The 4-1-1 on BQI

The contractor that will build the first time machine hasn’t come along yet as far as I know. However did you know some contractors can ‘go back in time’ and retrieve their ‘original’ license number — even though that license expired years ago? What’s the ‘411’ on a BQI? How many corporate contractors know if they need a BQI? It could depend on how much ‘stock’ you hold in the business…

Q: I have heard that the CSLB will not renew a license after 5 years. Where in the law is this limitation written? My sole owner license expired in 1999 and I would like it back.

A: B&P Code Section 7141 states, “a license that has expired may be renewed at any time within five years after expiration by filing an application for renewal.” If the license is not renewed within five years, the licensee will need to file an Application for Original License. Since the prior license was for a sole owner, you can request that the license number be re-issued.

Q: I just received a letter from the CSLB stating my license will be suspended due to a bond cancellation. I called my bonding company and they are willing to re-issue a new bond. What is the best way to handle this to make sure my license remains in good standing?

A: Since the bond cancellation is not due to take effect for a few more weeks, it is best to have your insurance company file a renewal of your existing bond rather than a new bond with the Board. By filing a renewal, there should be no break in the bond meaning no suspension on your record. For your information, had the cancellation taken place and you filed a renewal – or new bond – after 90-days, a lapse in your license would appear. The CSLB is able to accept a “back-dated” bond within ninety days of expiration or cancellation.

Q: On our Application For Original Contractor’s License we marked the RMO box for each qualifier. Aren’t BQI bonds only required if the qualifier is an RME? Should the Application be changed to RME for these two? Is there an ownership percentage where these bonds would not be required?

A: Thank you for the call. Since all personnel on your application have corporate titles both qualifiers are by definition, Responsible Managing OFFICERS (RMO). The need for a “bond of qualifying individual” (BQI) is based on percentage of ownership not whether the qualifier is a RMO or RME (Responsible Managing Employee). Since neither qualifier actually owns any stock in this company, both are required to post these bonds. If one or both owned more than 10% of the equity in this corporation, a BQI would not be necessary.