By Shauna Krause, President, Capitol Services, Inc.
It’s always hard to cope with the likelihood of someone passing, but when it’s a licensed contractor what happens next? For family, and business partners, there are options. This is good to know for both contractors and consumers. The last story is ‘fire’…
Q: We may need your help with a Joint Venture (JV) license issue. We have a joint venture partner for a large project and are building it under a JV license. Our partner’s own license is a Sole Proprietor license, and we were just advised that he is sick with a terminal illness. I know that Sole Proprietor licenses get cancelled upon death of the licensee, but there is a process where a family member can apply to the CSLB for permission to finish the project. How does that work, and what do we need to do if it becomes necessary? The owner of our JV partner does have a family member who could do this (with our help).
In this type of a situation, is there a way to keep the JV license (as opposed to the partner Sole Proprietorship license) Active so we can complete the project?
A: If your Sole Proprietor partner passes away, a family member can request a continuance of the Sole Owner license for a reasonable amount of time (which ultimately will be determined by the CSLB) to finish projects in process. The request for continuance must be made within 90 days after the death. Assuming the CSLB grants the continuance, the JV license will remain Active as long as the Sole Owner license remains Active.
Alternatively, if for some reason a continuance is not requested for the Sole Proprietorship license, which would result in the cancellation of the JV license, the Joint Venture can also request a continuance due to the death of a partner for a reasonable amount of time to finish projects in process.
The Contractors State License Board (CSLB) has an important reminder for “C-16” (Fire Protection) contractors and their employees!
“C-16” license Qualifiers and Journey-level personnel who install or repair water-based fire protection systems for commercial or multi-family dwellings must obtain a Fire Sprinkler Fitter Certification.
Apprentices and trainees working for a “C-16” contractor must also obtain a Fire Sprinkler Fitter Registration.
Be forewarned, “C-16” licensees and their employees who fail to get this certification or registration before performing fire protection installations or repairs may face CSLB disciplinary action. Please note, like many rules there is an exception as this certification does not apply to “C-16”contractors who work on residential one and two-family homes.
For more information or questions regarding the requirement the CSLB is ready, willing and able to help! Or learn more about the Fire Sprinkler Fitter Certification and Registration requirements, please refer to the Automatic Fire Extinguishing Systems page on the Office of the State Fire Marshal’s website at https://osfm.fire.ca.gov/ or email the office directly at AES@fire.ca.gov.
While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past columns at www.cutredtape.com