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CSLS Construction Connection

Contractors State License Services is committed to the continued growth and education of your career as a licensed contractor. It is our intention to provide you with valuable information of what's new in the construction industry, important events that you may want to attend, and helpful business and exam preparation tips. You can also stay connected with CSLS through Facebook, Twitter, LinkedIn and You Tube.

IN THIS ISSUE

• GAS PRICES. OUCH!
• DID YOU KNOW?
• CSLB FEES WILL BE GOING UP ON JULY 1
• CSLS SCHOLARSHIP
• WORKERS’ COMPENSATION INSURANCE– WHY, WHAT & DO I HAVE TO?
• TEST TAKING ANXIETY

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Gas Prices! Ouch!

Is the price of fuel taking its toll on your profit? We are all feeling the pinch but for the small construction business this seems to be more painful. Just last week one of our students said he was spending over $500 a month just in gas to get to the current job that he was working. That’s not just a pinch! There isn’t much we can do to control the price at the pump but as a savvy consumer there are some strategies that you can put into place to cut back the sting.

Check out websites such as http://gasbuddy.com/ or http://www.gaspricewatch.com and locate the cheapest prices for gas in your area.  Plan your travel so you can hit one of these gas stations rather than settling for the one that is closest and possibly far more expensive.

Try to implement some of these tips regarding fuel efficiency:

Drive Sensibly: Aggressive driving (speeding, rapid acceleration and braking) wastes gas. It can lower your gas mileage by 33 percent at highway speeds and by 5 percent around town. Sensible driving is also safer for you and others, so you may save more than gas money.  (Have you noticed the increase of motorcycles on the highway lately? One more reason to chill)
Fuel Economy Benefit: 5-33%
Equivalent Gasoline Savings: .19-$1.27/gallon

Observe the Speed Limit:  While each vehicle reaches its optimal fuel economy at a different speed (or range of speeds), gas mileage usually decreases rapidly at speeds above 60 mph. You can assume that at each 5mph you drive over 60 mph is like paying an additional $0.24 per gallon for gas.
Fuel Economy Benefit: 7-23%
Equivalent Gasoline Savings: $0.27-$0.89 /gallon

Remove Excess Weight: Avoid keeping unnecessary items in your vehicle, especially heavy ones. An extra 100 pounds in your vehicle could reduce your MPG by up to 2 percent. The reduction is based on the percentage of extra weight relative to the vehicle’s weight and affects smaller vehicles more than larger ones. (Plan your supply purchases near your job rather than near your home).
Fuel Economy Benefit: 1-2% /100lbs
$0.04-$0.08/gallon

Avoid Excessive Idling: Idling gets 0 miles per gallon. Cars with larger engines typically waste more gas at idle than do cars with smaller engines. (Ok we all would like to idle less on California freeways, but you can always park and walk in to get that morning coffee and breakfast sandwich rather than idling in the drive-thru).

Use Cruise Control: Using cruise control on the highway helps you maintain a constant speed and, in most cases, will save gas.

Use Overdrive Gears: When you use overdrive gearing, your vehicles engine speed goes down. This saves gas and reduces engine wear.

Note: Cost Savings are based on an assumed fuel price of $3.85/gallon.
(Fuel Efficiency tips adapted from “Driving More Efficiently” U.S. Department of Energy.

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Workers’ Compensation Insurance– Why, What & Do I HAVE to?

The Workers’ Compensation system was developed in the US in the early twentieth century.  As the industrial revolution took hold and industrial jobs grew in that time period so did workplace injuries.  Prior to workers compensation, workers who were injured on the job would have to sue their employer to recover wages and to pay for any medical expenses.  This legal process often left the employee who was already dealing with the implications of injury and possibly unable to earn a living, in an unfair and vulnerable situation that often played out to the employers favor.  The workers compensation system was created out of a need to resolve this issue for both employees and employers.  This system was an agreement that employers would provide no-fault insurance against workplace injuries and would not be subject to lawsuits that could be filed by employees that got hurt on the job.

Workers’ Compensation benefits include medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits and death benefits.  The California worker’s compensation insurance laws are administered by the State Department of Industrial Relations through the Division of Workers’ Compensation which oversees the administration of claims and runs the workers’ compensation court system that helps resolve disputes over benefits.

Worker’s Compensation Defined
California worker’s compensation insurance law establishes a no-fault insurance plan purchased by the employer-contractor and administered by the state to:

• Limit the employer-contractor’s liability and avoid costly lawsuits; and
• Guarantee that an injured worker receives prompt and complete medical treatment and specific benefits for job-related injury or illness. Under some circumstances, an employer-contractor can be sued for damages. For example, the harmed parties may sue if an employee is injured when the employer is illegally uninsured, or if the employer conceals the existence of an employee’s injury and its connection with employment.

Please check with the Department of Industrial Relations for more information. 

Employer Liability
An employer-contractor is REQUIRED to provide weekly benefit payments (indemnity) and necessary medical and hospital treatment to all of his or her employees for work-incurred injuries and illness. This liability of the employer extends to employed relatives on the same basis as any other employee.

If the employer has one or more employees, even part-time, he or she is required to insure for worker’s compensation claims. An “owner operator” or independent contractor” should consult an attorney to determine insurance liability.   

Coverage for yourself as a sole owner is generally optional however, roofers must also carry workers’ compensation even if they have no employees.  Out-of-state employers may need workers’ compensation coverage if an employee is regularly employed in California or a contract of employment is entered into in the State of California.  Contractors who do not hire employees and who are exempt from this requirement need to file the "Exemption from Workers' Compensation" form with the California State Contractors Board.

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Test Taking Anxiety

Are you preparing for your Contractors License Exam or perhaps a pre-employment exam and feeling anxious about it? It’s not uncommon and in many ways a certain amount of anxiety can be helpful to motivate you to study for the exam. However, some people get so anxious that it actually interferes with their ability to study, to retain information and to get through the testing process. 

Keep these helpful hints in mind for your next test:

• Keep a positive attitude as you prepare for you test.  Imagine yourself passing the test.
• Follow your study program so you can be as prepared as possible.
• Get a good night’s sleep before you test.
• Arrive early.
• Stay relaxed and confident.  Take slow, deep breaths to help you relax.
• Don’t worry if you’re not the first to finish when you take your test.  Stay focused on the test.

CSLS offers a Test Taking Strategies seminar targeted for Contractors preparing for the California Contractors License exam. This one day seminar is designed to build your test taking skills and confidence.  It offers live instruction and rapid fire questions covering Law & Business content. This quick and affordable program is perfect for home study students, crash course students or anyone who could benefit from knowing test taking techniques to help you successfully pass your test the first time.

• Learning To Recognize Questions Quickly Using Key Words
• Learning Sense of Timing Allowed For Each Question on the State Exam
• Learning to Answer Questions When You Just Don’t Know The Answer
• Learn How To Answer Multiple Choice Questions.

Contact CSLS for additional information and seminar availability near you.