Working Without License?

KillerToiletSpider

Where did I say anything about insurance?

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Spectatorz

I never heard that before, so I Googled SB 1914 and got this :

http://info.sen.ca.gov/pub/95-96/bil..._sen_comm.html

That's Not Exactly Right.

Can I Get Clarification on SB 1914 ?

Thanks

__________________
"Success" Is The Ability To Go From Failure To Failure,
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RLRepairs

I haven't read all the replies yet, but this is not true. My husband and I got a $1M GL policy prior to getting our contractor's license for handyman stuff. We did everything from small fencing, painting, lighting and plumbing. And yes, this is for California.

RLRepairs

LB is correct, only licensed contractors must advertise that they are licensed. THeir license # must be on ALL advertisements. However, unlicensed persons do not need to advertise that they are unlicensed.

metroconstruct

The one legal thing you can do is get licensed. The law in California says you cannot work as a contractor without a contractor's license; that also means you cannot advertise as a contractor. You must have the word UNLICENSED in every ad, according to the law. You are in violation of the law if you advertise for any specific trade which requires a license, as well as not doing work over $500, which must include both labor and materials. You cannot have business signs on your truck or van, or even on business cards unless it clearly states 'UNLICENSED' contractor. You cannot have so much as a message on your phone regarding your 'company' unles you state that you are an unlicensed contractor.

In order to get a license with the State of California you must have four, provable qualifying years, and have your former employers sign of on 'certs' or certifications stating such. These certs also prove that you worked 40 hours a week, shown with paystubs. As you may or may not know, if you work for yourself, you won't be able to qualify yourself. As you stated you only have a year and a half to go... so after only 2 and a half years of work experience you're flying solo and working on people's homes?

My recommendation for you is to go work for a licensed plumbing company for the next year and half until you can get your own license; leave the trades to the licensed professionals before you flood someone's house or burn it down with your torch.

Finally, liability insurance will not get you out of jail, or reduce your fines, when caught for contracting without a license or advertising as a contractor while not being licensed.

__________________

E-Centric

metroconstruct

California Business & Professions Code

145. The Legislature finds and declares that:
(a) Unlicensed activity in the professions and vocations regulated
by the Department of Consumer Affairs is a threat to the health,
welfare, and safety of the people of the State of California.
(b) The law enforcement agencies of the state should have
sufficient, effective, and responsible means available to enforce the
licensing laws of the state.
(c) The criminal sanction for unlicensed activity should be swift,
effective, appropriate, and create a strong incentive to obtain a
license.


7026. "Contractor," for the purposes of this chapter, is synonymous
with "builder" and, within the meaning of this chapter, a contractor
is any person who undertakes to or offers to undertake to, or
purports to have the capacity to undertake to, or submits a bid to,
or does himself or herself or by or through others, construct, alter,
repair, add to, subtract from, improve, move, wreck or demolish any
building, highway, road, parking facility, railroad, excavation or
other structure, project, development or improvement, or to do any
part thereof, including the erection of scaffolding or other
structures or works in connection therewith, or the cleaning of
grounds or structures in connection therewith, or the preparation and
removal of roadway construction zones, lane closures, flagging, or
traffic diversions, or the installation, repair, maintenance, or
calibration of monitoring equipment for underground storage tanks,
and whether or not the performance of work herein described involves
the addition to, or fabrication into, any structure, project,
development or improvement herein described of any material or
article of merchandise. "Contractor" includes subcontractor and
specialty contractor. "Roadway" includes, but is not limited to,
public or city streets, highways, or any public conveyance.


The answer to your 'question':

B&P Code section: 7027.2. - Notwithstanding any other provision of this chapter, any person not licensed pursuant to this chapter may advertise for
construction work or work of improvement covered by this chapter, provided that he or she shall state in the advertisement that he or she is not licensed under this chapter.

7027.4.

(c) "Advertise," as used in this section, includes, but is not
limited to, the issuance of any card, sign, or device to any person,
the causing, permitting, or allowing of any sign or marking on or in
any building or structure or business vehicle or in any newspaper,
magazine, or by airwave or any electronic transmission, or in any
directory under a listing for construction or work of improvement
covered by this chapter, for the direct or indirect purpose of
performing or offering to perform services that require a contractor'
s license.

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Spectatorz

Is it true a contractor's license is not required if the work to be performed is under $500?

B & P section 7048 Small Operations provides an exemption from licensure for minor work if the aggregate contract price, including labor, materials, etc. is less than $500. However, at the time of bid or prior to entering into a contract or to perform work, the person performing the work must provide a written statement of non-licensure to the customer. Requirements for the notice are very specific (B&P 7048(b)).
This exemption does not apply if the "minor work" is part of a larger project. Example: A homeowner is having a kitchen remodeled at a total cost of $6,000 and decides to sublet the flooring work which is only $300. The person doing the flooring would not be exempt from licensure because the overall cost of the project was over $500.

__________________
"Success" Is The Ability To Go From Failure To Failure,
Without Losing Your ENTHUSIASM.
The Only Place that Success comes Before Work is in The Dictionary.

fathersonfab

That's not exactly true... the law also says you can't divide the job up into smaller parts. You can't build a wall and say, Job#1 Dig Trench = $500, job#2 pour footing = $500, job#3 lay brick = $500, and so on.

It says specifically, the original job your were hired to do can not be more than $500 including labor and materials.

I just did a quick search... here is it. Its called the; Minor Work Exemption (B&P 7048)

B&P section 7048 (Small Operations) provides an exemption from licensure for minor work if the aggregate contract price, including labor, materials, etc. is less than $500. However, at the time of bid or prior to entering into a contractor to perform work, the person performing the work must provide a written statement of non-licensure to the customer. Requirements for the notice are very specific (B&P 7048(b)). This exemption does not apply if the "minor work" is part of a larger project. Example: A homeowner is having a kitchen remodeled at a total cost of $6,000 and decides to sublet the flooring work which is only $300. The person doing the flooring would not be exempt from licensure because the overall cost of the project was over $500.

BUT.. As of Jan. 2005
7048 Under existing law, unlicensed contractors are required to provide a written "Unlicensed Disclosure" notice for works of improvement under $500. This notice requirement has been eliminated.

Here is a fun article I'm sure you will all enjoy since you get so pissed off about this topic. CLSB did a sting operation posing as home owners. When the bids went over $500, they arrested them!

Spectatorz

"BUT.. As of Jan. 2005
7048 Under existing law, unlicensed contractors are required to provide a written "Unlicensed Disclosure" notice for works of improvement under $500. This notice requirement has been eliminated."

Thats Ok.

I am Looking for the Documentation that "Proves the Elimination of Requirement"

If Available.

__________________
"Success" Is The Ability To Go From Failure To Failure,
Without Losing Your ENTHUSIASM.
The Only Place that Success comes Before Work is in The Dictionary.

fathersonfab

Its right here on the CSLB website... section 7048 http://www.cslb.ca.gov/General-Infor...4-new-laws.asp
It doesn't say you don't have to have a license, it says your don't have to give a written disclosure anymore... the $500 limit still applies.

Spectatorz

Thank You for That Clarification.

I think by this thread we have made Great Progress in the Understanding of These Requirements.

Great Information, Right Here for ALL To SEE.

Good Job Everyone.

__________________
"Success" Is The Ability To Go From Failure To Failure,
Without Losing Your ENTHUSIASM.
The Only Place that Success comes Before Work is in The Dictionary.

jensenconstruction

I found this on the CSLB site. It clearly states that unlicensed contractors must state that they are unlicensed.


Advertising: The Legal Rights and Wrongs


SACRAMENTO -- Advertising is a way to catch the attention of new clients, especially during spring home improvement season. The methods to publicize a business can take many forms. Besides newspapers and radio, it can also be business cards, lettering on your truck, brochures, directories like the yellow pages and the Internet. The Contractors State License Board (CSLB) is offering some reminders about the laws in this area that effect contractors.

Contractor's License Number must be on anything considered advertising
Licensed contractors are required to include their CSLB license numbers on everything from contracts, business cards, and yard signs to placards on commercially registered vehicles.

False Advertising
It is a misdemeanor to use false, misleading or deceptive advertisements to sell clients home improvements and other services. It is also illegal to make misleading claims or advertise prices that you do not intend to accept contracts for.

Advertising for work you're not licensed to do
Licensed contractors are not allowed to advertise for construction work outside of the areas for which they are licensed.

Don't advertise about bonding
Contractors are forbidden by law to advertise the fact that they are bonded. It could lead the public to believe there is a higher level of protection than might be the case.

Owner-Builders
If owner-builders use any signs, cards, or directories that imply they can be hired by the public for construction or home improvement, they become subject to the same laws as other contractors. B&P section 7027 also prevents owner-builders from advertising illegally.

Unlicensed Operators
Unlicensed operators can legally advertise for construction work or improvements if the cost of the work (labor & materials) is under $500. But, they must state in the ad, that they are “unlicensed.” If an unlicensed operator advertises as a contractor in a directory such as the Yellow Pages, they face fines.

Fines
Fines for licensees who violate the laws can range from $50 to $2,000 depending on how egregious the act. The fines for non-license holders get much steeper, ranging from $200 all the way up to $15,000 for acting in the capacity of a contractor without having a license.

__________________
Jensen Construction & Painting
San Francisco Bay area Remodeling
Bay area Painting

Spectatorz

I am thinking this refers to the "Written Documentation" that "Was Required" in a "Contract" for Service Provided by an "Unlicensed Contractor for $500 or Less" saying This Information is No Longer Required.

This Does Not Apply to Unlicensed Contractors in Advertising Requirement to state the "Unlicensed Status."

Now I am Back to Being Confused Again.

__________________
"Success" Is The Ability To Go From Failure To Failure,
Without Losing Your ENTHUSIASM.
The Only Place that Success comes Before Work is in The Dictionary.

fathersonfab

Yes, you are both right.
In your advertising, you must state you are "unlicensed".
The new law refers to the "disclosure statement" that was required to be in your contract.

You are no longer required to provide a written statement to the homeowner at the time of signing a contract, but you are still required to list it in your advertising.

griesbaum

NJ just made a law a couple of years to make the contractors be licensed. Part of getting a license is paying the 100 dollars a year, but also having insurance. I was always weary about someone suing me for something. Well I have insurance, I am licensed and I get a peaceful night sleep.

Even for a $60 dollar job it is worth it.

Real Old Guy

Just because one has a license, does not mean they know what they are doing or will do it anyway. The issue is those of us that have complied with the laws and rules. As part of my 30 plus years in business as a licensed contractor, I also taught contractor's license law in adult school here in California. Most of the students were also working without insurance, etc, but decided to pursue the right path. I know from my own beginnings that it is not easy, almost a catch 22 to gain enough experience and money without breaking the law. But, you will be the biggest loser if you at least don't try to do it right. Main things, make sure you are competent to do the work agreed to, and then do what you said you would to the customer's satisfaction even if you screwed up the price and end up working for $.50 per hour. Otherwise, you will end up having a complaint lodged against you and it will come back to haunt you when you do try to apply for a license. Honesty still is the best policy. Good luck.

neolitic

I'm not too sure what it all means any way.
There is a guy that's been doing work around my neighborhood, trailer all tricked out. Signage all over it (pro lettering and all) "Licensed, Bonded, Insured(#'s below),BBB, Angie's List.
Two weeks ago he poured his second new entry walk.
Poured right on top of the sod, didn't even mow the grass, no mesh, no base fill, no nothing.
So what does any of it mean to the HO anyway?

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abonear

Well...let me tell you , my husband and I own a handyman business..I work with him in many projects. I also do all the scheduling and appointments and contracts.

I have to tell you,,,we get so many STUPID people calling us for Huge Jobs.
Full Blown Remodelings, one guy called this week and he said he wanted some stucco patching. We went to take a look and the Garage where he wanted the patching Looked like a Semi-Truck ran into it. even the foundation was cracked. If you look at it any harder the damm thing would fall on you. That is not a Handyman Job.

People call the handyman because they want the job done cheep. So they want to put us in that position. I turn down jobs in a daily basis. Sometimes it's hard because it's off by a couple hundred over the $500 mark...and what can you do. Until we get our license we are stuck. But I got to tell you..people not often are the victims,,they want stuff done for free and because they do not care they will go with a joe from the street as long as he charges the right price.

I always say...and tell my customers...hey..you get what you pay for.
If you want a handyman to do a second story home..good luck to you.
It will never get done.

We got into the handyman business because we do not want to be
in a job for months. We are a small company because we are in and out
of a job. Why these people call us for a huge remodeling I will never understand. I wish they would use more commen sence.

Sandra

metroconstruct

Sandra,
I appreciate the fact that you do small jobs. I hope the job you guys do are under $500 for both labor and materials. I hope your ads clearly state that you are unlicensed. The general problem with small handyman companies whom are unlicensed is that a glut of cheap workers de-values my license and I personally take offencse to that. If you are not qualified to get a license, then get out of the contracting trades, or go work for someone whom is. By continuing to play handyman, they are in fact taking work from licensed contractors which takes food from our children's mouths.

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