September 10, 2007

EDITOR'S NOTES

California courts take a no-nonsense stance against contractors that operate in the state without a contractor’s license, as we’ve seen numerous times over the past several years. To obtain a license, the basic requirements include filing an application, taking the appropriate exam(s) (depending on the license classification), submitting the application and exam fees, meeting the $10,000 bond requirement and providing proof of workers’ compensation insurance coverage. (For a more comprehensive list of requirements, visit www.cslb.ca.gov/applicants/blueprint.asp.)

In this week’s first case, a subcontractor owner possessed the appropriate license, but because he performed work under his corporation, which did not have a license, he could not recover payment from the surety. With such a ruling, it behooves contractors to make sure they meet all licensing requirements before bidding on projects.

Also this week, we look at a Miller Act bond issue in which a project manager tried to recover fees for his professional services; a reciprocal waiver of claims that came into question after a completed restaurant building went up in flames; and an owner that voluntarily assisted in testing equipment that later proved to be faulty.

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