Contractor Licensing Glossary

Plain-language definitions for terms you'll encounter when verifying contractor licenses.

Contractor License

A state-issued authorization allowing a contractor to legally perform specific types of construction work.

General Contractor

A contractor who oversees an entire construction project, coordinating subcontractors and managing the job from start to finish.

Surety Bond

A financial guarantee required by most states that protects homeowners if a contractor fails to complete work or causes damage.

Disciplinary Action

A formal sanction issued by a state licensing board against a contractor for violations of law, regulations, or professional standards.

License Suspension

A temporary halt on a contractor's license, preventing them from legally operating until the suspension is lifted.

License Revocation

A permanent cancellation of a contractor's license by a state board, typically for serious violations.

Continuing Education (CE) Credit

Training hours required by many states to renew a contractor license and stay current with building codes and safety standards.

CSLB

Contractors State License Board — the California agency that licenses, regulates, and disciplines contractors.

TDLR

Texas Department of Licensing and Regulation — oversees contractor licensing and enforcement in Texas.

DBPR

Florida Department of Business and Professional Regulation — the agency that licenses contractors in Florida.

FCRA

Fair Credit Reporting Act — a federal law governing how consumer report data is collected and used. ContractorVetted is not a consumer reporting agency under FCRA.

Unlicensed Contractor

A person performing contractor work without a required state license — illegal in most states and a major red flag for consumers.