101PD

Law and Business · 30 hours

California Contractor Law and Business Exam Prep — California Exam Prep, 30 hours

California Contractor Law and Business Exam Prep covers CSLB contracts, employment, safety, licensing, and operations. Delivery, credential, and regulatory-credit eligibility are stated on the course page.

Professional training or exam-preparation material. No CE/MCLE/CPE credit hours are issued.

Course at a glance

Level
Beginner
Estimated time
30 hours
Prerequisite
No prior 101PD course is required. Check any separate exam, employer, or role eligibility before relying on this training.

Skills you will practice

  • Explain and apply §1.1 Who needs a license.
  • Explain and apply §1.2 Classifications.
  • Explain and apply §1.3 The qualifier.
  • Explain and apply §1.4 Entities and fees.
  • Explain and apply §1.5 Bonds.

Learning objectives

  • Explain and apply §1.1 Who needs a license.
  • Explain and apply §1.2 Classifications.
  • Explain and apply §1.3 The qualifier.
  • Explain and apply §1.4 Entities and fees.
  • Explain and apply §1.5 Bonds.

Assessment and timing

Knowledge check plus 2 final exam versions.

Passing score: 70%.

Final timing: 1 minute per question.

Hands-on practice

Applied course exercises

Use the course rules in practical scenarios and exercises drawn from the published syllabus.

  • §1.8 Chapter clinic — decisions and self-check
  • §1.9 Applied case files — licensing gone wrong, walked to the answer
  • §1.14 Advertising compliance workshop — ten ads, graded
  • §1.15 Answer-elimination workshop — five licensing questions dissected
  • §1.18 Integration case — one startup, every chapter-1 rule
  • §2.7 Chapter clinic — decisions and self-check

Full syllabus

Chapter 1 — Business Organization and Licensing (High-Yield Outline)

  • §1.1 Who needs a license
  • §1.2 Classifications
  • §1.3 The qualifier
  • §1.4 Entities and fees
  • §1.5 Bonds
  • §1.6 Advertising and name use
  • §1.7 Discipline machinery
  • §1.8 Numbers and trap pairs
  • §1.9 Rapid self-test — chapter 1 (answers inline)
  • §1.10 One-table license lifecycle
  • §1.11 Glossary — chapter 1 terms in one line each
  • §1.12 Mock slice — six chapter-1 questions, exam-formatted (key below)
  • §1.13 Operation-of-law suspension card — the five automatic tripwires

Chapter 1 — Business Organization and Licensing

  • §1.1 Who must be licensed — and the price of skipping it
  • §1.2 Classifications and the license family
  • §1.3 The qualifying individual — RMO, RME, and the 4-year experience rule
  • §1.4 Entities, applications, and what the license file contains
  • §1.5 Bonds, the operating baseline
  • §1.6 Advertising, use of the license, and prohibited structures
  • §1.7 Discipline machinery — citations, accusations, and the reference book of violations
  • §1.8 Chapter clinic — decisions and self-check
  • §1.9 Applied case files — licensing gone wrong, walked to the answer
  • §1.10 Statute reading room — the license law's operative sections
  • §1.11 Trap-pair table and thirty-item recall sweep
  • §1.12 The application walkthrough — from experience worksheet to wall certificate
  • §1.13 Entity-choice counseling table — the licensing consequences
  • §1.14 Advertising compliance workshop — ten ads, graded
  • §1.15 Answer-elimination workshop — five licensing questions dissected
  • §1.16 Chapter 1 vocabulary bank
  • §1.17 Guided reading — the Contractors State License Law's architecture
  • §1.18 Integration case — one startup, every chapter-1 rule
  • §1.19 Second drill bench — twelve licensing calls with answers
  • §1.20 The renewal-cycle maintenance card — two years on one page

Chapter 2 — Business Finances (High-Yield Outline)

  • §2.1 Statements and methods
  • §2.2 Ratios
  • §2.3 Job costing and pricing
  • §2.4 Cash management
  • §2.5 Taxes
  • §2.6 Controls
  • §2.7 Numbers and trap pairs
  • §2.8 Rapid self-test — chapter 2 (answers inline)
  • §2.9 Formula box — every finance equation
  • §2.10 Glossary — chapter 2 terms in one line each
  • §2.11 Mock slice — six chapter-2 questions, exam-formatted (key below)
  • §2.12 The bid-assembly ladder (one glance)
  • §2.13 Tax-obligation card — who, what, when

Chapter 2 — Business Finances

  • §2.1 Accounting methods and the three statements
  • §2.2 The ratios and working-capital discipline
  • §2.3 Job costing, markup, and margin — the arithmetic the exam loves
  • §2.4 Cash-flow management and the payment cycle
  • §2.5 Taxes — federal and California obligations
  • §2.6 Financial controls and fraud prevention
  • §2.7 Chapter clinic — decisions and self-check
  • §2.8 The contractor's math workbook — finance problems worked end to end
  • §2.9 Statute-and-form reading room — the paper the numbers live on
  • §2.10 Twenty-two-item recall sweep — chapter 2
  • §2.11 The estimating laboratory — one job, priced end to end
  • §2.12 Reading a job-cost report — variance triage
  • §2.13 Banking, credit, and the surety relationship
  • §2.14 Chapter 2 master number bank
  • §2.15 Answer-elimination workshop — five finance questions dissected
  • §2.16 Chapter 2 vocabulary bank
  • §2.17 Guided reading — the surety's desk review of your financial statement
  • §2.18 Integration case — the profitable contractor who nearly died of success
  • §2.19 Second math bench — fourteen rapid finance drills with answers
  • §2.20 The tax-calendar card — a contractor's filing year on one page

Chapter 3 — Employment Requirements (High-Yield Outline)

  • §3.1 Hiring paperwork
  • §3.2 Employee vs. independent contractor
  • §3.3 Wage and hour
  • §3.4 Payroll taxes
  • §3.5 Leaves and discrimination
  • §3.6 Discipline and termination
  • §3.7 Numbers and trap pairs
  • §3.8 Rapid self-test — chapter 3 (answers inline)
  • §3.9 The OT decision tree
  • §3.10 Glossary — chapter 3 terms in one line each
  • §3.11 Mock slice — eight chapter-3 questions, exam-formatted (key below)
  • §3.12 New-hire day-one card

Chapter 3 — Employment Requirements

  • §3.1 Hiring — the paperwork sequence
  • §3.2 Employee versus independent contractor — the ABC test
  • §3.3 Wage and hour — the California overtime machine
  • §3.4 Payroll taxes and records
  • §3.5 Leaves, discrimination, and harassment prevention
  • §3.6 Discipline, termination, and the jobsite crew rules
  • §3.7 Chapter clinic — decisions and self-check
  • §3.8 Applied case files — the crew, litigated
  • §3.9 Statute reading room — the employment texts
  • §3.10 Trap-pair table and twenty-six-item recall sweep
  • §3.11 The payroll workshop — one crew, one week, every law applied
  • §3.12 Termination file checklist and the unemployment aftermath
  • §3.13 Chapter 3 master number bank
  • §3.14 Answer-elimination workshop — five employment questions dissected
  • §3.15 Chapter 3 vocabulary bank
  • §3.16 Guided reading — a Labor Commissioner wage audit, file by file
  • §3.17 Integration case — the audit that started with one text message
  • §3.18 Second drill bench — twelve employment calls with answers
  • §3.19 The hiring-to-separation timeline card — every clock on one page

Chapter 4 — Insurance and Liens (High-Yield Outline)

  • §4.1 Workers' compensation
  • §4.2 Business insurance
  • §4.3 Preliminary notice
  • §4.4 Lien clocks
  • §4.5 Releases and owner defenses
  • §4.6 Stop notices and payment bonds
  • §4.7 Numbers and trap pairs
  • §4.8 Rapid self-test — chapter 4 (answers inline)
  • §4.9 The lien-calendar template
  • §4.10 Glossary — chapter 4 terms in one line each
  • §4.11 Mock slice — six chapter-4 questions, exam-formatted (key below)
  • §4.12 Release-form decision card

Chapter 4 — Insurance and Liens

  • §4.1 Workers' compensation — the no-fault baseline
  • §4.2 Business insurance beyond comp
  • §4.3 The mechanics-lien family — who, what, and the constitutional root
  • §4.4 The 20-day preliminary notice
  • §4.5 The lien clocks — completion, recording, foreclosure
  • §4.6 Releases, disputes, and owner defenses
  • §4.7 Stop payment notices and payment bonds
  • §4.8 Chapter clinic — decisions and self-check
  • §4.9 Applied case files — the remedy chain under fire
  • §4.10 Statute reading room — the lien law's operative texts
  • §4.11 Trap-pair table and twenty-two-item recall sweep
  • §4.12 The lien-calendar workshop — one project, every date computed
  • §4.13 Insurance-program design for a growing GC — the coverage map
  • §4.14 Chapter 4 master number bank
  • §4.15 Answer-elimination workshop — five insurance/lien questions dissected
  • §4.16 Chapter 4 vocabulary bank
  • §4.17 Guided reading — the comp claim, from injury to ex-mod
  • §4.18 Integration case — the remedy chain run perfectly
  • §4.19 Second drill bench — ten lien/insurance calls with answers
  • §4.20 Chapter 4 vocabulary bank — the risk lexicon

Chapter 5 — Contract Requirements and Execution (High-Yield Outline)

  • §5.1 Contract families
  • §5.2 §7159 required contents
  • §5.3 Money caps
  • §5.4 Cancellation rights
  • §5.5 Changes and breach
  • §5.6 SB 800 right to repair
  • §5.7 Numbers and trap pairs
  • §5.8 Rapid self-test — chapter 5 (answers inline)
  • §5.9 The §7159 audit checklist (one glance)
  • §5.10 Glossary — chapter 5 terms in one line each
  • §5.11 Mock slice — eight chapter-5 questions, exam-formatted (key below)
  • §5.12 Cancellation decision card

Chapter 5 — Contract Requirements and Execution

  • §5.1 Bidding and estimating into contract
  • §5.2 The home improvement contract — §7159's required architecture
  • §5.3 The money caps — down payment and progress payments
  • §5.4 Cancellation rights — three days, five days, and the disaster window
  • §5.5 Change orders, extra work, and documentation discipline
  • §5.6 Breach, remedies, and the right-to-repair regime
  • §5.7 Subcontracts and flow-down
  • §5.8 Chapter clinic — decisions and self-check
  • §5.9 Applied case files — §7159 enforced
  • §5.10 Statute reading room — §7159's anatomy and its satellites
  • §5.11 Trap-pair table and twenty-four-item recall sweep
  • §5.12 The compliant HIC — a guided walkthrough of the paper
  • §5.13 Payment-dispute triage — the decision tree
  • §5.14 Chapter 5 master number bank
  • §5.15 Answer-elimination workshop — five contract questions dissected
  • §5.16 Chapter 5 vocabulary bank
  • §5.17 Guided reading — §7164 and the custom-home carve-out, plus the swimming-pool rules
  • §5.18 Integration case — the remodel that tested every clause
  • §5.19 Second drill bench — twelve contract calls with answers
  • §5.20 Chapter 5 second vocabulary bank — the clause library

Chapter 6 — Public Works (High-Yield Outline)

  • §6.1 Coverage and prevailing wage
  • §6.2 Registration and certified payroll
  • §6.3 Bid law
  • §6.4 Bonds, retention, claims
  • §6.5 Numbers and trap pairs
  • §6.6 Rapid self-test — chapter 6 (answers inline)
  • §6.7 Public-works timeline card
  • §6.8 Glossary — chapter 6 terms in one line each
  • §6.9 Mock slice — five chapter-6 questions, exam-formatted (key below)
  • §6.10 Prevailing-wage compliance ladder (one glance)
  • §6.11 Bid-day final-hour card

Chapter 6 — Public Works

  • §6.1 What is a public work, and the prevailing-wage trigger
  • §6.2 DIR registration and certified payroll
  • §6.3 Bidding law — listing, substitution, and bid security
  • §6.4 Bonds and retention on public jobs
  • §6.5 Compliance posture for the small contractor entering public work
  • §6.6 Chapter clinic — decisions and self-check
  • §6.7 Applied case files — public work, audited
  • §6.8 Statute reading room and sixteen-item recall sweep
  • §6.9 The public-bid war room — from plans room to notice to proceed
  • §6.10 Chapter 6 master number bank
  • §6.11 Answer-elimination workshop — four public-works questions dissected
  • §6.12 Chapter 6 vocabulary bank
  • §6.13 Guided reading — a certified payroll line, decoded
  • §6.14 Integration case — first public job, run clean
  • §6.15 Second drill bench — ten public-works calls with answers
  • §6.16 Public-works document map — what gets filed, where, when
  • §6.17 Prevailing-wage arithmetic bench — six computations with answers

Chapter 7 — Safety (High-Yield Outline)

  • §7.1 Cal/OSHA framework
  • §7.2 IIPP and programs
  • §7.3 Reporting and records
  • §7.4 Permits and regulated work
  • §7.5 Physical hazards
  • §7.6 Numbers and trap pairs
  • §7.7 Rapid self-test — chapter 7 (answers inline)
  • §7.8 The clock-and-trigger card
  • §7.9 Glossary — chapter 7 terms in one line each
  • §7.10 Mock slice — six chapter-7 questions, exam-formatted (key below)
  • §7.11 Excavation compliance card
  • §7.12 Fall-protection quick card

Chapter 7 — Safety

  • §7.1 Cal/OSHA and the employer's general duty
  • §7.2 The IIPP — the mandatory written program
  • §7.3 Reporting and recordkeeping clocks
  • §7.4 Permits and the regulated-work families
  • §7.5 The physical-hazard families the exam names
  • §7.6 Chapter clinic — decisions and self-check
  • §7.7 Applied case files — safety failures reconstructed
  • §7.8 Statute reading room and twenty-four-item recall sweep
  • §7.9 The safety-program build — a 90-day implementation plan graded by Title 8
  • §7.10 Hazard-recognition drill — twelve site photos in words
  • §7.11 Chapter 7 master number bank
  • §7.12 Cross-chapter mixed self-test — thirty items in exam order (answers follow)
  • §7.13 Exam-day protocol — running the 3.5 hours
  • §7.14 Course master number appendix — every figure, one table
  • §7.15 Guided reading — anatomy of a Cal/OSHA inspection
  • §7.16 Integration case — the safety system that paid for itself
  • §7.17 Second drill bench — twelve safety calls with answers
  • §7.18 Chapter 7 vocabulary bank — the safety lexicon
  • §7.19 Emergency-response protocol card — the first sixty minutes

Sample from Part I

Chapter 1 — Business Organization and Licensing (High-Yield Outline) Cram companion: 13% (~16 Q). Every § is a citation anchor. Practice tests — not official exams. Not affiliated with the CSLB. §1.1 Who needs a license License required to contract (including bidding) at $1,000+ labor+materials (AB 2622); sub-$1,000 exemption ONLY with no permit and no employees. Exempt: owner-builders (§7044, occupancy/no-quick-sale rules), wage employees, public agencies, licensed professionals in their practice. §7028 unlicensed practice = misdemeanor (6 mo/$5,000 first), admin fines to $15,000. §7031: no compensation suit for unlicensed work + owner DISGORGEMENT of all sums paid; licensure must be CONTINUOUS; substantial compliance (§7031(e)) narrow. Bond or comp lapse = suspension by operation of law = unlicensed period. §1.2 Classifications A general engineering (fixed works/specialized engineering) · B general building (structures, 2+ unrelated trades beyond carpentry) · B-2 residential remodeling (existing homes, 3+ trades, non-structural register) · C specialty (C-10 electrical, C-20 HVAC, C-36 plumbing, C-39 roofing, C-8 concrete...). Specialty may do work incidental and supplemental to its class (16 CCR 831). Additional classification: $230 existing / $150 with original waiver/JV app. Asbestos cert $125 (100 sq ft work) + DOSH registration; hazardous-substance cert $125. §1.3 The qualifier Every license: qualifier with 4 years journey-level in last 10 (education credits ≤3 yrs; certified under penalty of perjury). RME: bona fide employee, 32 hr/wk or 80%, ONE license only. RMO: officer/member; 20%+ ownership → up to 3 commonly-owned licenses; qualifier bond $25,000 when RMO owns <10%. Duty: DIRECT SUPERVISION AND CONTROL (16 CCR 823); sham qualifiers = discipline both. Disassociation: notify + replace within 90 DAYS. §1.4 Entities and fees Sole owner ($200 initial) · partnership (partner death ends license) · corporation ($350 initial; broker-officer... precisely: qualifier + officer reporting) · LLC ($100,000 employee/worker bond + $1M liability, scaling) · joint venture (own license, no exam, dies with a venturer). Application $450; renewal 2-yr: active $450 sole/$700 non-sole (+$20 C-10), inactive $300/$500; renew up to 60 days early; late renewal ≤5 years, NO contracting in gap. New entity = new license. Fees verified cslb.ca.gov 2026-08-08. §1.5 Bonds Contractor's bond $25,000 (SB 607) — protects consumers/workers, not the contractor · qualifier bond $25,000 (<10% RMO) · LLC worker bond $100,000 · disciplinary bond on reinstatement (larger). Lapse = automatic suspension (retroactive unlicensed exposure). §1.6 Advertising and name use License number on ALL advertising, contracts, bids; vehicles (name+number) for specified classes; business name must match CSLB record (register DBAs first). Blind/unlicensed advertising citable; 'insured/bonded' claims must be true. HIS registration $200 — salesperson soliciting home improvement for a contractor; multi-contractor registration allowed, unregistered soliciting a violation. No license lending (§7114 aiding/abetting). §1.7 Discipline machinery Ladder: letter of admonishment → citation (civil penalty + correction order, appealable) → accusation (AG/ALJ/APA: revoke, suspend, stay+probation) → criminal referral; D&R orders for unlicensed. Violation alphabet: §7107 abandonment · §7108 diversion · §7109 trade-standards/ plans departure · §7110 building-law/permit violations · §7111 records · §7113 failure to complete for price · §7114 aiding unlicensed · §7116 fraud · §7117

Available in these packages

California CSLB Law and Business Exam Prep

Course FAQ

What will California Contractor Law and Business Exam Prep cover?

The planned syllabus covers CSLB contracts, employment, safety, licensing, and operations with California-specific explanations and practical applications.

Can I enroll now?

Enrollment opens only after the content status is PUBLISHED. Drafting pages offer a waitlist instead.

Publicly verifiable completion

After passing, the certificate PDF includes a unique certificate number, a random secure verification code, a record fingerprint, and a scannable QR link. The online record confirms the 101PD completion and preserves the distinction between training and regulator-approved credit.

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