CSLB Cheat Sheet - the9thfloor.com

CSLB Exam Study Cheat Sheet | The 9th Floor

Your Quick Reference Study Guide

This cheat sheet contains the essential topics, concepts, and questions most frequently tested on the CSLB exams. Use this as your primary study reference alongside your textbooks. Focus on understanding these concepts thoroughly - they represent the core knowledge tested on exam day.

⚖️ Law & Business Exam Cheat Sheet

Critical topics for passing the Law & Business exam

🔴 CRITICAL NUMBERS - MEMORIZE THESE!

$500: Minimum threshold requiring contractor license
$25,000: Required contractor bond amount
$25: Contracts over this amount have 3-day right to cancel
10% or $1,000: Maximum down payment (whichever is LESS)
$15,000: Threshold for specific payment schedule requirements
$5,000: Maximum fine for unlicensed contracting (1st offense)
90 days: Deadline to report address changes, convictions, judgments
20 days: Preliminary notice must be served within 20 days of starting work
2 years: License renewal period
4 years: Experience requirement for licensing
72%: Passing score for both exams
6 months/$10,000: Maximum penalty for unlicensed contracting

Topic 1: Contractor License Law (30-35% of exam)

Licensing Requirements & Classifications

Key Concepts to Know:

A contractor license is required for any work totaling $500 or more (labor + materials)
Classifications limit scope of work (A, B, C-classifications)
Class A: General Engineering (heavy construction, infrastructure)
Class B: General Building (residential/commercial building)
Class C: Specialty contractors (C-10 Electrical, C-36 Plumbing, etc.)
Cannot work outside your classification without additional license
Responsible Managing Employee (RME) or Responsible Managing Officer (RMO) required

⚠️ Must Know Questions:

Q: What dollar amount triggers licensing requirement? A: $500
Q: Can a C-10 electrician do plumbing? A: No, outside classification
Q: Who can qualify a corporation? A: RMO (officer) or RME (employee)
Q: How many classifications can one license have? A: Multiple, if qualified

License Maintenance & Compliance

Key Concepts to Know:

License expires every 2 years - must be renewed before expiration
$450 renewal fee
Must report changes within 90 days: address, phone, business name, personnel, criminal convictions, civil judgments
Bond must be continuous - any lapse suspends license immediately
Workers' comp insurance or exemption required
License number must appear in ALL advertising

⚠️ Must Know Questions:

Q: What happens if bond lapses? A: License immediately suspended
Q: Deadline to report address change? A: 90 days
Q: Must license number be in ads? A: Yes, all advertising
Q: License renewal period? A: Every 2 years

Disciplinary Actions & Violations

Key Concepts to Know:

Unlicensed contracting: misdemeanor, up to 6 months jail and/or $5,000 fine
Acting outside classification: same as working unlicensed
Abandonment: leaving project incomplete without legal excuse
Failure to pay subcontractors: grounds for discipline
Diversion of funds: taking payments for work not performed - SERIOUS violation
False advertising: not displaying license number, misrepresenting credentials
CSLB can suspend, revoke, or place license on probation

⚠️ Must Know Questions:

Q: Penalty for unlicensed contracting? A: Up to $5,000 fine + 6 months jail
Q: What is diversion of funds? A: Using client payments for other jobs/purposes
Q: Can CSLB revoke license? A: Yes, for serious violations
Q: Working outside classification penalty? A: Same as unlicensed contracting

Topic 2: Contracts & Home Improvement Law (15-20% of exam)

Contract Requirements

Key Concepts to Know:

Written contract REQUIRED for home improvement work over $500
Must include: license number, business name/address, scope of work, price, payment schedule, start/completion dates
Contracts over $25 require 3-day right to cancel notice
Down payment limit: 10% OR $1,000 (whichever is LESS)
Contracts over $15,000: specific progress payment schedule required
Cannot take payment before work starts (except allowed down payment)
Must provide preliminary notice (20-day notice) to owner for lien rights

⚠️ Must Know Questions:

Q: Maximum down payment on $8,000 job? A: $800 (10% since less than $1,000)
Q: Max down payment on $15,000 job? A: $1,000 (10% would be $1,500, but $1,000 max)
Q: When is right to cancel required? A: Contracts over $25
Q: Can you take full payment upfront? A: No, violates down payment limits

Mechanics Liens

Key Concepts to Know:

Mechanic's lien: legal claim against property for unpaid work
Preliminary notice (20-day notice) must be served within 20 days of starting work
Required for subcontractors, material suppliers (not prime contractor on private jobs)
Lien must be recorded within 90 days of completion
Lawsuit must be filed within 90 days of recording lien
Stop notice: used for public works projects (cannot lien public property)

⚠️ Must Know Questions:

Q: When serve preliminary notice? A: Within 20 days of starting work
Q: Who must file preliminary notice? A: Subs and suppliers (not prime on private)
Q: Deadline to record lien? A: 90 days after completion
Q: Can you lien public property? A: No, use stop notice instead

Topic 3: Safety & Workers' Compensation (15-20% of exam)

Cal/OSHA Requirements

Key Concepts to Know:

IIPP (Injury & Illness Prevention Program) required for ALL employers
Must be in writing, accessible to employees
Must include: safety training, hazard assessment, accident investigation
Employers must provide PPE (personal protective equipment) at no cost
Employees have right to refuse unsafe work
Fall protection required at 6 feet (some exceptions at 7.5 feet)
Scaffolding must be inspected daily, erected by competent person
Trenches 5+ feet deep require protective system

⚠️ Must Know Questions:

Q: What is IIPP? A: Injury & Illness Prevention Program
Q: Who pays for PPE? A: Employer, at no cost to employee
Q: Fall protection height? A: Generally 6 feet
Q: Trench protection depth? A: 5 feet or deeper

Workers' Compensation Insurance

Key Concepts to Know:

Required if you have ANY employees (even one)
Covers medical costs and lost wages for work injuries
Sole proprietors, partners, LLC members can exempt themselves
Corporate officers may be exempt with written waiver
If required and not carried: $10,000+ penalties, stop work order, criminal charges
Must post notice of workers' comp coverage
Employees have right to medical treatment of their choice after 30 days

⚠️ Must Know Questions:

Q: When is WC required? A: When you have ANY employees
Q: Can sole proprietor exempt self? A: Yes
Q: Penalty for no WC? A: $10,000+, stop work order, criminal charges
Q: Employee's medical choice? A: After 30 days, can choose own doctor

Topic 4: Business Management (20-25% of exam)

Estimating & Bidding

Key Concepts to Know:

Estimate components: direct costs (labor, materials, equipment, subs) + indirect costs (overhead) + profit
Overhead: office, insurance, licenses, bonds, vehicles, tools
Typical markup: 20-30% overhead + 10-20% profit
Unit pricing: cost per square foot, linear foot, etc.
Time and materials (T&M): hourly rate plus materials at cost (or with markup)
Must honor written estimates (binding)
Verbal estimates not enforceable

⚠️ Must Know Questions:

Q: What is overhead? A: Indirect costs of running business
Q: Typical profit margin? A: 10-20%
Q: Are written estimates binding? A: Yes
Q: What is T&M contract? A: Time and materials - hourly plus materials

Financial Management

Key Concepts to Know:

Chart of accounts: organized list of all business accounts
Assets = what you own; Liabilities = what you owe; Equity = your stake
Balance sheet: snapshot of financial position at point in time
Income statement (P&L): revenues and expenses over period of time
Cash flow: tracking money in and out
Accounts receivable: money owed to you
Accounts payable: money you owe to others
Depreciation: spreading cost of assets over useful life

⚠️ Must Know Questions:

Q: What is accounts receivable? A: Money customers owe you
Q: What is P&L statement? A: Profit & Loss - revenues minus expenses
Q: What is depreciation? A: Spreading asset cost over time
Q: Balance sheet shows? A: Assets, liabilities, equity at point in time

Topic 5: Employment Law (10-15% of exam)

Employee vs. Independent Contractor

Key Concepts to Know:

ABC Test in California determines worker status
Employee: You control HOW work is done, provide tools, set schedule
Independent contractor: Controls own methods, has own tools, sets own schedule, works for multiple clients
Misclassification penalties: $5,000-$25,000 per violation
Employees entitled to: minimum wage, overtime, meal breaks, workers' comp
Independent contractors: Not entitled to benefits, file 1099, responsible for own taxes

⚠️ Must Know Questions:

Q: Who controls HOW in employment? A: Employer controls employees; contractors control themselves
Q: Penalty for misclassification? A: $5,000-$25,000 per violation
Q: Do contractors get overtime? A: No, only employees
Q: What is ABC test? A: California test for worker classification

Wage & Hour Laws

Key Concepts to Know:

California minimum wage: $16/hour (as of 2024, check current rate)
Overtime: 1.5x pay after 8 hours/day or 40 hours/week
Double time: After 12 hours/day or 7th consecutive day
Meal break: 30 minutes unpaid before 5 hours worked
Rest break: 10 minutes paid per 4 hours worked
Must pay on regular payday - cannot withhold wages
Final paycheck due immediately if terminated, within 72 hours if quit

⚠️ Must Know Questions:

Q: Overtime rate after 8 hours? A: 1.5x regular pay
Q: Double time when? A: After 12 hours/day
Q: Meal break requirement? A: 30 min before 5 hours worked
Q: Final pay if fired? A: Immediately

Topic 6: Bonds & Insurance (10-15% of exam)

Contractor Bond

Key Concepts to Know:

$25,000 contractor license bond required for ALL licenses
Protects PUBLIC, not contractor
Can be claimed for: fraud, abandonment, unpaid subs/suppliers, license law violations
If claim paid, contractor must reimburse bond company
Cannot get/renew license without active bond
Bond must be continuous - any lapse = immediate license suspension

⚠️ Must Know Questions:

Q: Contractor bond amount? A: $25,000
Q: Who does bond protect? A: Public/customers, not contractor
Q: What if bond lapses? A: License suspended immediately
Q: If bond pays claim, who reimburses? A: Contractor must repay bond company

Insurance Types

Key Concepts to Know:

General liability: Covers property damage and bodily injury to others
Workers' compensation: Covers employee injuries (legally required)
Commercial auto: Required if use vehicles for business
Professional liability (E&O): Covers design errors, professional advice
Builders risk: Covers building under construction
Tools & equipment: Covers contractor's tools from theft/damage
Umbrella policy: Additional liability coverage above primary policies

⚠️ Must Know Questions:

Q: What does general liability cover? A: Property damage and bodily injury to others
Q: Is general liability required by law? A: No, but highly recommended
Q: What is umbrella policy? A: Extra liability coverage above primary policy
Q: What is builders risk? A: Covers building under construction

🔧 Trade Exam Cheat Sheet (General Concepts)

Core topics that apply across most trade classifications

💡 Note on Trade Exams

Trade exams are classification-specific. This section covers general concepts that appear in most trade exams. You MUST also study your specific trade code books and reference materials. The topics below supplement (not replace) your trade-specific study.

Building Codes & Standards

Code Basics (Applies to Most Trades)

Key Concepts to Know:

Codes are MINIMUM standards - you can exceed but not go below
Local codes may be MORE restrictive than state codes
Most restrictive code always applies
Authority Having Jurisdiction (AHJ): local building department
Building Official: person who enforces code
When code conflicts with manufacturer specs, most restrictive applies
Code updates every 3 years - must use current adopted version

⚠️ Must Know Questions:

Q: Can you build below code minimum? A: Never
Q: What if local code conflicts with state? A: Most restrictive applies
Q: Who enforces building codes? A: Building Official/local building department
Q: What is AHJ? A: Authority Having Jurisdiction (building dept)

Permits & Inspections

Permit Requirements

Key Concepts to Know:

Only licensed contractors can pull permits
Permits required for: new construction, additions, structural work, electrical/plumbing/mechanical systems
Generally NOT required for: painting, flooring, minor repairs
Permit must be posted at job site, visible from street
Working without required permit = violation
Plans must be approved before work begins
Inspections required at specific milestones

⚠️ Must Know Questions:

Q: Who can pull permits? A: Only licensed contractors
Q: Where display permit? A: At job site, visible from street
Q: Can you work without permit? A: No, if permit required
Q: When are inspections required? A: At specific milestones per code

Safety on Job Sites

General Safety Requirements

Key Concepts to Know:

PPE (Personal Protective Equipment): hard hats, safety glasses, gloves, proper footwear
Fall protection required at 6 feet (general industry)
Guardrails required on elevated surfaces over 6 feet
Ladders: 3-foot extension above landing, maintain 3 points of contact
Scaffolding: erected by competent person, inspected daily, guardrails required
Trenching: protective system required at 5 feet or greater depth
GFCIs required for temporary power and wet locations
Lockout/tagout procedures for electrical work

⚠️ Must Know Questions:

Q: Fall protection height? A: 6 feet (general)
Q: Trench protection depth? A: 5 feet or deeper
Q: Ladder extension above roof? A: 3 feet
Q: When is GFCI required? A: Temporary power and wet locations

Materials & Installation Methods

Common Material Standards

Key Concepts to Know:

Materials must meet code-approved standards (UL, ASTM, etc.)
Manufacturer installation instructions must be followed
Material storage: protect from weather, contamination
Fastener spacing per code specifications
Flashing required at all penetrations, transitions
Expansion joints required for thermal movement
Proper ventilation required for enclosed spaces

⚠️ Must Know Questions:

Q: Can you ignore manufacturer specs? A: No, must follow them
Q: What if code and manufacturer conflict? A: Most restrictive applies
Q: Where is flashing required? A: All penetrations and transitions
Q: What standards must materials meet? A: Code-approved (UL, ASTM, etc.)

Trade-Specific Topics (Know Your Classification)

General Building (Class B)

Primary Study Materials:

International Building Code (IBC)
International Residential Code (IRC)
California Building Code (CBC)

Key Topics:

Structural requirements (foundations, framing, load-bearing)
Fire-resistance ratings
Occupancy classifications
Means of egress
Accessibility (ADA) requirements
Roof framing and coverings
Foundation types and requirements

Electrical (C-10)

Primary Study Material:

National Electrical Code (NEC)

Key Topics:

Wire sizing and ampacity calculations
Circuit breaker and fuse sizing
Service entrance requirements
Grounding and bonding
GFCI and AFCI protection requirements
Box fill calculations
Conduit fill and sizing
Voltage drop calculations

Plumbing (C-36)

Primary Study Material:

Uniform Plumbing Code (UPC)

Key Topics:

Pipe sizing for water supply
Drainage and vent systems
Fixture units and trap sizing
Water heater installation requirements
Gas piping requirements
Backflow prevention
Slope requirements for drainage
Cleanout requirements

HVAC (C-20)

Primary Study Material:

Uniform Mechanical Code (UMC)

Key Topics:

Load calculations (heating and cooling)
Duct sizing and design
Refrigeration cycles and principles
Ventilation requirements
Combustion air requirements
Clearances for equipment
Energy efficiency standards
Gas piping for HVAC equipment

🔢 Essential Calculation Formulas

Common calculations that appear on exams

Business & Estimating Calculations

Markup & Profit Calculations

Formulas to Memorize:

Markup %: (Selling Price - Cost) ÷ Cost × 100
Margin %: (Selling Price - Cost) ÷ Selling Price × 100
Selling Price: Cost ÷ (1 - Desired Margin %)
Break-even: Fixed Costs ÷ (Price - Variable Cost per Unit)

Example: Job costs $10,000. You want 25% margin. What's selling price?

Solution: $10,000 ÷ (1 - 0.25) = $10,000 ÷ 0.75 = $13,333.33

Example: You paid $8,000 for materials, sold for $10,000. What's markup %?

Solution: ($10,000 - $8,000) ÷ $8,000 × 100 = 25% markup

Area & Volume Calculations

Common Geometry Formulas

Formulas to Memorize:

Rectangle Area: Length × Width
Triangle Area: (Base × Height) ÷ 2
Circle Area: π × Radius² (π ≈ 3.14)
Circle Circumference: 2 × π × Radius
Volume (rectangular): Length × Width × Height
Volume (cylinder): π × Radius² × Height
Cubic Yards: Cubic Feet ÷ 27

Example: Concrete slab 20' × 30' × 4" thick. How many cubic yards?

Solution:
1. Convert inches to feet: 4" = 0.33 feet
2. Calculate cubic feet: 20 × 30 × 0.33 = 198 cubic feet
3. Convert to yards: 198 ÷ 27 = 7.33 cubic yards

Trade-Specific Calculations

Electrical Calculations (C-10)

Ohm's Law & Power Formulas:

Voltage (V): Current (I) × Resistance (R)
Current (I): Voltage (V) ÷ Resistance (R)
Power (W): Voltage (V) × Current (I)
Voltage Drop: 2 × K × I × L ÷ CM
K = 12.9 for copper; I = current (amps); L = one-way length (feet); CM = circular mils

Example: 120V circuit draws 15 amps. What's the power (watts)?

Solution: Power = Voltage × Current = 120V × 15A = 1,800 watts

HVAC Calculations (C-20)

Load Calculation Basics:

BTU per Ton: 12,000 BTU/hr = 1 ton of cooling
Tons needed: Total BTU ÷ 12,000
Sensible Heat: 1.08 × CFM × ΔT
CFM (cubic feet per minute): BTU ÷ (1.08 × ΔT)

Example: House needs 36,000 BTU cooling. How many tons?

Solution: 36,000 ÷ 12,000 = 3 tons

📚 How to Use This Cheat Sheet

Maximizing your study effectiveness

💡 Effective Study Strategy

Week 1-2: Read through this entire cheat sheet. Highlight concepts you don't understand.

Week 3-4: Study highlighted concepts in detail using your textbooks. Create flashcards for critical numbers.

Week 5-6: Take first practice exam. Review this cheat sheet for topics you missed.

Week 7-8: Focus study on weak areas identified. Re-review relevant sections here.

Week 9-10: Take more practice exams. Use this cheat sheet for quick reference.

Week 11-12: Final review. Memorize all critical numbers and formulas.

📋 Print This Cheat Sheet

This document is designed to be printed and used as a study reference. Keep it next to you while studying your textbooks. Check off topics as you master them.

Critical Study Tips

Focus on "Must Know" boxes: These are the most frequently tested concepts
Memorize all critical numbers: They appear repeatedly on exams
Understand WHY, not just WHAT: Exams test comprehension, not just memorization
Practice calculations: Don't just read formulas - work through problems
Use this WITH textbooks: This summarizes key points; textbooks provide full detail
Create your own examples: Apply concepts to real situations you've encountered
Study groups help: Discuss these topics with other test-takers
Take breaks: Study 50 minutes, break 10 minutes for better retention

Priority Study Order

Study These FIRST (Highest Weight on Exam)

Law & Business Exam:

1. Critical numbers (memorize ALL of them)
2. Contractor License Law (30-35% of exam)
3. Contracts & Home Improvement Law
4. Business Management & Estimating
5. Safety & Workers' Comp
6. Employment Law
7. Bonds & Insurance

Trade Exam:

1. Your primary code book (NEC, UPC, UMC, IBC, etc.)
2. Code-specific calculations for your trade
3. Installation methods and best practices
4. Safety requirements specific to your trade
5. Material specifications and standards

👉 Next: Practice Flashcards

Ready to test your knowledge?

🎯 Coming Soon: Interactive Flashcards

Now that you've reviewed the key concepts, it's time to test yourself! The 9th Floor is preparing interactive flashcard sets covering:

Critical Numbers Flashcards: All the numbers you must memorize
Law & Business Flashcards: 200+ questions covering all exam topics
Trade-Specific Flashcards: Questions for each classification
Calculation Flashcards: Practice problems with solutions

Contact The 9th Floor for access to our complete study system including flashcards, practice exams, and one-on-one tutoring.

Additional Study Resources

The 9th Floor Exam Prep Services: Personalized study plans and tutoring
Practice Exams: Purchase 3-5 different practice exam books
Study Groups: Join or form a group with other contractors
CSLB Website: Free sample questions and study guides
Online Forums: Connect with contractors who recently passed

💡 Schedule Your Free Study Consultation

The 9th Floor offers free exam preparation consultations. We'll review your study plan, identify gaps, and provide personalized recommendations.

Contact us: 1-800-9TH-FLOOR | info@the9thfloor.com

You've Got This!

This cheat sheet contains the core knowledge you need to pass your CSLB exams. Use it daily as your quick reference guide. Focus on the "Must Know" sections, memorize the critical numbers, and practice applying concepts through sample problems.

Remember:

✅ You only need 72% to pass - not perfection
✅ The exams are open-book - focus on understanding and finding information
✅ Consistent daily study beats cramming
✅ Practice exams are your best study tool
✅ The 9th Floor is here to support you every step of the way

Study smart, stay confident, and you'll pass!

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