Surety Bond Blog » contractor

California Contractor’s License Bond Amendment

Lisa Grimsley — Mon, 17 Aug 2009 14:37:56 +0000

The SB 1432, which became effective on January 1, 2009, amended Californiaâ€™s law for claims toward home improvement contractors. The new law states that a homeowner may make a claim against the contractorâ€™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 contractorâ€™s licensing period.

Stimulus Package: Pros & Cons For The Construction Industry

Michael Weisbrot — Tue, 24 Feb 2009 21:04:28 +0000

The stimulus package is absolutely gigantic. So much so, I thought I would create a list of pros and cons related to the construction industry pertaining to the bill. Many of the cons are items that the industry was pushing for, but did not get.

Overall, the bill looks like a victory for the construction and surety industries. See below for details.

PROS:	CONS:
The biggest investment in infrastructure for 50+ years
	No specified amount for school construction
Passed with $8 billion towards high-speed rail (previous Senate version included $2 billion, while previous House version included $0)
	â€œState fiscal-stabilizationâ€? funds cannot be used for new construction of schools, only modernization
General Stimulus: $110.7 billion (35%) is appropriated for projects in 2010	General Stimulus: Only $34.8 billion (11%) of the $308.3 billion will be spent on â€œshovel-readyâ€? projects by 9/30/09, the fiscal year end for 2009
Infrastructure Stimulus: 50% of funds spent on work to be started within 120 days of the enactment
â€œUse it or lose itâ€? policy for DOT, a 50% expenditure for within 120 days	â€œUse it or lose itâ€? policy is not in force for the following departments, but they must report to Congress on how they are spending their funds: DOD & VA – 30 days GSA – 45 days
â€œBuild Americaâ€? tax-credit bonds can be issued by local and state governments in 2009 & 2010
Small businesses may deduct income up to $250K of capital expenditures as well as a 50% deduction on depreciable assets (e.g. construction equipment)
Businesses can carry 08â€™ operating losses to offset profits from previous years	Only companies with less than $15 million in revenue can qualify
A bill that requires public companies to withhold 3% of their contracts will no longer be effective for 2011	The bill will be effective for 2012

Compliance Issues for Electrical Contractors Aiding in the Disaster Recovery Efforts in Texas

Michele Haddon — Tue, 07 Oct 2008 19:58:30 +0000

In 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 Stateâ€™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 â€“ 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:

â€¢ Completed Contractor License Application
â€¢ $200.00 Registration Fee
â€¢ $300,000 minimum liability insurance listing â€œCity of Galvestonâ€? as an additional insured
â€¢ $5,000 Surety Bond for permitting/general contracting

You can find their Contractor License Application and other helpful information regarding their requirements on their website:
City of Galveston

The 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 theyâ€™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 â€“ helping those in need.