California Contractor License Law Archives

Strict Compliance with Statutory Provisions Governing Proof of Service of 20-Day Preliminary Notice is Not Required

In a new case, Hub Construction Specialties, Inc. v. Esperanza Charities, Inc. (filed February 8, 2016, Second District, Div. Eight) 2016 S.O.S. 787, the Court held that under the prior mechanic's lien code (Former Civ. Code, § 3097.1, subd. (a); Stats. 2010, ch. 697, § 16 [repealed].) strict compliance with proof of service provisions was not required when there was evidence that there had been strict compliance with the provisions regarding service of notice.

New Requirement that All Contractors and Subcontractors Bidding on Public Works Projects Be Register with the Department of Industrial Relations

As a result of the passage of Senate Bill (SB) 854, significant changes were made to Cal. Labor Code §1771.1 and §1725.5. All licensed contracts who work on or intend to work on public works projects must be registered with the California Department of Industrial Relations. Beginning March 1, 2015, all contractors were required to register with Department of Industrial Relations in order to bid on public works projects or be listed in a bid proposal. As of April 1, 2015, only contractors who have registered with the Department of Industrial Relations will be eligible to be awarded a public works contract, even if the project did not go out to bid.

Class A (General Engineering) licensed subcontractor deemed duly licensed even though the contract required C-12 license (Earthwork and Paving)

Any contractor seeking to assert a claim for payment in a lawsuit or arbitration must show that it was "duly licensed" to perform its work. In Pacific Caisson & Shoring Inc. v. Bernards Brothers, Inc., 198 Cal.App. 681 (2011) (published August 19, 2011) the question was whether a subcontractor was "duly licensed" when it held only a Class A license (General Engineering) even though the contract documents required a C-12 license (Earthwork and Paving).

California Appellate Court Holds That Contractor Must Return All Payments When Qualifier is Not Acting as a Manager

Both California statutes and appellate courts have clearly set forth that if your contractor license is not in effect at the time you perform work you are not going to recover amounts that are due from the owner. In recent decisions, the California appellate courts have been expanding the definition of when a contractor's license is not in effect.

A sole proprietor contractor who uses wrong business name on contract is not barred from seeking payment under license laws

As all contractors should know, Business and Professions Code section 7031 bars unlicensed contractors from seeking payment for work they have performed. Cases interpreting this law are very strict, and courts have shown little mercy for even seemly small abnormalities in licensure.

Path cleared for CSLB to issue contractor's licenses to limited liability companies

In September 2010 the governor signed into law Senate Bill 392, which amended contractor's license law to authorize the CSLB to issue contractor's licenses to limited liability companies ("LLC"). The law took effect on January 1, 2011, and mandates that the CSLB begin processing applications from LLC's before the end of this year.

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