By Shauna Krause, President, Capitol Services, Inc.
As I note below, ‘knowledge is power’, but timing plays its part in reducing the ‘suspense’. Two other contractors need to know if they can get an expert answer, like ‘yesterday’. Please, if you don’t know, ask it may save you both time and money by knowing what’s what in licensing…
Q: I am the license holder for our plumbing department at the company I work for. I am applying to add the “C-42” (Sanitation) classification so we can do more septic and well work. Our previous CEO who signed for me for the “C-36” (Plumbing) is no longer with the company. Our new CEO is not listed with the CSLB yet. Will this cause a problem or delay if he signs for me?
A: That will not be a problem. Your certifier is required to have first hand knowledge of the work experience described, he/she is not required to hold any particular title with the company.
Q: A customer of mine just noticed that my license is Suspended for lack of a contractor’s Bond. I never received any notification about this. What is the quickest way to remedy this?
A: The quickest way to update the license is to contact your bonding company and renew the license Bond. Your bonding company can likely notify the CSLB electronically so your license can go back to active immediately. You may want to also verify your address with the CSLB and the bonding company as I’m sure they both attempted to send you notifications about the expiring Bond (bond company) as well as the notice of Suspension (CSLB). You may need to update the address as well.
Q: I’ve had a contractor’s license for my company (S-corp) for over 20 years. I’m ready to retire and pass the business on to my daughter who has worked for me since she was 16 years old, she’s now 28. I still want to keep a license also to maybe do some side work for friends or family if it ever comes up in the future. We are trying to decide whether we should have my daughter take over the existing corporate license and continue operating under the older license number, or if she should start a completely new S-corporation and obtain a new license. Any advice?
A: I’m happy to provide you with some information from a licensing perspective. Because your daughter has worked for you for over five years (I’m assuming at least at a Supervisory level), she can apply to replace you on the existing license and be granted a Waiver of the exams. That would allow her to keep the same license number, and some people consider it prestigious to have an older license number under the current 7-digit numbers the CSLB is issuing. You can then apply for your own license for yourself to do your side work when it comes up.
If your daughter wants to start her own company and not have the “history” associated with the current business (liabilities, etc), she would be required to sit for the exams and would be issued a new license number. With this option, you can continue to use your existing license when needed.
Ultimately, I suggest you speak with a corporate or construction attorney to discuss the options and decide which is better for your situation.
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