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§4.01 Contractor’s License Law—Who’s a Contractor?

Lesson 4:
Home Repair & Licensing

A home building contractor is governed by the Contractor’s State License Law [B&PC §§7000 et seq]. This law defines a “contractor” very broadly to include anyone who does any work on a building project of any kind [B&PC §§7026–7027], unless statutorily exempted [B&PC §§7040 et seq].

Among others, the term contractor does not include:

  • Licensed architects or registered engineers [B&PC §7051],
  • Those who furnish unfabricated materials or supplies [B&PC §7052],
  • Certain owner-builders who build or improve structures on their property if the structure is not intended or offered for sale or the owner directly contracts with licensees duly licensed in their trades, or homeowners who make improvements before sale that meet specified requirements [B&PC §7044], or
  • An employee whose sole compensation is wages [B&PC §7053].

The purpose of the license law is to protect the public from dishonest, incompetent, and irresponsible contractors. The law does not apply to jobs with a contract price less than $500 unless the person advertises as a contractor. [B&PC §7048.] This course focuses on contracts for home building or improvements.

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