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If You're the RMO, RME, or Qualifying Partner, it's Your Responsibility

If you are the qualifying member of a construction business, you and your licenses will be held accountable for all activity and any violations committed by other members of the license. As the Responsible Managing Officer (RMO), Responsible Managing Employee (RME), or Qualifying Partner for a contracting business, you must exercise direct supervision and control of its contracting operations. If you are not doing so, or if any of the business's other officers, general partners, or employees break the law, you could lose this license and any other license on which you serve as qualifier for violating section 7068.1 of the Business and Professions Code (B&P).

Also, keep in mind that under B&P Code section 7122.5 any act or omission that is a cause for disciplinary action by any individual, partnership, corporation or firm is also a cause for disciplinary action against the RMO, RME, or Qualifying Partner, regardless of his or her knowledge and participation.

image of a contractor
image of a contractor
What Can and What Can't General Building Contractors Do?

Under California law "B" General Building contractors have specific guidelines to follow when it comes to trades they can perform.

Business and Professions Code section 7057 states that a general building contractor only can take a prime contract that requires two or more unrelated building trades, and that framing and carpentry cannot count as one of the two trades. However, a general contractor may take a prime contract that is only for framing and carpentry, and no separate unrelated trade. If a B licensee takes a subcontract, it, too, must involve two unrelated trades (not including framing and carpentry toward the two) or a B can subcontract to only do the framing and carpentry.

There is no limit to the number of unrelated trades a "B" licensee can perform on a given contract, provided that there are two or more, and that framing and carpentry don't count as one of the two that must be performed at a minimum.

Two trades that a "B" license holder may not perform as a prime or subcontractor are fire protection and water well drilling. B&P Code §7057 states that general building contractors may not do this work unless they qualify for and add these classifications to their license, or unless the general building contractor holds the appropriate license classification or subcontracts with an appropriately licensed specialty contractor to perform the work. The "B" also may subcontract the fire protection or well drilling portions of the project to a qualified licensee.

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Make Sure the Check's In the Mail

To keep complaints from being filed against your license, remember to pay your subcontractors and suppliers. CSLB's Intake Mediation Centers have noted a steady stream of complaints by homeowners who have had mechanic's liens filed against their properties by subcontractors and materials suppliers who were not paid by the prime contractor. Make sure all businesses and workers receive the agreed-to payments to prevent any disciplinary action against your license.    |    | previous    |    next