{"id":900660,"date":"2022-12-07T13:55:01","date_gmt":"2022-12-07T20:55:01","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=900660"},"modified":"2022-12-07T13:55:09","modified_gmt":"2022-12-07T20:55:09","slug":"contractors-license-mistakes","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/contractors-license-mistakes\/","title":{"rendered":"Licensing Mistakes That Can Continue to Haunt You"},"content":{"rendered":"\n

Alexa Stephenson and Rick Seely | Compliance Construction Litigation<\/a><\/p>\n\n\n\n

Today there are nearly 290,000 contractors licensed<\/a> in California. This number continues to grow as California law requires businesses or individuals who alter any road or structure to be licensed contractors if the total cost of the project is $500 or more (including labor and materials). Complaints about improper and defective work performed by contractors are constantly filed with the California Contractors State License Board (\u201cCSLB\u201d) and any violations by those contractors could result in a license suspension. A contractor whose license is suspended by the CSLB or otherwise becomes unlicensed jeopardizes a contractor\u2019s livelihood, compromises current insurance policies, and curtails an ability to obtain future insurance coverage. Moreover, being unlicensed could force a contractor to disgorge all money received on a project per\u00a0California Business & Professions Code<\/em>\u00a0\u00a7 7031. What can contractors do to stay vigilant and avoid these scary outcomes? Stay tuned for a few suggestions.<\/p>\n\n\n\n

  1. Stay Qualified<\/strong><\/li><\/ol>\n\n\n\n

    Contractors must make sure the correct person and\/or entity is holding the contractor\u2019s license. Contractors can obtain licenses as a sole owner, partnership, corporation, joint venture, or limited liability company. For any form of the business entity, one individual must act as qualifier to meet the CLSB license requirements. This qualifying individual must have the knowledge, experience, and skills to manage the daily activities of a construction business (including field supervision) or be represented by someone else with at least four years of experience within the past ten years as an unsupervised journeyperson, foreperson, supervising employee, or contractor in the trade being applied for.<\/p>\n\n\n\n

    When applying as a sole ownership, an individual must be the owner or a responsible managing employee (\u201cRME\u201d) permanently employed by the contractor and working 32+ hours each week. For partnerships, either general partner or RME will suffice. For corporations, officers designated as a responsible managing offer (\u201cRMO\u201d) or their RME can qualify. Limited liability companies are also allowed to have responsible managing members or managers to serve as the qualifier.<\/p>\n\n\n\n

    But wait, there\u2019s more!  Please note: The CSLB requirements for the qualifying individual became more stringent this year to ensure that bona fide, permanent, likely full-time, and senior employees are the ones seeking licensure. Additionally, one person cannot serve as the qualifier for more than one active license, except in specific conditions. <\/p>\n\n\n\n