RME, RMO & Federal Property Bids & Contracts

If you are not a regular reader, you may not know that you can access this column and others going back years with a single word search on my website, which our first contractor found useful…

Q: First, let me thank you so much for the resources on your website.  I’m new to the industry and they’ve been very helpful.  I have one question, which I’m hoping you may be able to direct me to an answer:

We have a Responsible Managing Employee (RME) who is the qualifying individual for our “C-10” and “B” licenses.  If we were to replace our current RME with another person who had those licenses PLUS an  “A” would the new RME have to inactivate ALL his licenses to become our RME, or only the license for which he’s serving as our Qualifying individual?  In other words, would he be able to keep his Sole Owner “A” active?  Is there any specific statute or provision you could direct me to that addresses these issues?

A: I appreciate the feedback and am glad you find my website to be a valuable resource.  Unfortunately, you cannot separate a RME’s classifications in the manner you describe.  Whether you use the new RME for one classification or all three, he must still inactivate his ENTIRE Sole Owner license.

B&P Code Section 7068.1 addresses this issue.  It details the circumstances under which someone may act as a qualifying individual for more than one license.

Q:  Read your book and found it very informative.  I am curious:  If we perform work on a military base or other federal property, such as office buildings or courthouses (Federal), do local licensing laws apply?  I know some contractors working those locations who are not licensed by the state.  Do in fact state laws apply to federal property?

A:  Thank you for reading my book.  In many instances local and state licensing laws do apply to the renovation or construction of federal structures such as courthouses and office buildings. These are typically located in a city where everything surrounding the building would be subject to licensing regulations and the property may in fact be leased. It has been my experience that many regulatory agencies distinguish this from work on military bases (for instance military housing) that are fully encompassed by federal property.

Regardless, Federal project administrators will sometimes require or impose standards to comply with local or state government licensing in the jurisdiction where the work is being handled.  I suggest that you contact the CSLB and the jurisdiction where this work is taking place in writing regarding specific projects to determine what regulations or licensing may apply.


Q: We have an employee that used his license to qualify for our company in California but he did it as a Responsible Managing Officer (RMO).  He was supposed to be listed as RME! What are the implications of this mistake?

A: First off, I highly recommend that you either: a) file the appropriate form to change your Qualifier to the proper RME designation or b) immediately appoint this person as an officer to match his present corporate title (this would have been listed on the application).

It’s difficult to say what the “implications” are if any.  If your Qualifier has been involved in the day to day operations of the company; has been overseeing company projects; and working at least 32 hours per week (as required for a RME), then it’s unlikely the CSLB would take any action against your license. Administrative errors occur!  On the other hand, if your RMO/RME has not been very involved — and your company becomes embroiled in some legal action — this ‘mistake’ could have a serious impact. Whatever you choose, this situation requires immediate attention to correct.

While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write me at Capitol Services, Inc., 1225 8th St. Ste. 580, Sacramento, CA 95814. Research past columns at www.cutredtape.com.