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Author Topic: The job cost threshold that makes a license necessary  (Read 3057 times)
 
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The valetudinarian
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« 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
auditor1
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« 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.
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7048


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

Quote
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.


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« Last Edit: June 02, 2017, 11:37:11 AM by auditor1 » Logged
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