August

  1. Requiring Payment of Referral Fees is Prohibited

    No matter what you call it-a referral fee, incentive, inducement, or kick-back, any time a fee is requested or required for referring contracting work, a state law is being violated and you risk having disciplinary action taken against your license. CSLB is aware that referral fees in the disaster r…Read More

  2. Maximum Down Payment Allowed

    The number of consumer complaints filed with CSLB for solicitation or receipt of a down payment in excess of the legal limit has doubled in the past four years. Remember, it is illegal to request or receive a down payment larger than 10 percent of the contract price or $1,000, whichever is less. Fai…Read More

  3. New Laws Affecting Contractors to Take Effect in 2012

    The following bills, which were signed into law by Governor Jerry Brown this summer and go into effect next year, may have an impact on home improvement contracting and the construction industry: Assembly Bill 1091, sponsored by CSLB, requires CSLB notification within 90 days of a Responsible Managi…Read More

  4. Common Causes for CSLB Revocations and Suspensions

    One of the most common reasons for contractor license revocation or suspension is failure to submit payments within the appropriate time frame following citations or CSLB arbitration decisions. To avoid a license suspension, licensees must pay their citations within 15 days of issuance (barring appe…Read More

  5. Failing to Obtain Building Permits Could Cost You Money!

    Before you begin work on any building project, you must check with your city or county building department to determine if your project requires a permit. Permits help ensure that work is performed according to established state and local building codes, and safety standards. While disciplinary acti…Read More

  6. Submit Your Proof of Workers’ Compensation Insurance to CSLB

    Have you added workers to your contracting business since filing a workers' compensation insurance exemption with CSLB? If so, you must submit a certificate of workers' compensation insurance or a certification of self insurance, as required by law. If you are covered by a minimum policy for workers…Read More

  8. Emergency or Force Majeure Clause In Construction Contracts

    We all know that something bad can happen on a construction project that can cause delay. The question is how do we deal with it. Most contracts have some provision in case of emergency or force majeure . Force Majeure is French for superior or irresistible force and such a clause is contained in ma…Read More