California Contractors License Law Practice Exam 2025 – All-in-One Guide to Master Your Contractor Licensing!

Question: 1 / 400

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

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.

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Inactive license

Registration with the state

Proof of work completion

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