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Resources Directory for San Diego Attorneys and Legal Services
Information, Links, Forms and Resources for Legal Services
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Contractors: All businesses or individuals who construct or alter any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the California Contractors State License Board if the total cost (labor and materials) of one or more contracts on the project is $500 or more. Contractors, including subcontractors, specialty contractors, and persons engaged in the business of home improvement (with the exception of joint ventures and projects involving federal funding) must be licensed before submitting bids. Licenses may be issued to individuals, partnerships, corporations, or joint ventures.
There are exceptions to the licensure requirement. Work on a project for which the combined value of labor, materials, and all other items on one or more contracts is less than $500 falls within the minor work exemption. Work which is part of a larger or major project, whether undertaken by the same or different contractors, may not be divided into amounts less than $500 in an attempt to meet the $500 exemption. Unlicensed contractors must provide the purchaser with the written disclosure in California Business and Professions Code section 7048 stating that they are not licensed by the Contractors State License Board, or the $500 exemption does not apply and a citation can be issued for unlicensed activity.
Owner-builders who build or improve existing structures on their own property if they either do the work themselves or use their own employees (paid in wages) to do the work are not required to be licensed. However, this exemption is only valid if the structure is not intended or offered for sale within one year of completion.
Licensed contractors who engage in the business of home improvement or who provide goods and services for home improvement must have Home Improvement Certification. Home improvement means the repairing, remodeling, altering, converting, modernizing of, or adding to, residential property land or structures. It also covers providing home improvement goods and services.
All applicants for a new contractor's license, other than those applying for a joint venture license, must have more than $2,500 worth of operating capital. Operating capital is defined as your current assets minus your current liabilities. It is also a contractor's responsibility to file with the Registrar a Contractor's Bond or cash deposit in the amount of $7,500 (except for the C-53, Swimming Pool classification, which requires a $10,000 bond or cash deposit). In addition, contractors must submit a separate Bond of Qualifying Individual or cash deposit in the amount of $7,500 for the Responsible Managing Employee (RME) or the Responsible Managing Officer (RMO). However, the CSLB may grant an exemption from the requirement to file a Bond of Qualifying Individual if the RMO certifies that he or she owns 10 percent or more of the voting stock or equity of the corporation for which he or she is to serve as the qualifying
individual.
Further information on the Contractors Law is available at the website of the Contractors State License Board. |
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San Diego Business Law Attorneys
Attorneys, Lawyers and Law Firms Specializing in Business and Commercial Law
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William C. Hernquist, II., Attorney and Counselor at Law - an established attorney in San Diego county for over 10 year. Real Estate Law, Business and Contractor Legal Services. Address and Contact Information: The Quartermass-Wilde House, 2404 Broadway, Second Floor, San Diego, CA 92102. Phone: (619) 687-7600; Fax: (619) 687-2302. e-mail: wch@contractorslaw.biz
Virginia L Weber - Attorney and Counselor at Law - "Professional Estate Planning and Business Legal Services Since 1980". Estate Planning – Probate - Business Law.
Address and Contact Information: 4817 Santa Monica Avenue, Suite A , San Diego, CA 92810. Phone: (619) 222-5500 | Fax: (619) 224-1327. www.virginiaweber.com | email: vweber@virginiaweber.com |
| Disclaimer: The information contained herein is not intended to, and does not create, an attorney-client relationship with the viewer. Before you take any action based on the information contained herein you should consult qualified legal counsel. The information provided is general in nature and may or may not apply to your situation, and therefore, the information is not intended to be relied upon, and you should not rely upon the information as complete or applicable to your particular situation. |
Copyright © 2004 - Joseph A. Tyson - Tyson Promotions - ClickSanDiegoAttorneys.com - All Rights Reserved
San Diego, California - Last Revision - 20 October 2004
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