Business & LicensingQuestion 443 of 1632

A prime contractor planning a large remodel wants the simplest reliable way to confirm a prospective subcontractor is properly licensed and in good standing. The best method is to:

a.Accept the subcontractor's verbal assurance that it is licensed
b.Rely on the licence number printed on the business card
c.Assume a subcontractor who owns his own tools is licensed
d.Check the subcontractor's status on the board's public website

Explanation

The prime contractor has its own skin in this. §7118 makes entering into a contract with a contractor while that contractor is not licensed a cause for disciplinary action against the licensee who did it, and no knowledge requirement appears anywhere in the section. §7031(a) then stops the unlicensed sub suing for its money, and §7031(b) lets whoever paid it recover everything back, so an unlicensed sub in the chain is a live problem for the prime's own books as well. The board's public record is the only source that answers the question at the moment it matters: §7124.6(d) publishes the date, nature and disposition of legal actions and §7124.6(e) keeps citations posted for five years after compliance, so the lookup shows not just whether a licence exists but whether it is suspended, expired or carrying discipline, and in which classification. (a), (b) and (c) all rest on the sub's own say-so, and a printed card is exactly what an expired licensee still has in his pocket.

Law Reference: Bus. & Prof. Code §7118; §7031(a)-(b); §7124.6(d)-(e)

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