By Shauna Krause, President, Capitol Services, Inc.
Our first contractor is fishing for an answer to unexpected and unnoticed changes in life and law, while our second helps us in ‘opening a can of worms’ with his potential action in Nevada. Finally, our last contractor finds satisfaction in the answer we serve up…
Q: We have a “C-61”/”D-51” contractor’s license that we’ve held since 1989. My partner recently passed away and he was the Qualifier on the license. I’d like to add myself as the new Responsible Managing Officer (RMO), but I have a couple questions. I noticed that there is no longer a “D-51” classification. It says they eliminated that classification and it now says “under relevant class”. Does that mean that we will need to change the classification on our license? Secondly, will I be required to take the exams?
A: CA licensees who already hold the “C-61”/”D-51” can keep it, even if you change your Qualifying individual. The “D-51” classification is no longer available for new applicants; “under relevant class” is referring to applying for the classification in relation to what you are waterproofing, ie: roofing, painting, etc.
The “C-61” classification does not have trade exams, and since you have been listed as an Officer on the license for well over 5 years, you can request to waive the law exam. Be aware that it’s not a guarantee, but the request will likely be granted.
Q: Your company helped us obtain a Nevada license a few years ago for a large project that we are just about finished with. Our license is up for renewal, but we only needed a license for this one job and we don’t intend to use it anymore. What are the ramifications of letting the license expire? And if our project is not completely finished, can we still finish work already in progress with an expired license?
A: By letting your license expire you can no longer do any contracting work in the State of Nevada. You cannot finish work already in progress or you would be at risk of being cited for performing contracting work without a license. This is a very serious risk.
Q: I am an RMO for three of our companies that have active licenses. I also have an Inactive Sole Owner license. It has always been my understanding that there is a rule that an individual can only be on up to three active licenses at the same time. But my buddy who is also a contractor with several different companies, is the Qualifier on two corporation licenses, just recently Qualified his new Limited Liability Company (LLC) license, AND he has an active Sole Owner license. How did he get away with four licenses?
A: The rule of three licenses applies to corporation/LLC/partnership licenses. Basically, Sole Owner licenses don’t count! As long as one of the licenses is a Sole Owner license, you are technically allowed to Qualify four. So if you aren’t busy enough with your three company licenses and you’d like to do some additional work on the side, go ahead and re-activate that Sole Owner number!
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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., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com.