Should I be classified as a General Contractor if I'm directly contracted with the Property Owner in California?

1 week ago
State: California

For a landscaping company that is often contracted directly with the Property Owner on residential jobs, do I follow the preliminary notice & lien requirements for the General Contractor or not? I am not licensed as a General Contractor in California, but want to make sure I am meeting the correct preliminary notice requirements.

Managing Partner Gibbs Giden LLP

Good afternoon,

Do you have a proper C-27 license and avoid taking contractors that would require a Class B license?    Assuming you have a proper C-27 and are direct with the property owner, you still need to serve a preliminary notice if there is a third party lender (someone other than the fee owner of the property) financing the improvements.

Disclaimer: NOTE: The information presented here is general in nature and is not intended nor should be construed as legal advice for any particular case or client. The content contained herein is published online for informational purposes only, may not reflect the most current legal developments, verdicts or settlements, and does not constitute legal advice. Do not act on the information contained herein without seeking the advice of licensed counsel. This posting does not create any attorney-client relationship and is neither intended to constitute an advertisement nor a solicitation.
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Guest
Anonymous

So if I was contracted directly with the owner and paid by the owner with no knowledge of a lender?  Yes I’m a true C-27

Managing Partner Gibbs Giden LLP

Generally, the law requires you to do some diligence to identify whether there is a third party lender, e.g., checking the building department records (permit) and County Recorder’s Office for a construction trust deed or other deed which may indicate the identity of a lender funding the project.  Pursuant to an appellate case from 2010, it may be sufficient to rely upon a written “job information sheet” provided by your customer/the owner that declares the identity of the lender and if there is none, to so clearly state that there is no lender and the project is owner-financed.

Disclaimer: NOTE: The information presented here is general in nature and is not intended nor should be construed as legal advice for any particular case or client. The content contained herein is published online for informational purposes only, may not reflect the most current legal developments, verdicts or settlements, and does not constitute legal advice. Do not act on the information contained herein without seeking the advice of licensed counsel. This posting does not create any attorney-client relationship and is neither intended to constitute an advertisement nor a solicitation.
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