Why a General Contractor Cannot Take a Single-Trade Job in California — and the Consequences of Doing So

In California, a common misconception is that a licensed general contractor may bid or perform any type of construction work. That assumption is wrong. For Class B general building contractors, the scope of permissible work is tightly regulated—and bidding or performing a single-trade project can render the contractor legally unlicensed, with severe consequences.

The Rule: A Class B Contractor Must Perform at Least Two Unrelated Trades

Business and Professions Code section 7057(b) governs the scope of work a Class B general contractor may perform as a prime contractor. The statute provides that a general contractor may not take a prime contract for a project involving trades other than framing or carpentry unless the prime contract requires at least two unrelated building trades, or the contractor holds the appropriate specialty license or subcontracts the work to a properly licensed specialty contractor.

Framing and carpentry do not count toward the two-trade requirement. As a result, a project involving only one specialty trade—such as roofing—cannot be taken by a Class B contractor unless the contractor holds the corresponding specialty license.

Why the Law Exists

This restriction was added in 1997 to overrule earlier case law that had allowed general contractors to take single-trade jobs. The Legislature made clear that the purpose of the change was consumer protection: to prevent contractors who lack demonstrated competence in a particular specialty from performing work that requires a specialty license, and to ensure that specialty work is performed by those properly qualified to do it.

In short, the law is designed to stop general contractors from functioning as de facto specialty contractors without the required licensing.

Licensing Is Determined Contract by Contract

Compliance with section 7057(b) is determined on a contract-by-contract basis. Each separate contract must independently satisfy the two unrelated trades requirement. Separate permits and scopes of work matter. A contractor cannot combine multiple projects or rely on work performed under a different permit to retroactively justify a single-trade contract.

If a contractor takes a separate contract for work involving only one specialty trade—and lacks the appropriate specialty license—that contractor is operating outside the scope of its Class B license.

The Consequence: “Unlicensed” Under Section 7031

When a contractor performs work outside its licensed classification, California law treats the contractor as unlicensed for that work—even if the contractor holds a valid license in another classification.

Under Business and Professions Code section 7031, an unlicensed contractor is barred from recovering compensation for that work. Even more significantly, section 7031 allows the customer to recover all compensation paid for the unlicensed work through disgorgement.

This is a strict liability statute. Intent, good faith, substantial performance, or the quality of the work do not matter. If the contractor was unlicensed for the specific work performed, compensation must be forfeited.

Practical Consequences

The practical repercussions are severe. A Class B contractor who improperly bids or performs a single-trade job may be required to disgorge all amounts paid for that work and is barred from enforcing contract claims related to it. In litigation, this often turns what appears to be a payment dispute into a one-sided remedy in favor of the property owner.

Key Takeaway

In California, a general contractor’s license is not a catch-all. A Class B contractor generally cannot bid or perform a single-trade job unless it involves at least two unrelated trades or the contractor holds the required specialty license. Violating this rule renders the contractor unlicensed for that work and exposes it to disgorgement and forfeiture under section 7031. The financial consequences can be far greater than the value of the work itself.