By Shauna Krause, President, Capitol Services, Inc.
Sometimes ‘enough’ contractor bonding might be too much? However, just canceling a license bond might come with unexpected consequences. An expert can also tell you when your license might be at risk in doing ‘hazardous’ work, and I ‘register’ an answer on CA HIS policy…
Q: I have a CA contractor’s license for my corporation and I employ an RME as the Qualifying Individual. We are also licensed contractors in the State of Nevada, and we were awarded a contract there which will keep us working full time in Nevada for at least the next year to year and a half. Because we will not be working in CA, is it okay if I cancel our CA Worker’s Comp policy until we move back into the CA space?
A: You can, but if you just cancel the policy it would cause your license to go in suspended status since your qualifier is an RME (Responsible Managing Employee). I would suggest that you inactivate the CA license which would allow to cancel the policy for now. With an Inactive license you are not required to carry Worker’s Comp or an active bond. When you are ready to reactivate in the future, you will then be required to show proof of both.
Q: Our company is licensed with both the “A”(General Engineering) and “B” (General Building) classifications. Can we remove hazardous (HAZ) waste when we are doing demolition projects without the HAZ certification? I know specialty contractors would need that if they are removing hazardous substances, but I wasn’t sure about General contractors.
A: If you are removing underground storage tanks or digging and removing contaminated soils, then yes you would need to add the HAZ certification. However, if you use a subcontractor who holds the HAZ certification, then you as the prime contractor would not need it.
Q: You recently assisted us with obtaining our “C-20” (HVAC) contractor’s license. We now need to get our salespeople registered as Home Improvement Salespeople with the CSLB. Who all is required to register? Will I be required to register and does our Qualifying Individual need to register?
A: All corporate personnel who are listed on the license as such, along with the Qualifying Individual who is also listed on the license, are not required to register as HIS in order to negotiate or “sell” business to customers. All employees who you hire to solicit, sell, negotiate, or execute home improvements are required to complete the HIS registration process.
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While knowledge is power, knowing where to go for the answers is half he 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