What happens if a licensee bids or contracts outside the scope of their license?

When a licensee bids or contracts outside the scope of their license, the bid or contract is rendered void. This means that the agreement holds no legal standing and cannot be enforced. The laws governing contractor licensing are designed to ensure that contractors only engage in work that they are qualified and permitted to perform, as defined by their license classification. Engaging in activities outside this scope not only undermines consumer protection but also poses risks regarding insurance and bonding requirements, project safety, and overall quality of work.

The other options do not accurately reflect the legal ramifications of contracting outside one’s licensed scope. For instance, notifying the board does not validate an unauthorized bid or contract; rather, it may expose the licensee to disciplinary actions. Likewise, losing a license is a potential consequence of repeated violations or serious misconduct, but an isolated incident of contracting outside the scope does not automatically result in the loss of the license. Thus, the correct understanding lies in recognizing that such contracts lack legal enforceability altogether.