By Shauna Krause, President, Capitol Services, Inc.
Let’s pick a color and paint the floor to get this build going, next this aspiring contractor is getting his plan put on hold for the present. Another contractor can’t seem to remember the last time, or this time, a license needs renewal and that has a cost…
Q: My company currently has a “C-16” (Flooring) license as we are primarily flooring contractors. We hired a new employee who holds a personal Painting (“C-33”) license and we would like to add him and his classification to our company license. Does the fact that we are a flooring company (it’s part of our business name) raise any red flags in relation to adding the “C-33” (Painting) to the license?
A: No, it will not raise any flags when you add the “C-33”. As long as you have the “C-16” classification on your license you are permitted to advertise as a flooring contractor and have it part of your business name, regardless of other classifications you add to the license.
Q: I am starting a new contracting business. I am a real estate developer so I don’t have the hands-on experience in the contracting industry to qualify for the license myself. I have overseen plenty of building work, but never worked for a General contractor or performed the work myself. I plan to take on a Responsible Managing Officer (RMO) who will bring the “A” (General Engineering) and the “B” (General Building) to the company. In researching on the CSLB’s website, this individual is currently the RMO for three different companies. He agreed to immediately disassociate from one of the entities in order to qualify my new license as I’m aware of the limit of three. Can you help with the application processing so we can get this done as expeditiously as possible?
A: I looked him up as well and you are correct, he is currently the RMO on three separate entity’s licenses. Business and Professions code 7068.1(a) states a Qualifying Individual may act as the Qualifier for no more than three firms in any one-year period. Therefore, he would need to disassociate from one of the current licenses he is listed as RMO, and wait an entire year before he is permitted to act as the Qualifying Individual for another entity.
Q: Our company is based in Nevada and we have an active NV contractor’s license for our corporation. We obtained a California license several years ago to do a couple of projects for one of our customers, but we let it expire last November because we aren’t currently doing any work there. Is there a point when the California licensing board will terminate our license? I know Nevada will cancel a contractor’s license if you fail to renew it within six months. We had to go through a re-application process when that happened at my last company!
A: The CSLB will allow you to renew your contractor’s license for up to five years from the date of expiration. You will be required to pay a delinquent fee and you may need to update your Bond and Worker’s Compensation when you go to renew. After five years of non-renewal, you would be required to re-apply for the license and your Qualifying Individual would need to re-test.
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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