By Shauna Krause, President, Capitol Services
When testing the depths of contractor license law, sometimes you can jump right in! A NV contractor is correct, but he might not like the suspense in the complete answer. While I am here for contractors with issues, I also help consumers understand license laws…
Q: I am thinking of buying a franchise that does water mitigation. No re-construction is performed, just the removal of water with vacuums, dehumidifiers, etc. Some of the other franchisees have a contractor’s license to do this. Is that a requirement?
A: For just removing the water from a structure, a contractor’s license is not required. If you are removing water damaged materials such as flooring, cabinets, and such, you will need a contractor’s license. Of course, if you are doing any re-construction that would also require a contractor’s license.
Q: Our NV contractor’s license is up for renewal at the end of the month. Qualifying individual on the license passed away at the end of last year so he’s not available to sign. I called the NSCB and they suggested we submit the renewal signed by our new Qualifier, along with the new Qualifier’s application for replacing the previous one. Because I know you have experience dealing with the NV State Contractor’s Board, do you see any issues with this approach?
A: This would be the best approach, however be aware that your license is likely to go Suspended during the process of adding your new Qualifier. The NSCB requires you to notify them of a Qualifier’s disassociation within ten days. From there, they allow for a 30-day window to replace him/her. The new Qualifier application requires that you disclose the disassociation date of the previous Qualifier. When they see the date of well beyond 10 days and well beyond the 30-day window, they will likely automatically suspend your license until the Qualifier replacement process is complete.
Q: I am a homeowner and I was doing some research on the contracting laws due to the fact that I’m having some issues with the contractor who recently did home improvements on my home due to a fire. I found your website (cutredtape.com) has a lot of helpful information. I signed a contract with a licensed contractor under his corporation’s name. He did several change orders along the way, to the tune of over $50k, but he lists a different license number on the change orders. When I look the license number up, it’s a Sole Proprietorship license. I paid all of the invoices. If this situation ends up in litigation in the future, should I bring this up, or is that permitted?
A: Under California B&P code section 7031, a contractor must be properly licensed in the exact name of the entity and license number performing the work at all times during the project, as reflected in the contract. Change orders in the improper entity name and license number renders the contract unenforceable and requires disgorgement of all compensation received during the work performed.
I’m not an attorney and don’t provide legal advice, but you can contact the CSLB and file a complaint based on your description.
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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