Category Archives: Tips

5 Unorthodox Ways to Find New Contractor Clients

The California construction contractor industry – with over 300,000 general contractors alone – is one of the most competitive regions in the country. From San Diego to San Francisco, you’re competing against dozens if not thousands of people for the same jobs.

With the intensity of competition for limited jobs by contractors who all have similar skills, and deliver similar services, one of the best ways to gain a competitive advantage as a contractor is through marketing.

Furthermore, most contractors are doing the same thing when it comes to marketing – joining the local chamber of commerce, creating a business profile for Facebook, and putting your logo and contact info on your work truck. This means that the competition for marketing your services as a contractor is just as intense as the jobs themselves.

With that in mind, the best way to gain an advantage over your competition and win more new clients is by going further than the traditional pathways to your new clientele.

The real way to win new clients as a California contractor is to seek out marketing opportunities that aren’t saturated with your competitors’ messaging already.

Here’s five ways to go above and beyond with your marketing to find those new clients for your contracting business.

1. Develop Relationships With Real Estate Professionals and Organizations. Working together with real estate folks is an obvious route to finding new clients. For example, realtors will often have little bits and bobs to address on their various properties, while sellers may need reno work to get the home in perfect condition before a sale. Alternatively, new buyers might want to make improvements so that the home will better suit their needs. Over time, having just a few realtors, developers, home inspectors, and other RE professionals in your network can give you a big boost in referrals.

2. Workshops. Workshops are a great way to meet your clients directly while also demonstrating your skills and personality at the same time. If you can show your clients how to update their kitchen or install a new closet system, you’re the first person they’ll call when they need help with their home.

3. Parties. Sounds weird, right? But everyone loves a party – especially when there’s something in it for them. Throw a customer appreciation party and give them free food and drink – and maybe even a discount on their next service. Bring together local construction-adjacent professionals to build connections and confidence in your name and company. Plus ones are extra, extra invited!

4. Video Ad Campaigns. Online ads are a great way to gain attention for your business, but VERY FEW companies actually advertise their company through moving pictures. With a video ad campaign, you can add life and personality to your business, while also demonstrating what the customer can expect before, during, and after the process. Video campaigns represent incredible potential to ease customers’ fears about you and your service – so they’ll be more likely to call you when a problem arises.

5. Billboards. You’ve seen the car wrap and you’ve seen the banner on the job site, but why do so few construction professionals advertise their services on billboards or similar out-of-home advertising platforms? Marketing a construction business is 90% awareness, and outdoor advertising is incredibly effective at increasing the number of people who are aware of your business. For most construction jobs, that’s enough for people to call you over your competitors.

The Bottom Line: Think Outside The Box (Or Screen)

To win more clients than your competitors in one of the world’s most competitive construction landscapes in the world, you have to think outside the box to find them.

The best way to get people to pay attention to you is to do something that grabs their attention – and that means not doing the same thing everyone else is doing. Take some time and write down some special and interesting ways you can reach your local audience – you know it better than we ever could!

Can Anyone Get A General Contractor License in California?

When it comes to doing contracting work in California, there are few more common words than these three: “general contractor license.”

As by far the most popular contractor license classification in the state – with over 300,000 Class B license holders – becoming a general contractor is a highly desired and highly lucrative career path for many in the state.

But can anyone get a Class B General Contractor license from the Contractors State License Board (CSLB) – and become a licensed general contractor?

In this article, we’ll take a look at whether just anyone can become a GC in California – and the steps you need to take to get there.

The Journey From Apprentice To General Contractor

So, can anyone become a general contractor?

Maybe you know someone else who went after it and successfully obtained their general contractor license. Maybe you’re the first person you know to even try. In any case, taking on this significant milestone can be satisfying and rewarding – financially, professionally, and personally.

The beauty of a career as a general contractor is that anyone can become a general contractor if they’re willing to put in the time and effort to learn the trade. Yes, even you. With no traditional school requirements – only on-the-job experience – becoming a GC is a great way to make good money in a stable industry.

However, there is a long journey ahead – a journey that is, in many ways, much more difficult than the cushy classrooms of a university. Every contractor must complete four years’ worth of journeyman experience in their given trade to even be eligible to apply for their license. For general contractors, that means they must do 4 years’ worth of journeyman work as a general contractor!

An apprenticeship with a general contractor can also pay dividends massively by allowing you to only need three years’ work experience as an apprentice – plus one year of journeyman experience.

Becoming an apprentice or journeyman is critical for your path to becoming a general contractor. In many ways, it’s a lot like a four-year university – except in this case, you’re getting paid to learn your future job!

Review And Understand The Eligibility Requirements

Before you apply for your general contractor license, you must make sure that you meet the eligibility requirements set by the Contractors State License Board (CSLB).

In order to get a Class B License, applicants must meet the following requirements. In some cases – such as situations where an applicant has a criminal record – you may be required to meet other, more rigorous standards to even apply for a general contractor license.

Here are the basic requirements to become a general contractor:

  • Be 18 or older.
  • Have a valid Social Security number or Individual Taxpayer ID.
  • Have at least four years of work experience as a journeyman working as a general contractor
  • OR have three years’ apprenticeship experience and one year of on-the-job training
  • Pass the CSLB exam

Prep for The CSLB Exam

Besides the rigorous four-year training period for all contractors, the other most difficult part of becoming a general contractor is passing the notoriously rigorous CSLB exam. This two-part exam, covering both general contractor knowledge and contractor law and business respectively, has broken many contractors in their pursuit of licensure.

With a stunning 130+ questions, we suggest enrolling in exam prep courses and using study materials provided by the CSLB. You can also find practice exams online to help you gauge your level of readiness. Either way, practice and preparation are critical for saving time, money, and energy.

Submit Your Application

If you meet the experience requirements and pass your exam, then congratulations! You’re past the worst stuff. You can apply online through the CSLB website!

You can submit your application online, or you can submit a physical application instead if that is your preference. Make sure you complete all required sections accurately!

Get Bonded and Insured

In California, it is required for general contractors to secure a contractor’s bond and liability insurance for themselves.

All general contractors are required to have a contractor’s bond – a financial guarantee that you will fulfill contractual obligations on your side. Most GCs will also have to have liability insurance and workers’ compensation insurance, which protects you financially in case of accidents or damages on the job site.

Be advised that your license will not be approved unless you provide proof of and maintain sufficient bonding and insurance coverage throughout your career.

Pay The Fees

Our least favorite section rears its ugly head once again! You must pay any and all fees to the CSLB before you can receive a general contractor’s license (or any contractor license for that matter!).

Take a look at the current fee schedule on the CSLB website and determine which fees pertain to your chosen license classification. Check this information carefully and submit your payment with your application.

Prepare for Your Interview If Applicable

In some cases, the CSLB may request an interview. This part of the process is meant for reviewing your qualifications and past business experience. If this requirement applies to you, do not sweat it.

Look over the detailed record of your work history that you prepared and practice natural ways to reinforce your commitment to your work as a contractor. This part of the process can only help you better your chances of landing a positive result.

Receive Your License And Stay Compliant!

Congratulations! You’ve put in the hard hours, done the diligence, studied your buns off, passed the exam, paid the fees, and finally – finally! – you’re a licensed, bonded, and insured Class B General Contractor.

Receiving your Class B license is a massive milestone in your career and your life. With a Class B license, you can take on almost any job, of any size, and build a new life for yourself and your family.

With that in mind, it’s critical that you don’t stop here and rest on your laurels. Sure, you have your license now, but contractors’ licenses are only valid for 2-3 years. It’s important that you stay on top of your education, resources and more so that your Class B license stays valid throughout your career as a general contractor.

Best of luck to you on your journey!

Can Felons Get A General Contractor License?

While this is a complex question that varies based on every situation, the answer is yes – many felons can qualify for a CSLB Class B license, but the path to get there is different from the typical way.

Check out our article on this topic for a more in-depth guide on this topic.

How to Get a Handyman License in California

Is There Such A Thing As A Handyman License?

Are you a handyman in California and want to get your contractor license? You came to the right place!

As you surely know, almost every type of construction or home improvement worker in California is required to have a Contractor State License Board contractors license to practice their profession. Everyone from engineers to roofers is required to have one. But what about handymen?

We’re going to break the news to you right off the bat: there is no Contractors State License Board contractors license for people who do handyman jobs or maintenance workers.

In many ways, that’s good news! You save money on pricey licensing fees, bonds and insurance costs, and all of the legal red tape that comes with costly construction.

The downside is that there is a limit to how much you can make as a maintenance worker or handyman without a license – so you may be thinking about taking on larger jobs that may require a license.

Let’s explore more about how a handyman can take advantage of a contractor’s license.

When Do You Need A Contractor’s License?

In California, a handyman can legally undertake jobs without a license, but only if the combined labor and material cost is less than $500.

For projects exceeding this amount, a contractor’s license is required. It’s important to note that splitting a larger project into smaller parts to avoid licensing requirements is prohibited​​​.

What Kind Of Contractors License Does A Handyman Need?

If you plan to handle projects over $500, you need a CSLB license in whatever trade or profession the job is.

For example, if you are doing AC work, you need an HVAC license; if you’re pouring concrete, you need a concrete license, and so on.

However, the contractor license that makes the most sense for handymen or maintenance workers is a Class B General Building Contractor license.

This license covers a broad range of construction and remodeling activities. With a Class B License, you can perform a variety of general construction tasks from painting to carpentry and beyond.

Read our guide on the Class B License to learn more.

Requirements to Obtain a Contractors’ License in California

  • Journeyman-Level Experience: Aspiring handymen need at least 4 years of journeyman-level experience in their chosen trade, which can be verified by a licensed contractor or other experts.
  • Submit An Application: Complete the contractor’s license application on the CSLB website.
  • Exams: Pass the dreaded CSLB exam, which covers various aspects of construction, safety, and project management, in addition to contractor law and business.
  • Fees: Pay the required licensing fees. These fees are extensive and can add up quickly. See our article for a full rundown.
  • Bonds & Insurance: You must have a contractors’ bond and workers’ compensation insurance to get a contractor license from the CSLB.
  • Background Check: The CSLB will perform a federal background check and a fingerprint check. All applicants’ backgrounds are taken on a case-by-case basis, so don’t be discouraged if, for example, you’re a felon.

Additional Certifications and Training

With a contractor’s license, the scope of projects you can take on as a handyman or maintenance worker expands greatly. You can leverage this new power by strengthening your clients’ trust further in the form of certifications.

Here are some certifications in particular that dovetail nicely with handyman work. Many of these are important to ensure the health and safety of not only yourself but your employees and clients.

  • EPA RRP Lead Safety Certification: This certification is crucial for handling projects involving lead paint​​ – making sure you’re not inhaling or ingesting any carcinogens in the process of removal.
  • Mold Remediation Certification: A valuable certification for handymen, given the health risks associated with mold. Black mold in general is extremely commonplace in the US at the moment, which creates an opportunity for handymen to step in.
  • Professional Home Inspection Certificate: Useful for identifying potential issues in homes, an advantageous skill for handymen involved in property maintenance and repair​.

Conclusion

While California doesn’t have a specific handyman license, anyone undertaking significant repair or remodeling work should consider obtaining a contractor’s license – specifically a general contractor license.

By getting a Class B general contractor license, a handyman or maintenance worker can exponentially expand their offerings to individuals and businesses, to the point where you’re basically starting a new career entirely – without having to really do anything!

Additional Resources

For further details and up-to-date information, it’s recommended to consult the California Contractors State License Board and explore training courses and certification programs relevant to the handyman profession.

An Essential Guide To Prime Contracts vs. Subprime Contracts for California Contractors

When it comes to booking work as a general contractor or a subcontractor in California, it’s absolutely essential that you know the finer points of prime and subprime contracts.

You can face substantial legal consequences if you run afoul of a contract – whether on purpose or by accident – so knowing what belongs in a prime or subprime contract means protecting your business from the law.

But as contractors, we’re not lawyers – we just build things – so many contractors know very little about prime and subprime contracts. In this article, we’ll fill you in on all the essential elements of prime and subprime contracts, so you can make sure your business is compliant now and in the future.

Construction Prime Contracts in California

What Is A Prime Contract?

Prime contracts are the most essential contracts that you’ll find on construction projects, involving direct relationships between the project owner and the primary contractor. Usually, a general contractor or a construction manager are the ones that are involved in prime contracts.

This contractor holds complete responsibility for project execution, which may include hiring and managing multiple subcontractors for various project components. When a prime contractor hires any subcontractors, a subprime contract is created.

Legal Requirements and Provisions

When it comes to what needs to be prime contracts in California, there’s a lot to be aware of. Prime contracts have far more legal requirements and frameworks than subprime contracts, which are a bit more random and ad hoc to the job itself. Subprime contracts can be easily worked out between the prime contractor and the subcontractor, with no oversight necessary.

Prime contracts are heavily regulated by the state. California law mandates specific provisions in prime contracts, including the inclusion of the contractor’s license number, adherence to regulations set by the Contractors’ State License Board, and compliance with the Business and Professions Code.

These contracts must also comply with provisions for home improvement projects, as detailed in Section 7159 of the Business and Professions Code​​.

When it comes to making sure you’re in compliance with California law, we highly recommend hiring a lawyer. The reality is that we’re only contractors – we’re not equipped to understand the labyrinth that is California contract law.

What Needs To Be In A Prime Construction Contract In California?

There are specific stipulations set forth by the California legal system as to what exactly needs to be in a prime contract for construction.

These requirements are constantly changing and can be extremely specific – it’s important that you hire a legal specialist to make sure your contracts are compliant.

That said, here are the main things that absolutely must be in a prime contract in California.

  1. Contractor’s License Number: The California Business and Professions Code section 7030.5 mandates that all construction contracts must include the contractor’s license number. This applies to prime contracts, subcontracts, bids, and advertising forms​.
  2. Statement for Complaint Procedure: A statement informing all parties that complaints against the contractor can be filed with the Contractors’ State License Board within certain time frames for patent and latent acts or omissions​.
  3. Disclosure for Suspended or Revoked License: If a contractor’s license has been suspended or revoked more than once in an eight-year period, this must be disclosed before entering into a contract for residential property work​​.
  4. Additional Provisions for Prime Contracts (Other than Home Improvement Contracts):
    A statement as required by Business and Professions Code section 7030(a), informing about contractor licensing regulations and the jurisdiction of the Contractors’ State License Board​.

In addition to those three general stipulations, there’s also some specific requirements for home improvement contractors (B-2 Remodeling Contractors and their various subcontractors).

Specific Provisions for Home Improvement Prime Contracts: Prime contracts for home improvement projects must comply with the detailed requirements outlined in Business and Professions Code section 7159. These include, but are not limited to:

  • The contract must be in writing and include the title “Home Improvement” in boldface type. No, really.
  • The contractor’s name, business address, and contractor’s license number must be clearly stated.
  • Detailed information about the contract price, payment schedule, project description, start and completion dates.
  • Clauses related to extra work and change orders.
  • Specific notices about mechanics liens, insurance, and the project owner’s right to cancel.

Construction Subprime Contracts in California

What Is A Subprime Contract?

Subprime contracts, commonly referred to as subcontracts, are those contracts between specialized contractors undertaking specific tasks within a larger project, such as electricians or plumbers – anyone with a Class C license in California.

These are the types of contracts that general contractors and subcontractors enter into. They outline what type of work is to be performed by the subcontractor, what the timelines are, what work is expected of the contractors, and what the penalties are for falling foul of what’s in the contract.

Legal Requirements

The specific legal requirements for subprime contracts are not as extensively defined in the law as for prime contracts – there’s a lot more leeway for contractors and subcontractors to shape the terms of the contract to suit both parties.

However, that doesn’t mean there are no legal requirements. The main thing that subcontracts must outline is who is performing the work, what work they’re performing, and the timelines that the work is to be delivered.

For example, under the Public Contracts Code, prime contractors must list subcontractors for specific portions of work, with penalties for improper substitution or failure to specify a subcontractor.

Standardized Prime Contracts

There are quite a few standardized formats of prime contracts. With these standardized formats, you don’t have to worry about compliance – these contracts are proven to cover all areas of contract law for construction contractors in California.

Federal Government Construction Contracts: These contracts, used by various federal agencies, contain standard provisions that are federally formulated and recognized.
American Institute of Architects (AIA) Contract: AIA contracts are another standard form, focusing on agreements between owners and contractors for construction services.

Key Differences Between Prime and Subprime Contracts

Prime contracts involve a direct agreement with the project owner and encompass overall project responsibility, while subprime contracts are agreements between the prime contractor and other specialized contractors for specific project components​​​.

Common Elements in Both Prime and Subprime Contracts

  • Scope of Work: Detailed description of the specific work or services the subcontractor is expected to perform.
  • Payment Terms: Clearly defined payment schedules, amounts, and conditions under which payments will be made.
  • Duration and Schedule: Stipulation of the timeframe for the subcontractor’s work, including start and end dates, and any scheduling requirements.
  • Change Order Procedures: Guidelines on how changes to the scope of work or contract terms are to be handled, including any necessary approvals.
  • Compliance with Laws: Requirement for the subcontractor to comply with all applicable laws, regulations, and building codes.
  • Licensing and Certification: Assurance that the contractor holds all necessary licenses and certifications required for the work.
  • Insurance and Bonding: Specifications of required insurance coverage and bonding the subcontractor must maintain.
  • Indemnification: Clauses that outline responsibilities for liabilities, damages, or losses incurred during the project.
  • Dispute Resolution: Terms for resolving disputes that may arise during the course of the project, including arbitration or litigation procedures.
  • Termination Conditions: Conditions under which either party can terminate the contract, including for breach of contract or failure to meet performance standards.
  • Safety and Quality Standards: Requirements for safety practices and quality standards to be maintained by the subcontractors.
    Conclusion

As a contractor, staying legally compliant and making sure that your business is protected from any legal issues is a 24/7 job. In fact, you will probably spend more time working on the bureaucratic side of your contracting business than doing actual contracting work – especially on larger projects.

Knowing the ins and outs of a prime and subprime contract as a contractor is critical to building and maintaining a successful contracting business in 2023. The best advice we can offer is to hire a lawyer to handle all of your contracts, or at least to look them over before you send them out.

Lawyers might cost a little money – okay, they cost a lot of money – but the amount of time, money, and energy they save in the long run means that spending upfront is well worth it.

Additional Reading

Virginia Tech – Prime Contract: Format and Major Components

  • A fantastic primer on the basics of Prime Contract law, with more depth than we can go into in this blog! We recommend this to anyone looking to learn more about this topic.

How to Market to Your Local Area as a California Contractor

As a California contractor, one of the hardest parts of being a contractor is growing your business.

While some contractors are lucky enough to work a number of jobs across different zip codes and geographies, the reality is that the majority of the contractors in the state work in the same area for their entire careers.

With this in mind, it’s absolutely essential for any contractor looking to build success to have a strong local presence. People in your neighborhood need to know who you are and what you do before they can even think about hiring you.

So how do you reach your local market? What are the best ways for California contractors to get their name out there – and ultimately to win more business? Here’s how.

Define and Understand Your Local Market

Before you can market to your local area, you need to understand it, as well as how your skills, or license fits into your local area’s needs. For example, if you’re a C-57 Well Drilling contractor, you might not find much work in Santa Monica.

Here are some easy ways to define your market:

  • Demographics: Who are the people in your local area? What is their age range, income level, and housing situation? What types of properties are in your area, and which ones need contractors in your discipline?
  • Needs: What are the common construction needs in your area? Are there more demands for home renovations or new constructions?
  • Competition: Who are your local competitors? What services do they offer, and how can you differentiate yourself? A quick Google search can provide you with a list of local contractors. Analyze their services, pricing, and customer reviews to identify gaps that your business can fill.
  • Networking: Attend industry events, stay up to date with your union meetups, and join professional organizations both locally, regionally and nationally. This not only helps you stay updated with the latest trends but also provides opportunities for networking and collaboration between contracting disciplines. If someone needs a roofer, they’re going to call the roofer they know.

Person-To-Person Contact

Once you’ve understood your local market, the next step is to build a strong local presence. The best way to achieve growth, just like networking, is by face-to-face, in-person connection.

Especially when it comes to something as expensive and important as construction, people want to hire people they trust. Here are some specific ways you can do that.

  • Community Involvement: Participate in local events and sponsor local teams or charities. This not only increases your visibility but also builds your reputation as a community-focused business. People trust people who are invested in their own community and success – so put your money where your mouth is.
  • Local Partnerships: Partner with local businesses to offer joint promotions or discounts. This can help you reach a wider audience and increase your customer base. For instance, partnering with a local home improvement store or joining forces with other contractors in the area to offer discounts is a great way to net new customers.
  • Angie’s List: Angie’s List is a great way to build your local network, as many people use it to find contractors in their area. Sure, this isn’t a direct, in-person way, but usually, if you book a job on Angie’s List, and deliver well, you’ll get hired again.
  • Referral Programs: One of the best ways to grow your business locally is via a referral program. Offer incentives like discounts or free services to motivate satisfied customers to refer you to friends. Referential power is the best way to grow your business – Nielsen underlines that 92% of people trust referrals from people they know.

Digital Marketing Is Essential

In today’s digital age, online marketing is a powerful tool for reaching your local audience. Here are some strategies to consider:

  • Social Media: You need to be using social media if you want to market yourself effectively – not even contractors are exempt from this. Share updates about your projects, offer home improvement tips, and respond to comments and messages – this will help you stay top of mind for your local customers. And don’t underestimate a good, old-fashioned Facebook group for your local community – it’s a great way to connect with people in your area.
  • Online Advertising: Use platforms like Google Ads and Facebook Ads to reach a wider audience. You can target your ads based on location, demographics, and interests to ensure your ads stay relevant to the people you’re trying to reach.
  • Email Marketing: Along those lines, sending regular newsletters to your subscribers, offering updates, promotions, or useful content can keep you top of mind. According to a study by Campaign Monitor, email marketing has an ROI of $44 for every $1 spent.
  • Local SEO: Optimize your website for local search. This includes using location-specific keywords, such as “California contractor,” and ensuring your business is listed in local directories and on Google Business, so people can find you when they search for you. According to a study by BrightLocal, 93% of consumers used the internet to find a local business in the last year – underlining how important this is to local marketing.
  • Content Marketing: Create valuable content related to home construction and renovation and post it on your own website. This not only positions you as an expert for anyone looking at your services but also increases visibility by improving your website’s SEO. You can even go as far as creating video or photo content for TikTok or Instagram.

Track Your Efforts And Iterate

At the end of the day, you have no idea how your efforts are going if you don’t track your data and record the results of your marketing efforts.

Use tools like Google Analytics to monitor your website traffic, social media insights to track engagement, and customer feedback – in the form of customer surveys after a completed job – to gauge satisfaction. According to a report by HubSpot, companies that track their inbound marketing see a 12% increase in conversion rates, really underlining the importance of seeing how your work is doing.

Even if it looks like your marketing efforts aren’t working at all, stay patient. In many cases, it takes a long time for prospective customers to become real customers, up to months or even years in some cases, especially as contractors.

And if you think something isn’t working, you can always iterate upon it. Sometimes it’s as simple as the image you are using for your ad or the subject line of your email. Iteration is a great way to quickly and easily improve your marketing.

Business Structures 101 for California Contractors

You’ve put in the hard hours, you’ve done the hard work, and you’ve finally passed the notorious CSLB exam. Now’s the time to submit your bonds and insurance to the CSLB and get your contractor’s license.

Not so fast. There’s one thing that many contractors overlook – every contractor needs to establish a company for themselves, whether they’re a day jobber working on roofs in their neighborhood, or a multinational company beginning work in California for the first time.

But what kind of business should you establish for your contracting business? How do you even decide? In this article, we’ll cover some of the essentials when it comes to deciding what kind of business structure you should establish for your contracting company.

The California Secretary of State and the CSLB

The authority that regulates business in California is called the Secretary of State, but the CSLB – as always – is the one who requires all contractors to register as a business in the state.

It’s important to note that while technically speaking you do not need to have a business or to be registered with the California SoS, it’s all but necessary for contractors to have their own business. Without a proper business structure and registration, you expose yourself to financial risk, liability risk, to reputational risk in case anything goes wrong.

Registering a Business: A Prerequisite for CSLB Licensing

Before you can apply for a contractor’s license from the CSLB, you must first register your business with the state of California. This is a critical step in the licensing process. The type of business structure you choose will determine the specific registration process you must follow – more on that later.

Once your business is registered, you can then proceed to apply for a contractor’s license from the CSLB. The application process involves demonstrating your qualifying experience, passing an examination, and getting fingerprinted for a criminal background check.

Remember, operating a contracting business without a valid license from the CSLB is illegal in California and can result in hefty penalties. Therefore, it’s crucial to ensure your business is properly registered and licensed before you start offering contracting services.

Sole Proprietorship: Simplicity with Personal Liability

For 99% of contractors, you’ll want to set up as a sole proprietorship.

In its simplest form, this means you are the only operator and only employee in the business. As you can imagine, this is the structure that independent construction specialists (those with Class C licenses) like plumbers, HVAC techs, and welders use, as they’re often one-man bands.

In California, contractors operating as sole proprietors must register their business with the county clerk’s office in the county where the business is located. They must also obtain an Employer Identification Number (EIN) from the IRS, even if they don’t have employees, as an EIN is required for certain federal tax filings.

Partnership: Shared Ownership and Responsibilities

A partnership is a business structure where two or more individuals share ownership. Partnerships can be general or limited in liability – which essentially defines what you’re liable for in case of losses.

In a general partnership, all partners share in the business’s profits and losses, and each partner is personally liable for business debts. In a limited partnership, one or more general partners have unlimited liability, while the limited partners have liability only up to the amount of their investment.

This setup is a good situation for family businesses or situations where you and some of your friends, family, or local community are all banding together to work together. This way, the people involved in your company’s success are liable for losses as well as profits.

When setting up a partnership, documentation is key. Partnerships require a written agreement detailing the division of profits, roles and responsibilities, and procedures for resolving disputes. Partnerships in California must register with the Secretary of State and obtain an EIN from the IRS.

Corporation: Maximum Protection with Increased Complexity

“Corporation” might be a dirty word nowadays, but for contractors, it can be a very useful business structure. A corporation is a legal entity separate from its owners, providing the most protection from personal liability, but the tradeoff is it takes tons of resources to begin – and even more to maintain.

Corporations have the most complex business structure and require more time and money to maintain. Corporations are required to hold regular board meetings, maintain corporate records, and file corporate income tax returns – all of which are extremely complicated and difficult, especially for corporations.

In addition to filing a formation of business with the California SOS, corporations must also adopt bylaws, issue shares of stock, and file an annual report. Corporations are taxed at the corporate rate and may face double taxation if profits are distributed to shareholders as dividends.

Limited Liability Company (LLC)

An LLC combines the liability protection of a corporation with the tax benefits and simplicity of a partnership. This, in addition to Sole proprietorship, are rather common in the construction world, as it blends both the liability protection of corporations with the freedom and flexibility of a sole proprietorship or partnership.

Owners of an LLC, known as members, are not personally liable for the company’s debts and liabilities. There can be as many members as you want to name. We have to recommend an LLC structure for your contracting business, it’s a nice balance of all the other various structures.

The Role of Qualifying Individuals in Business Structures

In California, every contractor license requires a qualifying individual, or “qualifier,” who has demonstrated their knowledge and experience through the application process and holds one or more license classifications. If you’re a contractor, you either are a QI or work for a QI.

A qualifier may be a Sole Owner, Qualifying Partner, Responsible Managing Employee (RME), Responsible Managing Officer (RMO), Responsible Managing Manager, or Responsible Managing Member.

Being a qualifier on a license can be a significant risk and liability. Under Business and Professions (B&P) Code section 7122.5, if the performance of an act or omission by the license constitutes a cause for disciplinary action, it also is a cause for disciplinary action against the qualifier, regardless of their knowledge and participation.

Conclusion

Choosing the right business structure for your contracting business in California is a critical decision to both your business’s success and your personal liability. It’s essential to consider your business’s nature, your personal risk tolerance, and your long-term business goals when making this decision, as this decision is extremely subjective and equally important.

When opening your business, it’s definitely worth the time to meet with someone who can help you make the right decision. Someone with experience in California law knows the tax codes, and has the general financial know-how that can provide individualized advice – these are definitely worth the money when opening your business.

Additional Reading

“Starting a Business Checklist.” California Secretary of State
“Employer ID Numbers.” Internal Revenue Service
“Partnerships.” Internal Revenue Service
“Corporations.” California Secretary of State
“Corporation Tax Rates.” Franchise Tax Board
“Contractors State License Board.” State of California
“Absentee Qualifiers.” Contractors State License Board

Do You Really Need to Join A Union To Become A Master Electrician?

If you’re an electrician or thinking about becoming one, you’re probably thinking about joining the union – whether that’s the national unions like the IBEW and NECA, or your local union like the CSAEW. If you’re even vaguely aware of electricians, what they do, and what the career entails, then surely you’ve at least heard of these.

These unions are the collective bargaining groups in the electrician’s field, and beyond the basic benefits of unions like arguing for wage and safety standards, the union serves as a psychological standard for electricians.

That is to say, being a union electrician carries a certain amount of prestige for electricians – it legitimizes many of them in the eye of the public. Likewise the title “Master Electrician” – it’s a title that everyone has heard from and it carries with it an air of trustworthiness and quality.

The thought that comes into one’s mind when one hears “master” versus “journeyman” or “apprentice” is that of a professional versus an amateur. Anyone who aims to be an electrician wants to be a master electrician.

What is a Master Electrician? And do you have to be in a union to become one? In this article, we’ll examine what a master electrician is, how to become one, and how the IBEW fits into this whole thing. Let’s take a look.

What Is A Master Electrician?

At the pinnacle of the electrical profession stands the master electrician—a title that signifies not just expertise but years of dedication, training, and hands-on experience. But what does it mean? What is a Master Electrician?

To be honest, it’s a little nebulous and frankly, ill-defined. A master electrician is actually not a specific title, like a journeyman or an apprentice. Rather, it’s a general signifier that suggests an electrician who has gone as far as they can go in their field.

What that means is typically a few things. A master electrician is a title that exists for electricians who have completed the apprenticeship and journeyman stages of their careers. They are people who have passed all the exams, gotten all the certifications, have worked the hours, and have overseen journeyman and apprentice electricians.

The specific requirements for becoming a master electrician vary by state, but generally speaking, it’s a title that only exists by necessity; it describes electricians who have surpassed journeyman status.

It’s also a term that seems to be dying out as the electrical profession continues to become more standardized. For example, California doesn’t create a distinction between these. You’ve satisfied the requirements to become a licensed C-10 electrical contractor, in which case, you get your license. Or you’re not. There’s no in-between.

In other states, like Arkansas or Colorado, there are distinctions between different types of electricians (some even getting as granular as apprentice journeyman electricians), so be aware of what the requirements are in your state. You may have to apply for a new license every single time you reach a new designation.

The long and short of it is what a master electrician actually is is vague at best, and meaningless at worst. There are some states where it doesn’t even exist.

Do I Have To Join The Union To Be A Master Electrician?

So now that you know that a master electrician simply means, well, being a good electrician for a long time, you can finally start moving in that direction. In some states, it’s a meaningless title or one that doesn’t exist. In others, becoming a master electrician is a quantifiable boost to your career.

Either way, the question remains: do you have to join the union to become a master electrician? In most cases, the answer is: technically no, but realistically yes.

Why do we say that? Well, because even though you are technically not required to be a part of any trade organization to become a master electrician in any state, the benefits of electrician’s unions are powerful. They provide invaluable resources that make getting any electrician’s license easier – they can definitely point you in the right direction to your master’s status.

You don’t need a union for anything as an electrician, really, but they do provide strong support for new electricians especially. However, you can still gain the same skills from non-union apprenticeships or non-union trade associations.

Union apprenticeships are known for their competitiveness and rigorous standards that will set you up in the professional for life, as well as induct you into the union, a big benefit to many just starting out. Union apprenticeships come with added prerequisites but offer better pay and benefits. Such apprenticeships are coordinated through partnerships, notably the International Brotherhood of Electrical Workers (IBEW) and the National Electrical Contractors Association (NECA).

Non-union apprenticeships offer more flexibility and are often preferred by those who wish to avoid union dues and seek a less structured work environment. local contractors or non-union trade organizations, such as the Independent Electrical Contractors (IECI) or the Associated Builders and Contractors (ABC) offer these apprenticeship programs and can be a good start for people who lack the money for union dues.

The reality is both pathways are equally viable. Electrical work is pure science that anyone can learn – even from a library – but both come with pros and cons that may fit your lifestyle better than the other.

The Transition From Apprentice to Master

The journey from an apprentice to a master electrician is filled with milestones and largely dependent on where you live. In some states, there are specific requirements that delineate between apprentices, journeymen, and master electricians. As we said before, in some states, the master electrician title does not exist at all!

In general, though, you’ll often see an hourly or yearly work requirement. That is to say, in order to be certified as a master electrician in certain states, you have to either work a number of hours or work for a number of years in a certain position.

For example, in Georgia, you can either do four years’ on-the-job training or four years’ apprenticeship and that’s it – you can get your license. In Arkansas, you need to complete 8,000 hours of work experience, AND 2,000 hours in the classroom, AND you have to pass an exam!

This underlines all the different definitions and standards for what makes a master electrician. In reality, what makes a master electrician depends on your local jurisdiction, on both a state and municipal level. If you’re reading this, you probably already know your area’s regulatory requirements. If you don’t – you need to get into gear!

Licensing and Regulations

Master electrician licensing is a complex tapestry of requirements that vary across states, and they become increasingly complex as you get more local – with town, municipal, and county regulations coming into play with state regulations as well. In some places, you’ll be up to your neck in licenses and regulations before you’re even a journeyman!

While the National Fire Protection Association’s National Electrical Code (NEC) serves as a foundational standard for many states, local jurisdictions often have their own specific requirements, modifications, and examinations, and as we covered in the last section, they can be radically different state-by-state.

In most cases; however, it’s a simple case of doing on-the-job training, in the form of apprenticeship, and then journeymanship. Only after completing these two steps can you reach the next level of becoming a master electrician.

Circling back to our central question: Do you have to be in a union to be a master electrician? The answer is no – with a ton of caveats.

While unions offer a myriad of benefits and can significantly influence an electrician’s career, they are not a mandatory or exclusive pathway to mastery. You don’t ever have to join a union to get your contractor’s license or to become a certified master electrician. And in many areas – like the 40 million people in California – master electricians don’t even exist!

That said, the electrician’s union is giant and popular amongst electricians for a reason – they do provide quite a bit of value to electricians just starting out and those at the end of their careers. If you’re just starting out, we recommend checking out an introductory meeting at your local chapter of the IBEW.

What Is the Best Degree for a General Contractor?

As a general contractor, you wear many hats (or helmets, if you want to keep your job) – construction expert, business owner, marketing professional, logistics maestro, engineering authority, and so on – all of which require knowledge and experience with a variety of fields.

While the beauty of general contracting is that you don’t need anything but job experience and hard work to reach the GC level, one does sometimes wonder if a college degree is necessary – or even beneficial to becoming a general contractor.

In this article, we’ll take a look at whether it makes sense to get a college degree if you’re planning to become a general contractor. Is it worth it? And if so, what degree makes the most sense if a general contracting career is in your future?

Do You Need A Degree As A General Contractor?

A general contractor is akin to the conductor of an orchestra, ensuring every instrument plays in harmony to create a symphony. From the initial design and planning stages to the final brick laid, they oversee every nuance of a construction project.

The cold reality is that being a general contractor is a ton of work. Sure, it’s physically taxing, with long hours and constant problem-solving, but for most contractors, we’re used to spending long hours on our feet, often in hot buildings or cold winds.

No, more significantly, being a general contractor is extremely taxing mentally. It requires you to constantly be in problem-solving mode, both on a micro and macro- scale. You need to pay attention to a thousand different things at once, often doing complex calculations and cost-benefit analyses in your head about materials, labor, and client expectations.

This leads us to our original question – do you need a degree as a general contractor? The answer is no. But do you need a flashlight when inspecting a job site at night? Nor do you need a worksite trailer when a tent would do. Sure, you can do without it, but education is like any tool – it can only make you better if you know how to use it.

A degree can arm you with the wide array of tools gen cons needs to not only survive as a general contractor – an extremely competitive field – but to thrive. All education and knowledge can give you a massive advantage over your competitors, so while you don’t need a degree, if you work at it, it’ll reap big rewards for you and your business.

What Is The Best Degree For a General Contractor?

If you’re thinking about becoming a general contractor, there’s a variety of different degrees out there that can benefit your business. While construction-related degrees used to be relegated to the worlds of engineering and architecture, schools across the country have begun offering construction-related degrees in things like general contracting!

That said, general contracting degrees are still rather rare and lack pedigree at this point in time. Usually, you find that the best educational opportunities for general contracting-specific education are local schools (like ours) that have established streamlined content relevant only to general contractors.

With that in mind, you’ll find that universities and colleges offer degrees related to only a few general contracting skills, like engineering or architecture.

Which of these types of degrees you pick isn’t specific. There isn’t really the best degree for general contractors. They all offer different things, with different pros and cons.

Bachelor’s in Building Science

  • Overview: A fusion of construction techniques with business acumen.
  • Key Subjects: Mathematics, design principles, building codes, construction methodologies, cost estimation, and project management.
  • Pros: Offers a panoramic view of the construction landscape, while also getting into the nitty gritty with mathematics and understanding of codes.
  • Cons: Few. Hard to tell if programs lean towards one or the other – business or construction.

Bachelor’s in Construction Engineering

  • Overview: As the name suggests, this degree yields an understanding of the technical and mechanical aspects of construction.
  • Key Subjects: Structural dynamics, geotechnics, materials science, and construction logistics.
  • Pros: Prepares students for the technical challenges of large-scale construction projects. An engineering degree means you can tackle any challenge.
  • Cons: Unlike many building science degrees, this program is often lacking in business programs.

Bachelor’s in Architecture

  • Overview: Architecture is basically an intersection of design with construction.
  • Key Subjects: Architectural design principles, building systems integration, and presentation and communication skills.
  • Pros: Ensures projects are both visually appealing and structurally sound. Forces you to work through real-world problems as you develop your work.
  • Cons: You might find yourself pigeonholed as an architect rather than a general contractor. If you like doing on-site work, this might not be for you

The Best Universities for General Contractor-Related Degrees

Want to get a degree in one of these fields? Here are some of the most well-respected degrees in the nation. While many of these universities are expensive, they may give you a leg up on the competition not only in the pedigree of their classes but also in the value of their network.

What’s really important is you choose an area of expertise that is interesting to you, as that will give you the best chance of success in your field.

Building Science:

Construction Engineering:

Architecture:

There’s No Wrong Answer Here

When it comes to becoming a general contractor, the wonderful thing is that there is no wrong answer. It’s one of the things we love about our profession – anyone, from any walk of life, can work hard, acquire the right skills, make the right moves, and ultimately become a general contractor!

That is to say, we neither recommend going to, or skipping school as a general contractor. If it works for you, there’s certainly a lot to gain. If you’d rather skip school and start getting experience, that path is relevant as well.

While many of us turned to the construction field because we didn’t like school, the potential upsides of going to school for general contractor-related education far outweigh the negatives of going back to school.

And honestly, if you can’t hack it in the cushy halls of a college, you frankly won’t be able to handle the significant demands of effective general contracting. We always recommend arming yourself with knowledge – and in that vein, we have to say that more education is better. That said, everyone’s situation is different, so make sure it makes sense for you.

Additional Reading

National Association of State Contractors Licensing Agencies
Best Degree Programs – Construction Project Manager
College Consensus – Construction Degrees

Does a Contractor Have to Pull Permits?

Introduction

“Does a contractor have to pull permits?” is a question that every contractor runs into at some point early on in their careers. Given the legal ramifications of running afoul of local codes and regulations, it’s no wonder this is a question that gives many a new contractor cause for pause.

So – are contractors the ones who are responsible for pulling permits for the job? Or is it the construction manager, project manager, or maybe even the foreman on the job site? Does the responsibility change depending on whether you’re a general contractor or a Class C specialty contractor?

In this article, we’ll cover everything about permits: what they are, who is responsible for acquiring the right permit, the legal points surrounding permits, and so on. Let’s dig in.

What Does “Pulling Permits” Mean?

Pulling permits is a colloquial term used to describe the act of securing the necessary permits or authorizations from relevant governmental bodies. Usually, permits are given out by local governments like counties, cities, or townships.

These permits ensure that the construction or renovation work complies with local building codes, zoning laws, and other regulations. Actually “pulling” a permit requires a number of steps – involves submitting detailed plans of the proposed project for approval, and working with local government to make any changes until your plans meet the necessary code. After your project is approved, you’ll receive your permit – but whether or not you’re in violation of said permit may require inspections before, during, or after the construction.

The Legal Landscape

No matter where you do construction work, there’s a well-defined legal framework that mandates contractors to secure permits for particular types of work.

For example, the California Code of Regulations requires employers to obtain Project Permits and Annual Permits from Cal/OSHA before initiating specific construction activities. These regulations aim to ensure that all construction activities meet the safety and quality standards set by the state.

Who is Responsible for Pulling Permits?

As always with construction, the responsibility for pulling permits…depends on so many factors.

This burden generally falls on the contractor overseeing the project, but that could be anyone from a general contractor to a homeowner installing a new window. In a typical construction company, however, the task of applying for, compiling, and maintaining permits is often assigned to a project manager, or in some cases, a designated permit expediter.

They are responsible for understanding the types of permits required, gathering the necessary documentation, and liaising with the relevant authorities.

However, in some cases, either the homeowner or a licensed contractor can secure the essential permits. This would be in situations where it’s you doing work on your own home, or where you’re an out-of-town GC who hires a local. In many cases, the local will know the permitting system in their local jurisdiction better than you would, so in that case, they may offer to take care of that (often for an additional fee).

How to Obtain a Permit

Obtaining a permit usually involves several steps, but they’re rather straightforward and follow simple common sense.

  • Identify The Type of Permit Needed: Different projects may require different types of permits, such as building, electrical, or plumbing permits.
  • Develop Plans: Create detailed plans for the project that comply with all local bylaws and regulations.
  • Submit Plans: Now take your plans and submit them to the relevant authority for review and approval.
  • Pay Fees: There are usually fees associated with permit applications. Most of the time they are paid upon submission, but you may also be waived the fee in the case of a permit rejection.
  • Await Approval: Once submitted, the application undergoes a review process, which may take anywhere from a few days to several weeks. Not much you can do in this step of the process but prepare your resources for deployment when you do get approved.
  • Receive Your Permit: If your permit is found to be compliant with the authority’s regulations, you will receive your permit! If not, you will usually get a chance to re-apply for a new permit.

What Requires a Building Permit in California?

While California is stringent about environmental regulations, each municipality interprets these regulations uniquely for their specific area.

Generally, projects that likely require a building permit in California include:

  • Demolition of an existing building
  • Roof replacement
  • Plumbing, electrical, and mechanical replacements
  • Adding an accessory dwelling unit (ADU) or a junior accessory dwelling unit (JADU)
  • Changing the layout of a house
  • The addition or removal of exterior walls
  • Stormwater
  • Grading
  • Mechanical Operation

It’s crucial to note that additional permits, such as stormwater, electrical, plumbing, grading, and mechanical permits, might be required based on the project’s scope.

Examples of Permits You Need For Construction In California

With one of the most complicated and comprehensive legal frameworks in the nation, California mandates contractors to obtain permits for almost any type of construction work.

The California Code of Regulations, for instance, requires employers to secure Project Permits and Annual Permits from Cal/OSHA for specific construction activities1.

You may also have to deal with permitting for the California Environmental Quality Act (CEQA). This usually involves an environmental review for projects that may have significant environmental impacts, ensuring sustainable development for projects that can affect the local ecology. These days, that’s most projects.

Here are some more types of permits you might run into in California, depending on your location, the nature of the job, and what role you have.

  • Annual Construction Permits: These permits are required for specific construction activities and are issued by the Division of Occupational Safety and Health (DOSH). More information on annual construction permits and the list of permit holders can be found on the DOSH Annual Construction Permit Holders page.
  • Construction Stormwater Permit: Construction projects in certain watersheds must apply for a Regional Water Board permit rather than a statewide permit. More details are available on the Construction Stormwater Program page.
  • Building Permits: These are required for various construction activities such as building garages, storage buildings, decks, carports, patio covers, and additions to single-family dwellings. More information can be found on the Building Department Documents page.
  • Energy Compliance Permits: Compliance with Title 24, State Energy Code, is mandatory for construction projects in California. More details are available on the Building Permit – Department of Planning and Development page.
  • Model Code Adherence Permits: Every three years, the State of California adopts new and/or updated model codes and adherence to these codes is mandatory. More information is available on the Building Permits and Inspection – Sacramento County page.

Do You Need To Pull A Permit As A Contractor?

Let’s answer the question once and for all: do you need to pull permits as a contractor in California?

And everyone’s favorite answer: most likely, but it depends!

California is a complex patchwork of legal standards, especially when it comes to construction. In addition to statewide regulations like sustainability standards, you have local codes and bylaws that are county, city, town, or even community-wide.

With that in mind, the reality is that you will most likely have to pull a permit as a contractor, at some point! The most important thing is you familiarize yourself with all the codes and regulations in the area you’ll be operating in.

It’s your responsibility to know the codes and adhere to them – or face the consequences, which can often be severe. Even if you’re not physically the one pulling the permits, you could face such penalties as a suspended or revoked CSLB license!

Additional Reading

California Department of Industrial Relations – Permit Requirements
Census.gov – Building Permit Survey
AvaTrade – What Are Building Permits?

New Laws for California Contractors in 2023

We’re always hearing stories from former clients and current contractors that they’re seeing frequent violations of new contractor laws that just came into effect this year, in 2023.

There are a ton of new laws that are – to be frank – absolutely critical to know as a contractor, no matter your classification, location, or size. Any violation of these new laws carries serious penalties – including time in jail for repeat offenders.

Arm yourself with the knowledge and take the steps necessary to protect your business by becoming familiar with the following pieces of new legislation.

Senate Bill 216 (Dodd)

If you’re a concrete, HVAC, Asbestos or Tree Service contractor in California – listen up!

Senate Bill 216 (SB216), which amends the Business and Professions Code (BPC) Section 7125, is a piece of legislation that requires 5 Class “C” contractors to carry workers’ compensation insurance, even without employees.

This mandate means that contractors with a C-8 Concrete, C-20 Heating, Warm-Air Ventilating and Air-Conditioning, C-22 Asbestos Abatement, or D-49 Tree Service license must have valid workers’ compensation insurance by January 1, 2023.

And as a note to all contractors of all classifications: by January 1, 2026, all contractors must have valid workers’ compensation insurance, irrespective of whether or not they have employees.

The only exception to the new CSLB workers’ comp requirements is joint ventures without employees. Anyone with this structure of business is exempt from SB 216’s workers’ comp requirements.

Senate Bill 607 (Min)

In another insurance-related move, the California Senate passed Bill 607 (SB 607), which marks another important change in the requirements to hold a CSLB license. It updates numerous sections of the BPC – with one huge change in bond amounts.

SB 607 mandates that the CSLB qualifier, license, and minimum disciplinary bonds be raised from $12,500 and $15,000, respectively, to $25,000 for all three bonds as of January 1, 2023.

As a bonus for the families of military members looking to become licensed contractors, SB 216 also requires the Department of Consumer Affairs (DCA) boards and bureaus (including the CSLB) to waive application and license fees for military family members.

What if I Don’t Have Workers’ Compensation Insurance Or My Bond Amount Is Insufficient?

If you are currently in one of the above classifications and you do not have workers’ comp or a sufficient bond amount…well, we’ve got bad news for you: your license is surely suspended.

Don’t panic – just stop doing work entirely if you are still doing it. This is critical as you can face serious legal consequences for working without a license.

Next, you should immediately begin the process of getting the necessary workers’ compensation insurance and/or increasing your bond amount. Once that is sorted out, you can re-apply for your license.

If you’re unsure or don’t remember if you have workers’ compensation insurance, you should immediately check your license status.

Senate Bill 1237 (Newman)

Huzzah for troops-turned-contractors – SB 1237 is here to waive any renewal fees!

Senate Bill 1237 (SB 1237) updates the current law that requires DCA boards, including the CSLB, to waive renewal fees for a licensee who is called to active duty as a member of the U.S. Armed Forces or California National Guard.

This applies if the licensee or registrant is stationed outside of California. The new law expands the definition of “called to active duty” and extends it to licensees on active duty during a “state of insurrection” or a “state of extreme emergency.”

Assembly Bill 2105 (Smith)

In another move that will have veteran contractors excited, Assembly Bill 2105 (AB 2105) mandates a 50% fee reduction for an initial license or registration fee for all veterans!

All you have to do is provide paperwork proving you are a veteran who has served as an active-duty member of the United States Armed Forces, including the National Guard or Reserve components and was not dishonorably discharged.

For HIS contractors, this still applies to you as well! This applies to all initial license fees for anyone acquiring a CSLB license.

Assembly Bill 1747 (Quirk)

Assembly Bill 1747 (AB 1747) increases the civil penalty from $8,000 to $30,000 for every violation of BPC Section 7110 (savvy legal contractors will know these are building code violations) and amends Section 7099.2 (how much in penalties violators will pay).

This bill expands BPC 7110 to include failure to comply with certain health and safety laws, water laws, safe excavation requirements, pest control requirements, illegal dumping, and other state laws related to building and insurance requirements.

Assembly Bill 2374 (Bauer-Kahan)

Bad news for litterbug contractors: your time is up.

Assembly Bill 2374 (AB 2374) amends Penal Code Section 374.3 and now requires courts to notify CSLB or other DCA boards or bureaus when a licensee is convicted of an illegal dumping crime. This is so the board can publish the conviction on their website.

The bill also increases the fines a court may impose for this crime, which is great for everyone everywhere. In a double-swoop of awesome for contractors who like to do the entire job right, it also requires the court to order a person convicted of dumping commercial quantities of waste to remove or pay for the removal of, the waste matter that was illegally dumped. Which, again, is an absolute win for everyone involved.

Assembly Bill 2916 (McCarty)

Assembly Bill 2916 (AB 2916) amends BPC Section 7124.6 and modifies the CSLB Letter of Admonishment (LOA) program to allow CSLB to determine whether it should be issued for one or two years, rather than the current one-year limitation.

In making that determination, CSLB is required to consider the gravity of the violation, the good faith of the licensee or applicant being charged, and the history of previous violations.

This is a pretty technical bill and to be honest, it remains to be seen how it will affect contractors. It seems to really only affect disciplinary actions, which affect only a small number of contractors. We’ll keep you posted on how it develops.

Stay Compliant…Or Else!

These new laws have serious consequences for any contractor that is non-compliant and remember: Ignorantia juris non excusat – ignorance of the law does not mean you are free from the consequences of violating it.

And in the CSLB’s case – the punishments are extremely severe for anyone violating contractor law in California. So don’t do it!