By Shauna Krause, President, Capitol Services
When things change hands who you going to call? When can you bid but not work? Two other out-of-state contractors get a hand across the border…
Q: I bought my boss out of the contracting business last year and so I’m currently the only owner now. The former owner is still the Qualifying Individual on the license for our Roofing license, which we need to keep. His role has just changed from owner to non-owner. My attorney told me that I was supposed to update the CSLB with ownership information within 90 days. What do I need to do stay in compliance?
A: As long as your former boss’s title hasn’t changed, you only need to update the CSLB by filing a bond of Qualifying Individual for him along with a change in ownership form. Technically, you are out of compliance for not notifying them within 90 days. I don’t believe there is any way to obtain a backdated bond of Qualifying Individual more than 90 days, and even if you were to find a bonding company to do that, the CSLB will likely require that the effective date be within the last 90 days. My suggestion is to get that on file with the CSLB asap!
Q: We are going to be starting a new Joint Venture (JV) in California and I wanted to check if by chance you know the bidding requirements. Both entities are licensed in CA and are submitting an application as the JV. Can we submit the bid in CA without the Active license? My understanding was we just cannot start any labor until it is processed and approved?
A: Yes, you can submit a bid without the Active license in hand, but you are correct, you cannot start any work under the JV until it is officially licensed.
Q: Hi Shauna, is there any rule in Arizona regarding a General Building contractor to be doing two unrelated trades on any given job, like CA has? I’m looking to start doing roofing projects over there and wasn’t sure if I needed to add that to my license.
A: In Arizona, a licensed General Contractor (“KB-1” or “B”) is generally allowed to perform or supervise all phases of construction that fall within the scope of the license, which includes roofing. There is no Arizona Registrar of Contractor rule requiring a General contractor to perform unrelated trades in order to act as the General contractor.
Q: I am licensed in the State of Nevada as a Limited Liability Company (LLC). Is it possible to obtain a CA contractor’s license under my NV company, or do I need to create a new company in CA?
A: You can obtain a CA license under your NV entity. You may even qualify for Reciprocity which would waive the trade exam in CA. Give me a call to discuss!
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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