A person claims no license is needed because the customer pays subcontractors directly, while the person manages the project for compensation. What is the licensing issue?
Correct Answer
A) Managing construction for compensation can still be contractor activity.
The contractor definition can include undertaking or managing construction work for compensation; payment routing alone does not decide licensing.
Why This Is the Correct Answer
The contractor definition can include undertaking or managing construction work for compensation; payment routing alone does not decide licensing.
Why the Other Options Are Wrong
Option B: Rely on the license number shown on the proposal without confirming the licensed entity or qualifier relationship.
Rely on the license number shown on the proposal without confirming the licensed entity or qualifier relationship. skips the written authority, scope, price, notice, or release control needed for contractor definition.
Option C: Use the customer approval as a substitute for required qualifier supervision or license status.
Use the customer approval as a substitute for required qualifier supervision or license status. skips the written authority, scope, price, notice, or release control needed for contractor definition.
Option D: The project manager may use any subcontractor's license number.
The project manager may use any subcontractor's license number. skips the written authority, scope, price, notice, or release control needed for contractor definition.
Memory Technique
Contractor Definition square for Reviewing Project-Management: scope, authority, price, paper.
Reference Hint
Study anchor (closed-book): memorize Contractor definition from CSLB licensing guidance; CSLB 2026 Law Book; California Business and. / Business and Professions Code contractor definition and licensing requirements; know the rule or calculation trigger without relying on exam-room lookup.
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