We begin with a ‘suspense’ story offered by a contractor who is becoming ‘unqualified’. You need a license to work, but can you participate in bids without one? We ‘demolish’ a misconception for a contractor who learns that ‘breaking up’ is hard to do…
Q: I’m an out-of-state contractor and we currently have a license in CA for our corporation but haven’t been getting much work lately. Our qualifying individual has informed us that he is disassociating from the license and we have 90 days to replace him. Can we just go without a Qualifier since we aren’t really using the license at the present time?
A: You do in fact have 90 days to replace your Qualifier once he/she disassociates from your license. After the 90 days your license will become suspended. If you don’t intend on using the license, we recommend that instead of letting it go suspended, you file to inactivate it. In this way you don’t need to have a qualifying individual, bond, or Worker’s Compensation insurance.
Q: I am hoping you may be able to provide some information in regard to one of our Builder’s Exchange members. Their contractor’s license is listed under one name (that is not incorporated) and they are conducting business under another name. Ultimately, they would like their membership to be reflected under this name, however, our policy is to list members by the name that appears on the CSLB records. Do you have any recommendations on what they need to do with the License Board? Any insight you can provide is greatly appreciated.
A: It appears this contractor is a Sole Proprietor. My recommendation is to file an Application to Change Business Name with the CSLB. This is a one-page form and the Board does not require any fee. On the other hand, if he wants to continue operating under BOTH business names at the same time, he’ll need to apply for a second contractor’s license. He should not conduct business under two different names using once license number. Thanks for the question.
Q: For a public works project, does a sub-contractor need a license at the time of bid? The paperwork states that a license is needed at the time the work is to be performed, but doesn’t specify whether you need a license to bid the project.
A: I am assuming this subcontractor is bidding to a licensed general contractor? While local governments may have some latitude regarding when a license is required, for the most part, the general and all subs should be licensed at the time of bid. There are several exceptions in Code Section 7028.15, plus if the project includes federal funds, a proper license would be required at the time the contract is awarded. Our suggestion; get the license sooner, rather than later!
Q: I am currently at a project site and we’re having a sub-contractor (who does not have a contractor’s license) come out and crush some concrete. Does he need a license to perform this work and place it in a pile?
A: I’m guessing this is not the answer you want to hear, but yes, a contractor’s license is required to break concrete. The appropriate classification to perform this type of work would either be the “C-8” (concrete) or “C-61”/”D-06” Concrete Related Services.