California Contractors License Law Practice Exam

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Prepare for the California Contractors License Exam with comprehensive study materials that include flashcards and multiple-choice questions, all designed to enhance your understanding of California's contractor licensing laws.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is required for a contractor to collect payment for work done?

Active license
Inactive license
Registration with the state
Proof of work completion

The correct answer is: Active license

To collect payment for work done, a contractor must hold an active license. This is essential because an active license demonstrates that the contractor is authorized and legally permitted to perform construction activities within the state. Without an active license, any work performed would not be recognized as legitimate under California law, and the contractor would be unable to legally enforce payment for that work. While other factors, such as proof of work completion, may also be necessary for ensuring payment is secured, the primary legal requirement is possessing an active license. This requirement protects both the contractor and the client, ensuring that all parties are engaging in transactions with parties that meet the necessary legal and professional standards.