Reciprocity, Oil Fields and RME

We ‘double down’ with our first contractor who has more than one concern. A ‘slick’ answer for an industrial inquiry, with a ‘big easy’ response for a future Californian…

Q:  We currently have a “C-6” (Cabinet, Millwork and Finish Carpentry) license.  We need to add the “C-5” (Framing and Rough Carpentry) classification because one of our clients will be giving us a contract for the erection of a wooden frame.  However, my boss, who is the current “C-6” license holder, doesn’t have four years of experience doing that type of work.  We do have an employee who has done drywall framing for 10 years, who has only been with us for a few years.  What type of role does the employee take on if we were to use him to Qualify the license?  And would this put the license at risk if this employee left in 2 months?

A:  If you use one of your employees who has the experience, you can list them as RME (Responsible Managing Employee).  That would be his role.  RME’s are required to work at least 32 hours a week, or 80% of the company’s operating time.  They are also required to be actively involved in the everyday running of the business.

If he leaves the company, the license has 90 days to replace him.

Q:  I need to know if a Contractor’s license is required for a company that we frequently hire.  We work in the oil field industry and we have a company who comes out and separates hazardous material from the water in the storage tanks and disposes of it. They don’t have a Contractor License do they need one?

A: Yes, a “C-61”/”D09” (Drilling, Blasting, and Oil Field) would be the most appropriate classification for the work that you are describing.

Q:  I am a licensed Contractor in Louisiana and I am planning on retiring and moving to California (I know, most people move out of California when they retire!).  One of my fellow contractor buddies was telling me that Louisiana is “reciprocal” with California and I shouldn’t have to take the exams.  If that’s true, I’m all for getting a license to have just in case small jobs come up.  However, I’m more hesitant if I will have to take the exams because I’m older and haven’t taken a test in years.

A:  Your buddy is correct.  Very recently, California and Louisiana agreed to reciprocity for the “B” (General Building) classification only.  Reciprocity allows you to apply for a waiver of the Trade, however the Law portion of the exam is still required.  The Law portion of the exam tests your knowledge of how to run a business, so if you’ve been running your Contracting business for years (and if you study), you probably won’t have too much difficulty passing the exam.  Good luck and let us know if you would like our help with the process!