SBE News

Capitol Connection 12/23/2019

Bond Indemnitors And General Solar Installation

In our age of Roomba’s and robot chefs, some things are still not ‘automatic’ with a contractor’s licensing paperwork. When you add one and one you don’t always equal two in this interpretation of contractor regulation. Go figure, it’s kind of a ‘trade’ off…

Shauna Krause, writer of Capitol Connection

Q:  My husband and I started a company approximately two years ago.  The way we set it up was I was the President, Secretary, and Treasurer, and he was the Director.  We have recently separated, and I am remembering that I had signed for a Contractor’s Bond for the company.  I signed because the bonding company had informed us the rates were based on credit and I have the better credit score.  I have already disassociated from the Contractor’s license and Secretary of State personnel list.  Does the CSLB automatically remove me from the Bond so that I’m not responsible if there happens to be a claim against it?

A:  No, the CSLB does not automatically remove you as the Indemnitor on the Bond.  I urgently recommend contacting the bonding company you purchased the Bond from to determine the necessary actions you need to take. Stuff happens, so don’t wait. 

Q:  I am a homeowner and I found your website while searching the internet for help.  It looks like your company is more an advocate for Contractors and attorneys representing them, however, from your articles I read, it appears you can most likely answer my question.  I am hiring a Contractor to install solar panels on our roof.  He has a “B” (General Building) license.  I have used him in the past for other repairs and additions, so I trust him.  So, here is my question…can he do Solar work?  Because I read online that “B” Contractors can only contract for a job if they are doing two unrelated trades. 

A:  Thank you for contacting Capitol Services!  I don’t often hear from homeowners but I’m happy to answer your question.  You are correct in that “B” Contractors do need to be doing at least two unrelated trades on the same job, however, “Solar” in and of itself is considered two unrelated trades.