April 15, 2025
There’s a lot to consider when taking on a new home renovation project – budget, design, and of course, finding the right contractor to make your home transformation a reality. But imagine enlisting someone to do the work only to find out they are operating illegally without a contractor license. That’s exactly what happened to some unsuspecting homeowners in the South Bay, and here’s what you need to know to avoid a similar fate.
A contractor license is certification authorizing an individual or business to coordinate, manage and oversee construction projects.
Operating under the Department of Consumer Affairs, the Contractor State Licensing Board (CSLB) protects consumers by regulating the construction industry through policies that promote the health, safety, and general welfare of the public in matters relating to construction in California.
According to the CSLB, any individual or business working on a construction project requiring a building permit or any project valued at $1,000, or more in combined labor and material costs, must have a contractor license issued by the CSLB.
Classifications of a contractor license vary depending on the trade. Residential HVAC requires a Class “C” Specialty Contractor license.
Home system renovations, such as residential furnace and air conditioner installations, require meticulous planning and seamless execution. Without the proper licensing, you could be left with inoperable equipment, questionable home safety, and thousands of dollars wasted.
Operating without a contractor license is not just illegal. It undermines the accountability and standards designed to protect consumer safety. Our technicians are highly trained and certified through Champions University and operate under the Service Champions contractor license, so you can relax knowing your home system renovations are in the right hands.
To apply for a contractor license in the state of California, one must:
Obtain, read, complete, and submit an official application and appropriate fee to the CSLB.
Pass any required exam, per the specifications of the license.
Submit a Contractor’s Bond and a Bond of a Qualifying Individual.
Submit proof of Workers’ Compensation Insurance, or exemption.
To take the appropriate qualifying exam, at least four years of experience is required in the specific trade. Years of eligible experience are considered for the following:
Journeyman: Completed apprenticeship program or is considered fully trained and qualified without the need for supervision.
Foreman or Supervisor: Possesses the knowledge and expertise of a journeyman and directly supervises a construction business.
Contractor: Manages day-to-day operations of a construction business, including field supervision.
Owner-builder: Possesses the knowledge and skills of a journeyman and performs work on their personal property.
It’s unlikely the prospective contractor would admit to operating without a license. Here are a few red flags to keep an eye out for as you search for a contractor.
Vague contract language: The service contract should include all details as it pertains to the scope of work such as project milestones and deadlines, responsibilities, payment schedules, supplies and materials, as well as subcontractors and vendors.
Failure to mention permits: A permit is required for most home renovation projects, especially major system installations like water heaters, furnaces, air conditioners, and electrical panels.
Excessive down payment or request for payment in cash: Be wary of anyone asking for more than 30% of the total cost of the project or any payment made in cash.
Extremely low estimate: If their bid seems too good to be true, there’s a likely chance the person is cutting corners or working with lower grade materials.
Questionable online reviews (or lack thereof): It’s not uncommon for a business to have a couple of bad reviews. But if the reviews are consistently bad across the board, it points to a bigger problem.
No proof of insurance: If the contractor is unwilling to show proof of general liability and workers’ compensation insurance, you might be held liable in the event of property damage or an accident.
Lack of communication: You want a contractor who is there to answer questions, follow up, and provide adequate updates on the state of your project.
Go to the CSLB website to verify a contractor license or Home Improvement Salesperson (HIS) registration.
If you find the contractor you hired is not operating with a valid contractor license, file a construction complaint outlining the concerns of your project. The CSLB will investigate and take appropriate disciplinary action for violations of Contractors State License Law.
If damages are incurred due to contractor negligence, you may need to file a small claim or consult with an attorney.
Dependable service can be hard to come by these days. And when it comes to hiring a home service professional you can trust, reputation means everything.
At Service Champions, we’re committed to delivering top-tier service every time, and we have the track record to prove it. With an A+ rating on the Better Business Bureau and Diamond Certification for 22 years, you can rest assured you’re in good hands when Service Champions is at your home.
For HVAC service in Alameda, Contra Costa, Sacramento, and Santa Clara Counties – contact us today to find out for yourself why we’re the highest rated residential HVAC company in Northern California.