Understanding the complex web of paperwork that is required of contractor’s isn’t easy. But, like a ‘house of cards’ when one piece of paper is ‘pulled from the deck’ the whole structure can fall. Who will take over your contracting business when you decide to retire? If it’s family there’s a waiver for that…
Q: Our license is currently suspended based on the fact that our Worker’s Compensation policy on file is expired. We have submitted a new certificate but the CSLB has not put it on record yet. We have several Joint Venture (JV) licenses that are also showing suspended based on no Worker’s Comp policy on file. Do we need to submit a certificate separately for each of the Joint Ventures?
A: The only time you need to submit a separate Worker’s Comp policy for a Joint Venture is if the JV has employees of it’s own. The JV licenses are showing suspended because they are tied to each of the entity’s licenses that make up the Joint Venture. Therefore, when one of those entity’s licenses suspends, the JV license goes down as well. Once the CSLB puts your new policy on record your company license and the Joint Venture licenses should become active again.
Q: I have worked with my father for 16 years. Is it still true that I can just take over his license when he is done working? I would definitely want to retain the number. How does this all work? Thank you in advance for your help.
A: There are certain circumstances that allow you to “take over” your father’s license when he retires.
If he has a Sole Owner license, you would need to apply for a new license and request that your Dad’s license number be re-issued to you. If your intention is to obtain this license without taking the exams, you can request to waive the exams based on the fact that you have been actively engaged in the business for five out of the last seven years.
If your father’s business were a corporation then you would apply to replace your father on the license as the qualifying individual. Again, you can request to waive the exams if you can show/prove that you have been actively engaged in the business in a supervisory capacity for five out of the last seven years.
Keep in mind that you can request to waive the exams based on the facts above, but it’s not guaranteed that it will be approved. Please call us if you have any further questions or if you’d like our assistance with this process.
Q: You helped our company obtain a Nevada contractor’s license last year. At the time it was a brand new company without any assets so we had to have our Officers indemnify the company in order to qualify for the license. I can see where it states in the indemnification instructions that the indemnification is good until revoked in writing. Does that mean that we can just revoke the indemnification without additional support? Or will we be required to submit financials for the company?
A: If you remove the indemnification you will be required to provide new financial documents to support your bid limit. Nevada requires that financial information be kept on file at all times.