California Contractor License Exam Prep

The Contractors State License Board (CSLB), part of the Department of Consumer Affairs, licenses contractors statewide. Candidates take two computer-based multiple-choice exams: a Law and Business exam and a trade exam for their classification. Exams are administered by PSI at roughly 20 California test centers plus Wilsonville, Oregon, and the Law and Business exam is also available in Spanish.

Licensed trades work under the 2025 California Building Standards Code (Title 24), effective January 1, 2026, with the electrical portion based on the 2023 NEC. A license is generally required for any job of $1,000 or more in combined labor and materials; the handyman exemption threshold was raised from $500 effective 2025, so confirm the current figure with CSLB.

The CSLB issues the following main license classifications:

• A General Engineering Contractor - Fixed works requiring specialized engineering.
• B General Building Contractor - Structures requiring two or more unrelated trades.
• B-2 Residential Remodeling Contractor - Existing-home remodels involving three or more trades.
• C Specialty Classifications - More than 40 single-trade classifications, including C-10 Electrical, C-20 HVAC, and C-36 Plumbing.

The CSLB exam consists of two computer-based multiple-choice tests: the Law and Business exam and a trade exam for your classification. Both are administered by PSI at approximately 20 test centers in California, plus one in Wilsonville, Oregon. The Law and Business exam is also offered in Spanish. Check the PSI candidate information for current question counts and time limits.

You must pass both the Law and Business exam and your trade exam to qualify for licensure. The passing standard is set by the CSLB and its testing vendor and varies by exam. Confirm the current requirement with the CSLB or in the PSI candidate information before your exam date.

Typical requirements to sit for the California contractor license exam include:

• At least 4 years of journey-level (or higher) experience within the 10 years immediately before application.
• Being at least 18 years old.
• A completed application with the $450 processing fee submitted to the CSLB.
• A $25,000 contractor bond before the license is issued.

Requirements can change. Always confirm current licensing rules with the official state licensing authority before applying.

The CSLB application processing fee is $450 and is nonrefundable. The initial license fee is $200 for a sole owner or $350 for a non-sole owner and covers 2 years. Exam fees are paid directly to PSI and vary; confirm the amount with CSLB or PSI. Per SB 216, as of January 1, 2026 all CSLB licensees must carry workers' compensation insurance regardless of whether they have employees. Always confirm current fees and insurance rules with the CSLB before submitting payment.

A structured 8 to 10 week study plan for the California contractor exams:

• Week 1-2: Study CSLB licensing law, contract requirements, and mechanics lien basics for the Law and Business exam.
• Week 3-4: Review business management, bonding, workers' compensation, and safety topics.
• Week 5-6: Work through estimating problems and the code areas relevant to your trade classification.
• Week 7-8: Take full practice tests for both exams under timed conditions.
• Week 9-10: Target weak areas and drill your slowest question types.