CSLB ANNOUNCES ZERO-TOLERANCE FOR C-10 REQUIREMENT VIOLATIONS

ONLY CERTIFIED ELECTRICIANS TO PERFORM WORK AS ELECTRICIANS

Effective immediately, the CSLB establishes a zero-tolerance enforcement policy and will issue legal action against any C-10 Electrical contractor who willfully employs even one uncertified electrician to perform work as an electrician. CLSB is legally required to open an investigation and initiate disciplinary action against the contractor, which may include license suspension or revocation, within 60 days of receipt of a referral or complaint from the Division of Apprenticeship Standards (DAS).

Subsections within Labor Code Section 3099 clearly state that certification by DAS is required for anyone who performs work as an electrician for C-10 Electrical contractors. DAS is required by Labor Code section 3099.2 to report violations to CSLB.

Electricians are defined as all persons who engage in the connection of electrical devices for C-10 contractors. It is CSLB's position that electrical work must be performed by a certified electrician or an approved apprentice. Trenching, concrete, framing, and other work that does not involve connecting electrical devices may be performed by noncertified workers.

Questions regarding this CSLB enforcement policy should be directed to Brian Gedney at (916) 255-4435.

Visit the CSLB's website at www.cslb.ca.gov for this and other important information for the construction industry.

MECHANIC'S LIENS

A Mechanic’s Lien is a document that contractors, engineers, material suppliers, designers, etc., (the “mechanic”) has recorded at the County Recorder’s office. The purpose of a Mechanic’s Lien is to provide the “mechanic” a lien on the property that work was done on for which they have not been compensated for. In other words, it puts a “hold” on the property until the “mechanic” is paid. The lien then gives the “mechanic” the right to foreclose on that property that has the lien on it by filing a lawsuit.

Unfortunately, there are instances wherein the property owner could be the one responsible for paying the lien even though they already paid once for all of the work that was done on their property. This can occur when an owner pays the prime contractor in full for the job, but the prime contractor does not pay the subcontractor in full. If that subcontractor then places a lien on the property, the owner could then be responsible for the outstanding monies due to that subcontractor.

Mechanic’s Liens, as well as Stop Notices and Bonds, are documents that should not be taken lightly. There are many requirements in place as well as timing as to when certain things should be done and/or filed. Mechanic’s Liens have been discussed and litigated many time throughout California Law. Because California law is very different than other state’s laws, it is very important to seek the aid and advice of a competent California construction attorney for help with the Mechanic’s Lien process, even before you realize you need to record one. You do not want to miss out on important deadlines that could preclude you from getting paid.

LIS PENDENS

A Lis Pendens, also known as a Notice of Pendency of Action, basically means that there is a lawsuit pending with respect to the particular real property listed in the Lis Pendens. A Lis Pendens is usually prepared once the lawsuit is commenced and is both recorded at the County Recorder’s Office and filed with the court. The purpose of having the document recorded is to tie the property up from transfer of title. Anyone that might have an interest in the property (for example, someone wanting to buy or finance) would then be aware that there is a potential claim on the property.

In the construction industry, a Lis Pendens goes hand in hand with a Mechanic’s Lien lawsuit. As you know, when a contractor provides work on a home and does not get paid, that contractor may record a Mechanic’s Lien. Once a lawsuit is brought to foreclose on that Mechanic’s Lien, a Lis Pendens is then filed and recorded to further enforce that Mechanic’s Lien. This process essentially ties up the property until the legal proceeding is resolved.

NEW LEGISLATION

Following are some new laws of interest:

AB 635 (De La Torre) Public Contracts: Roofing Projects

This law now makes a project for the repair or replacement of a roof of a public school or community college, a material, product, thing, or service considered equal if it meets specified requirements. It requires an architect, engineer, roof consultant, and other specified persons or entities to complete and sign a certification related to financial relationships in connection with such a project and to provide the certification to the school district or community college district. This law went into effect immediately after signing.

AB 1659 (Huber) State Government: Agency Repeals

Prior law had a Joint Committee on Boards, Commissions, and Consumer Protection and this new law will create a Joint Sunset Review Committee in its place. The purpose is to identify and eliminate waste, duplication, and inefficiency in government agencies and to include a comprehensive analysis of eligible agencies to determine if the agencies are still necessary and cost effective. This affects the CSLB just as the current sunsetting process currently does.

AB 2036 (Berryhill) Public Contracts: Contract Document Distribution

This law amends existing laws that have set forth procedures relating to state and local agencies solicitation and evaluation of bids or proposals for, and award, of contracts for the construction of public works.
The state department and any local agencies are now to provide an electronic copy of the project’s contract documents to the contractor plan room at no charge upon request from a contractor plan service.

AB 2058 (Block) Unemployment Insurance: Retraining Benefits

This law establishes the California Training Benefits Program, which specifies that unemployed individuals who qualify for unemployment compensation benefits, extended duration benefits, or an application for federal or state extended benefits or any federally funded unemployment compensation benefits, and applies for the program shall be deemed to be eligible for the program during a period of training or retraining and requires disclosure of related information.

AB 2130 (Huber) Professions and Vocations: Sunset Review

This goes hand in hand with AB 1659 wherein prior law had a Joint Committee on Boards, Commissions, and Consumer Protection and this new law creates a Joint Sunset Review Committee in its place. The purpose is to identify and eliminate waste, duplication, and inefficiency in government agencies and to include a comprehensive analysis of eligible agencies to determine if the agencies are still necessary and cost effective. As with AB 1659, this affects the CSLB just as the current sunsetting process currently does.

AB 2181 (Hagman) State Contract Act: Contracting by State Agencies

This law amends the State Contract Act by requiring projects that are not under the jurisdiction of specified departments to be under the charge and control of the Department of General Services.

AB 2195 (Silva) Taxation: Board of Equalization: Penalty: Proof

This new law deals with taxes and fees administered by the State Board of Equalization. The Board of Equalization now has the burden of proof, by clear and convincing evidence, in sustaining its assertion of penalties for intent to evade or fraud a civil proceeding. In addition, a taxpayer shall not be subject to unreasonable search or access to records in violation of the law.

AB 2211 (Fuentes) Instruction

This law authorizes school districts maintaining high schools to establish work-based learning programs and purchase related liability insurance. It also authorizes specified school programs to deliver such opportunities for pupils that may include work experience education, community classrooms, cooperative career technical education programs and job shadowing experience. In addition, specified entities are authorized to develop related principles and guidelines. This law went into effect immediately after signing.

AB 2305 (Knight) Contractors: Workers’ Compensation Insurance

This law amends existing law that requires a contractor with a C 39 roofing classification to obtain and maintain workers' compensation insurance even if the contractor has no employees. It also extends the operation of those provisions and requires license suspension for lack of workers' compensation for employees. Lastly, it extends the operation of existing law that requires an insurer who issues a workers' compensation policy to a roofing contractor holding such license to perform an annual payroll audit and requires statistical data.

SB 156 (Wright) Insurance: Fraud Prevention and Detection

This law authorizes the Department of Insurance to convene meetings with insurance companies to discuss information concerning suspected, anticipated, or completed acts of fraud. It also protects a person sharing information pursuant to the authorization from civil liability for libel, slander or other causes of action.

SB 189 (Lowenthal) Mechanic’s Liens

This law revises and recasts provisions of existing law relating to Mechanic’s Liens. It enacts separate provisions governing private works of improvement and public works of improvement. It also revises and recasts provisions governing design professionals liens, Mechanic’s Liens, notices of cessations, bonds and retention payments.

SB 294 (Negrette McLeod) Professions and Vocations: Regulation

This law provides for the extension of various provisions governing professions or boards, the Contractors' State License Board being one of them.

SB 392 (Florez) Contractors: Limited Liability Companies

This law amends the Beverly-Killea Limited Liability Company Act and the Contractors’ License Law. It authorizes the issuance of a contractor’s license to a limited liability company and authorizes specified officers to qualify for the license. The limited liability company will be required to maintain liability insurance and post a surety bonds as a condition of licensure. The law also provides personal liability of persons within the company in a certain instance and adds persons prohibited from engaging in business without a license.

SB 694 (Correa) Public Contracts: Public Works: Competitive Bidding: Procedures

This law extends the time to request a review and the time the State Uniform Construction Cost Accounting Commission has to review a public agency project that is to be performed after the rejection of all bids as well as for a Commission review of work for which evidence was provided that the work has exceeded the force account limits or has been improperly classified as maintenance.

SB 972 (Wolk) Indemnity: Design Professionals

This law provides, with respect to contracts and amendments to contracts entered into on or after January 1, 2011, with a public agency for design professional services, that all provisions, clauses, covenants, and agreements contained in, collateral to, or affecting these contracts or amendments to contracts that purport to require the design professional to defend the public agency under an indemnity agreement, including the duty and the cost to defend, are unenforceable, except for claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the design professional. It also provides that all contracts and all solicitation documents between a public agency and a design professional are deemed to incorporate these provisions by reference.

SB 1254 (Leno) Contractors: Workers’ Compensation Insurance Coverage

This law authorizes the Registrar of Contractors to issue a Stop Work Order to any licensee or unlicensed contractor who, as an employer, has failed to secure workers’ compensation insurance coverage for his or her employees and makes a failure to comply with the order a misdemeanor. It also sets forth procedures for the payment of employees pursuant to issuance of a Stop Work Order, and allows an employer to request a hearing to protest a Stop Work Order. Lastly, it would authorize an increase in the number of CSLB peace officer positions from three to 12.

SB 1491 (Business and Professions and Economic Development Committee) Professions and Vocations

This law has Contractors’ License Law cleanup provisions that modify the method for administering the open book asbestos examination and extends the statute of limitations for filing an action to discipline unlicensed contractors so that it conforms to the statute of limitations for licensees, and states that an action must be brought within four years from the date of the violation or 18 months after the filing of the complaint, whichever is later.

CSLB URGES HVAC CONTRACTORS TO AVOID CUSTOMER DISPUTES BY FOLLOWING ENERGY EFFICIENCY REQUIREMENTS

The Contractors State License Board (CSLB) and California Energy Commission (CEC) are encouraging C-20 Warm-Air Heating, Ventilating and Air-Conditioning (HVAC) contractors to follow California’s energy efficiency standards that took effect at the beginning of 2010. CEC has been informed of several disputes between contractors and consumers because of the costs associated with required testing and other work that ensures installations comply with the Building Energy Efficiency Standards.

Licensed contractors are required to know the applicable laws, regulations, and codes pertaining to all work performed within their licensing classification. To avoid conflict, licensed contractors must inform their clients of the costs associated with the required testing to ensure their systems are functioning properly, including testing by Home Energy Rating System (HERS) raters, when required. Contracts should fully detail all labor, services, materials, and equipment to be installed, and provide a total cost associated with the installation.

Under the California Code of Regulations, Title 24, Part 6, contractors installing new, or replacing existing, heating and air-conditioning equipment in certain climate zones must ensure that heating and air-conditioning ducts have been properly sealed and that the refrigerant charge level installed in split systems is properly measured.

For more information about license requirements, license laws, and contract requirements, visit CSLB’s website. For questions about the Building Energy Efficiency Standards (Title 24, Part 6), HERS regulations (Title 20), duct testing or additional testing requirements, contact CEC’s hotline at (916) 654-5106 or (800) 772-3300, via e-mail at Title24@energy.state.ca.us, or on the CEC website, which also provides the updated forms for energy efficiency standards requirements in some climate zones.

CORPORATIONS, LLC'S & FILING INFORMATION

If your business is a corporation or a limited liability company (LLC), you might be receiving official looking third party solicitations to file a Statement of Information form or to terminate your business. They usually request exorbitant fees for them to file these documents with the Secretary of State on your behalf. These documents look very official.

No business has to go through a third party (attorney or otherwise) to file these forms. The forms can be found on the Secretary of States website along with all of the filing fee information and how to file. Please note, you can use a third party to file these forms for you if you want to or are unsure how to do it yourself, but it is not mandatory.

If you receive on of these deceptive letters and would like to complain, you can send the letter along with a written complaint to the California Attorney General's office. Please include all documents received including the envelope the letter was received in and any return envelopes, if applicable. You can print a complaint form from their website at www.ag.ca.gov/consumers/general.php. The address is:

California Attorney General
Public Inquiry Unit
P.O. Box 944255
Sacramento, CA 94244-2550

For more information about these letters and more, you can visit www.sos.ca.gov/business/be/alert-misleading-solicitations.htm

CALIFORNIA LICENSED CONTRACTOR NEWSLETTER AVAILABLE

The Contractors State License Board (CSLB) is pleased to announce that its first online edition of the quarterly California Licensed Contractor (CLC) newsletter is now available.

The CSLB e-publication provides you with valuable information on a broad range of important subjects. The most recent round of state budget cuts forced CSLB management to make the difficult decision to discontinue mailing the publication. The decision will save the CSLB approximately $450,000.00 per year.

You can get the newsletter here.

BEWARE OF LICENSE RENEWAL FRAUD (CSLB INDUSTRY BULLETIN)

SACRAMENTO – The California Contractors State License Board (CSLB) has learned that some states are experiencing incidents of license renewal fraud. Licensees receive notices in the mail that instruct the contractor to send their renewal fee to a name and address that is different from the regulating government agency. Do not be fooled if you receive this type of notice.

In California, all renewal forms and fees should only be sent to:

Registrar of Contractors
Contractors State License Board
Department of Consumer Affairs
P.O. Box 26999
Sacramento, CA 95826-0999

Licensees can easily determine if they are approaching their renewal date by licking on the CSLB website’s “Instant License Check” link to see if their license is nearing its expiration date. Every two years, CSLB mails a courtesy reminder notice to active licensees approximately 60 days before their expiration date. The notice includes the renewal application that must be completed, signed, and returned to CSLB with the appropriate fees. Please use the pre-addressed CSLB envelope provided in the notice or write the above address on your envelope when submitting your renewal application and fees. Inactive licenses are renewed every four years.

If you believe you have been a victim of license renewal fraud, please contact CSLB at 1-800-321-2752.

MOTION IN LIMINE

A Motion in Limine is a type of pleading that is filed before the case actually goes to trial. The point of a Motion in Limine is to have the judge rule as to whether or not certain evidence will be allowed in court. A Motion in Limine is usually filed by one party to a lawsuit that is asking to exclude certain evidence that they feel would be prejudicial in trial.

CONTRACTORS STATE LICENSE BOARD ANNOUNCES NEW E-MAIL ALERT FEATURE

The Contractors State License Board (CSLB) has launched a new E-Mail Alert subscription service to provide licensees and consumers with instant notification of newly published industry bulletins, California Licensed Contractor newsletters, news releases and consumer alerts, and public meeting notices.

It only takes a few moments to sign up for one or all of these instant notification
categories.

“These e-mail alerts are another way for us to meet our goal of providing the most up-to-date information possible to licensees about the many issues affecting the construction industry and the operations of this Board,” said CSLB Registrar Steve Sands.

Simply go to the CSLB website www.cslb.ca.gov or www.CheckTheLicenseFirst.com and click on the “E-mail Alerts” button. Then, enter your contact information and hit “subscribe.”

That’s it.

Once you confirm your subscription, messages will automatically be sent to your e-mail address, alerting you of newly released CSLB publications and notices. You can opt-out just as easily if you later decide to discontinue receiving any of the alerts.

AFFIRMATIVE DEFENSE DEFINED

To explain what an affirmative defense is, we first need to understand how a lawsuit works. Typically, a lawsuit starts with the plaintiff filing a document with the court called a complaint. In the complaint the plaintiff alleges its causes of action and asks for damages. The defendant has to then defend himself. The most common way a defendant goes about defending himself is by filing a document called an answer with the court. In the answer, the defendant can deny claims set forth by the plaintiff (simply stating that the plaintiff's claims are not true) or the defendant can state that there are additional facts or arguments that will defeat the plaintiff's claims. These additional facts or arguments are what is known as affirmative defenses. Some of the more common affirmative defenses in a breach of contract or negligence case are listed below.

Statute of Limitations -- The plaintiff filed the lawsuit after the deadline imposed by law. For instance, if there is a dispute about a written contract, you have four years from the date that the contract was breached to file a lawsuit.

Accord and Satisfaction -- Simply, the plaintiff and defendant already settled the dispute.

Failure to Mitigate Damages -- If the plaintiff could have used ordinary care to lessen the damage, then the plaintiff should have done so.

Comparative/Contributory Negligence -- If the damages suffered is partly the plaintiff's fault, then the defendant can ask for a reduction (comparative negligence) or the complete bar of (contributory negligence) damages.

There are more affirmative defenses. The above is just a few of them.

WHAT IS DISCOVERY?

Many times while representing a client in a lawsuit when the discovery process begins, the clients have never heard the term "discovery" before. Basically, discovery is a gathering of information. It is conducted between parties before a case goes to trial so that all sides can gather information from the other parties and begin to prepare for trial. Sometimes the discovery process is beneficial in negotiating settlements before the case goes to trial. If not, the parties have sufficient information to proceed to trial. There are many different types of discovery that can be used. Some of the more common discovery tools are listed below:

Interrogatories -- Interrogatories are simply written questions from one party to another that must be answered (in writing) under oath.

Requests for Admission -- Request for admission are where one party asks another party to admit or deny various facts of the case.

Requests for Production of Documents -- Requests for production of documents are where one party asks another party to produce specific written documents or physical evidence that might be important in the case. These can include such things as letters, building plans, contracts, photographs, notes, etc.

Deposition -- Depositions are oral testimony that is taken under oath where one party can ask questions to obtain information and facts relevant to the case. Depositions can be conducted upon other parties to the case as well as witnesses.

LITIGATION COSTS

The Vons Companies, Inc. (Vons) owned property and entered into a contract with Lyle Parks Jr., Inc. (Parks) to improve Vons' real property. The contract contained an attorney's fees provision. After the work was completed, Parks gave Vons a separate warranty that work was completed, etc. This warranty (as well as the original contract) stated that Parks would fix any defects in his work for one year. The warranty did not contain an attorney's fees provision like the contract did. Before the year was over on the warranty, Vons sold its property to Mock Rank, Inc. (Mock). In the sale agreement, Vons sold "all of its rights, title and interest" in the warranty, but not the contract.

Two years after the sale, Mock sued both Vons (for failing to disclose water leaks among other things) and Parks (for breach of warranty and negligence, etc.). Before trial, Mock and Vons settled with Mock assigning its claims against Park to Vons. Vons prevailed in court over Parks on most of the issues. After the verdict, Vons filed a memorandum asking for costs and attorney's fees, which Parks objected to. The trial court denied Vons both its costs and attorney's fees. Vons appealed.

The Court of Appeal reversed the judgment of Vons so that they could obtain their costs since they were the prevailing party. But the Court of Appeal did not reverse the judgment of no attorney's fees since the claims were based on the warranty and not the contract. Since the warranty did not contain any attorney's fees provision, no attorney's fees should be awarded.

SMALL BUSINESS BILL PASSES ASSEMBLY COMMITTEE

A California Chamber of Commerce-supported job creator bill that expands small business opportunities passed an Assembly committee on April 20, 2010.

AB 1771 (Mendoza) helps promote new opportunities and business for small businesses and saves the state money by allowing state departments to award contracts of less than $25,000 for goods or services by certified micro businesses, small businesses or Disabled Veteran Business Enterprises (DVBEs) without seeking an exemption of the Prison Industry Authority (PIA) mandate if they are able to make the product for less than the PIA.

Current law in effect gives the PIA precedence over other vendors during the contract bid evaluation process, regardless of the price of the product. The PIA mandate unnecessarily reduces business opportunities for private companies and drives up state costs.

By reducing the impact of the PIA mandate and setting the bidding preference for micro-businesses and small businesses at the same level as the PIA, the state would expand the number of businesses that can compete for small state projects, with likely savings for most bids.

AB 1771 passed the Assembly Jobs, Economic Development and the Economy Committee on a vote of 6-0. It will be considered next by the Assembly Public Safety Committee.

This article is written by the California Chamber of Commerce Alert. Staff Contact is Marti Fisher.

INDEPENDENT CONTRACTOR WITHHOLDING PROPOSAL

The California Chamber of Commerce follows legislation and tries to protect California businesses. There is currently a proposal looming that will force small businesses to make interest free loans to the state. It would require businesses and public agencies to withhold 3% of payments to independent contractors. This money would be sent to the Franchise Tax Board instead of being in the independent contractors pocket, thereby making them able to keep their business going. This will severely hurt small businesses because of the tax compliance requirements that will need to be implemented and further hurt those that are independent contractors because they will be missing out on 3% of their income until they file their California taxes (if they file) and get a refund.

If you are interested in finding out more information, visit http://www.calchamber.com/alert/alert_2-5-10-4.htm

PHCC -- THE FLOW EXPO -- MAY 1, 2010

Saturday, May 1, 2010, at the Long Beach Convention Center is the 35th Annual Southern California Plumbing Heating Cooling Industry Trade Show. Come by from 9:00 a.m. to 4:00 p.m. to be a part of the largest industry trade show for Plumbing and HVAC professionals in the west.

Abdulaziz, Grossbart & Rudman will be there in addition to many exhibitors showing the latest innovations, technologies and services that will help you grow your business.

For more information visit http://www.phccglaa.org/tradeshow/

REFERRAL FEES / INDUCEMENTS

I believe after all of the push and shove, I have a final document that all contractors should refer to if they deal in the area of referral fees. The following is from a consensus of several people pretty high up.

There has been a lot of talk about referral fees and whether they are acceptable, not acceptable, or hurting the economy. There have been a number of people complaining about contractors and unlicensed contractors with respect to the referral fee issue.

For quite some time now, there has been some question as to whether one contractor can provide another contractor with a referral fee. We have been receiving many phone calls and emails about this very issue. Although the consensus believes (I use the word "believes" because I do not know if it would be accurate to say exactly what the law says) that the answer should be No, we thought it best to actually spell it out.

The portion of the law that was discussed among several people was Business & Professions Code section 7157. After various discussions back and forth, it was unanimously agreed among us that the answer to this question is that no referral fees should be allowed between contractors - ever. Of course, contractors can be compensated for work that they do. However, they should not benefit from this work in the form of an inducement or referral fee.

Please note that this analysis does not include anything having to do with non-contractors.

RISE IN CONTRACTOR BOND PREMIUMS - CONTRACTORS CAN CONSIDER "BOND ALTERNATIVES' -- CSLB INDUSTRY BULLETIN #10-08

The Contractors' State License Board (CSLB) has received an influx of telephone calls and letters from contractors who have been unable to secure a contractor's bond or who are faced with a significant rate increase. Licensed contractors are required to maintain a surety bond (contractor bond) for the benefit of consumers who may be damaged as a result of defective construction or other license law violations, and for the benefit of employees who have not been paid wages that are due to them (Business and Professions Code section 7071.5).

Surety companies base the premiums they charge on insurance company rates file with and approved by the Department of Insurance (DOI). All surety companies must strictly adhere to DOI's approved rating plan.

CSLB's role is to ensure the proper bond(s) or approved alternative(s) is filed for each active contractor license, including and related documents provided to CSLB for the continued maintenance of the bond(s).

Before an active contractor license can be issued or renewed, the licensee must have a current contractor bond or approved alternative to a bond on file with CSLB in the amount of $12,500.00. CSLB has no authority over the bond premium amount or the cancellation criterion offered by a surety company; DOI regulates the surety companies independent of CSLB.

Currently, there are more than 50 surety companies that have active bonds filed with the CSLB. If contractors are unable or prefer not to obtain a surety bond through these surety companies, they may use one of the approved alternatives for filing a security deposit. Information concerning approved alternatives to a contractor's bond is available on the CSLB website at www.cslb.ca.gov or by calling CSLB at 800-321-2752.

SB 313 -- WORKERS' COMPENSATION

California Governor, Arnold Schwarzenegger, signed SB 313 in November, 2009, which went into effect on January 1, 2010. It is intended to help legitimate business, including contractors, to compete against business owners that do not pay workers' compensation insurance. It increases the employer's penalty from $1,000.00 per employee to $1,500.00 per employee for a business that does not carry workers' compensation insurance.

Another portion of this bill now makes employers pay the amount they should have paid into the state treasury for each week they were uninsured for the three years prior to the citation. If the employer obtains the insurance while a penalty determination is going on, the employer's penalty will be prorated.

CSLB URGES LICENSEES TO COMPLETE RENEWAL FORMS PROMPTLY

CSLB INDUSTRY BULLETIN #10-07

Cutting deadline too close could lead to license expiration

The CSLB is reminding its more than 300,000 licensees to submit their renewal application and fees as soon as possible after receiving their CSLB license renewal notice.

A CSLB license expires on the last day of the month in which it was issued. The CSLB sends a renewal application notice to each licensee 60 days before the expiration date. In that notice, the licensee is advised that it may take up to four weeks for the CSLB to process the renewal once it is received. If the licensee waits too long, it is likely that the renewal will not be processed before it expires. If the license expires, the licensee will not be able to legally perform any construction work until CSLB processes their renewal paperwork.

The odds of missing your license renewal deadline increase if you wait too long to submit your paperwork. The CSLB receives an influx of renewals during the last couple of weeks of each month, meaning it can take longer to process applications toward the end of any month.

It is important to note that the CSLB cannot accommodate requests for a "rush" on renewal processing. Renewal applications are processed according to the date they are received.

Anyhow interested in learning more can see all current processing times on the CSLB website at www.cslb.ca.gov. Just click on "online Services." The information is updated on a weekly basis.

PUT AGREEMENTS IN WRITING

When you have an agreement, make sure you have the agreement in writing. It is important because then the parties will know what their rights and liabilities are. If the agreement is for many different types of construction, the Contractors' License Law may require that agreement be completely in writing. Make the agreement as detailed as possible. Anytime something changes, you should send a confirming letter or possibly a change order to the other side. All of this will give you legal protection. Even though you are allowed by law to have oral agreements as well, the legal protection you will get is not the same. When the agreement is only oral it is not clear as to what each party says and it is easier for a judge to believe either side of the story. A written agreement that clearly states your position leaves no room for a judge or jury to try and figure out what was meant by that agreement and you avoid going against the Contractors' License Law.

NEWSLETTER

As some of you might be aware, Abdulaziz, Grossbart & Rudman has been compiling an electronic newsletter every quarter. This newsletter is filled with insightful information for the construction industry, other interesting legal articles, some lighthearted jokes, and updates on what is going on with the firm as well as in the construction and legal industry in general.

The good news for you, we have decided that doing the newsletter quarterly is just not sufficient enough. Therefore, beginning this month, we will start preparing the newsletter every other month.

If you would like to be added to our list, please send your contact information to info@agrlaw.net and we will send you an email notification each time our newsletter is added to our website. You may also view back issues of out newsletter at http://www.agrlaw.net/Newsletter/Newsletter.htm

REDUCING ATTORNEYS FEES

If you find yourself in need of an attorney, the following are some ways to keep your attorneys fees to a minimum:

1. Organize your paperwork. Keep it accurate and up to date.
2. Respond quickly to any request from your attorney. Answer all questions completely. Try to put everything in writing.
3. Ask if paralegals or associate attorneys can work on your case as much as possible. Their hourly rates are usually lower. If the paralegal or associate attorney is also familiar with the same type of law, it can save you money.
4. Make sure you are using an attorney who is familiar with your specific area of the law so that they do not have to charge you for extra research.
5. See if you can help by requesting certain documents or making extra copies of your file.
6. Come prepared to all meetings with the attorney. Make sure all your paperwork is in order for these meetings. Make sure you have all names, addresses and phone numbers of witnesses and other parties, etc.
7. Be honest, even if you think it will hurt your case. The attorney needs to be aware of everything so that there are no surprises.

UPDATE YOUR ADDRESS WITH THE CSLB

In the event that you are a contractor, make sure that the Contractors' State License Board has your proper address AND phone number. You cannot believe how many people move and do not give the Contractors' Board their new information. This could be very distressing to you if the Contractors' Board does not have a means of contacting you. In accordance with the law, if your address or business name changes, you must report it to the CSLB within 90 days. There is a form on the CSLB's website (www.cslb.ca.gov) that can be completed. Please note that if the address is a P.O. Box, a street address is still required.