Business & LicensingQuestion 1360 of 1632

What does the 'two unrelated trades' rule mean for a Class B General Building contractor?

a.The project itself must call for two unrelated trades
b.The contractor must hire at least two subcontractors per job
c.The contractor may build only residential structures
d.The contractor may perform any specialty trade without limit

Explanation

B&P §7057(a) defines the general building contractor by a structure whose construction requires the use of at least two unrelated building trades or crafts, and §7057(b) turns that definition into a limit on the prime contracts the contractor may take. (b) converts a scope test into a headcount: the question is what the project requires, and the contractor may self-perform trades its own classification covers. (c) invents a residential limit, while the definition reaches any structure built for the support, shelter, and enclosure of persons, animals, or property. (d) drops the §7057(b) limit, which is exactly what keeps a Class B out of single-trade specialty prime contracts.

Law Reference: B&P Code §7057(a)-(b)

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