California Contractors License Law Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

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Under what circumstances can a contractor's license be suspended or revoked?

If the contractor is late on project deadlines

If the contractor fails to obtain necessary building permits

The correct choice is that a contractor's license can be suspended or revoked if the contractor fails to obtain necessary building permits. Building permits are essential to ensure that a construction project meets all local codes and regulations. Failing to secure these permits can jeopardize not only the safety of the project but also the integrity of the entire construction industry. It reflects a disregard for legal protocols and can lead to significant legal and financial repercussions, including fines or the cessation of work.

Ultimately, contractors are responsible for complying with all legal requirements, and neglecting to obtain necessary permits can result in penalties, which might include the suspension or revocation of their license. This reinforces the importance of adherence to procedural standards in the construction field, ensuring both public safety and the proper functioning of the industry.

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If the contractor does not have proper insurance

If the contractor has too many complaints against them

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