Business & LicensingQuestion 675 of 1605
Two licensed contractors want to bid on a single project as a joint venture. Under Bus. & Prof. Code §7029, they must:
a.Simply note 'JV' on the bid form
b.Form a new corporation and obtain a separate license under the corporate name
c.Obtain a separate JOINT VENTURE LICENSE from the CSLB in the name of the JV, with each constituent licensee identified and each holding a current, active license in the relevant classification(s); the JV license is granted without a new exam if each constituent is properly licensed
d.Have one party qualify as the prime and the other as a subcontractor
Explanation
Bus. & Prof. Code §7029 requires every joint venture of two or more licensees that bids or contracts under a single name to obtain a separate joint-venture license issued in the name of the JV. Each constituent licensee must hold a current, active license in the relevant classification, and a separate JV license application (with reduced fees and no separate examination) is filed. Forming a new corporation, JV-noting alone, or prime/sub structuring do not satisfy §7029. Operating an unlicensed JV bars the JV from suing for compensation under §7031, even though each member individually is licensed.
Law Reference: Bus. & Prof. Code §7029Practice all 1605 questions free — no signup required.
Related questions on this topic
- A licensed contractor changes its business address. Under Bus. & Prof. Code §7083, the contractor must notify the CSLB Registrar within:
- A qualifying individual (RME/RMO) disassociates from a licensed entity on March 1. Under Bus. & Prof. Code §7068.2, by when must the licensee notify the CSLB Registrar?
- How many separate active CSLB licenses may a single qualifying individual (RMO or RME) qualify simultaneously?
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)