Can a court decision on one license keep you from getting another? Can a prime contractor suffer from hiring an unlicensed contractor because they didn’t verify the sub? While some states have no contractor licensing California has one of the most complex in the nation. The work you bid may often require a specialty license class. Some jobs don’t. How do you know the difference? For these questions and others, you consult an expert…
Q: I am a licensed “A” Contractor and would be interested in doing traffic control for a utility. Do I need a separate contractor’s license to do that? If so what would be required?
A: The “C-31” (construction zone traffic control) classification would be required in most instances. The exception is if you are handling the entire General Engineering project such as building a road, resurfacing a bridge, etc. Then you have the option of using your own employees for this trade without the additional classification. Of course, you always have the option of hiring a licensed “C-31” subcontractor.
If you would like to apply for this (or any) classification, the CSLB will require that you have 4 years experience (within the past 10). You’ll need to show that you have directly handled or supervised at least some of this trade (i.e. preparing lane closures, flagging, installing portable devices such as cones, delineators, barricades, etc.).
Q: I’m an Officer on a corporate license. The CSLB said that there is an outstanding civil judgment. Can I get my own license even though I am an Officer on this license? How do I find out whom the judgment is with?
A: If you’re listed as an Officer of Record, the judgment will need to be resolved before the CSLB will allow you to obtain a Sole Owner license. I would suggest calling the CSLB and ask to speak with the Judgment Unit. They should be able to tell you who the judgment is with and how much it’s for. They will also be able to detail your options for clearing up this issue.
Q: I will be forming a corporation soon and plan on hiring a Responsible Managing Officer (RMO). I was told he is required to own 20% of the company. Is this true? Also, I know I need a contractor’s bond. Are there any other bonding requirements?
A: The Responsible Managing Officer can own any percentage of the company that you designate. There is no requirement that this be 20%. The 20% figure is bantered around the construction industry because this is the amount necessary for a RMO to own and still keep his or her present license active.
You’re correct, a $12,500 Contractors Board is required. The CSLB also requires a second $12,500 “Bond of Qualifying Individual” if the RMO owns less than 10 percent of the voting stock of the corporation.
Q: I have been the GC on a project and just found out one of the subs I hired is not licensed. He was immediately kicked off the job and replaced with a licensed contractor. Should I be worried that this could impact MY license?
A: B&P Code Section 7118 states, “Entering into a contract with a contractor while such contractor is not licensed…is a cause for disciplinary action”. Since this is one of the more severe license law violations, the CSLB could assess a civil penalty up to $15,000 as well as take administrative action seeking revocation of your license. It is unlikely this problem, should it even come to the attention of the CSLB, would ever get that far. However, just as the Board urges consumers to “Check-The-License-First” it’s extremely prudent for a General to thoroughly check out whom they are hiring as subcontractors.