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Unlicensed Construction Manager have Lien rights?

As a Construction Manager working on projects in California, for a GC, do I have Lien rights, being unlicensed, along with providing materials and rental equipment for the project? If so, please provide ARS Code? Also, Does a Construction Management Company in California need to be Licensed?

1 reply

Dec 10, 2019

A Construction Manager in California does not need a contractor's license as long as they are not conducting activities that would bring them within the definition of a contractor in California. See The Fifth Day, LLC v. Bolotin (2009) 172 Cal.App.4th 939, 949. The definition of contractor in California is set forth in Bus. & Prof. Code, § 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, ...." Because construction managers in many cases only manage and do not directly construct anything, or contract for another to do so, they may not need a license. Providing materials and equipment also does not require a license, assuming you are not operating the equipment or utilizing the materials on the project. A Construction Manager may have lien rights provided they gave preliminary notice or have a direct contractual relationship with the owner. Under Civ. Code, § 8400 "A person that provides work authorized for a work of improvement" is entitled to file a lien. Construction managers are not specifically listed under Civ. Code, § 8400 , but as long as their management work is authorized in furtherance for the work of improvement they can assert lien rights. On a cautionary note, look at your contract and make sure it does not require you to do anything that would bring you within the definition of a contractor in California. If it does, a license is required both precluding lien rights, or any lawsuit for that matter, and exposing you to the risk that you could be sued to disgorge all sums paid to you for the project under Bus. & Prof. Code, § 7031

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