The SB 1432, which became effective on January 1, 2009, amended California’s law for claims toward home improvement contractors. The new law states that a homeowner may make a claim against the contractor’s bond only if the damages happened when the homeowner did not intend on selling the home. The law also makes a change to the time limit of making the claim, based on the contractor’s licensing period.
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California Contractor’s License Bond Amendment
August 17, 2009 by Lisa GrimsleyCategory: Commercial Bonds, Contractor License Bonds, Surety NewsTags: bond requirements, ca, california, contractor, Contractor License Bonds, contractors, legislation, surety bond | Comments (0)
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Compliance Issues for Electrical Contractors Aiding in the Disaster Recovery Efforts in Texas
October 7, 2008 by Michele HaddonIn the aftermath of Hurricane Ike, many out-of-state electrical contractors are traveling into Texas to assist in the disaster recovery efforts. In order to operate in accordance with the law, it is necessary to become familiar with the both the State’s laws and the local ordinances of the municipality that you plan on performing work in.
Electrical Contractors, who have an equivalent license in their own state, are able to quickly obtain an Emergency License issued by the Texas Department of Licensing and Regulation (TDLR). The specific application for this license is available on their website and must be submitted with a copy of your current license and the application fee. An Emergency License can be issued for the following classifications: Master Electrician, Master Sign Electrician, Journeyman Electrician, Journeyman Sign Electrician, Residential Wireman, and Maintenance Electrician. With this license, you must work under another contractor licensed in Texas. The Emergency License is valid for 90 days and will only allow you to perform within the designated disaster area and during the time of a declared disaster and its recovery period.Another quick way to get licensed is to apply for a temporary apprenticeship license. This temporary license would be valid for 21 days – hopefully giving you enough time to obtain your permanent license. Again, you must work under another contractor licensed in Texas.
Be sure to research specific municipality requirements as well. Many cities require contractors to be registered with the municipality. Along with your registration, they may require varying registration fees, additional insurance coverage, and a surety bond.
As an example, here are the licensing requirements for contractors to become registered in the City of Galveston:
• Completed Contractor License Application
• $200.00 Registration Fee
• $300,000 minimum liability insurance listing “City of Galveston� as an additional insured
• $5,000 Surety Bond for permitting/general contractingYou can find their Contractor License Application and other helpful information regarding their requirements on their website:
City of GalvestonThe State of Texas has adopted the NFPA 70 Electrical Code as published in the NEC 2008 Edition. Check with the local code enforcement office in the city you will be performing work in to find out what electrical code requirements they’ve adopted. It is important to learn state and local standards for electrical work because they could differ from your home state.
It is inspiring to hear from so many contractors wishing to help out those who have faced devastation due to natural disasters such as Hurricane Ike. With great intentions in the front of your mind, it is easy to act in haste and overlook the proper steps essential to stay in compliance. Be sure to protect yourself and your company by doing the necessary research and paperwork. This will save you valuable time and money, so you can put more effort towards what really matters – helping those in need.
Category: Commercial Bonds, Contractor License Bonds, Surety NewsTags: contractor, Contractor License Bonds, hurricane, texas, tx | Comments (1)
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Oregon Construction Contractors: Change in Licensing Structure means Change in Bond Requirement
October 6, 2008 by Michele HaddonThe Oregon Construction Contractors Board has changed a requirement for new and renewing licensees in which they must choose an endorsement for their license rather than a licensing category. The endorsements are broken down into either Residential Endorsements or Commercial Endorsements.
The reason for this change is to make it easier for contractors because they would be able to include a range of disciplines under a single license. With over 45,000 licensed contractors in Oregon, this licensing structure also helps the Construction Contractors Board (CCB) to more effectively regulate licensees. Because of this change, the CCB is also requiring licensees to submit their contractor license bonds on a new bond form and for the amount specified according to the endorsement they choose. For those with a Dual Endorsement, two separate bonds will be required – one for residential and another for commercial.
The change was made effective July 1, 2008 for all new licensees. For existing licensees, it will come up when your license renews. If you are unsure of the bond requirement for your license endorsement, refer to the CCB Licensing Endorsement Chart. You can also refer to the renewal notice packet the CCB sends you – they are providing detailed explanations about the endorsements and the new bond requirements. If you believe your license is up for renewal and have not received a renewal notice, you should contact the CCB immediately.
Once you receive your renewal notice from the CCB, be sure to contact your bond agency to have your bond issued on the new bond form. You will need to let them know which endorsement you have chosen – Residential or Commercial, and the bond amount now being required. If you have chosen a Dual Endorsement, let your agent know that you will need both the Residential Contractor Bond and Commercial Contractor Bond.
They should already be familiar with this new bond requirement and will be able to ease you through the transition from your old bond to the new one.If there has not been a significant increase in the bond amount, most sureties will be able to issue the new bond without additional underwriting. In the case that additional underwriting is required, be prepared to provide updated information, especially if the bond amount has increased significantly. These updates could include personal financial statements and/or business financial statements (fiscal year-end and year-to-date). In either case, the process should be fairly easy – with the assistance of the CCB’s Customer Service Unit and your bond agency.
Category: Commercial Bonds, Contractor License Bonds, Surety NewsTags: contractor license, Contractor License Bonds, license bond, OR, Oregon | Comments (0)
