By Shauna Krause, President, Capitol Services, Inc.
Not a real earthquake like we experience in California, but contractors with Arizona licenses are being ‘shaken up’ about important changes in classifications. If you want to work over the border this may be a good time to get going with your application. We find ‘it’s one for all, all for one’ in answering a JV license inquiry…
Q: I am a licensed contractor in Arizona. I have a residential General Building license. I heard that there are going to be some major changes to the classifications come July 1, 2014. Is this going to require that licensees re-apply for a new license?
A: The Arizona Registrar Of Contractors (ROC) is revamping their entire classification list to more closely resemble that of other States. Many licenses will be “reclassified”, most notably to no longer differentiate between residential and commercial; in the case where the work being performed is similar whether it’s residential or commercial. The license reclassifications will occur automatically without any action needed from current licensees. And just FYI, your General Building license will not be affected by these changes.
Q: We have a Joint Venture (JV) license that is due to expire at the end of the month. I understand that we need to have the Responsible Managing Officer (RMO) of each entity sign the renewal, however one of the RMO’s is technically retired but not yet disassociated. We are in the process of replacing him but have not yet done so because we are still within the 90 allowed days. How should we handle the renewal? We have projects currently in process.
A: A Joint Venture renewal application needs to be signed by each of the Qualifying individuals that make up the JV. Even though you have 90 days to replace the Qualifier on the license, without the RMO’s signature the renewal will not be acceptable. Before you can renew the license you will need to either disassociate the retired individual from the license or replace him with a new Qualifying individual. As you may already know, a Joint Venture is made up of two or more entities, so understand that it is the original entity’s license that you need to make the corrections to, not the Joint Venture itself. In other words, a JV license remains in good standing when each of the entities that comprise it is in good standing.
Q: I am a “C-27” landscaping contractor and I am losing a lot of business due to unlicensed individuals doing landscaping work, over $500, at a cheaper rate due to the fact that they are unlicensed. How do I go about getting these individual caught and cited?
A: You would want to file a complaint with the CSLB. Complaints must be filed in writing either online or by submitting a complaint form which is available on the CSLB’s website. It’s leads like this that help the unlicensed enforcement unit at the Board establish ‘stings’ to catch these criminals.
Q: We have a large construction company based in Texas. We have some work we’d like to bid on in Southern California, but we don’t actually perform the work. We will handle the design, planning, and coordination of the projects but then we will use licensed contractors to do the work. Are we required to have a Contractor’s License?
A: Yes. Even as a Construction Manager sub-contracting all work to licensed contractors you are required to have a license. Bidding on work and signing contracts for construction projects requires a license in the State of California. Please contact our office if you would like assistance with obtaining a license.
For those who may want to mail us a question, please note our new Suite number when you write.
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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