Business & LicensingQuestion 675 of 690
Two licensed contractors want to bid on a single project as a joint venture. Under Bus. & Prof. Code §7029, they must:
a.Form a new corporation and obtain a separate license under the corporate name
b.Simply note 'JV' on the bid form
c.Have one party qualify as the prime and the other as a subcontractor
d.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
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 690 questions free — no signup required.
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