The 5 Numbers That Appear on Every Law & Business Exam
Here's the truth about the CSLB Law & Business exam: It's not about memorizing the entire California Contractors License Law book. It's about knowing the right numbers cold.
We've identified 5 specific numbers that show up repeatedly—on nearly every test. Master these, and you'll boost your score by an estimated 15+ points.
The Law & Business exam has a 73% pass rate requirement. Most questions involve scenarios where these numbers are critical. Miss them, and you're not just losing a point or two—you're losing entire question clusters.
So here they are—the 5 numbers you absolutely must memorize.
DAYS
The Preliminary Notice Deadline
Subcontractors and material suppliers have 20 days from when they first provide labor or materials to serve a preliminary notice on the owner, general contractor, and construction lender.
Why This Matters: This is the foundation of mechanics lien rights in California. Miss this deadline, and you lose lien protection for work done before those 20 days.
Exam Trap: The CSLB loves to test whether you know WHO needs to send this notice. Direct contractors with property owners? NO (they only notify the lender, if there is one). Subcontractors? YES, always. Laborers? NO.
Remember: If the notice is served late, you can still file a lien—but ONLY for work performed within 20 days before the notice was sent, plus any work after. Everything before that? Gone.
Common exam questions about this number:
- How many days does a subcontractor have to file a preliminary notice?
- If a notice is served on day 25, what work can be included in a lien?
- Who must receive the 20-day preliminary notice?
DAYS
The Mechanics Lien Filing & Enforcement Deadlines
This number appears in TWO critical contexts, and the exam tests both:
Context 1: Filing a Mechanics Lien
General contractors and subcontractors have 90 days after project completion to file a mechanics lien (if no Notice of Completion is filed).
Context 2: Enforcing a Mechanics Lien
After recording a mechanics lien, you have 90 days to file a lawsuit to enforce it. Miss this deadline, and your lien expires.
Why This Matters: The 90-day number is the most tested deadline on the exam. Know both contexts—filing AND enforcing.
Exam Trap: If a Notice of Completion IS filed, these deadlines shrink dramatically:
- Direct contractors: 60 days to file lien
- Subcontractors: 30 days to file lien
Common exam questions about this number:
- How long does a contractor have to file a mechanics lien after completion?
- After recording a lien, how many days to enforce it?
- What happens if no lawsuit is filed within 90 days of recording?
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The Contractor License Bond Amount
Every California contractor must maintain a contractor's bond of $25,000. This increased from $15,000 on January 1, 2023.
Why This Matters: This is one of the most basic requirements for licensure, and the exam frequently asks about bond amounts, what they cover, and who needs them.
Key facts the exam tests:
- The bond protects consumers AND employees who aren't paid wages
- If a claim is paid out, the contractor must reimburse the surety
- Additional bonds may be required:
- Bond of Qualifying Individual: $25,000 (for RMEs and some RMOs)
- LLC Employee/Worker Bond: $100,000 (for LLCs)
- Disciplinary Bond: $25,000 minimum (if license was revoked)
Exam Trap: Questions often ask "What does the contractor's bond cover?" The answer includes BOTH defective work/violations AND unpaid employee wages. Many test-takers forget the wages part.
Remember: The $25,000 bond is NOT per project—it's the total amount available across ALL claims during the bond's validity period. One $25,000 bond for the entire license, not per job.
PERCENT
The Passing Score
You need 73% to pass the Law & Business exam. Not 70%. Not 75%. Exactly 73%.
Why This Matters: Understanding this helps you set realistic study goals. It means you can miss about 27% of questions and still pass. But that's not a lot of cushion.
Here's what 73% really means:
- The exam is typically 100-120 questions
- You need roughly 73-88 correct answers (depending on exam version)
- That means you can only afford to miss 27-32 questions
- Every question about the other 4 numbers on this list? You cannot afford to miss them
Reality Check: At a 73% requirement, this is NOT an easy exam. The national first-time pass rate hovers around 50-60%. With proper preparation, our clients achieve an 85%+ pass rate.
Strategy: There's no penalty for guessing. Answer EVERY question. Never leave blanks. A guess has a 25% chance of being correct. A blank has 0%.
DAYS
The Short Lien Filing Deadline (With Notice of Completion)
When a property owner files a Notice of Completion, subcontractors and suppliers have only 30 days to file a mechanics lien. (Direct contractors get 60 days.)
Why This Matters: This is the "trap" deadline. Without a Notice of Completion, you have 90 days. With one, that window slams shut to just 30 days for subs. The exam LOVES to test this scenario.
Critical distinctions the exam tests:
- No Notice of Completion filed: Everyone has 90 days
- Notice of Completion filed:
- Direct contractors: 60 days from notice
- Subcontractors/suppliers: 30 days from notice
Exam Trap: Questions will describe a scenario where an owner files a Notice of Completion and ask when the lien deadline is. They're testing whether you know the 30-day vs 60-day vs 90-day distinction. This trips up more test-takers than almost any other question type.
Remember: The Notice of Completion doesn't just reduce YOUR deadline—it reduces it for everyone. That's why it's such a powerful tool for owners trying to clear up lien risks quickly.
Common exam questions about this number:
- A subcontractor completes work. The owner files a Notice of Completion. How many days does the sub have to file a lien?
- What's the difference between lien deadlines for direct contractors vs subcontractors?
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How to Actually Memorize These Numbers
Reading this post once won't cut it. Here's how to make these numbers stick:
1. Create Flashcards
Physical or digital. Number on one side, explanation on the other. Review daily for two weeks before your exam.
2. Use Memory Tricks
20-30-60-90 is a sequence. Think of it as a countdown: "20 to notify, 30 for subs with notice, 60 for GCs with notice, 90 standard."
3. Practice Scenario Questions
Don't just memorize the number—understand when it applies. Get practice questions that mirror real exam scenarios.
4. Test Yourself Under Pressure
Set a timer for 2 minutes. Write out all 5 numbers and their meanings. Can't do it? Study more. Can do it easily? You're ready.
The 15-Point Impact
Why do we say these 5 numbers can boost your score by 15 points? Simple math:
Each of these numbers appears in approximately 10-15 questions per exam (either directly or in scenario-based questions). That's 50-75 questions where knowing these numbers helps you. Even if you only capture half the potential points, you're looking at 15+ additional correct answers.
On an exam where you need 73% to pass, 15 points is the difference between failing and passing with room to spare.
What Comes Next?
These 5 numbers are foundational, but they're not the whole exam. You also need to understand:
- Business entity structures (LLC, Corp, Partnership, Sole Proprietor)
- Workers' compensation requirements by classification
- RME vs RMO responsibilities
- Contract law and consumer protection
- CSLB disciplinary procedures
But if you walk into that exam knowing these 5 numbers cold? You've already got a massive advantage.
Master the numbers. Pass the exam. Get licensed.