By Shauna Krause, President, Capitol Services, Inc.
While Capitol Services has assisted contractors for more than 30 years and authored more than a thousand Q/A columns, what is old is also new again. Welcome to those of you who are new readers. A reminder about many of the complex rules contractors must work under is always helpful for many including those with low numbers or those still seeking that first license number. From first application to help for industry leaders we remain vigilant in Sacramento…
Q: What are the requirements in CA for our company to bid on cabling projects?
A: In order to bid on cabling project over $500 in California, your company would be required to obtain a “C-7” (Low Voltage) contractor’s license. You will need to have a Qualifying Individual who can document at least four years of full time work experience doing low voltage work.
Q: If an out of State firm is a subsidiary of a CA licensed company, can they do contracting work in CA as part of the Parent Company?
A: This subsidiary would need to have their own license in order to do contracting work. One company can’t work with another entity’s license, even if the two entities are related. Get in touch to learn more.
Q: I am looking to purchase a contracting business in CA which holds a “C-17” (Glazing) license. The current Responsible Managing Officer (RMO) does not want to remain on the license. I am a licensed real estate agent and I have many years of property management experience. I also have a Bachelor’s degree. I do not however, have any direct experience doing glazing work. Based on my background, is there any way to waive the experience requirement so I can be the RMO on the license?
A: Your Bachelor’s degree will grant you some credit towards the experience requirement (up to two years), however there is no way to waive the requirement altogether. Of the four years of work experience required, at least one yearneeds to be hands on practical experience doing the work.
Q: I’m starting up a new company with a business partner. He will not be involved in the business, I will be running the Company, however he is part owner. Is there any advantage to listing him as an Officer on the license, or should it just be me?
A: That is a decision you’ll have to make. Keep in mind that only personnel who are listed on a license have signing authority for the license. One advantage to listing him on the license is if you are unavailable to sign a particular document (such as a license renewal, address change, etc.), your partner can sign. It’s a practical idea in case of medical emergencies, etc.
Q: When is a Contractor required to pay their subcontractor upon completion of work? Does it matter whether the Homeowner has the paid the contractor?
A: B&P Code section 7108.5(a) states that “a prime contractor or subcontractor shall pay to any subcontractor, not later than seven days after receipt of each progress payment, unless otherwise agreed to in writing…”
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., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com.