SBE News

Capitol Connection #1035

We all have a ‘definite’ idea of how a rule works, but what really counts is who originally ‘defines’ it, especially contractor regulations. Another question prompts an answer on the ‘bond’ between corporations and LLC’s. While Shakespeare asked about ‘to be or not to be’ I can tell you there is no direct translation of a CA “B” for a NV “B-2”…

Shauna Krause, writer of Capitol ConnectionQ:  We are a Texas company and we do Construction Management.  We never actually perform any construction work, we just coordinate the plans, consult with sub-contractors and the homeowner, and contract administration.  Are we required to have a Contractor’s License?

A :  Assuming the projects will be over $500, yes, you would be required to be licensed.  B&P Code Section 7026.1 defines “Contractors” to include consultants who provide or oversee a bid for a construction project, arrange and set up work schedules for contractors, and maintain oversight of the construction project.   Since your company will be maintaining oversight of the projects, you will be required to obtain a license.

Q:  What are the bonding requirements for Corporations versus LLC’s?

A:  All licensees (both corporations and LLC’s) are required to have a $15,000 Contractor’s Bond.  In addition. LLC’s are required to have a $100,000 LLC/Worker bond which is not required of corporations.  If the qualifying individual owns less than 10% of the company, he/she is required to have a $12,500 Bond of Qualified Individual.

Q:  Can I renew my license if it is currently Suspended?  I submitted my Worker’s Comp certificate but the CSLB hasn’t processed it yet so my license shows Suspended.

A:  The CSLB will not renew your license as Active until the Suspension is cleared.  Unfortunately, the unit which processes insurance certificates is quite backlogged right now so you are definitely not the only Contractor experiencing this issue.  You can still send in the renewal on time with the appropriate fee to avoid the delinquent fee.

Q:  I have had a Nevada “B-2” license for about a year.  Since CA doesn’t have a “B-2 license”, I applied to obtain a “B” (General Building) license.  I do residential remodels.  The CSLB sent me a Rejection letter stating that I need to show proof that I’ve done framing, which I have not.  I do all aspects of General Building besides framing and roofing.  Do you have any suggestions?

A:  In order to qualify for a General Building license in California, you absolutely have to show that you have experience doing framing and at least two unrelated trades.  There is no way around this requirement.  Your options are to either have someone else qualify the license who can show the appropriate experience, or you can obtain several Specialty “C” classifications to cover the work you do.  Keep in mind you are required to show at least four years of full-time work experience within the last ten in each trade you apply for.

By Shauna Krause, President, Capitol Services, Inc.

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, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at