By Shauna Krause, President, Capitol Services, Inc.
Unlike Johnny Cash, Nevada contractors can’t ‘walk the line’ outside of an original contract limit. Further ‘study’ is required for an aspiring applicant and I find a ‘concrete’ way another licensed contractor can likely double his business opportunities…
Q: We have a NV Contractor’s license and our bid limit is $200,000. We are currently doing a Home Improvement/Remodel project that started at $185,000, but the project keeps expanding. The home owners have been very happy with our work and have requested that we do additional improvements. What is the rule for changes/additions along the way? Are we permitted to perform additional work outside of the original contract?
A: No you cannot. Your bid limit is the maximum contract you may undertake on one or more construction contracts on a single construction site or subdivision site for a single client.
Q: I am currently in the study process to obtain my “C-20” (HVAC) license and hope to be able to take the test within the next 60 days. However, I am in a position at this time to get funding to get the business set up and operating as a corporation and have potential projects that are ready to be contracted to me. My current employer, who holds a “C-20” license, has informed me that he would sign on now as the license holder (RMO) in order for me to get the company going and conducting business while I continue studying and wait for a test date through the CSLB. I want to confirm that it’s possible to have a current license holder who is conducting business with his license also be the holder with my firm? I find the CSLB website is not all that user friendly on this topic and I am struggling to find an answer. Please Help!
A: Your question is quite possibly the most common question we hear. Short answer to your questions is no. These are the conditions that must prevail. There are very few instances where an individual can Qualify more than one license. An RMO (Responsible Managing Officer) can only Qualify an additional license if one of the following conditions exist: a) The individual owns at least 20 percent of each firm for which he/she is Qualifying, b) the additional firm is a subsidiary or a Joint Venture with the first, meaning one firm owns at least 20 percent of the other, or c) the majority of the Officers/Partners are the same.
Q: I currently have an “A” (General Engineering) and a “C-8” (Concrete) license. I want to separate the classifications and have the Concrete be on a different license under a different business name. How do I go about this?
A: You would need to apply for a new license in the new entity’s name with only the “C-8” (Concrete) classification listed. You will be issued a new license number. You would also want to file an Application to Remove the Classification from your current license. I would recommend filing the Application to Remove only after the new license is issued so there is no lapse in the “C-8” classification.
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, emailinfo@cutredtape.com, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com.
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