Business & LicensingQuestion 675 of 1632

Two licensed contractors want to bid on a single project as a joint venture. Under Bus. & Prof. Code §7029, they must:

a.Note the joint venture on the bid and use the larger member's license
b.Get a joint venture license only if both members hold that classification
c.Obtain a separate joint venture license issued in the joint venture's name
d.Have one member contract as prime and the other as its subcontractor

Explanation

§7029 makes the joint venture itself the licensee: the JV license is issued to the combination of licensees, every member must hold a current active license in good standing, and a lapse by any one member suspends the JV license by operation of law. Classification is the trap in (b) — §7029 lets the JV license issue in any classification in which at least one of the entities is licensed, not only one both hold. (a) borrows a license the joint venture does not hold, and (d) describes two separate contracts rather than one bid under a single joint name. An unlicensed JV cannot sue for its compensation under §7031 even though each member is individually licensed.

Law Reference: Bus. & Prof. Code §7029; §7031

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