Legal Question in Construction Law in California

agent agreement

can this be used to assist client in scheduling and lining up subcontractors to build a swimming pool and or any remodleing projects until I have recieved my contractors license


Asked on 7/12/07, 12:52 pm

3 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

Re: agent agreement

Maybe, as long as you aren't holding out as a contractor, nor being paid as one. You're walking a dangerous line.

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Answered on 7/12/07, 2:32 pm
Carl Starrett Law Offices of Carl H. Starrett II

Re: agent agreement

Section 7028 of the Business and Professions Code makes it a misdemeanor "for any person to engage in the business or act in the capacity of a contractor within this state without having a license therefor, unless the person is particularly exempted..."

My advice would be to wait until you got your license and do things the right way. The last thing a new license holder needs is potential disciplinary action againt the license.

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Answered on 7/12/07, 2:50 pm
Jim Schaefer Schaefer & Associates

Re: agent agreement

You can not hold yourself out as a contractor unless you are licensed.

It is a misdemeanor for you to do so for which you can be arrested and convicted.

In addition, an unlicensed contractor can not sue someone if they do not get paid even if the person knew the contractor was unlicensed and even if the unlicensed contractor does flawless work (see Business & Professions Code 7031; MW Erectors, Inc. v. Niederhauser Ornamental and Metal Works Co. , Inc. (2005) 36 C4th 412; Construction Fin., LLC v. Perlite Plastering Co. (1997) 53 CA4th 170)

Furthermore, an unlicensed contractor must disgorge or pay back all funds received for construction while unlicensed again even if the work is done perfectly so that you could do work under a contract and then the other person could sue you to get back all their money and keep the perfect job that you did do. ( B & P 7031(b) )

I suggest you hold off and wait until you get licensed. Please feel free to contact me to go over any other legal issues such as formation of your business to protect your personal assets by incorporation, preparation of some standard contracts, 20 days notices, and blank mechanics liens etc. for your use. A few thousand dollars spent today will probably save you valuable time and money in future litigation.

Please review my profile and contact me. I was a contractor for 15years before I became a construction attorney.

Thanks for the question.

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Answered on 7/12/07, 4:09 pm


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