Parent Subsidiary Licenses, Disassociation Limit and Public Works

Sometimes the difference in licensing is a ‘federal case’ in public works. Another contractor has ‘elected’ to replace the President! That isn’t always required, and while you can’t share a license between individuals, in most cases the same is also true for businesses. I wrap up with a ‘wait’ and see answer…

Q: I currently have an “A” General Engineering Contractors license in good standing, and I am curious to know if I can bid Private/Public Works (we have DIR number), and Federal Synthetic Turf installs without a “C-27” or “C-61/D-12”.

A:  For public works projects it is always up to the awarding authority as to what type of license is required. A State Contractor’s License is not required for Federal work. For the Private work though, whether you need the specialty license depends on the scale/size of the turf installation. If it’s a large scale such as a sports field, that would fall under the “A” as “parks, playgrounds, and other recreational works”. If you are referring to smaller scale residential turf installations that does not require any special engineering skills, the most appropriate classification would be the “C-27” or “D-12”.

Q: Our President has left the company. Do we need to replace him within 90 days? We don’t have another President elected just yet.

A: No, it is not necessary to “replace” your President. You should however notify the CSLB of your President’s departure by filing a disassociation. Once you have elected a new President, you should then notify the CSLB within 90 days. 

Q: We are creating a wholly owned subsidiary to serve as the Owner/Builder for one of our California projects.  This is a common practice in the energy business. Do you know if our license for the parent company can be utilized by the subsidiary?  

A: It cannot. Two separate entities cannot use the same license.

Q: I have a “C-10” Responsible Managing Officer (RMO) on my license currently. How long do I need to keep him associated with the business so I can get the license in my name without taking the test?

A: After five years, you can apply to replace him on the license and request to waive the exams.