California Contractors License Law Practice Exam

Is it true that an inactive license can still allow the holder to perform some contractual duties?

1. Yes

2. No

3. Only minor duties

4. Only with client approval

The correct answer is: Yes

An inactive license does indeed allow the holder to engage in certain contractual duties, provided they operate within specific limitations. When a contractor holds an inactive license in California, they are not permitted to perform work that requires a contractor's license, such as bidding or contract execution on new projects. However, they may still be able to perform some administrative or behind-the-scenes tasks related to their prior contracting business, such as advising clients on existing contracts or overseeing completed projects. This allows those with inactive licenses to maintain a connection to their work and possibly support their clients while complying with regulations that ensure only licensed professionals advance public safety and welfare in construction practices. It is crucial for individuals with an inactive license to understand these limitations to avoid operating outside the bounds of the law, which could lead to penalties or revocation of their license.