Capitol Connection Q&A for Contractors - Week of May 1, 2016

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By Shauna Krause, President, Capitol Services, Inc.

To paraphrase, ‘ours is not to wonder why’ and you too can ‘profit’ from knowing the rest of that wise old saying! Another contractor is looking to ‘wet’ his whistle in AZ, but helps us discover why it’s hard to catch water in ‘hoops’ when you’re jumping through them. The last contractor requires a ‘top secret’ answer…

Q:  Our company has been licensed for many years in California and we are in the process of completing an application to obtain a Contractor’s License in Nevada.  Why does the Nevada Contractor’s Board require a financial statement?  Is the company going to have to show a profit?

A:  Unfortunately I cannot really answer “why” the Nevada Contractor’s Board requires a financial statement. They just do.  However, I do know you have to show some financial strength in order to qualify for the License.  First and foremost, you must have a positive operating balance.  The equity requirement and the type of financials you must provide vary depending on the bid limit you are requesting.

Q:  We are a water well drilling contractor and we need to get licensed in Arizona.  What are the requirements?

A:  First, you will need to have a Qualifying Individual who can document at least two years of experience in the well drilling trade.  That individual will be required to take and pass two exams.  The first is a Business/Management exam, which consists of questions regarding State and Federal laws as well as questions testing your knowledge of the management of construction projects and business and financial management.  The second exam is a trade exam, which unlike most trade exams in Arizona, is administered by the Arizona Department of Water Resources.

In addition to the experience/exam requirements, there are many more steps involved with obtaining an Arizona Contractor’s License so please contact me so that we can discuss in further detail.

Q:  We need to file for a new license in California to do civil work and for building a solar project.  What type of license would be required and how long does the process take?

A:  There are several classifications that allow Contractors to perform solar work.  An “A” (General Engineering) contractor is permitted to install solar energy systems and would also allow you to perform civil construction work.  “B” (General Building) contractors are also authorized to install solar energy systems, however it would not be the appropriate classification for heavy civil work.  There are also several specialty classifications that allow you to do solar work, such as the “C-46” (Solar) classification, however you cannot undertake or perform any additional building or construction trades with the “C-46” unless it is directly related to installing a thermal or photovoltaic solar energy system.

As far as how long it takes, at present the CSLB is taking about 8-10 weeks to process new applications.

Q:  I have worked for a General Contractor for many years and I want to apply for my own Contractor’s License but I don’t want my employer to know.  What sort of documentation can I provide to prove my experience without having to go to my employer for a reference?

A:  Anyone who has knowledge of your work background can sign to certify your experience.  In addition to your certifier’s verification, you may also be required to submit W-2’s to document your experience working for a licensed General Contractor.  You should also indicate in writing with your application that you prefer the CSLB not contact your current employer.

 

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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