Just recently a windstorm struck the San Gabriel Valley, wreaking havoc in communities like Pasadena, Altadena and Glendale. The damage done was substantial and many residents were without power for as long as 2 weeks.

The city of Pasadena was declared a natural disaster area, allowing the local municipalities to access federal funds to help repair the city that was torn apart by the worst windstorm in the area in more than 30 years.

Invariably when disasters like these strikes, out of state contractors and individuals who have a background in construction, but no valid license, compete for the many dollars that will be spent in the rebuilding efforts. This is against the law, and punishable by a fine of up to $10,000 or up to 16 months in state prison.

Anyone who contracts for or bids on a job that totals $500 or more (labor and materials) must hold a contractor’s license from the CSLB. There are exceptions, including working as an employee of a licensed contractor or taking jobs that are valued at less than $500.

It is important that contractor’s protect their license at all costs. If you have any questions about obtaining or defending your contractor’s license, contact Nick Campbell of Builders Law Group for a free phone consultation today. Nick is a devoted Construction Law Attorney with years of experience in the field. He can help you protect your right and reputation to work as a contractor in California.  Nick can be reached by phone at 818-381-5716.

The CSLB is now accepting applications, which can be downloaded from their website by clicking here.

As one might expect, the move comes with a set of strict regulations and guidelines, including:

• $100,000 Surety Bond: that must be in place for any LLC to obtain or renew a contractor license. This money is earmarked for failures to pay wage claims or for failing to pay subcontractors or vendors that work with the contractor.

• $1 Million Liability Insurance Minimum: “Liability insurance with the aggregate limit of $1 million for licensees with five or fewer persons listed as members of the personnel of record is required; plus, an additional $100,000 is required for each additional member of the personnel of record; not to exceed $5 million total.” (BPC 7071.19)

• Every person who is an officer, member, director or “responsible manager” must be listed on the application of an LLC as “personnel of record.”

• $1 Million Personal Liability during Suspension: If an LLC has their license suspended for failing to be registered or in good standing, each person within the LLC must have $1 Million in personal liability insurance during the time of the suspension.

California’s decision to allow LLCs to obtain contractor’s licenses is a welcome one. LLC’s are a preferred business organization method that allows large entities to streamline business practices. LLCs tend to be structured more efficiently, are better funded and generally speaking do better work.

There are other requirements and regulations involved in obtaining a license as an LLC.  Nick Campbell can use his experience as a construction and business law attorney to help your organization get off the ground on the right foot. For more information on how he can help you, contact him today at 818-381-5716.

At its essence, a Mechanic’s lIen is a tool which construction professionals can use to insure payment. A property owner will not have a clean title deed until the lien is cleared from the records, which is excellent motivation to pay up.

Mechanic’s Liens got their name from auto mechanics. Once upon a time, car mechanics were the only ones who filed mechanic’s liens against car owners that failed to pay for repair services. The practice and use found its way to the construction world, where it is often utilized by contractors seeking payment for services rendered.

In the best of all worlds, property owners would pay contractor invoices in a timely manner. The contractor, in turn, would pay all of the entities that make a construction project happen, including subcontractors like carpenters, landscapers, electricians and plumbers, not to mention the material vendors, and suppliers.

This is not always the case, however. In some unfortunate circumstances there are disputes over the scope, or quality, of work that cause property owners to withhold funds. Other times the money simply isn’t there, even though they agreed to pay it when they signed the initial contract.

No matter the reason for the dispute, it is always advisable to exhaust all available means of resolving issues before filing a mechanic’s lien. This may sound like surprising advice coming from a construction attorney, but experience has shown that preserving the civility and affability of a job is often critical to ensuring success.

There are instances, however, where all avenues have been explored and litigation is the only clear choice. In those cases it is always best to seek out the advice and counsel of an experienced Los Angeles Mechanic’s Liens attorney. One that can protect your interests and seek the money you rightfully deserve in court.

Remember that there are strict timeframes and laws related to mechanic’s liens and their use and enforcement.  Contact mechanic’s lien attorney Nick Campbell today to put his 15 plus years of experience in Construction Law to work for you. Need help filing or enforcing a mechanic’s lien? Nick Campbell can help. Call him today 818-381-5716 for a free telephone consultation.

The lawsuit alleges various construction defects, including poor insulation, sub par roofing and expanding walls brought on by water leaking into the bellies of the homes to the tune of more than $2 million total damages for the homes, according to the lawsuit, which was filed about two years ago with the Santa Clara County Superior Court. The complaint also claims violation of state building standards, breach of warranty, breach of contract and negligence. 

Shappell’s construction jobs have been getting a bad name on the internet as of late. Several websites have popped up online, all of them testimonials to the poor living conditions these homeowners have had to endure as a result of the (allegedly) defective construction that Shappell Industries performed for its clients.

As the contractor prepares to meet the charges head-on in court, their message to the media remains constant, they are innocent of all wrongdoing. General counsel for Shapell was quoted as saying the company is “very aware” of the Gilroy case, which is still in a pre-trial phase. He said Shapell denies “all of the allegations in the complaint.”

“Shapell has been around 50-plus years, and we stand by our homes,” the attorney said

Burbank Construction Defect Attorney Nick Campbell knows the difficulty contractors face whenever they put their artistry and work on the line for a new project. Not all contractors perform substandard work. Yet, all too often, the prejudices created by unlicensed and/or shoddy contractors out carry over to legitimate construction professionals who are trying to make an honest living.

It is not unusual to see trumped up charges in construction defect cases that could have been a resident’s or homeowner’s fault.   There are many defenses available to contractors in a construction defect lawsuit.

Regardless of your situation, Nick Campbell can help you. Contact him today to put his 15 plus years of experience in Construction Law to work for you. Been accused of Construction Defects in Los Angeles? Nick Campbell can help. Call him today 818-381-5716 for a free telephonic consultation.

The First Baptist Church of Guilford, along with its lender, First Mariner Bank, had taken out a $13 million performance bond from Fidelity & Deposit Company of Maryland for the construction of an 80,000-square-foot building in the 7500 block of Oakland Mills Road. That bond was to cover the church’s contract with Harbor View Contractors Inc.

Things went wrong, however, when the general contractor became insolvent, with the owner filing for personal bankruptcy before the job was done.

According to the article, the church ideally would have taken the remaining money that would have gone to the contractor and transferred it to Fidelity & Deposit, which would then ensure construction would be finished. Instead, the church had to bring in a new contractor, increasing the project’s price tag.

The church’s construction is now about 95 percent complete and hopes to be finished soon, now that the litigation is behind them.

Construction defects and suits over unfulfilled contractual obligations are a common occurrence in the construction field and California. While not all jobs are multi-million dollar agreements, it is important for contractors and homeowners or project owners alike to insure that their interests are protected whenever entering into an agreement to do any kind of construction.  In fact, California law requires a written contract for all home improvement projects.

<a href=”http://www.builderslawgroup.com/attorneys_staff.html”>Attorney Nick Campbell</a> of Builders Law Group has 15 years of experience in assisting construction professionals and property owners throughout Southern California regarding all areas of Construction. If you are a contractor who finds yourself in a situation where a building owner is claiming you have not fulfilled your obligations, it is urgent you contact an experienced <a href=”http://www.builderslawgroup.com”>Los Angeles Construction Litigation attorney</a> immediately.

Contact Builders Law Group at 818-381-5716 for a free telephone consultation.

One of the main factors behind business owners’ and homeowners’ dread at having to hire contractors to perform jobs is their lack of familiarity with the subject matter. Many never know if they are getting a fair deal or if the contractor they’re considering hiring is trying to rip them off.

The California Contractors State Licensing Board offers a free pamphlet entitled “What you Should know Before Hiring A Contractor”. The pamphlet contains quick hints on what do to hire a quality, certified contractor.

By examining the pamphlet, reputable contractors can get a glimpse into the mindset of their potential customers. They can also make sure that they have all of their forms and requirements in order, insuring that when customers and clients call, they have all of the answers for them.

Some of the hints the pamphlet lays out, include:

• Check the contractor’s license # at www.clsb.ca.gov
• Ask to see the contractors pocket license and photo ID
• Get a list of contact information for the contractor, as well as all subcontractors and vendors
• Get Proof of general liability and workers comp insurance

So many of these requirements revolve around being a certified contractor with a clean record. It is important that contractor’s protect that license at all costs. If you have any questions about obtaining or defending your contractor’s license, contact Nick Campbell of Builders Law Group for a consultation today. Nick is a devoted Construction Law Attorney with years of experience in the field. He can help you protect your right and reputation to work as a contractor in California.

To view the pamphlet entitled: “What You Should Know Before Hiring A Contractor” visit this link: http://www.cslb.ca.gov/Resources/GuidesAndPamphlets/WYSKPamphlet.pdf

Starting January 1, 2012, Assembly Bill 397 requires a contractor who certifies that he/she has no employees and is exempt from carrying a workers’ compensation policy to submit a new certification, or proof of workers’ compensation insurance coverage or self-insurance, each time the license is up for renewal. C-39 Roofing contractors must still purchase workers’ compensation insurance coverage even if they certify they have no employees, as required by Business and Professions Code section 7125.

Assembly Bill 878 requires workers’ compensation insurers to report to CSLB if a licensee’s policy is cancelled as the result of a premium audit or investigation, or a misrepresentation that results in harm to the insurer without reimbursement being made. This legislation also states that disregard and violation of workers’ compensation insurance laws are cause for discipline by the CSLB Registrar.

Other laws passed this year may also impact contractors and their business operations. Laws with effective dates other than January 1, 2012 are noted in bold italics.

Employment and Payroll

• Assembly Bill 551 increases the fines for contractors who fail to pay prevailing wage on public works projects and for failure to provide certified payroll records in a timely fashion. It also requires the Labor Commissioner to notify CSLB when it updates its lists for these violations, and to annually notify awarding bodies of the availability of debarred contractors.

• Assembly Bill 766, a companion to Assembly Bill 551, requires that certified copies of the payroll records be made available to members of the Joint Enforcement Strike Force on the Underground Economy or other law enforcement on request. If such records are requested by the public, information on the employees would not be included.

• Senate Bill 459 authorizes the Labor and Workforce Development Agency to issue fines for the willful misclassification of employees as independent contractors, and requires the agency to notify CSLB of violators who are licensees. The legislation also requires the board to initiate actions against such licensees.

State Taxes

• Assembly Bill 1307 states that CSLB may discipline a license for failure to resolve outstanding final liabilities assessed by the Board of Equalization, in addition to the current disciplinary laws coordinated between CSLB and the Franchise Tax Board, Employment Development Department, and Department of Industrial Relations.

• Assembly Bill 1424 requires CSLB to state on its applications that the law allows the Board of Equalization and Franchise Tax Board to share information with CSLB and that a license may be suspended for failure to pay state taxes.

Mechanic’s Liens

• Senate Bill 190 makes technical changes to the mechanic’s lien overhaul legislation passed last year (SB 189) that is to take effect on July 1, 2012.

• Senate Bill 424 enables a design professional lien to be converted to a mechanic’s lien if the design professional lien expires and remains partially or fully unpaid.

• Assembly Bill 456 clarifies that the proof of service affidavit that must accompany a mechanic’s lien filing to validate the lien must show the name of the property owner and the title or capacity in which the person or entity was served the claim of lien.

Indemnification Clauses

• Senate Bill 474 restricts contractors from using indemnification clauses to pass through to subcontractors the liability for certain legal damages, beginning January 1, 2013. Subcontractors would not have to pay for either accidental or deliberate harm caused by contractors, other subcontractors, or other parties. The law does not apply to certain contracts such as those governing residential homes, public buildings, workers’ compensation agreements, and some insurance agreements.

Certification and Training

• Senate Bill 56 changes some requirements for construction trade apprenticeship programs and the Division of Apprenticeship Standards responsibilities for oversight of such programs.

• Assembly Bill 1346 requires those seeking electrical certification from the Division of Apprenticeship Standards to include an employment history report from the Social Security Administration when submitting an application for certification and examination.

Energy Efficiency

• Senate Bill 454 authorizes the California Energy Commission to assess civil or administrative penalties for violating energy efficiency standards. It also prohibits public utility rebates or incentives unless the recipient certifies that the improvement or installation was completed by a licensed contractor and that required permits and inspections were obtained.

Environment and Safety

• Assembly Bill 341 requires businesses that generate more than four cubic yards of commercial, solid waste per week to arrange for recycling services by July 1, 2012.

• Senate Bill 341 requires that construction vehicles with a gross vehicle weight rating of 14,000 pounds or more be equipped an automatic backup alarm audible from 200 feet under normal conditions.

Small Claims

• Senate Bill 221 raises small claims court jurisdiction from $7,500 to $10,000.

CSLB Licensing and Board Operations

• Assembly Bill 1091 requires that CSLB be notified within 90 days of a Responsible Managing Officer’s (RMO) or Employee’s (RME) disassociation from the license. The bill also enables a 90-day extension in limited circumstances to replace the qualifier for the license.

• Senate Bill 543 continues CSLB’s operation as a board until January 1, 2016.

• Senate Bill 944 makes technical changes and updates to Contractor License Law.

California Civil Code sections 3084 and 3146 are amended and the amendments became effective January 1, 2011 to remedy perceiving problems in California Lien statutes.

The good news is that the new requirements do not significantly increase the cost or ability to record a mechanics lien in California.

Summary of the Mechanics Lien Law Prior to January 1, 2011

The California Constitution gives contractors, subcontractors, suppliers and others who have not been paid for work and materials supplied to a private works construction projects, the right to record a “mechanics lien” and then file a lawsuit to foreclose on that lien (i.e., “sell the property’) if work was performed and payment was not timely made.

Prior to January 1, 2011, a “claimant” would record a lien at the County Recorder’s office in the county where the property where work was performed (or materials supplied).  Thereafter, the claimant had 90 days to file a lawsuit to foreclose on the mechanics lien, forcing the property to be sold (much like a mortgage holder can foreclose on an unpaid mortgage (although a mortgagor can foreclose “non-judicially” whereas a mechanics’ lien foreclosure action can only be done through the courts).  If there are any proceeds from the sale of the property, the claimant is paid after any superior lienholders are paid.

The problem, and the reason for the changes to the mechanics lien laws, is that under the “old way” the claimant filing the lien had no obligation to actually inform the property owner that a lien had been recorded or explain the legal significance of the lien.

Summary of the New Laws Which Took Effect January 1, 2011

As a result of the “problems” mentioned above, on August 5, 2009, Assembly Bill 457 was signed into law by Governor Schwarzenegger, to take effect on January 1, 2011.  This bill amends Civil Code sections 3084 and 3146 to require service upon the owner of the property at the time the lien is recorded.  This gives the owner notice of the lien and an opportunity to cure the problem.

Also, the actual form of the mechanics lien must include, in 10-point boldface type, a “Notice of Mechanic’s Lien,” which provides a brief explanation of the nature of the mechanic’s lien and what steps an owner might wish to take.

By: Nick Campbell, Esq.
February 17, 2011