September 18, 2018

Construction Company Requirements

To Execute work with most construction tasks in Ca you should be accredited by the Ca Contractors State License Board (“CSLB”).

The CSLB publishes a helpful guide on becoming an authorized contractor – Blueprint for Becoming a California Licensed Contractor – in addition to a reference book which covers specialist licensing – California Contractors License Law & Reference Book. The Guide is a bit outdated through having already been published in 2006 even though Reference Book is updated annually.

They state imitation is the foremost form of flattery, and I’ve borrow liberally from the Guide and Reference Book for this post, although I’ve added various extra responses from my experience with licensing problems.

Whom must be accredited as a specialist?

All companies and individuals which construct or alter, or provide to make or modify, any building, highway, roadway, parking facility, railroad, excavation, or any other construction in Ca (except that national projects situated in California) must certanly be certified because of the CSLB in the event that complete cost of labor and materials under a number of contracts on project is $500 or higher.

Note: Contractors just who make use of asbestos or other hazardous substances tend to be regulated by the U.S. Department of Labor, U.S. Occupational Safety and Health management and also the California Division of Occupational Safety and Health, as well as by the CSLB.

Any kind of exemptions on permit necessity?

Yes. The most frequent exemptions are:

Minor Work Exemption: In the event that complete price of work and products under more than one contracts on a project is significantly less than $500, a contractor’s license is not needed. Work which can be part of a larger task, whether undertaken by the same or various technicians, may not be divided in to contracts of less than $500 in an attempt to satisfy this exemption.
Employee Exemption: workforce who will be premium wages, that do not operate in an independently established business, and that do not have direction or control of the performance for the work or that do not determine the last outcomes of the work or project are not necessary to have a contractor’s license.
Public worker Exemption: Public workers taking care of community tasks are not needed to have a contractor’s permit.
Owner-Builder Exemption: Owner-builders whom build or improve frameworks on their own residential property are not needed to have a contractor’s permit should they either do the work by themselves or utilize their particular staff members. This exemption only applies in the event that construction just isn't intended to be offered available within twelve months of completion.
Owner-Builder Contracting Exemption: Owner-builders who build or develop structures by themselves residential property are not necessary to have a contractor’s license if they contract with a licensed contractor to execute the work. This exemption is only applicable into building of single-family residences if only four these types of structures are offered for sale in anybody twelve months.
Owner-Builder main Residence Exemption: Owner-builders just who enhance their primary place of residence, who possess actually resided truth be told there for starters 12 months just before conclusion of this work, and just who complete the job before sale are not necessary to have a contractor’s license. This exemption is restricted to two frameworks within a three-year period.
Manufacturer Exemption: producers whom offer or install finished products which do not become a hard and fast section of a structure aren't necessary to have a contractor’s permit.

Who is able to be a licensed contractor?

To qualify for a contractor’s license, an individual must:

Be 18 years old or older;
Have a valid social security number; and
Show they own the feeling and abilities required to manage the daily activities of a building business, including field direction, or be represented by another individual with the needed knowledge and abilities who serves as the qualifying person.

Can company entities be accredited?

Indeed, the CSLB issues contractor’s licenses to corporations, partnerships, combined venturers and limited liability organizations (“LLCs”). But in order for a business entity becoming given a contractor’s license they must associate a qualifying person that holds an contractor’s permit. Regardless of whether licensed as someone or as a company entity, a licensed specialist might only contract into the classification(s) where it really is licensed.

Just what experience is required for a contractor’s permit?

A qualifying person need at least four years of journey-level experience with the last decade straight away preceding application for a contractor’s permit. Credit for experience is only offered for experience as a journeyman, foreman, supervising worker, specialist, or owner-builder. All experience should be validated by a qualified and responsible one who has directly knowledge of the individual’s knowledge in the period period covered.