noopener">Mechanics Lien Warning</a>. The responsibility of delivering the Preliminary Notice is ultimately up to the subcontractors and vendors. </p>   <p><br>Want to know more about Mechanics Liens and how they work? Visit the Contractor State License Board website for <a href="https://www.cslb.ca.gov/consumers/legal_issues_for_consumers/mechanics_lien/" target="_blank" rel="noreferrer noopener">more mechanics lien information</a>, including preventative measures and what to do in the event a lien is filed against the homeowner.</p>

Providing Contracts to Subcontractors is Now a Legal Requirement Starting January 2025, SB-988 mandates written contracts be provided for subcontractors. Learn how this new law impacts contractors and boosts worker protections.  <p><span class="has-inline-color has-black-color">As of the start of January 2025, a new Senate bill (“<a rel="noreferrer noopener" href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB988" target="_blank">SB-988</a>”) requires all contractors hiring subcontractors (“Sub(s)”) for jobs $250 or more must provide a written contract to the sub prior to starting a job. </span></p>   <p><span class="has-inline-color has-black-color">SB-988 is designed to provide stronger protections to independent or subcontractors, similar to those of a W-2 employee. Using the State’s<a rel="noreferrer noopener" href="https://www.law.cornell.edu/wex/abc_test" target="_blank"> ABC Test</a> is the best way to find out if you are considered an independent contractor or if your team of workers qualifies under the SB-988 law. </span></p>   <p><span class="has-inline-color has-black-color">Prime contractors who plan to hire subcontractors for their projects should pay close attention to these requirements or else they may face some lofty consequences. Just to name a few examples:</span></p>   <ol><li><span class="has-inline-color has-black-color">A sub requests a contract and is denied, they can receive an additional $1,000, on top of other court-awarded damages</span>.</li><li><span class="has-inline-color has-black-color">If payment isn’t made within the contract’s timeframe, subs can be awarded up to twice the unpaid amount. </span></li><li><span class="has-inline-color has-black-color">In cases where the act is violated, subcontractors may be awarded additional costs of damages equal to the value of the contract or the work performed—whichever is greater.</span></li></ol>   <h2><strong><span class="has-inline-color has-black-color">What Do You Need to Know About SB-988</span></strong></h2>   <p><span class="has-inline-color has-black-color">There are three key components of SB-988 to understand and implement in your business practice to be compliant with the law.  </span></p>   <h3 class="has-luminous-vivid-amber-background-color has-background"><strong><span class="has-inline-color has-black-color">Written Contracts Are Mandatory</span></strong></h3>   <p><span class="has-inline-color has-black-color">Remember, an invoice is NOT the same as a formal contract. Though your contracts can look how you would like, at the bare minimum, your contracts must include the following:</span></p>   <ol><li><span class="has-inline-color has-black-color">Names and mailing addresses of both the hiring party and the subcontractor.</span></li><li><span class="has-inline-color has-black-color">An itemized list of the services to be performed by the subcontractor, the value of the jobs, and payment terms.</span></li><li><span class="has-inline-color has-black-color">Payment deadlines or how they will be determined.</span></li><li><span class="has-inline-color has-black-color">Deadlines for the subcontractor to submit their service details to ensure timely payment.</span></li></ol>   <h3 class="has-luminous-vivid-amber-color has-luminous-vivid-amber-background-color has-text-color has-background"><strong><span class="has-inline-color has-black-color">Timely Payment Is Crucial</span></strong></h3>   <p><span class="has-inline-color has-black-color">Subcontractors must be paid no later than 30 days after completing their work. In the event that the project owners do not pay the prime contractor for portions of the job for whatever reason, the prime contractor is still obligated to pay their subcontractor(s) in a timely manner. </span></p>   <p><span class="has-inline-color has-black-color">If no contract was provided to the subcontractor, the payment is still required within 30 days of the work’s completion.</span> </p>   <h3 class="has-black-color has-luminous-vivid-amber-background-color has-text-color has-background"><strong><span class="has-inline-color has-black-color">Retention of Contracts</span></strong></h3>   <p><span class="has-inline-color has-black-color">Any contractor hiring a sub must keep a copy of the contract for at least four years for proper business handling and compliance purposes. </span></p>   <h2><strong><span class="has-inline-color has-black-color">Conclusion</span></strong></h2>   <p><span class="has-inline-color has-black-color">Ultimately, if you’ve been running your business without using written contracts, now’s the time to start. Not only will it keep you on the right side of the law, but also help protect your business from misunderstandings or costly disputes. </span></p>   <p><span class="has-inline-color has-black-color">A clear, written contract lays out all aspects of the job (i.e. expectations, payment terms, and responsibilities). Plus, it shows you’re serious about professionalism and fairness within your business. If you have never used a contract before, your best starting place is to start with the bare information required and add to your contracts over time.</span></p>

What the CSLB’s new C-49 Contractor Class Means to You In their efforts to protect the safety and wellbeing of the public, the Contractor State License Board (CSLB) is introducing its newest license classification for tree service contractors  <p>In their efforts to protect the safety and wellbeing of the public, the Contractor State License Board (CSLB) is introducing its newest license classification for tree service contractors. Starting January 1, 2024, contractors applying for the tree service classification will need to apply for the newly created <a href="https://www.cslb.ca.gov/Resources/LawsAndRegulations/2022/CCR%20832_49FINALAPPROVEDLANGUAGE.pdf">C-49</a> Tree and Palm Contractor classification. The CSLB is discontinuing the previously established C-61/D-49 Tree Service Contractor classification. Don't worry, contractors with the prior designation will keep their current license number and the CSLB will convert their license classification automatically, no additional cost. This update to the license classification will not trigger a monetary increase of the renewal process for existing contractors. Moreover, the CSLB will keep the cost associated for both new licenses and renewals the same as the previous C-61/D-49 respectively, making it convenient for old contractors and saving new contractors money. </p>   <p class="has-medium-font-size"><strong>History Around The Update</strong>.</p>   <p>The original proposal for the change was initiated in 2017, during a CSLB public board meeting.  Members of the public raised concerns about the increased number of accidents related to tree contractors and the lack of a prevailing wage within the tree trimming industry. The increased accident rates were attributed to underqualified contractors performing complicated tree work. As a result of this increase in accidents, tree trimming wages began to fall across the industry. It was proposed that a new specialty classification was needed to ensure that contractors performing tree work specifically had the proper knowledge and skills needed to successfully conduct the work. </p>   <p class="has-medium-font-size"><strong>What Is the C-49?</strong></p>   <p>The newly established <a href="https://www.cslb.ca.gov/Resources/LawsAndRegulations/2022/CCR%20832_49FINALAPPROVEDLANGUAGE.pdf">C-49</a> classification is known as the <strong>Tree and Palm Contractor </strong>designation. This new requirement came about as a direct result of safety concerns in the industry. Unfortunately, since the previous classification did not require a trade exam, many under qualified contractors were permitted to conduct tree related work. As a result, not only did accident rates climb amongst those doing the work, but so did mortality rates. This increase in accidents negatively impacted the tree contractor industry as it drove down prevailing wages, making it harder for tree contractors to earn fair compensation for their work. This new classification will focus on prioritizing knowledge and skill of tree maintenance over the traditional general practice in place. The current <a href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/c-61_limited_speciality/d-49_-_tree_service.aspx">C-61/D-49</a> designation has a much broader scope for contractors performing tree care work as it specifies they can prune trees, remove trees, and engage in tree or limb guying. The new classification focuses on more specification and will cover the following: planting, maintaining, and removing trees and palms, as well as pruning, stump grinding, and tree, palm, or limb guying.</p>   <p class="has-medium-font-size"><strong>What is the Immediate Impact to You? </strong></p>   <p>New licensees applying to become a licensed tree contractor will now be required to apply for the <a href="https://www.cslb.ca.gov/Resources/LawsAndRegulations/2022/CCR%20832_49FINALAPPROVEDLANGUAGE.pdf">C-49</a> classification and, as a condition of the application, will be required to pass 2 examinations: the Law and Business exam and the newly created C-49 Trade exam. For contractors currently carrying the C-61/D-49 classification, the CSLB has indicated they will automatically update licenses starting 01/01/2024 to the new designation. The CSLB estimates all licenses will be converted in 18 months. However, if you have a qualifier for the license and that qualifier disassociates from the license then any new qualifiers will be required to take the C-49 Trade classification exam. In addition to the exam and in accordance with <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB216">Senate Bill No. 216</a> contractors who currently have the C-61/D-49 classification as well as new C-49 applicants still have the requirement to carry Workers’ Compensation Insurance, regardless of having any active employees or not. </p>   <p>Let Jet Insurance help you with any questions you may have with not only this, but other California contractor related issues. Give us a call at (916) 836-5330 or reach us via email at <a href="mailto:cacontractors@jetsurety.com">cacontractors@jetsurety.com</a></p>

Why Are Surety Bonds Based On Personal Credit? Credit score is a vital metric used in the surety bond application process. Read how credit scores are used to underwrite surety bonds and determine bond rates.  <p>Credit score is a vital metric used inside the surety bond application process to allow underwriters to gauge the likelihood of applicants paying back a bond claim. This article gets into the importance of credit scores in the surety bond process and the relation between credit scores and bond rates. </p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2>Surety Bonds Explained</h2>   <p>Surety bonds are a three-party requirement between a principal, an obligee, and a surety company. The bond, provided by the surety company, offers a guarantee to the obligee (regulatory entity) or anyone else that is financially harmed by a principal’s (bondholder’s) failure to meet their obligations that recompense is available upon a valid claim. </p>   <p>Credit history is taken into account during the bond application because although surety claims are paid out by the surety company (Jet), the principal is required to pay the surety company back in full for the claim made against them. This is unlike traditional insurance, which pays out for accidents—claims on surety bonds are caused by avoidable actions caused by negligence or fraud.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2>Credit Scores to Determine Surety Bond Rates</h2>   <p>Credit scores, ranging from 350 to 850, are a quantitative analysis of a person's financial status. While many factors determine<a href="https://jetsurety.com/articles/detail/factors-that-determine-your-surety-bond-cost"> the surety bond cost</a>, such as bond limit, years of experience, and bond type, the credit score is the most comprehensive. </p>   <p>When someone has a high credit score, it shows they manage money well and make payments in a timely manner, allowing them to obtain a lower surety bond rate. On the other hand, if someone has a lower credit score, they would be quoted a higher bond premium (price). </p>   <p>When filling out the application, the principal will be asked to input their social security number for a soft credit check. A common question that many applicants ask is does the credit check affect my score? The answer is no—surety companies perform what is called a soft credit check, which does not affect customers’ credit scores.</p>   <p>Jet Insurance Company, along with most of the surety industry, runs credit checks through Experian. If your credit is frozen, you’ll need to unfreeze it with Experian, which can be done in under 24 hours.</p>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <figure class="wp-block-image size-large is-resized"><img src="https://production-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/How%20Credit%20Affects%20Bond%20Premium.png" alt="How Credit Affects Surety Bond Price" width="483" height="363"/></figure>   <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div>   <h2>How Much Do Surety Bonds Cost?</h2>   <p>The premium (or bond price) is only a small percentage of the total bond limit. For example, the cost of a $20,000 bond may start at 0.5%, or $100. This, of course, depends greatly on the risk of the bond, the credit score, and several other factors. The bond limit is the maximum amount a claim (or multiple claims in conjunction) can be filed for through the surety bond and paid out by the surety company.</p>   <p>Surety bonds that have low limits and carry less risk can often be instantly issued—no credit check required. However, most types of bonds, including license bonds, contract bonds, notary bonds, probate bonds, court bonds, and more will require a soft credit check.</p>   <p>By checking the financial health of the applicant, the surety company can determine the chance that the applicant will pay back a claim.</p>   <p>For large-limit and high-risk bonds, additional financial statement review may be requested. At Jet, most surety bonds can be applied for and purchased in minutes, even when a credit check is necessary. </p>   <p>Jet is here to help you get a bond as quickly and affordably as possible. Have additional questions or want to get a quote? Give us a call at <a href="tel:8552962663" target="_blank" rel="noreferrer noopener">855-296-2663</a> or click the button below to get started.</p>   <div class="wp-block-buttons"> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="https://jetsurety.com/bondquote" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">QUOTE</a></div> </div>   <p></p>

Workers’ Comp Requirement Updates with the CSLB Starting January 1st, 2026, the Contractor State License Board will require all licensed contractors to hold a valid workers' comp insurance policy to keep their license active.  <p>Changes to the workers’ compensation requirements are going to affect <strong><em>all </em></strong>licensed contractors by the start of 2026. Here’s what we know so far and what we recommend doing to prepare for the upcoming changes.</p>   <h2><strong><span class="has-inline-color has-black-color">BACKGROUND</span></strong></h2>   <p>On September 30th, 2022, <a href="https://legiscan.com/CA/text/SB216/id/2609051" target="_blank" rel="noreferrer noopener">Senate Bill No. 216</a> was approved. The first section of this bill required that <a href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/Licensing_Classifications_Detail.aspx?Class=C-8" target="_blank" rel="noreferrer noopener">Concrete</a>, <a href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/Licensing_Classifications_Detail.aspx?Class=C20" target="_blank" rel="noreferrer noopener">HVAC</a>, <a href="https://www.cslb.ca.gov/contractors/New_C-22_Asbestos_Abatement_Classification.aspx" target="_blank" rel="noreferrer noopener">Asbestos Abatement</a>, and <a href="https://www.cslb.ca.gov/about_us/library/licensing_classifications/Licensing_Classifications_Detail.aspx?Class=C49" target="_blank" rel="noreferrer noopener">Tree and Palm</a> licensed contractors submit proof to the CSLB that they carried a valid workers’ compensation insurance policy, regardless of whether or not they had employees.</p>   <p><a href="https://www.statefundca.com/state-fund-today/what-you-need-to-know-about-sb-216/" target="_blank" rel="noreferrer noopener">The second section is set to take effect starting January 1st, 2026</a> and will affect all licensed contractors by requiring everyone to hold a workers’ compensation insurance policy, regardless of whether or not they have employees. This policy will have to be reported to the CSLB to keep the license in “Current and Active” status. </p>   <p>This does not apply to contractors who are in an inactive status. </p>   <h2 class="has-black-color has-text-color"><strong>WHY THIS CHANGE</strong></h2>   <p>This change is meant to protect workers of the contractors. According to <a href="https://sd03.senate.ca.gov/" target="_blank" rel="noreferrer noopener">Senator Bill Dodd</a>, there are 230,000 licensed contractors throughout California. And while 55% of contractors claim to not have employees, research conducted by the CSLB shows many of these workers’ exemption claims are false. These false claims unfortunately renders workers hired by contractors vulnerable to a lack of coverage if and when they get injured on the job site.  </p>   <p>Failure to have workers’ compensation insurance warrants more than just a slap on the wrist.<a href="https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/WorkersCompensation.cfm#:~:text=The%20payroll%20for%20each%20classification,as%20the%20%E2%80%9Cbase%E2%80%9D%20premium." target="_blank" rel="noreferrer noopener"> It is a criminal offense that could mean jail time, a fine, or both</a>, in addition to having your contractor license suspended until a valid policy is filed with the CSLB. </p>   <h2 class="has-black-color has-text-color"><strong>WHAT YOU CAN DO NOW</strong></h2>   <p>If you do not have a current workers’ compensation insurance policy in place, here are some suggestions to help prepare for the upcoming update: </p>   <p>Start looking for a local agent to assist you with getting a policy set up. The sooner you are able to shop around for a workers’ compensation policy, the sooner you can be informed with the necessary information you would need to have an active policy in place. Another option is to obtain workers’ compensation through <a rel="noreferrer noopener" href="https://www.statefundca.com/" target="_blank">State Fund</a>. </p>   <p>Always ask your agent whether or not you can take advantage of certain discounts or if they are able to offer other payment options other than paying in full.</p>   <p>If you are planning on hiring W-2 employees, calculate your payroll accurately, as your workers’ compensation premium is based on your payroll and <a rel="noreferrer noopener" href="https://www.insurance.ca.gov/01-consumers/105-type/9-compare-prem/wc-rate/" target="_blank">classification rate</a>(s). </p>   <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Workers%27%20Comp%20Infographic%20%281500%20x%202000%20px%29%20%281%29.png" alt="" width="558" height="744"/></figure>   <p></p>

Jet Journal

CA Contractors

A Guide to California Contractor License Classifications

B or B-2 License: Which One is Right for You?

California Construction Updates for 2025

Contractor Kickstart! Part 1: Budgeting & Pricing

Contractor Kickstart! Part 2: Credit

CSLB Advertisement Guidelines for Contractors

CSLB Letters of Admonishment Now Have Financial Consequences

Death of a Contractor: End of the Road or a New Beginning

Factors That Determine Your Surety Bond Cost

First Limit Increase for Handyman Work Since 2005—from $500 to $1,000

How Much Does a California Contractor License Bond Cost?

How to Get a Surety Bond

Preliminary Notices: A Necessity for Mechanics Liens

Providing Contracts to Subcontractors is Now a Legal Requirement

What the CSLB’s new C-49 Contractor Class Means to You

Why Are Surety Bonds Based On Personal Credit?

Workers’ Comp Requirement Updates with the CSLB

Jet Journal

CA Contractors

CSLB Letters of Admonishment Now Have Financial Consequences

02-25-2025

Providing Contracts to Subcontractors is Now a Legal Requirement

01-27-2025

California Construction Updates for 2025

12-17-2024

CSLB Advertisement Guidelines for Contractors

11-26-2024

First Limit Increase for Handyman Work Since 2005—from $500 to $1,000

10-22-2024

Workers’ Comp Requirement Updates with the CSLB

09-24-2024