If a contractor with a C license, specialty license, acts as a General Contractor, to include hiring subs, are they considered unlicensed?
2 replies
Nov 5, 2019
a specialty contractor with C license for a particular trade can hire a sub-sub to perform that same trade work in his place.
the specialty contractor cannot hire a sub-sub to perform trades in which he is not licensed for. In that capacity the specialty contractor is acting as a B general contractor and is subject to the rules prohibiting that and potentially subject to B&P §7031 contracting without a license. If determined to be an unlicensed contractor then the contractor may not be able to enforce the contract against the owner and may be subject to disgorgement of all monies paid to contractor.
This subject is very fact and law heavy and requires consultation with knowledgeable counsel.
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Nov 5, 2019
sorry,
forgot to identify myself.
A specialty contractor with a C specialty license can hire another sub-subcontractor to perform the same contracted work in his place.
The specialty contractor cannot hire a sub-sub to perform trades in which he is not licensed for. In doing that, the specialty contractor is acting as a B general contractor and may get himself into trouble including: being subject to Business & Professions Code 7031 for contracting without a license.
Contracting without a license has two real world problems for contractor: 1) he cannot enforce the contract against the owner (regardless of whether the owner knew or should have known that contractor did not have a license to perform the contracted work; and 2) contractor may be subject to disgorgement of all monies paid to contractor, including for materials.
This subject is very fact and law heavy and requires consultation with knowledgeable counsel.