By Shauna Krause, President, Capitol Services
Like a tasty Double-mint gum, I help two contractors in one bite! Breaking up is hard to do? And finally, a contractor learns that before you can roll the dice on a NV license, you have to ante up on your finances…
Q: We received our contingent letter of approval for our pending license application with the NSCB. It appears they are requesting two bonds, one for $20,000 and one for $100,000. Is that standard for a Nevada license?
A: The additional bond $100,000 Consumer Protection Bond is optional and only required if you do home improvement projects and need to request more than the standard down payment of $1000 or 10% of contract price from the homeowner.
Q: I saw your above response to the question about the $100k bond. Just to make sure I am clear, residential work as in "inside the residence", correct? Most of the work we do is in "residential areas " as in front yard, sidewalk, etc. Do we need the additional bond for the higher down payment requests?
A: Residential work is determined by whether you are signing contracts with Homeowners. If yes, you would need the bond to request higher down payments.
Q: We parted ways with our Responsible Managing Employee (RME) and it was not on good terms. Our original agreement with him included a clause stating we would be responsible for paying for his personal license to be reactivated upon him no longer being employed with us. Because he is not currently speaking with us, is this something we can take care of on our end and notify him?
A: You can take care of paying the fee, but he will need to be involved for signing purposes. He needs to sign the Reactivation application.
Q: We are a licensed contractor in CA. We recently lost our Chief Financial Officer (CFO) and a new CFO has been appointed. I noticed the previous CFO is listed on the contractor’s license as an Officer. Is this a requirement? Our new CFO is not involved in the contracting side of our business at all, only the obvious financial side.
A: Technically, the CSLB requires that your list of Officers on record with the CA Secretary of State (which includes CEO, Secretary, and CFO) match your list of personnel/Officers on record with the CSLB. So, I would recommend you add your new CFO and disassociate the individual who is no longer with the company.
Q: I am filling out an application for a new contractor’s license in Nevada and it’s asking for a financial statement. Our year end is September 30th which has obviously already passed. The new financial statement will not be ready until at least mid-January. Can we submit the application without the financial statement?
A: You are not supposed to. It’s risky if you do because they may get to it for review and if the new financial statement isn’t ready within the deadline date they give you, the application will be returned and you’ll lose the application fee you paid.
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