RMO World

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.

Throughout May and June young adults are graduating high school all across our fine state. Some graduates know exactly what they want to do after high school, some do not. 

A great option for a career choice is the construction industry. Some might ask why the construction industry?

A better question would be – why not? General contractors make good money in California, easily clearing $100k a year in most markets, and becoming a general contractor doesn’t require a 4-year degree or any of the other nonsense that comes along with other high-paying jobs.

For anyone who detests school – but likes building things – being a general contractor is a career that is full of fulfillment and financial rewards. By stepping onto the path to being a Class B licensed general contractor, any young adult can find themselves in a full-fledged career in just 4 years, making 3-4 times what their college-attending peers would with little to no debt to get there.

There’s really so many upsides to being a general contractor – and considering it’s a job that will always be in demand, it’s a great way to future-proof yourself from the rapid change we are all experiencing every day.

Neither a high school diploma or a college degree is required to become a general contractor and with our program we provide a fast, legal alternative to taking the test and can guide you or someone you know on the path to a new career.

Father’s Day is a time to celebrate the fathers in our lives. Fathers in the construction industry not only  build our communities, but they are providing for their families while doing so. Construction work is hard and often in dangerous and challenging conditions, and they deserve our respect and admiration.

The US construction industry employs roughly 8.5 million men. The average age of a construction worker in the US is 42 years old, and the majority of construction workers are fathers.

Construction workers face many challenges on the job, including long hours, dangerous working conditions, and exposure to harsh weather. They also often have to travel away from home for work. Despite these challenges, construction workers are dedicated to their jobs and to their families.

Fathers in the construction industry are role models for their children and their community. They teach their children the importance of hard work, dedication, and safety. They also teach their children the value of teamwork and cooperation.

On this Father’s Day, let’s take a moment to celebrate the fathers in the construction industry. Let’s thank them for their hard work and dedication. And let’s let them know how much we appreciate them. 

NOTICE OF PUBLIC BOARD MEETING

Day 1: Thursday, June 13, 2024, 1:00 p.m. – 5:00 p.m.
(or until the conclusion of business)
MEETING LOCATION
Newport Beach Marriott Bayview Hotel
500 Bayview Circle, Newport Ballroom
Newport Beach, CA 92660

Day 2: Friday, June 14, 2024, 8:30 a.m. – 11:30 a.m.
(or until the conclusion of business)
MEETING LOCATION
Newport Beach Marriott Bayview Hotel
500 Bayview Circle, Newport Ballroom
Newport Beach, CA 92660

The June 13, 2014, meeting will be live webcast (with an approximate 30-second delay).  Links are available at the end of this agenda.  The June 14, 2024, meeting will be in person only, no live webcast.

The meeting is open to the public except when specifically noticed otherwise in accordance with the Open Meeting Act. All times when stated are approximate and subject to change without prior notice at the discretion of the Board unless listed as “time certain.” Items may be taken out of order to maintain a quorum, accommodate a speaker, or for convenience. Action may be taken on any item listed on this agenda, including information-only items. The meeting may be canceled without notice.

Members of the public can address the Board during the public comment session. Public comments will also be taken on agenda items at the time the item is heard and prior to the Board taking any action on these items. Total time allocated for public comment may be limited at the discretion of the Board Chair.

Note: The webcast for the June 13, 2024 meeting can be found at www.cslb.ca.gov or on the board’s YouTube Channel:https://www.youtube.com/user/ContractorsBoard/.  Webcast availability cannot, however, be guaranteed due to limitations on resources or technical difficulties.  The meetings will continue even if the webcast is unavailable. 

Note that viewers of the webcast can only view the meeting, not participate.

The meetings are accessible to those needing special accommodation.  A person who needs a disability-related accommodation or modification in order to participate in the meetings may make a request by calling (916) 255-4000 or emailing Robin.williams@cslb.ca.gov,or by mail to 9821 Business Park Drive, Sacramento, CA, 95827.  Providing any request at least five business days before the meetings will help ensure availability of the requested accommodation.

The Contractors State License Board (CSLB) has an important reminder for C-16 Fire Protection contractors and their employees.

C-16 license qualifiers and journey-level personnel who install or repair water-based fire protection systems for commercial or multi-family dwellings must obtain a Fire Sprinkler Fitter Certification.

Apprentices and trainees working for a C-16 contractor must obtain a Fire Sprinkler Fitter Registration.

C-16 licensees and their employees who fail to get this certification or registration before performing fire protection installations or repairs may face CSLB disciplinary action.

Please note this certification does not apply to C-16 contractors who work on residential one and two-family homes.

To learn more about the Fire Sprinkler Fitter Certification and Registration requirements, please refer to the Automatic Fire Extinguishing Systems pageon the Office of the State Fire Marshal’s website at https://osfm.fire.ca.gov/ or email the office directly at AES@fire.ca.gov.

This month we remember Memorial Day and those who sacrificed everything for our country.

We are not legal or financial consultants but are passing on information, we do recommend you speak with your CPA or attorney for guidance on what you should do with your business regarding this requirement.

New Federal Reporting Requirement for Beneficial Ownership Information (BOI)

Effective January 1, 2024, many companies in the United States must report information about their beneficial owners—the individuals who ultimately own or control the company—to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Filing is simple, secure, and free of charge. Beneficial ownership information reporting is not an annual requirement. Unless a company needs to update or correct information, a report only needs to be submitted once.

Who Has to Report? Companies required to report are called reporting companies. Reporting companies may have to obtain information from their beneficial owners and report that information to FinCEN.

Your company may need to report information about its beneficial owners if it is:

1. a corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
2. a foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.

Report your Beneficial Ownership Information (BOI) the BOI webpage, www.fincen.gov/boi.

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report.(Most of our clients had their company established before 01/01/2024, so follow this guideline unless……)

A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.(Did you just register with the secretary of state?….Follow this guideline)

Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN. (This will not be in effect until 2025)

Businesses that do not file on time are subject to fines.

There is no yearly due date to renew, but you are required to report any change of information as soon as that change occurs, within 30 days.

Again, we are NOT giving ANY legal, financial, or business advice and there may be more information you need to know than we have provided here. Again, please consult with your CPA or attorney for guidance.

WANT TO MAKE EXTRA $$? UNIQUE JOB OPPORTUNITY FOR EXPERIENCED CONTRACTORS!

A CA bank that provides construction loans to homeowners is seeking out licensed, EXPERIENCED contractors to serve in a supervisory role,for approximately 12 months (through the course of construction) to advise the homeowner during various ground up construction projects. All construction work will be subbed out and the contractor will be in a supervisory position only. Jobs can be located anywhere in the state of CA.

Here are the eligibility requirements/details for this position:

• 2 years experience as a licensed GC
• Minimum 1 completed custom home.
• 3 trade references
• For builders <5 years of having company established – 2 years tax returns p&l + balance sheet
• >5 years of having company established – no financials required For the project the builder would produce the following documents:
• Contract
• Cost breakdown
• Materials list
• Specs

2 levels of involvement available:
10% of budget-Full service provides:

• Supervising GC produces all construction documents (Specs/Materials list/cost breakdown/construction contract)
• Supervising GC or Customer does subcontractor and finish selection to come up with a budget.
• Supervising GC manages all scheduling of subcontractors.
• Supervising GC provides job site supervision.
• Supervising GC manages payment of subcontractors and suppliers.
• Supervising GC attends all building inspections.
• Supervising GC maintains proper general liability insurance.
• If financing is involved, work with the customer’s bank to get registered with the bank.

$1000 monthly fee Hybrid GC provides:

• Supervising GC produces Construction Contract
• Supervising GC is available as a consultant to the customer (weekly phone call or email/monthly site visit)
• Supervising GC maintains general liability policy/GC license (customer to pay cost of policy cost to add job)
• If financing is involved, work with the customer’s bank to get registered with the bank. Establish a joint account with the homeowner to allow for payment of subs by customer.
• All items not mentioned would be the customers responsibility.

Payment terms are open to be discussed, but Supervising GC will be paid a flat monthly fee for overseeing the homeowner’s build.

If you are interested and meet the eligibility requirements, contact Aaron Melich for more details and for consideration:

Aaron Meilich
O: 916.798.3000 M: 916.798.3000

AMeilich@WaterstoneMortgage.com

Construction is expected to begin Monday on a $12 billion high-speed passenger rail line between Southern California and Las Vegas.

Brightline West aims to lay 218 miles of new track between a terminal to be built just south of the Las Vegas Strip and another new facility in Rancho Cucamonga. That trip usually takes well over three hours by car.

The company says its fully-electric train will take just over two hours each way.

Almost the full distance is to be built in the median of Interstate 15, with a station stop in the Victorville area.

Forecasts are for 11 million one-way passengers per year, or some 30,000 per day, with fares well below airline travel costs. The trains will offer rest rooms, Wi-Fi, food and beverage sales and the option to check luggage.

Source: ABC News

Spring is the season of new beginnings, which is why many people want to start their new home construction or home remodeling project during this season.

The weather is great during this season, not too cold and not too hot. Here we share a few reasons why spring is the best time for home construction or renovation:

Weather Conditions Are Ideal

Spring offers that perfect middle ground between the cold winter and hot summer. Contractors work more efficiently when the weather is good, and there will be fewer weather-related delays.

Get In the Lineup of Projects

The sooner a project can get listed on a contractor’s calendar, the sooner they can start with it. Everyone knows, summer is peak work demand for construction. If you wait till later in the year, your project may get backlogged, and it might take months before they even start. It’s better beat the rush and get in line for the builders’ spring construction projects as soon as you can.

More Time to Get The Job Done

When you get the building started during spring, you have all the way to fall, if needed to get the job done before weather becomes a factor. This will mean fewer delays and a higher possibility of the project getting done before the winter weather arrives!

The Project Won’t Be As Disruptive

If you’re planning a project, it is best to do it in the spring when it won’t get in the way of most of your usual activities. All the winter holidays are all over and summer is still ahead. When you get the project started in the spring, there’s a good chance that you’ll be done by the time the hotter months arrive.

Get Great Deals on Materials

Many suppliers have their end of winter sales with discounts on items from the previous season. If you start your project in the spring, you can take advantage of those great deals and save on the supplies used on your project!

In Conclusion

There are many good reasons to have a home construction/renovation project done in the spring beyond the weather it offers. You can get ahead of other homeowners who plan to get their homes built or renovated in the summer. You’ll also get fewer disturbances, and the contractors will be able to work efficiently in these months. You get to save money on supplies, there’s no reason why you should let spring pass without getting started on your home construction/renovation!

The construction industry has been around for a long time, and there are countless fun and interesting facts about our industry. Here are a few.

CONCRETE IS THE MOST USED MATERIAL

In terms of volume, concrete gets used the most in the world— and actually dates back to Ancient Egypt!

THE AVERAGE AGE OF A CONSTRUCTION WORKER TODAY IS 42 YEARS OLD

This is one year older than the average age of a worker in the general labor force. The ongoing shortage of construction workers and an aging workforce have contributed to the increase in the median age of construction workers, we at RMO Agency are always striving to being in young blood to our industry and you can help.

HOW MANY NAILS?

When building an average-size house—about 1,200 square-feet—there are about 12,000 nails used, averaging roughly 10 per square foot.

THE WORLD’S SMALLEST SKYSCRAPER WAS A CON

Back in 1919, a contractor named JD McMahon raised $200,000 from investors to build a skyscraper in Wichita Falls, Texas. However, he never verbally stated the planned height of the building. All of the paperwork including the blueprints showed 480” (inches), not 480’ (feet), his investors apparently never caught on, and thought they were getting a tall 480 foot—not 40 foot—skyscraper. Making that a very expensive apostrophe.

DRONE USE HAS INCREASED

As technology becomes more available, that technology becomes incorporated into construction. Drone use on construction sites has grown over 239% in the past year, the most of any industry. The aerial maneuverability of drones and the ability to record videos and take photos have streamlined and improved the construction project.

MOST FATALITIES OCCUR BECAUSE OF A FALL

Training for safety in our industry is crucial. Falls are by far the biggest risk in construction, and result in death 4 more times more than any other fatal accidents.

YOUNGER GENERATIONS ARE LESS INTERESTED IN THE CONSTRUCTION INDUSTRY

According to U.S. Census data, the number of workers aged 24 years or younger entering the construction industry decreased by 30% between 2005 and 2016. They have many misconceptions; such as thinking that the construction industry is unstable or you will earn far less compared to college-educated careers. At RMO Agency we are working to change these false perceptions.

Gov. Gavin Newsom will attempt to speed up construction of a $2-billion mixed-use development expected to create 10,000 union construction jobs in downtown Los Angeles, his administration announced last month.

Fourth & Central, a 7.6-acre development includes 1,500 new homes, 410,000 sq. ft. of office space along with retail, restaurants and a 68-room hotel to what is currently a collection of cold storage facilities, parking lots and warehouses in the Skid Row neighborhood of downtown LA.

Newsom hopes to shave years off the construction timeline by fast-tracking a judicial decision in any litigation filed against the project under state environmental laws.

Denver-based developers Continuum Partners unveiled the project in 2021. The plan consists of 10 buildings, including a 44-story residential skyscraper at Central Avenue and 4th Street. In total, the proposal calls for 572 condominiums and 949 apartments, with at least 214 units set aside as low-income housing.

The Governor certified the Fourth and Central Project utilizing tools to build more faster that were extended in the historic infrastructure package passed last year with the support of the Legislature.

This is the third project and the first housing project to be streamlined since the Governor signed the infrastructure package into law.

Business agreements are generally contractually binding, which makes the initial stages of any agreement so vital. From the first interaction, your construction estimates can have a huge impact on both the business and the customer.

Accurate estimates in construction are important for the following reasons:

Good Estimates Save Money

When an estimate creates an accurate picture of the details of a construction project, everyone saves money. You will know exactly how much to spend to complete a job, while your client will know how much to expect to pay well ahead of time. This also helps prevent unnecessary purchases and surpluses, which will save you and your client time and money.

Accurate Estimates Win More Work

Positive or negative, people will always share their experiences with other companies. By providing a realistic, accurate estimate that a client is happy with, they’ll know that you operate your business honestly and will be more likely to work with you again or refer you to others.

Honest Estimates Reflect Company Values

When you strive for and provide accurate estimates, you demonstrate the integrity of you and your company. Of course, you can’t anticipate every problem or unexpected expense you’ll encounter on a project, so always be transparent throughout the project regarding any hiccups especially if it is going to affect the budget in any way.

Realistic Estimates Prevent Surprises From Creating Problems

No project goes 100% according to plan, and it’s common for unexpected costs to arise. Most clients understand this, however, too many unexpected expenses will begin to wear down your professional relationship and make you look bad. Always do your best to prevent unexpected costs from the outset, then your clients will be more understanding when something comes up that’s out of your control.

Stay tuned, in coming editions we will be providing insights into estimate techniques.

Being in construction wood is of course a key element in most projects. Something interesting we recently came across was the difference between old growth wood and new growth wood.

The difference between old growth wood and new growth wood is like the difference between granite and paper. Old growth wood has better stability, durability and longevity. New growth wood, depending on where it is used, can start to rot and warp after only 20 years.

The term “Virgin Wood” refers to first-cut wood, or wood harvested for the first time. As the country expanded from east to west and trees were harvested for wood, the virgin wood forest harvesting era lasted from the 1870s into the 1940s.

The biggest difference of virgin growth wood is that it has grown very slowly over a long period of time and because of this slow growth, the growth rings are very tight. Tight growth means more stability. In the above photo there are 2 pieces of wood 100 years apart. The wood from 1918 has 20-25 growth rings per inch. The wood from 2018 has only 7.  

Stability isn’t the only advantage. This slow growth also yields more heartwood. Heartwood is the longest lasting part of the tree, whereas sap wood which will rot very quickly. Note too in the picture above, the wood from 1918 is all heart wood, the wood from 2018 is all sap wood.

Most wood used today, by contrast, is grown very fast. Grown for quick production, these trees produce very little heartwood and these trees have fewer growth rings per inch.

Seeing as this is the month of St. Patrick’s Day here are the 5 most famous Irish architects:

1. James Hoban (1758 – 1831) designed the White House which has been the residence of every U.S. president since John Adams in 1800. 
2. Eileen Gray (1878 – 1976) was well known for incorporating the work of lacquer with luxury in the international style, the major architectural style.
3. Andrew Devane (1917 – 2000) established a large architectural practice of Robinson Keefe Devane an architectural and interior design firm specializing in the commercial, industrial, educational, and healthcare fields.
4. Kevin Roche (1922) won the Architecture Pritzker Award. He is considered the architect most creative regarding the design of glazed buildings.
5. David Collins (1955 – 2013) specialized in the interior design of bars and restaurants in London. He was recognized for his works in Michelin-starred restaurants such as The Wolseley, and Gordon Ramsay at Royal Hospital Road.

Tradesman… whether you’re a general contractor working on huge commercial projects or a local handyman serving your community, it’s a meaningful job that helps everyone in the community. It is one of the few industries where you can see and appreciate how your work changes the world around you!

If you’re already in the trades, we’re sure you know, but it’s always good to take the time every now and to reflect on what you love about what you do. Here are just 5 reasons we love the construction industry.

1. See the fruits of your labor.Many professionals feel like their work isn’t meaningful. Over time, this can be discouraging and lead to burnout. Construction offers the opportunity to help create something that makes a significant impact. It transforms entire communities and changes landscapes. A pile of bricks, wires, logs, and beams becomes a building where families live, companies work, or retail stores thrive!
2. You’ll get to spend time on construction sites.As a construction or project manager, you will have to work at a desk to create reports, calculate budgets, and ensure the project is on schedule… But you also get to spend time at the construction sites doing fieldwork. While onsite, you get to supervise, gauge construction progress, and work with a team.
3. You may get to travel!In some positions, you will get work-travel opportunities. After a project is complete, you may get to travel and spend time working in a new location, seeing some places that you may otherwise not have visited, and meeting new people!
4. There are many paths to take in construction.In the construction industry, education is important, but nothing compares to the value of work experience. This makes construction a great field for people with various backgrounds. This may include a university graduate, a trade school student, an apprentice, or working with an RMO. Even those working in different industries can apply their existing skills to the construction management workforce. Construction offers the opportunity to learn new skills and work your way up.
5. The construction industry isn’t going anywhere. Construction is one of the largest industries in the country. People will always need to remodel and build or repair houses, commercial buildings, or roads. When one project ends, the next one is already waiting to start.

Sacramento, CA – The 2024 edition of the Contractors State License Board (CSLB) California Contractors License Law & Reference Book (Law Book) is now available. CSLB is pleased to introduce a streamlined law book that includes essential information for the California construction industry.

The Law Book can be purchased directly from the publisher, or the online PDF version can be viewed or downloaded at no cost on the CSLB website.

CSLB has reviewed and made noteworthy changes to the Law Book, cutting the book to half its previous size.

Key changes include removal of:

• Chapter 1 Becoming a Licensed Contractor: This information is available in the Get Licensed to Build guide on CSLB’s website.
• Chapter 2 Your Existing License: Maintaining and Changing It: This information is available on the Maintain and Change Your License page on CSLB’s website.
• Chapter 3 Access to License Information: This information is available on different parts of CSLB’s website, depending on what licensee information you’re looking to access.
• Chapter 7 Safety and Health in Construction: This information is available on Cal/OSHA’s website, which also links to the Cal/OSHA construction, electrical, and general industry safety orders.

As a result, the chapters were renumbered to reflect the changes.

Also, sections of law from California state codes that are not from the Business and Professions Code, which were included in prior year editions, were removed and can be found at www.leginfo.legislature.ca.gov.

The Law Book can only be purchased directly from publisher LexisNexis online or by calling (877) 394-8826. The price is $54.00 plus tax, shipping, and handling. The Law Book is available as a PDF on the CSLB website and can be downloaded for free.

Here’s a short clip of what just a few of our contractors have to say about RMO Agency and our program!

Contractors are keeping busy this year. All over California, the construction industry is seeing a significant boom for a variety of reasons.

Here are some of the key factors responsible for the current upswing in job creation and economic development that the California construction business is experiencing in 2024.

Infrastructure Investment

The state government is putting a lot into improving transportation, public facility upgrades, and updating water and energy infrastructure right now.

A recent report tells us that California has had $32.7 billion announced in Infrastructure Investment and Jobs Act (IIJA) funding. Of this amount, $24.18 billion is dedicated to transportation-related projects – so that could be a good one for civil engineers and public works contractors.

You can keep yourself updated about ongoing transportation projects in California on the California Department of Transportation website. The Office of Governor Gavin Newsom also launched Build.ca.gov to help you track exactly how money is being used for building projects around the state.

It might also be worth mentioning that there are government incentives promoting growth in construction and development.

For instance, construction projects supporting affordable housing, renewable energy goals, and earthquake-resistant builds — since these projects are good for Californians state-wide, so they help companies qualify for tax credits, grants, and subsidies.

Housing Demand

California is just one of those attractive places that people want to call home.

The state has long grappled with a housing shortage, but in 2024 we’re seeing developers go full-tilt in their efforts to build new apartment buildings, condos, and single-family homes.

Over five thousand homes were just fast-tracked by an affordable housing initiative across 10 statewide projects.