By Candace L. Matson
As most construction professionals know, California law requires that any person engaged in the business of a contractor, or that acts in the capacity of a contractor, must be properly licensed by the Contractors State License Board (“CSLB”). Cal. Bus. & Prof. Code § 7028. A contractor is defined broadly, as follows:
The Fifth Day, LLC v. James P. Bolotin, et al., ___ Cal.App.4th ___(March 27, 2009, No KC047712)
By Jon E. Maki & Bram Hanono
The California Court of Appeal for the Second Appellate District determined that an entity which provided construction management services to a private owner developing commercial real property was not required to be licensed as a contractor pursuant to the Contractors' State License Law ("CSLL") (opinion by Acting Presiding Justice Armstrong, concurrence by Justice Krieger). In a lengthy dissent, Justice Mosk disagreed, highlighting that the intent of the CSLL is to protect consumers from unqualified and unlicensed contractors and predicted that the decision on a case of first impression creates a loophole in the license requirements by allowing unlicensed contractors to call themselves "construction managers."
MW Erectors, Inc. v. Niederhauser Ornamental and Metal Works Co.,
30 Cal. Rptr. 3d 755 (2005)
The California Supreme Court has clarified the rules under California Business & Professions Code section 7031 regarding an unlicensed contractor's ability to recover compensation for performance of work which requires a contractor's license.
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