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Jan 11 Attorney Articles

Construction Contracts: One Simple Tip that Could Save you Money

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Although it seems obvious, it is imperative that every construction contract you enter into is in the name of a valid licensee. Failing to do so can be extremely costly.

Recently, the Fourth District Court of Appeal issued an opinion which underscores the importance of complying with this requirement of the contractor’s licensing laws in California. In Twenty-Nine Palms Corporation v. Bardos, the contractor held several valid contractors licenses. However, the contractor entered into a contract under the name of a different company that was not licensed. As a consequence the contractor was deemed to be unlicensed. Pursuant to Business & Professions Code section 7031, the contractor was forced to reimburse all monies he was paid for the project, almost $800,000.

Click here to view the Court’s opinion.