2011

Reasonableness of Reliance on Information given by Owner for Preliminary Notice is Question of Fact

In Force Framing Inc. v. Chinatrust Bank, (2010) the Appellate Court addressed the issue of the reasonable reliance of a contractor on the preliminary information given it by the owner as to who the construction lender was for the project. Force Framing was given a preliminary information sheet by M…Read More
What General Contractors Can and Can’t Do

General building contractors usually oversee projects and coordinate the specific licensed subcontractors for a job. Specialty or subcontractors are usually hired to perform a single job. For example, if you want only roofing or plumbing work, you may want to hire a contractor licensed in that parti…Read More
Advertising within the Guidelines of the California State Contractors Board

Contractors must comply with the guidelines or face penalties. All advertising must contain your contractors license. Advertising means newspapers, magazines, radio, television, your business card, contract proposals, lettering on your trucks or other vehicles, signs or billboards, websites, brochur…Read More
Good News for Orange County Contractors

The chances of a contractor recovering attorneys fees on a public works project got better. The appellate court ruled in Mepco Services Inc. v. Saddleback Valley Unified School District (2010) 189 Cal. App. 4th 1027 in a public works project where a contractor must provide a performance bond under t…Read More
Warning to Contractors with Their Licenses Suspended or Revoked

SACRAMENTO - A former licensed contractor whose state license was taken away in 2010 was sentenced to four years felony probation and ordered to pay a $2,500 fine to the Workers' Compensation Fraud Account administered by the California Department of Insurance. The May 5, 2011 sentencing of Brian Gr…Read More
Is E-Verify Going to be Required State Wide?

California contractors should be aware that while the state of California doe not require the use of the federal government's E-Verify Program yet, several California cities do. E-Verify is an Internet-based system that allows contractors and other businesses to determine the eligibility of their em…Read More
Are Written Change Orders Needed to Collect for Extra Work?

Construction contracts universally contain a requirement that any change order or extra work order be in writing and signed prior to the work being performed. Generally, when project directives are issued that change the scope of work but no formal written change order is issued or amount for the ch…Read More
Contractors State License Board Announces Zero Tolerance for Uncertified Electricians

SACRAMENTO - The Contractors State License Board (CSLB) established a zero-tolerance enforcement policy in 2010 and now issues legal action against any C-10 Electrical contractor who willfully employs an uncertified electrician to perform work as an electrician. CSLB is legally required to open an i…Read More
Public Entity Must Pay for Scope of Work Not Disclosed

The California Supreme Court in LAUSD v. Great American Insurance Company; Hayward Construction Company (2010) 49 Cal.4th 739, held that where the contractor can establish that a public entity "knew material facts concerning the project that would affect..." the contractor's " bid or performance and…Read More
No Pay for Contractor Starting a Job Unlicensed

The Court in Alatriste v. Cesar's Exterior Designs, Inc. (2010) 183 Cal.App.4th 656 found that a homeowner was allowed to sue to recover all monies paid to a contractor who began performance of work while unlicensed, even though the contractor obtained its license during the performance of the work.…Read More

Orange County

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