February 24, 2018, 12:09:36 AM *
Welcome, Guest. Please login or register.
Did you miss your activation email?

Login with username, password and session length
Unlimited Music, Everywhere. Try Rdio for Free.
   Home   News Alerts Help Search Calendar Members Contributions Staff List Login Register Top Quality Ties at a Discounted Price!, Inc. Rotating GIF Banners Bare Necessities See's Candies, Inc. SwissOutpost and Swiss Knife Depot

Pages: 1   Go Down
  Add bookmark  |  Print  
Author Topic: The job cost threshold that makes a license necessary  (Read 3248 times)
0 Members and 1 Guest are viewing this topic.
The valetudinarian
Jr. Member
Offline Offline

Gender: Male
Occupation: The oleaginous old fart
Location: Texas
Experience: 1973
Posts: 36



View Profile WWW
« on: March 27, 2008, 07:42:25 PM »

Business & professional Code 7048.

This chapter does not apply to any work or operation on one
undertaking or project by one or more contracts, the aggregate
contract price which for labor, materials, and all other items, is
less than five hundred dollars ($500), that work or operations being
considered of casual, minor, or inconsequential nature.
   This exemption does not apply in any case wherein the work of
construction is only a part of a larger or major operation, whether
undertaken by the same or a different contractor, or in which a
division of the operation is made in contracts of amounts less than
five hundred dollars ($500) for the purpose of evasion of this
chapter or otherwise.
   This exemption does not apply to a person who advertises or puts
out any sign or card or other device which might indicate to the
public that he or she is a contractor or that he or she is qualified
to engage in the business of a contractor.

Note:Care must be taken regarding the $500 threshold. Suppose a repairman does a plumbing repair job for Ajax Co. and he charges $150. Two days later he does some plastering for Ajax and charges $200. Five days later, he replaces some broken glass for Ajax for $200 This total $550 repair work requires a contractors' license. The fact that the repairs were done piecemeal does not matter. Otherwise, an agreement could be made with Ajax as how much to be paid for each job and spreading that amount so no one particular job was $500 thus not requiring a license. Thus the term "the aggregate contract price" etc.
« Last Edit: March 31, 2008, 02:55:56 PM by The valetudinarian » Logged
Chief Scribe
Offline Offline

Posts: 100


View Profile WWW
« Reply #1 on: May 06, 2009, 05:52:47 PM »

Here's a link to the Business & Professions Code section You must login to view links.
Register or Login

Here's a link to the CSLB's You must login to view links.
Register or Login
Building Officials Guide

Minor Work Exemption (B&P 7048)
6.    Is it true that a contractor’s license is not required if the work
to be performed is under $500?

Yes, 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. 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. In addition, jobs cannot be broken down into hourly fees in
order to sidestep the $500 threshold.

« Last Edit: June 02, 2017, 11:37:11 AM by auditor1 » Logged
Pages: 1   Go Up
  Add bookmark  |  Print  
Jump to:  

Related Topics
Subject Started by Replies Views Last post
AuditBible's Dual Wage Threshold History tool AuditBible Tools beancounter 1 3654 Last post June 21, 2016, 02:51:26 PM
by beancounter
Pest Control License Lookup Links beancounter 0 2893 Last post July 18, 2012, 09:32:27 AM
by beancounter
Low Cost - High Quality Fax Service Tech Talk auditor1 0 3707 Last post July 31, 2012, 06:48:15 PM
by auditor1
CA Talent Agency License Database Links beancounter 0 3028 Last post October 08, 2012, 09:15:58 AM
by beancounter
Architect License Lookup Links beancounter 0 1143 Last post January 22, 2015, 12:49:28 PM
by beancounter
BSIS License Lookup Links beancounter 0 908 Last post January 11, 2016, 01:02:58 PM
by beancounter
Unique Hits: 1875669
Powered by MySQL Powered by PHP Powered by SMF 1.1.21 | SMF © 2015, Simple Machines
AuditBible © 2008 | Sitemap
Valid XHTML 1.0! Valid CSS!