RMO World

Spring has arrived, and with it, a surge of activity in California’s construction industry. As the weather warms, projects delayed by winter rains are breaking ground, and new developments are emerging across the state.

Residential construction is seeing a notable uptick, driven by persistent housing demand. From single-family homes in burgeoning suburbs to multi-unit complexes in urban centers, builders are working to address California’s housing crunch. Simultaneously, infrastructure projects, including highway expansions and bridge repairs, are ramping up, aiming to improve transportation networks.

Commercial construction is also experiencing a revival. Retail spaces, office buildings, and industrial warehouses are progressing, reflecting a renewed optimism in the state’s economy. However, challenges persist. Material costs and labor shortages continue to impact timelines and budgets.

Despite these hurdles, the spring season brings a sense of momentum to California’s construction landscape. With longer daylight hours and favorable weather, contractors are maximizing productivity, laying the groundwork for a busy and productive summer.

Tell us about your spring construction!

When removing debris after a disaster, the Contractors State License Board (CSLB) urges property owners to be cautious and make sure that anyone who offers to assist after a disaster is licensed in the appropriate classifications.

The key is to avoid rushing into any agreement with contractors until you have verified their qualifications with CSLB and their work through recommendations from others who have previously contracted with them. Construction work that costs $1,000 or more in combined labor and materials must be performed by a licensed contractor. Any project requiring permits or workers needs to be performed by a licensed contractor regardless of cost.

Consumers should be aware of options for debris removal before making a decision, including checking with their city/county building department to see if there are any government-funded debris removal programs available.

A structured debris removal process is divided into two main phases:

Phase 1: Hazardous Material Removal

This phase involves the U.S. Environmental Protection Agency (EPA) removing potentially dangerous everyday products like paint, cleaners, solvents, oils, batteries, and pesticides from properties affected by fires. This service is provided at no cost to property owners and is a prerequisite for Phase 2.

Phase 2: Debris Removal and Cleanup

After Phase 1 clearance, property owners have two options for Phase 2:

1. Opt-In to the Government-Run Debris Removal Program: By completing a Right of Entry (ROE) form, property owners can authorize the U.S. Army Corps of Engineers to access their property and conduct debris removal at no out-of-pocket cost.

2. Opt-Out and Manage Cleanup Independently: Property owners may choose to hire specialized contractors to remove the remaining fire debris, following all necessary requirements, rules, and regulations. An approved Opt-Out Application and an Opt-Out Fire Debris Removal permit are required before commencing debris removal.

Opt-Out Fire Debris Removal in Los Angeles County

Property owners who opt-out of the government-run debris removal program must use appropriately licensed contractors for any fire debris removal. Los Angeles County will only issue an Opt-Out Fire Debris Removal permit to a contractor that holds the CSLB Hazardous Substance Removal Certification, and one of the following contractor license classifications: (A) General Engineering, (B) General Building, or (C-12) Earthwork and Paving AND (C-21) Building Moving/Demolition.

The licensed prime contractor for the Opt-Out Fire Debris Removal permit performing debris removal must meet other requirements as an employer, such as ensuring employees have the required Hazardous Waste Operations and Emergency Response (HAZWOPER) training.

More details can be found on the CSLB Disaster Help Center or LA County Recovers website.

In a disaster area, it’s a good idea to check with your local building department for any additional permit requirements or guidelines.

California’s construction industry is experiencing a dynamic period in 2025, marked by growth, legislative reforms, and ongoing challenges.

Growth and Projections

The residential construction sector is poised for significant expansion, with starts projected to increase by 12% to $441 billion. This includes a 9% rise in single-family projects and a 16% surge in multi-family developments. Non-residential construction is also expected to grow by 6%, reaching $467 billion, driven by a 7% uptick in commercial projects and a 9% boost in manufacturing initiatives.

Legislative Reforms

To address the state’s housing crisis, California legislators are considering significant reforms to the California Environmental Quality Act (CEQA). Assembly Bill 609 proposes exempting most urban housing projects from CEQA’s environmental reviews, aiming to expedite development. While proponents argue this will streamline housing construction, opponents express concerns about potential environmental impacts and reduced community input.

Challenges

Despite positive projections, the industry faces hurdles. Economic uncertainties, supply chain disruptions, and labor shortages continue to impact project timelines and costs. Additionally, new tariffs on imported construction materials, including steel and copper, could introduce further volatility and increase expenses.

Innovations in Resilience

In response to escalating wildfire risks, builders are prioritizing fire-resilient designs. For instance, KB Home has unveiled a wildfire-resilient neighborhood in Escondido, incorporating fire-resistant materials and strategic landscaping to mitigate fire hazards.

Overall, California’s construction landscape in 2025 so far reflects a balance of opportunities and challenges.

California’s construction industry: it’s a wild ride, but one we are lucky to be a part of. There’s a certain energy here, a constant buzz of innovation and growth, that makes every day feel like an opportunity. From the sprawling suburbs of Los Angeles to the serene landscapes of Northern California, the demand for skilled contractors never truly wanes.

What makes it so special? For starters, the sheer diversity of projects and skills needed to compete. Everything from a complex seismic retrofit in a historic building and navigating the intricate regulations and delicate structures to building a cutting-edge, sustainable home, incorporating the latest green technologies. This variety keeps the skills sharp and the passion ignited.

Of course, it’s not all sunshine and roses. The regulatory environment can be challenging, with stringent building codes and permitting processes. But these challenges also ensure that projects are built to the highest standards, which ultimately benefits everyone. And while the competition is fierce, it breeds excellence. You have to constantly push yourself to improve, to stay ahead of the curve, and to deliver exceptional results.

This is just a little reminder to think about how lucky we are to be a part of the California Construction industry!

The Quarterly Newsletter from the Contractors State License Board is out now. This issue covers New Laws, Progress Payments, Board Meeting Highlights, and more. Click the link to read it now.

CSLB Newsletter

California’s recent wildfires have placed an immense strain on the state’s construction industry, particularly concerning the availability of skilled trades. Recovery efforts demand a surge in construction work, creating a critical need for qualified professionals.

Here’s a look at the key challenges and responses:

The Skilled Trades Gap:

• RMO Agency works to help get qualified people working in construction as fast as legally possible.
• Wildfire recovery amplifies the existing shortage of skilled workers like carpenters, electricians, plumbers, and roofers. This gap is further exacerbated by the aging workforce and the need for specialized skills in fire-resistant construction.
• Organizations like The Home Depot Foundation are investing in skilled trades programs to address this shortage, providing training and scholarships to aspiring professionals.

Rebuilding and Resiliency:

• Recovery efforts focus not only on rebuilding but also on enhancing resilience. This involves incorporating fire-resistant materials and building techniques, which require specialized knowledge and expertise.
• Organizations like the California Building Industry Association (CBIA) are providing resources and guidance on rebuilding stronger and safer homes.

Regulatory and Logistical Challenges:

• Rebuilding efforts are often complicated by regulatory hurdles, including permitting processes and building code requirements.
• Efforts are underway to streamline these processes to expedite recovery while maintaining safety standards.
• Material cost and availability also are a large factor in the rebuild.

Community and Economic Impact:

• Wildfire recovery is not just about rebuilding structures; it’s about restoring communities. This requires a coordinated effort involving government agencies, construction professionals, and community organizations.
• The economic impact of wildfires is significant, and rebuilding efforts play a crucial role in revitalizing affected areas.

In essence, California’s wildfire recovery efforts highlight the critical importance of a robust and skilled construction workforce. The state is actively working to address the challenges and ensure that communities can rebuild stronger and more resilient than ever before.

The recent wildfires in Los Angeles have been devastating, leaving a trail of destruction and displacing countless individuals and families and I’m sure we all know a few who were at least in danger, if not lost everything. Homes have been reduced to ash, lives have been upended, and the long road to recovery has only just begun.

In times like these, it’s easy to feel helpless, but we must remember the power of community and the importance of extending a helping hand. We are here to help our community through. If there is something we can do to help you with your business or anything else within our sphere of capability, we are ready and willing. Please reach out to us and let us know what we can do for you in these times.

Let’s all rally together with what we each can do to support our fellow Californians in their time of need. We can offer hope amidst the ashes and demonstrate the true spirit of compassion that defines us. We are here to serve the construction industry in good times and bad times. The construction community is made up of good-hearted, hard-working men and women and right now there are a lot of people in our community going through some tough times, if you are one of them and there is something we can do to help, again please reach out.

Our hearts and prayers are with everyone affected by this tragedy.

If you have been affected by the fires, here is a list of resources put together by the State of California: https://www.ca.gov/LAfires/

Eligible licensees can elect to postpone payment of 2025 license renewal fees to 2026

On January 29, 2025, Governor Gavin Newsom issued Executive Order N-15-25, which postpones for one year the license renewal fees for Department of Consumer Affairs (DCA/Department) licenses that expire between January 1, 2025 and June 30, 2025, and whose residential or business address is within the impacted zip codes:

• 90041
• 90049
• 90265
• 90272
• 90290
• 90402
• 91001
• 91024
• 91103
• 91104
• 91107
• 91367
• 93536

Upon license renewal (either online or by paper, depending on the licensing entity), licensees eligible for the renewal fee postponement will renew with no payment due. This year’s renewal fees will automatically be postponed to 2026.

Please note, renewal fees are not waived. You will still be required to pay the fees, but they will not be collected until 2026.

Licensees with questions should contact their licensing Board or Bureau directly. For Board and Bureau contact information, visit the DCA Boards and Bureaus entities page.

The DCA Disaster Help Center is also available to help fire survivor licensees with other DCA-related questions. Please contact 1-800-799-8314 or email CAFires@dca.ca.gov.

Read the Governor’s Executive Order on business recovery from the LA Firestorms.

For more information and resources related to the Los Angeles-area fires, www.ca.gov/lafires.

Fee Postponement Questions and Answers

How does this impact me? If your license expires between January 1, 2025 and June 30, 2025 and your residential or business address zip code is within the identified impacted zip codes, payment of your renewal fees will be postponed for one year. The renewal fees are not waived. You will still be required to pay the fees, but they will not be collected until 2026. You will be able to renew your license without paying the fee, and the fee will be collected in one year.

Do I still need to renew my license if I am eligible to postpone payment of my renewal fees? Yes. You must still complete the license renewal process by the license expiration date. You will just not have to pay the renewal fee.

What does a fee postponement mean? It means if your license expires between January 1, 2025 through June 30, 2025, you would not have to pay 2025 renewal fees until 2026. The fees are not waived, and you will still be required to pay the fees in 2026.

Will I need to pay my renewal fees ever? Yes. Your renewal fee payment will be due in one year. For example, if your license expires on March 31, 2025, and you choose to postpone paying the license renewal fee for one year, you will be able to renew your license now without paying the fee, but you will be required to pay the fee one year later in March 2026.

How will the renewal system know I’m eligible to postpone payment of my renewal fees? The Department identified licenses expiring between January 1, 2025 through June 30, 2025 with an address on file within the identified zip codes. For these licenses, the renewal system will automatically reflect that $0 is owed at the time of renewal. You will be able to proceed with your renewal process without payment.

What if I believe I am eligible to postpone payment of my renewal fees, but the renewal system states that I am required to pay the fee now? If you believe you are eligible to postpone payment of your renewal fees because your residence or business address is within one of the identified zip codes, please contact the DCA board, bureau or commission that issued your license for assistance.

Who can I talk to if I still have questions? The DCA board, bureau, or commission that issued your license can assist you with any additional questions you may have.

The DCA Disaster Help Center is also available to help fire survivor licensees with other DCA-related questions. Please contact 1-800-799-8314 or email CAFires@dca.ca.gov.

Source: DCA Website

Sacramento, CA – The Contractors State License Board (CSLB) is pleased to announce that the2025 edition of the California Contractors License Law and Reference Book (Law Book) is now available. This essential resource is a must-have for contractors, industry professionals, and anyone seeking a comprehensive understanding of California’s construction laws and regulations.

The updated edition includes the latest changes to contractor laws, such as those effective January 1, 2025, and provides detailed information on licensing requirements, business practices, and consumer protections. The Law Book also includes helpful insights into how contractors can remain compliant and operate successfully in California’s regulated construction industry.

The 2025 print edition can be purchased online or by calling (877) 394-8826. The price is $58.00 plus tax, shipping, and handling. The Law Book can be viewed or downloaded as a PDF directly on the CSLB website for no cost.

Contractors are encouraged to take advantage of this updated resource to ensure they stay informed about the laws that impact their business.

SACRAMENTO, CA – A new law will raise the threshold for work requiring a contractor’s license from $500 to $1,000.

Assembly Bill 2622 (Carrillo, Chapter 240, Statutes of 2024), effective January 1, 2025, will allow an unlicensed person to complete small projects up to $1,000 without obtaining a contractor’s  license if they do not hire workers and no building permits are needed. If a consumer’s project under $1,000 requires workers or permits, a contractor’s license in the appropriate license classification is required.

The new law states that a person who is not licensed may advertise for construction work if the total contract price for labor, materials, and all other items on a project is less than $1,000 The $1,000 includes all costs associated with the project. The advertisement must state the person is not licensed.

As with any home improvement construction project, CSLB cautions that a down payment should not exceed 10 percent of the contract price, and any subsequent payments should not exceed the value of the work completed or the materials delivered.

If an unlicensed person provides a bid greater than $1,000, performs work requiring a permit, or employs any workers, that person is subject to legal action. Penalties for unlicensed contracting include administrative fines of up to $15,000, jail sentences of up to six months, and fines up to $5,000. Repeat offenders may face a mandatory 90-day jail sentence and a fine of $5,000 or 20 percent of the contract price, whichever is greater.

For more information, visit CSLB’s website, or connect with them on Facebook, X/Twitter, Instagram, and YouTube.

If you, a subcontractor or anyone you know needs help getting their Contractor License, we’ll be happy to find them an RMO and help with the licensing process.

It’s easy and we’ve been doing it since 2006!

Don’t take the risk of working unlicensed when there is an easy and legal alternative solution that requires no exam.

Call us today 800-818-4962 ext 101 or email hello@rmoagency.com

New Law Changes in 2025 Affecting Licensees, Applicants and Stakeholders

Sacramento, CA – The Contractors State License Board (CSLB) is advising licensees, applicants, and other stakeholders of key legislative updates following the implementation of Senate Bill 1455 (Ashby, 2024).

This bill, effective January 1, 2025, extends the Board’s “sunset” date from 2025 to 2029 and makes other changes to the law, which are described below.
Key Provisions of SB 1455

1. Public Works Project Licensing
   • What’s New?
     Awarding authorities must now ensure that public works project bidders hold the correct license classification for the work being performed.
   • Why It Matters: 
     This ensures public works projects are performed by qualified professionals under the appropriate CSLB license classifications.
2. Accountability for Workmanship Complaints
   • What’s New?
     Contractors subject to workmanship complaints that result in a letter of admonishment or citation will now be required to reimburse CSLB for industry expert costs.
   • Why It Matters:
     This change encourages higher quality workmanship and ensures fairness in covering costs associated with complaint resolution.
3. Licensing of Tribal Businesses
   • What’s New?
     CSLB will license tribal businesses, which must be organized under the jurisdiction of a federally recognized tribe.
   • Why It Matters:
     This change would allow licensed tribal businesses to undertake construction projects off tribal lands, fostering economic growth in tribal communities.
4. Delay in Mandatory Workers’ Compensation Insurance Law
   • What’s New?
     The full implementation of mandatory workers’ compensation insurance for all licensees regardless of whether they have employees is delayed from January 1, 2026, to January 1, 2028.
   • What It Means:
     • Licensees in all trades (except C-39, C-8, C-20, C-22, and D-49) can continue to claim exemptions if they have no employees, until January 1, 2028.
     • The delay allows CSLB time to determine possible exemption eligibility.
5. Direct Payment for PSI Exams
   • What’s New?
     Candidates will pay PSI Exams directly to schedule and reschedule exams. This eliminates CSLB’s role in handling these fees.
   • Cost Details:
     • $45.65 per exam or $91.30 for two exams.
     • CSLB will no longer charge a $100 rescheduling fee.
   • Process Overview:
     Eligible candidates will receive a notification from CSLB and then contact PSI to schedule exams via PSI’s website or by calling (877) 392-6422.

Download PDF of this information HERE

If you are operating as a corporation, LLC or other legal entity, you are likely required to file beneficial ownership information with the U.S. Treasury Department by January 13, 2025.  This requirement was temporarily suspended by a preliminary injunction, but that was lifted by a December 23, 2024, federal Court of Appeals decision, reinstating the reporting requirment. 

To accommodate reporting companies, FinCen has adjusted the filing schedule as follows:

• Companies created or registered before January 1, 2024, now have until January 13, 2025, to submit their initial beneficial ownership information reports.
• Companies created or registered in the U.S. on or after September 4, 2024, with filing deadlines between December 3, 2024, and December 23, 2024, also have until January 13, 2025, to file their reports.
• Companies registered between December 3, 2024, and December 23, 2024, have an additional 21 days from their original deadline.
• Companies eligible for disaster relief may have extended deadlines beyond January 13, 2025.
• Companies established on or after January 1, 2025, must file within 30 days of their creation or registration notice.

You may prepare your filing using the following link: HERE

Thanksgiving is a great opportunity to not only be grateful for all we have but to also relax from all work. Federal and state laws prohibit construction work of any kind on this day, and can attract a fine and a court order to stop the construction work. This gives an opportunity for construction workers all across the country to rest of all work. The construction industry is one of the most dangerous industries and the Thanksgiving holiday gives a golden opportunity to construction workers to be grateful for making it through the challenges they face at work.

Thanksgiving is a great time to reflect, connect with people, relieve ourselves of work-related stress and perhaps travel a little. Thanksgiving day is a day to give thanks and show gratitude to our friends and to ourselves for everything we have accomplished and are about to achieve. The day offers an opportunity to relax, give thanks for the progress made over the years.

Suspicious Email Requests for Electronic Signature

Sacramento, CA – The Contractors State License Board (CSLB) has received multiple reports regarding suspicious emails requesting electronic signatures.

The emails claim to be from CSLB and ask recipients to electronically sign documents. These emails contain notable errors, including incorrect CSLB names, phone numbers, and other typos, indicating they are fraudulent.

CSLB will not use a third-party software to collect an electronic signature from a contractor or applicant. An email from CSLB will come from the @cslb.ca.gov domain. If you receive an email that appears to be from CSLB that requests an electronic signature or personal information, please verify its authenticity by contacting CSLB directly.

To protect yourself and avoid falling victim to email phishing scams:

• Do not click or open attachments from unknown or suspicious senders. Do not provide any personal information or sign documents via suspicious links.
• Take note of any errors in the email, such as misspelled names, incorrect contact information, or grammar issues, as these may signal a spoofing attempt.
• Report suspicious emails to CSLBinfo@cslb.ca.gov or by reaching out through CSLB’s verified social media accounts on Facebook, X, or Instagram.
• Refer to official sources for more information on phishing scams by visiting the Federal Trade Commission’s (FTC) website on phishing scams and the FBI’s resources on phishing and spoofing.

Sacramento, CA – The Contractors State License Board (CSLB) recently completed a statewide operation of stings and sweeps to uncover unlicensed activity in the construction industry as part of a multi-agency effort organized by the National Association of State Contractors Licensing Agencies (NASCLA).

The efforts resulted in 229 legal actions, largely for unlicensed contracting and illegal advertising. Unlicensed contracting puts consumers at risk in many ways, including failure to meet minimum competency requirements, lack of a license bond, or workers’ compensation insurance.

Over two weeks, CSLB joined forces with local law enforcement to conduct four undercover sting operations in Ventura, Sutter, Contra Costa, and Riverside counties. The stings targeted unlicensed contractors, with investigators contacting the suspects through their advertisements.

During the sting operations, suspected unlicensed individuals arrived at designated locations to bid on various projects, such as drywall, bathroom remodel, turf installation, framing, flooring, exterior and interior painting, concrete, tree removal, landscaping, and plumbing. As a result, 10 legal actions were filed, and 42 individuals may face misdemeanor criminal charges for contracting without a license.

The individuals involved submitted bids that exceeded the legal limit of $500. The bid amounts ranged from $800 to $12,000. California laws prohibit unlicensed contractors from bidding and/or contracting for construction work that exceeds $500 in value, including labor and materials. All may now face legal consequences, which can include substantial fines and potential jail time.

A total of 79 sweep operations were conducted in 23 counties, 1,147 sites visited, 34 cases referred to local district attorneys, 37 licensee citations, 80 non-licensee citations, 26 Letters of Admonishments, 38 stop work orders, and 281 advisory notices.

Contracting without a license is serious and eventually violators will be caught. If you are working without a license, there is no need to risk everything. Contact us NOW!

It is the season of haunted houses and all things spooky, so in this article we will briefly talk about what some consider the most haunted house in California, The Winchester Mystery House and its bizarre construction features. Nestled in the heart of San Jose, California, is a sprawling Victorian mansion steeped in mystery and legend. Built by Sarah Winchester, the widow of gun magnate William Winchester, the house is a testament to her unwavering belief in the supernatural and her desire to appease the spirits of those killed by Winchester rifles.

Construction of the Winchester Mystery House began in 1886 and continued for nearly 38 years until Sarah’s death in 1922. The house was a constant work in progress, with rooms added, removed, and remodeled seemingly at random. This chaotic construction style is often attributed to Sarah’s belief that spirits guided her decisions, preventing them from ever completing the house.

The Winchester Mystery House is filled with peculiar architectural features that continue to intrigue visitors today. There are 13 bathrooms, but only one bathtub; a seance room with a sliding panel; and a secret staircase that leads to nowhere. The house also boasts a number of hidden doors, windows, and passageways, many of which are believed to have been designed to confuse and disorient spirits.

One of the most striking features of the Winchester Mystery House is its towering, 13-story turret. This unique structure is said to have been built to confuse spirits, as 13 is considered an unlucky number in many cultures. The house also features a number of intricate stained glass windows, which are believed to have been designed to repel negative energy.

Today, the Winchester Mystery House is a popular tourist destination, attracting visitors from all over the world. Guided tours of the house offer a glimpse into Sarah Winchester’s fascinating life and the mysterious world she inhabited. Whether you’re a believer in the supernatural or simply curious about the history of this remarkable building, a visit to the Winchester Mystery House is sure to leave a lasting impression.

Due to the CSLB recently receiving many complaints about this, we would like to remind all contractors that the Business and Professions Code (BPC) restricts payments on home improvement contracts to a maximum down payment of $1,000 and subsequent payments must not exceed the value of materials and work performed, including for residential solar.

BPC sections 7159 and 7159.5 contain mandatory home improvement contract provisions regarding down payments and progress payments for home improvement work. The definition of home improvement includes solar energy systems.

Home improvement contract provisions limit contract payments and require the following language to be in the contract, pursuant to BPC sections 7159(d)(8) and (9).

• The heading: “Down Payment”
• A space where the actual amount of the down payment appears
• The following statement in at least 12-point boldface type: “THE DOWN PAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.”
• Schedule of Payments: If a home improvement contract includes a payment schedule, rather than payment at project completion, the progress payment(s) must show the amount of each payment and explain what work, materials or services have been completed for that payment, and be preceded by the heading “Schedule of Progress Payments.”
• The following statement must be included in a contract that provides for a payment schedule in least 12-point boldface type:
  • “The schedule of progress payments must specifically describe each phase of work, including the type and amount of work or services scheduled to be supplied in each phase, along with the amount of each proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWN PAYMENT.”

Contractors found to be in violation of home improvement contract law are subject to disciplinary action from the CSLB as well as inclusion on the Public Utilities Commission Watch List. In addition, a violation of BPC section 7159.5 and its provisions regarding down payment and progress payment restrictions is punishable as a misdemeanor.

To ensure you are complying with home improvement contract law, please see CSLB’s Contracting for Success Brochure.

A contract is one of the most important tools you have to help you have a successful business. A well written contract can help open the lines of communication between you and your client. A badly written contract can quickly lead to miscommunication and misunderstandings; problems that could land you in court or under investigation by the Contractors State License Board (CSLB).

“Contracting for Success” was written by the CSLB to help you understand the different elements that are required to be in all home improvement contracts. It also explains the state requirements for Service and Repair contracts. Review their booklet closely and make sure your contracts follow California law.

Some Contract Ground Rules

There are several basic elements that all Home Improvement Contracts must legally contain:

• A home improvement contract and any changes to the contract must be in writing and signed by all parties. The writing must be legible and printed forms must be readable.
• Before any work is started, the contractor must give the buyer a copy of the contract signed and dated by both the contractor and the buyer.
• Unless a larger typeface is specified in the law (Business and Professions Code 7159), text in any printed form shall be in at least 10-point typeface and the headings shall be in at least 10-point boldface type. (Example of 10-point bold)
• Except for a down payment, a contractor can’t demand or accept payment for work or materials until the work is actually done or the materials are delivered. The down payment may not exceed $1,000 or 10 percent of the contract amount, whichever is less.
• If the contract includes a salesperson’s commission in the contract price, the payment to the salesperson shall be made on a pro rata basis in proportion to the schedule of payments made to the contractor.
• The contract must also contain the name and registration number of the salesperson.

The CSLB recently established a Multiple Offender Unit to address a dramatic increase in consumer-filed solar complaints. From 2018-19 to 2022-23, CSLB has seen a 176 percent increase in solar complaints.

While most solar contractors conduct their business in a professional and legal manner, this unit is focused on early complaint disclosure pursuant to Business and Professions Code 7124.6 and filing accusations to revoke licenses of contractors committing egregious or repeated violations of Contractors State License Law.

For Labor Day here some facts about our industry that we labor in.

1. There are 336,000 job openings in the United States construction industry as of May 2023. [Bureau of Labor Statistics]
2. Nearly 11.8 million people worked in the construction industry in 2022. [Bureau of Labor Statistics]
3. 57% of construction firms reported having a staff of fewer than 200 individuals in 2021. [JBK]
4. Construction managers were paid an average of $110,160 a year in 2022. [Bureau of Labor Statistics]
5. The average hourly wage of all construction employees was $35.21 as of January 2024. [Bureau of Labor Statistics]
6. The median weekly earnings for a full-time, nonunion worker was $1,007 in 2023. [Bureau of Labor Statistics]
7. The median earnings for a full-time union member was $1,424 per week in 2023. [Bureau of Labor Statistics]
8. The approximate dollar value of construction work done in the U.S. in May 2023 is estimated to be $1.9 billion. [CENSUS]
9. The total aggregate revenue of the top 400 construction companies in the U.S. reached $414.88 billion in 2020. [ENR]
10. 95% of U.S. general contractors reported they experienced at least one product shortage in 2021. [USCC]
11. 62% of contractors reported they struggled with finding skilled workers to hire in 2021. [USCC]
12. 66% of contractors reported they expected pandemic-related delays on projects in 2021. [USCC]
13. A total of 11,896 construction workers were employed in the construction industry in 2023. [Bureau of Labor Statistics]
14. In 2021, 45% of contractors turned down projects because of skilled labor shortages. [USCC]
15. 97% of contractors experienced a moderate to high impact on their business from material cost fluctuations. [USCC]
16. At $1.43 trillion dollars, over 79% of construction spending occurred in the private sector in 2022. [Statista]
17. Total U.S. engineering and construction spending saw a 5% increase in 2023, compared to 12% in 2022. [FMI]
18. Multifamily residential construction rose by 18% in 2023 and is estimated to decrease by 7% to $131 billion in 2024. [FMI]
19. Single-family construction declined by 13% in Q4 of 2023 and is estimated to decrease by 10% to $354 billion in 2024. [FMI]
20. Commercial construction spending is at $128 billion as of July 2023, up 11% from the previous year. [FMI]

The Contractors State License Board is sharing additional details about a new law that changes how contractors with workers’ compensation insurance renew their licenses.

As of July 1, 2024, Business and Professions Code section 7125.6 requires that any contractor who has a certificate of workers’ compensation insurance on file with CSLB must now include on their license renewal form the three classification codes from the highest estimated payroll reported on their workers’ compensation insurance policy.

Renewal Instructions

Classification codes can be displayed in different ways on workers’ compensation insurance policies.

If your policy has fewer than three classification codes, provide every classification code reported on the policy.

If you are unsure of your codes or are having difficulty with CSLB’s online renewal portal, there are a few options, including:

• Double-check your policy to see if there is a suffix with the four-digit class code that needs to be provided.
• Contact your insurance broker for their classification codes.
• Check the Classification Search on the website for the Workers’ Compensation Insurance Rating Bureau (WCIRB) to see if your classification description is listed and there is a suffix for the code.

If the codes entered match those of WCIRB, the codes and classification descriptions will be listed on the website.

If your codes do not match WCIRB class codes, please enter the numbers provided by the insurance company or broker. CSLB’s system will allow for between 4 to 6 digits. If the class code is not WCIRB class code, CSLB will disclose the insurance company for the public to contact for the class code description.

Licenses will not be renewed without at least one 4- to 6-digit code. The statute allows for retroactive renewal if the licensee provides the codes within 30 days after receiving notice the board is unable to process the renewal for lack of class code(s).

Additional Questions?

• For questions about completing your CSLB renewal, call 916-255-4644, visit the CSLB website at www.cslb.ca.gov or emailRenewals@cslb.ca.gov.
• For questions about workers’ compensation classification codes, reach out to the WCIRB by visiting its Contact Us page or by calling 888-CA-WCIRB (888-229-2472) or emailing customerservice@wcirb.com.

Construction launched last week on California’s hydrogen hub. It will be the first hydrogen hub in the US.

For those that don’t know, a hydrogen hub is a network of clean hydrogen producers, consumers, and connective infrastructure that will help accelerate the large-scale production and use of clean hydrogen for energy.

The launch follows a $12.6 billion agreement finalized in July, which includes up to $1.2 billion in federal funding, and an earlier announcement when California was selected as a national hub. The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) marked the milestone as the first of the seven hydrogen hubs across the country to sign their agreement with the Department of Energy.

The California hub is part of a $7 billion federal project to build the infrastructure for a “clean” hydrogen economy to replace carbon based fuels and reduce emissions. The California hub — known as ARCHES, or the Alliance for Renewable Clean Hydrogen Energy Systems — will net $1.2 billion of that federal money, with plans to bring in an additional $11.2 billion in private investment. California was awarded hub status in October.

The California Hydrogen Hub spans across the state of California and will leverage the state’s leadership in clean energy technology to produce hydrogen exclusively from renewable energy and biomass.

Clean hydrogen is enormously expensive, with prices far too high to compete against traditional fuels in a competitive market economy. The aim is to subsidize the cost of hydrogen fuel until the industry reduces costs and grows big enough to stand on its own. One source said hydrogen fuel prices could be competitive by 2032.

Federal funding has been dedicated for three hydrogen projects across the state that are expected to reduce up to two million metric tons of carbon emissions annually, creating approximately 220,000 new jobs, and generating an estimated $2.95 billion per year in economic benefits through improved health and cost savings.

As we are hitting the peak of summer and getting hit with a few heat waves, it’s good to be heat-ready, especially for those of us in an industry that spends most of our working hours outdoors.

Extreme heat puts a lot of stress on your body and can be deadly. Prolonged exposure to high temperatures can increase the risk of dehydration, heat exhaustion, and heat stroke. These heat-related illnesses can be dangerous or life-threatening.

You have the right to be protected from heat hazards at work, including education on how to stay safe and the ability to take preventative measures to avoid heat illness.

Know the Signs!

Your employer should provide training on the signs and symptoms of heat illness, which include headache, dizziness, nausea, and confusion. If you experience any of these symptoms, seek medical attention immediately.

Know What to Do in an Emergency.

If you or someone starts to experience heat illness symptoms, follow these steps to cool down:

• Move to a cool place
• Loosen your clothes
• Sip water
• Use cold clothes or a cool bath to lower your body temperature
• Call 911 if suffering from heat stroke

Heat Safety Tips at Work

For outdoor workers, you are protected from heat illness in several key ways:

• Water – employers must provide and encourage workers to drink at least one quart (32 ounces) of cool, fresh, free drinking water per hour. Drink water every 15 minutes, even if you do not feel thirsty.
• Shade – Request access to shade whenever needed to cool off. Take additional breaks in the shade to prevent overheating.
• Rest – employers must allow – and encourage – cool-down rest breaks in the shade whenever needed to prevent heat illness, in addition to regular breaks.
• Training/Planning – workers and supervisors must be trained on the signs and symptoms of heat illness and know what to do in case of an emergency.

Here is a link to OSHA’s Extreme Heat Fact Sheet https://99calor.org/_downloads/factsheet.english.pdf

Sacramento, CA – The Contractors State License Board has an important reminder for contractors working with treated wood.

On behalf of the treated wood industry, the Western Wood Preservers Institute (WWPI) has geared outreach efforts toward California residents, businesses, contractors, landfills, transfer stations, and waste haulers who are involved in treated wood waste (TWW) disposal. AB 332, which passed in 2021, required the wood-preserving industry to work with state regulators to conduct educational outreach efforts on the handling and disposal requirements.

In spring 2022, WWPI launched the TWWDisposal.org website to provide key information on disposal, including links to landfills authorized to accept treated wood waste. Thousands have accessed the site to learn how to identify treated wood waste and understand the requirements for handling, storage, labeling, and transportation of treated wood waste. To enhance understanding of the regulations, the website is available in both English and Spanish-language versions. The website also includes guidance for contractors who may be generating or disposing of treated wood waste.

CSLB is distributing this message pursuant to subdivision (e) of Health and Safety Code Section 25230.15. Please refer to the Department of Toxic Substances Control website for information on treated wood waste or to the Western Wood Preservers Institute for more information about this message or about treated wood waste in California.

Please note: the information is being provided by CSLB “as is” without warranty of any kind, express or implied. CSLB does not warrant, affirm, or offer any representations as to the accuracy, content, completeness, legality, or reliability of the information contained in the outreach materials.

It’s been awhile since we’ve posted a story about contractors getting busted for working without a license. Don’t get it wrong, it’s happening all the time. If you’re working without a license, the CSLB is looking for you. It seems like at least every week we see a story of someone getting busted by the CSLB for working without a license. There’s just no need for it. We make it so easy to get a license.

Just a couple weeks ago the CSLB collaborated with the Santa Clara County District Attorney’s Office on July 9-10 to conduct an undercover sting operation targeting unlicensed contractors. Investigators from CSLB’s Statewide Investigative Fraud Team (SWIFT) issued Notices to Appear in criminal court to 14 individuals, one with a prior grand theft conviction and another with an arrest warrant for failure to appear in court.

During the operation held in Campbell, law enforcement cited individuals for submitting bids for construction projects that exceeded the legal limit of $500. The bid amounts ranged from $1,400 to $25,000 for jobs including interior painting, bathroom remodeling, driveway replacement, and artificial turf installation. Engaging in contracting work without a valid license is a misdemeanor offense in California, carrying substantial penalties including jail time. In addition, administrative fines up to $15,000 can be assessed.

And just a couple weeks later the CSLB conducted an undercover sting operation targeting unlicensed contractors in Sacramento County.

CSLB’s SWIFT went undercover in mid-July to catch unlicensed contractors in Elk Grove. Eleven unlicensed operators placed bids ranging from about $2,100 for replacing siding to as much as $17,500 for concrete work – all above the $500 threshold that requires a contractor’s license.

In California, contracting without a license provides for administrative fines up to $15,000 and can be charged as a misdemeanor with sentences of up to six months in jail and a $5,000 criminal fine. A second offense results in a mandatory 90-day jail sentence and a fine of 20 percent of the contract price or $5,000 – whichever is greater.

If you’re working without a license, call us! If you have a friend working without a license, CALL US! A bust like that can ruin the career and perhaps even the life of the suspect, don’t let it happen to you or your friends.

Independence From Boring Jobs

A career in construction is a career for the ambitious. Every day presents an opportunity to learn something new. Unlike other careers, there’s no such thing as an “ordinary” day in this industry. An average desk job keeps you confined to a small space all day long. Even factory and warehouse workers are in the same place every day, doing the same thing every day. In construction, you’re on the move physically and mentally and each day brings a new challenge.

 Independence From Dead-End Careers

Construction workers aren’t limited to the first path they set out on. Changing career paths won’t throw off their future success because there’s no one “typical route” – they quite literally build their career. A career in construction is as unique as the individual. You have the power to evolve, and change specialties. Whether you forge a straight path or jump around to different specialties, hard work will always be noticed.

Independence From Debt

Unlike other lines of work, a career in construction doesn’t require a large upfront investment or years of below-average pay to get started. Workers of every specialty enjoy a great wage from the very beginning — even while training. As the cost of college continues to rise, trade school and apprenticeship programs have become more attractive as they help students earn as they learn.

Construction is the career of an independent mind.

Earlier this month, members of RMO Agency attended the quarterly CSLB meeting in Newport Beach, CA .

While there were many important items addressed at the meeting, here are some highlights from the notes we took:

p.67 – CSLB modernization – CSLB is working on a new phone system and document management system which will include additional online application processing for a streamlined process for users.

p.69 – Spanish Exam translation to Spanish for the top 10 most requested trades

p.76 General information about the board:

The Contractors State License Board was established in 1929 and is currently a part of the Department of Consumers Affairs.

The board is composed of 15 board members (10 public members and 5 contractors appointed by the governor and the state legislature) which appoints the executive officer or Registrar of Contractors and directs administrative policy of the agency’s operations. CSLB headquarters office receives and processes applications for new licenses, additional classifications, changes of records and license renewals. They maintain records of disciplinary actions and provides support services. Headquarters investigates contractors as needed and follows with disciplinary actions resulting from investigations.  CSLB SWIFT team focuses on underground economy and unlicensed contractors and holds sting operations to catch unlicensed contractors and cite them. CSLB holds quarterly meetings that the public is welcome to attend in person or via online web-cast.

p.91 – Assembly bill 2622 (Carrillo) – This is a minor work license exemption that is looking to raise the amount from $500 to $1,000 per project including labor and materials – motion passed by the board to support this bill.

p.94 bill AB2933 – This bill is looking to require the homeowner to sign off when the work is complete prior to lender paying the contractor for the work. CSLB expressed its concerns about the large number of complaints regarding solar work and the loans the homeowner is responsible to pay, even before the solar panels have been turned on.

p.106-108 More info about solar and roofing complaints. CSLB intake and mediation centers have been overloaded with over 200 monthly complaints for solar and is not able to be a service quality control for contractors. For this reason contractors are encouraged to settle potential issues directly with the homeowner and avoid those turning into formal complaints.

p.123 Currently 49% of contractors have filed for workers compensation exemption. Certain classifications require workers compensation coverage. By 2028, all licensed contractors will need to carry workers compensation insurance policy.

For more information, please review the complete board packet: https://www.cslb.ca.gov/Resources/BoardPackets/2024/June13-14_BoardPacket.pdf

To watch the quarterly meeting recording, check out the Webcast: https://www.youtube.com/watch?v=OtNtJHYuO5o

The Contractors State License Board (CSLB) has important details to share with contractors regarding work on manufactured homes, mobile homes, and multifamily manufactured homes (MH).

Only C-47 license holders (General Manufactured Housing Contractors) are authorized to install or prepare MH for moving.

Contractors performing a single construction trade after the installation of a MH must possess the appropriate “C” specialty classification (Licensing Classifications).

For contracts involving two or more unrelated trades after the installation of a MH, a B – General Building Contractor license is required. If the project involves three or more unrelated trades and the MH is a wood frame, a B-2 Residential Remodeling Contractor may be appropriate in accordance with the requirements of that classification.

All applications for a C-47 General Manufactured Housing classification will need to include proof of completion of a federally approved manufactured housing installation training program. Please see CSLB Industry Bulletin #21-19 for more information.