California Contractors License Law Practice Exam

For how long must contractors keep records such as contracts and receipts?

1. One year

2. Two years

3. Three years

4. Five years

The correct answer is: Three years

Contractors are required to maintain records, including contracts and receipts, for a minimum of three years. This time frame is significant because it allows the contractor to provide evidence and documentation of their work, which can be crucial in the event of a dispute or audit. Keeping records for this duration ensures that both the contractor and their clients have access to important information related to the scope of work, payments, and any changes that might have occurred during the project. This retention period also aligns with the statute of limitations for filing claims related to construction defects and many other legal matters that may arise. By adhering to this three-year requirement, contractors can protect themselves from potential legal issues and ensure compliance with state laws and regulations.