We help a contractor raise the ‘ante’ in Nevada bids. California contractors reading this will discover a quirk in licensing law they might benefit from learning, unless they are ‘shocked’ we would reveal it. While you can transfer a sole owner license to a corporation, you can’t share a contractor’s license because you are ‘related’…
Q: I have a bid limit in Nevada of $250,000. I have a customer who wants me to do a project for them that will be well above $500,000. Is there any way to increase my bid limit? How quickly can this be done?
A: There are two ways to raise your bid limit in Nevada. You can complete a One Time Raise in Limit application, or you can submit a Permanent Raise in Limit application. For a single project such as you are describing, you can submit the application for a single project limit increase at least five working days prior to the bid date. If submitted in that time frame, the application will be approved prior to bidding the project (assuming you meet the financial requirements of course).
Q: You helped my company get a CA license 18 years ago and I have another question for you. I am an “A” Contractor (General Enginering) and I heard recently that I could have an electrician on payroll that is not certified by the Division of Apprenticeship Standards. Is that correct?
A: That is indeed correct, only a “C-10” (Electrical) contractor is required to have their electrical employees certified by the Division of Apprenticeship Standards (DAS). An “A” is not required to have their employees certified through DAS even if performing the same type of electrical work.
Q: I currently have a Sole Proprietorship contractor’s license and I am in the process of incorporating. Since I will be the only shareholder, will the corporation be assigned my existing license number?
A: That’s your choice to make. When you submit the license application for the corporation, you are required to also submit a “Licensed Sole Owner Applying for Corporate License” form (available on the CSLB’s website or by calling Capitol Services). The CSLB allows a Sole Ownership license number to be reissued to a corporation if: 1) The Sole Ownership license is in good standing, 2) The corporation was formed by the individual licensee, and 3) The Sole Owner licensee has at least 51% ownership of the new corporation. You should be aware that once the number is transferred, it belongs to the corporation and cannot be reissued to an individual at a later date.
Q: Can you confirm that we can use the license owned by our Parent company or a company of our same Group, such as a sister company?
A: No, you cannot use a license that doesn’t belong to your company, even if the company is “related”. Each entity performing contracting work is required to have it’s own contractors license. As a subsidiary of the Parent company, you may be able to use the same Responsible Managing Employee (RME)/Responsible Managing Officer (RMO) that is currently qualified for your Parent, however you will be issued a separate license number.