By Shauna Krause, President, Capitol Services, Inc.
Always gratified to get feedback from readers, and I just got a bunch from public works contractors. Let me clarify and improve the answer on DIR’s with input from contractors on the job. A good day is learning something new and yes even experts sometimes get ‘schooled’…
We start this week’s volume of the Q&A with a shout out to all our Public Works contractors who were right on top of my DIR (Department of Industrial Relations) answer from our last column. I had many Contractors contact me with clarification: Public Works contractors do in fact need to register with the DIR in addition to obtaining a CSLB contractor’s license number. They are in fact, not the same. Increased last year, the DIR registration costs $400 per year and there are other additional requirements associated with DIR registration including providing Certified Payroll Records using DIR’s electronic certified payroll reporting system.
Q: We are purchasing a Construction company (NewCo), it will be an asset sale. The current company has two licenses, one in the name of the business entity (OldCo), and one in the name of the business entity with a DBA (doing business as) attached. The Qualifier, who is an RME (Responsible Managing Employee) is coming along with the purchase. What are the steps, and in what order, would you suggest to 1) change the RME’s title on OldCo’s licenses to an RMO, so that 2) he can be listed as RMO on the new applications for NewCo? Can these all be filed simultaneously?
A: It is not necessary to change the title on the existing licenses from RME to RMO. Assuming OldCo’s license number will no longer be active with the sale, instead you would just apply for the new licenses with the seller’s Qualifier (as either RME or RMO, your choice), and file a Disassociation from OldCo’s licenses. If NewCo also intends on obtaining two licenses, one with and one without a dba, they cannot be filed simultaneously. Each individual can only have one application in process at a time.
Q: I have a “C-61”/”D-41” (Siding and Decking) Contractor’s License. I have been asked to re-construct a deck that has extensive dry rot in the joists. The dry rot is so close to the structure so the joists cannot be repaired via “sistering”. When I replace the decking and railing, the structural support joists, which are 10 feet in to the building (between the ceiling of one room and the floor of an upper room) also need to be replaced. Am I permitted to do this work with the “C-61”/”D-41” license?
A: As was my inclination, I double checked with the CSLB, and it would not be appropriate for a Siding and Decking contractor to replace the cantilevered structural supports of the deck you described. This type of work requires specialized engineering skills and would likely require an “A” (General Engineering) license.
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
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