By Shauna Krause, President, Capitol Services, Inc. 

 Every rule seems to have an exception, and yes, sometimes ‘rumor’ is accurate. 

I ‘bond’ with a General, and throw a ‘lifeline’ to another contractor who has gotten himself into trouble in the deep end of the pool…

Q: You are currently helping with adding the “B” (General Building) classification to our license. Last year when we went for General “A” (General Engineering), my Qualifier bond was $12.5k. I see that the requirements have increased to $25k, which we will do for the new “B” qualifier. Do I need to go back and revise my original QI bond amount for the General Engineering license? 

A: You shouldn’t have to do anything for existing bonds on record with the CSLB. It is my understanding the bonding companies are issuing blanket riders for all bonds on record. You may receive a prorated bill for existing bonds once they are closer to renewal so you can expect that.

Q: I have a “C-27” (Landscaping) license. I have been designing pools for my customers for a while now and one of my customers relayed to me that the pool contractor, they hired to install the pool I designed told them I should not be designing pools unless I was an Architect, Engineer, or a “C-53” Swimming Pool Contractor. Since this is the first I’m hearing of this, I’m trying to get all insights. What are your thoughts from the perspective of working closely with the CSLB? I certainly don’t want to put myself in a position to get in any potential trouble with the CSLB and risk my “C-27” license being affected!  

A: This is one of those times where your rumored information is correct. Licensed contractors can only design systems, structures, etc. they will build or install themselves. Since a “C-27” contractor cannot build a pool, they cannot design a pool unless they are also an architect or professional engineer. Technically, design work is under the jurisdiction of the Architect Board and the Board of Professional Engineers.

Q: Does a Sole Proprietorship Contractor need to carry Worker’s Compensation Insurance?

A: The CSLB Worker’s comp requirements are the same regardless of the type of entity (Sole Prop, corporation, LLC). All “C-39”( Roofing), “C-20” (HVAC), “C-8” (Concrete), “C-22” (Asbestos Abatement), and “D-49” (Tree Service) who hold an active contractor’s license are required to carry Workers Compensation Insurance regardless of whether they have employees. All other actively licensed contractors are required to carry Worker’s Comp if they employ workers.

Under a new rule, as of this January 1, CSLB will not process renewals for these licenses without proof of Worker’s Comp Insurance, regardless of having any employees.
 

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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., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past columns at www.cutredtape.com.