Value Of A 21 1/2 Year Old General Contractor's License Number - General Discussion - Contractor Talk

Value Of A 21 1/2 Year Old General Contractor's License Number

 
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Old 07-31-2011, 01:04 AM   #1
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Value Of A 21 1/2 Year Old General Contractor's License Number



We are in the process of incorporating and doing a self directed 401k to fund expansion. I want to use my sole proprietor contractor's license that starts with the number 549 in the incorporated business. Once I do this, it stays with the corporation. I feel that due to it's age, it adds value to the business and if I can prove a validated value, that is additional personal stock that I will own in the business. However, I don't want to pay an appraiser $1500 to establish a value. Right now I have a General "B", C-10, C-20 and C-47 on that license number. Anyone know the value or how to get a value that will stand up to government scrutiny? Thanks in advance.
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Old 07-31-2011, 09:23 AM   #2
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


the license is for protection, the value is in what you've learned in 21 1/2 years

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Old 07-31-2011, 09:29 AM   #3
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


Yeah i don't see how you could value a license like that. I know guys who have had them for many years who still don't know crap about what they do but get by. Yet I know unlicensed guys who know more than I could possibly ever know about construction.
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Old 07-31-2011, 10:02 AM   #4
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


I can't recall an occasion where the age of the license mattered.

If the age of a license mattered there would already be a scam to some how "buy" or use the licenses.

Besides, people are way more concerned with your construction & business knowledge, people skills & Credit Score than how old your lic. is.
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Old 07-31-2011, 10:37 AM   #5
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


Quote:
Originally Posted by Energysaving View Post
We are in the process of incorporating and doing a self directed 401k to fund expansion
How does any of that, especially the 401, add to funding?

As far as the value of your license, put it up on E-bay, and see if you get any nibbles
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Old 07-31-2011, 10:46 AM   #6
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


The age of the license has zip to do with anything. It's the value of the company that matters.

Here's the thing. The most value a company has, is determined by how many active accounts it has. Buildings and vehicles have some value, but not as much as you think.

so it boils down to customers. How many customers do you have and how much to they spend on average for services per year, and, per quarter. Are they repeat customers ? or are they just one time clients.

Can you show growth ? as in can you show monetary growth through customer acquisition from year to year, and, what is the dollar volume ?

There is something to be said about being the big fish in a small pond, or a small fish in a big pond.
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Old 07-31-2011, 10:49 AM   #7
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


Quote:
Originally Posted by Energysaving View Post
We are in the process of incorporating and doing a self directed 401k to fund expansion. I want to use my sole proprietor contractor's license that starts with the number 549 in the incorporated business. Once I do this, it stays with the corporation. I feel that due to it's age, it adds value to the business and if I can prove a validated value, that is additional personal stock that I will own in the business. However, I don't want to pay an appraiser $1500 to establish a value. Right now I have a General "B", C-10, C-20 and C-47 on that license number. Anyone know the value or how to get a value that will stand up to government scrutiny? Thanks in advance.
why do you need all those sub classes when they are already covered by the "B" license.?
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Old 07-31-2011, 11:33 AM   #8
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


There is some value in there, but not much. I know for a fact some estimators throw out a subs bid if their license # is too high. The actually value, if I had to guess, would be around a tenth of a percent of a company. This is for commercial work.

If your in residential it could mean a lot more.
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Old 07-31-2011, 11:38 AM   #9
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


I got one possibly relevant hit
http://forum.freeadvice.com/divorce-...et-549294.html
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Old 07-31-2011, 11:38 AM   #10
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


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Originally Posted by Elyrain View Post
If your in residential it could mean a lot more.
Or not



Quote:
Originally Posted by Elyrain View Post
I know for a fact some estimators throw out a subs bid if their license # is too high.
That could be foolish. What about the case of say Turner, PK or Skansa just entering into a state for a project. Their license number would be very high, but you couldn't argue that they lack experience
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Old 07-31-2011, 11:45 AM   #11
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


Quote:
Originally Posted by skyhook View Post
why do you need all those sub classes when they are already covered by the "B" license.?
Because in CA if your using your B to cover the project, the project needs to use at least three of the C trades. If the project calls for only the skills of one C trade, then you have to have that C skill added to your license.
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Old 07-31-2011, 01:05 PM   #12
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


Quote:
Originally Posted by TimberlineMD

Because in CA if your using your B to cover the project, the project needs to use at least three of the C trades. If the project calls for only the skills of one C trade, then you have to have that C skill added to your license.
That's why every job no matter what it is has some drywall and paint touch up!! There's two plus the original one your bidding on
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Old 07-31-2011, 01:52 PM   #13
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


Quote:
Originally Posted by TimberlineMD View Post
Because in CA if your using your B to cover the project, the project needs to use at least three of the C trades. If the project calls for only the skills of one C trade, then you have to have that C skill added to your license.
That law changed (thanks to the Lawyers @ THD) approximately 9 years ago. GCs can do as little as 1 trade or as many as all "C" trades.
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Old 07-31-2011, 02:13 PM   #14
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


Quote:
Originally Posted by skyhook View Post
That law changed (thanks to the Lawyers @ THD) approximately 9 years ago. GCs can do as little as 1 trade or as many as all "C" trades.
I followed that HD lawsuit pretty closely and as far as them being able to use a B license, which they were doing, to perform only one speciality C trade, ultimately didn't fly in CA. They are now forced to hire a speciality C contractor to do, lets say a door hang or a window install.
They also must be a licensed B contractor in order to hire the C contractor. If the project doesn't include at least three trades then a B contractor must use licensed C trades.
They were able to change the law regarding the 10% / $1000 max down payment requirement by creating there own 'bonding company' so that they can continue to require the customer to pay for their service in full in advance.
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Old 07-31-2011, 02:21 PM   #15
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


Quote:
Originally Posted by Chris Johnson View Post
That's why every job no matter what it is has some drywall and paint touch up!! There's two plus the original one your bidding on
Yes, that is true, but the CSLB will consider that to be 'incidental' to the specality C trade and if you get the wrong customer you will be in trouble with the CSLB. Been there/done that!
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Old 07-31-2011, 04:10 PM   #16
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


Quote:
Originally Posted by TimberlineMD View Post
I followed that HD lawsuit pretty closely and as far as them being able to use a B license, which they were doing, to perform only one speciality C trade, ultimately didn't fly in CA. .
Wrong. See cite below,

SB 857 – (Polanco - Chapter 812) - One of the more significant provisions of this bill revises the definition of the General Building (B) contractor license classification. The following points outline the scope of the projects that can be undertaken by General Building contractors effective January 1, 1998:
General Building contractors may take a prime contract or subcontract that involves framing or carpentry.
General Building contractors may take a prime contract or subcontract that involves at least two unrelated trades or crafts other than framing or carpentry. (Framing or carpentry cannot be counted as one of the two unrelated trades or crafts).
General Building contractors may take a prime contract for a single Specialty trade (C36-Plumbing, C10-Electrical, C43-Sheet Metal, etc.) provided the work of the contract is subcontracted to a properly licensed Specialty contractor.
General Building contractors holding a Specialty license classification may take any contract involving the scope of work that falls under the Specialty license classification.
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Old 07-31-2011, 05:06 PM   #17
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Re: Value Of A 21 1/2 Year Old General Contractor's License Number


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Originally Posted by Anti-wingnut View Post
That could be foolish. What about the case of say Turner, PK or Skansa just entering into a state for a project. Their license number would be very high, but you couldn't argue that they lack experience
I'm not arguing either case, I'm stating what I know to be a FACT that is done in other estimating departments in so cal.

If you read my post I said ESTIMATORS throw out bids that have a high license #. That means those companies you listed do it to subs. Which in this case applies directly to the OP. This doesn't really apply to a prime contractor. On a public job as a prime the agency couldn't care less about the # unless you don't qualify for the project.

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