RMO World

We have created this guide of common mistakes made by some contractors, so you can recognize them and avoid these mistakes before you make them yourself.

1 – Working Without a License
The number 1 and possibly the most damaging mistake an individual acting as a contractor can make is taking construction work without a license. First-time offenders face up to 6 months in jail and/or a fine of up to $5,000. We know getting a contractor’s license takes time, money, and a lot of studying, but having a license is a must and the consequences of not doing so are quite serious in California. There are legal licensing alternatives to the exam, which may be of interest to you. One of them is by working under a Responsible Managing Officer (RMO) for 5 years and then qualifying on your own. RMO Agency can find an RMO in your area and help you get licensed without taking an exam. Never work without a license or you take the risk of getting caught by CSLB.

2 – Hiring the Wrong People
Unfortunately, the construction industry is littered with sub-par workers. Whether by choice or by circumstance there are many workers that just don’t have the skill and/or the work ethic. It is important you surround yourself with hard-working, skilled people you can trust, so they represent you and your company as you want to be represented by your customers. Be sure to thoroughly vet anyone you bring onto your job site.

3 – Not Paying the Proper Attention to Safety
As they say “safety first.” The construction industry is disproportionately affected by accidents and injuries. Without proper measures in place, you risk putting your workers in danger which could also affect your costs and timelines as well. Safety training shouldn’t be a one-time event. Regulations are always changing; your workforce may change as well — which means you should be scheduling regular training meetings to ensure proper safety is always at the top of everyone’s mind. Safety starts by having the right equipment (wearables, interconnected devices, heart rate monitors, etc.) in place and training employees on how to use them.

4 – Not Remembering to Hydrate
Along with safety, hydration is key. The human body’s best method for overcoming heat is sweating, but in order to produce enough sweat to cool our bodies, we need to stay properly hydrated. The best way to stay hydrated is water, not juices, sodas, or energy drinks. Just simple clean, cool water. Water is your crew’s best friend. Make sure to provide water on every job site, even if it’s cold out. Also, especially if it’s hot, make sure your team is taking frequent breaks and sipping small amounts of water often.

5 – Bad Estimating
These days, good accounting means good accounting software. Your company must be able to estimate project costs by considering the material, labor, and supplier costs. This allows you to provide more accurate quotes to your customers and will avoid underestimating your expenses. Estimating software can be very helpful as you can get the right estimate by entering specific details that include cost per square foot of material or the cost per hour of labor. Good construction software and the ability to use it are key. In this day and age, if you are still using manual techniques for budgeting, estimating, or preparing building plans, you are making a big mistake. The right software will lower your costs while increasing your accuracy, productivity, and quality of work.

Tips 5-10 will be in next month’s newsletter.

You should never walk off a job without knowing this, you could be liable.

For tips and strategies for handling complaints and what to expect from the process, see the full Complaint Resolution Series HERE

Got a successful RMO-Contractor relationship? Meet for lunch, share your story & tips of good RMO practices, send us a video and lunch is on us!

Details apply, terms are stated below and at the end of the video.

Terms: Send the link to your video to:
Story@RMOAgency.com

Receipt required to redeem payment. Payment to be equal to receipt presented or $50, whichever is less. Compensation to be made in the form of a Visa or MC Gift Card. Video Must be 2-5 minutes in length. One submission per person per calendar month. By submitting, you attest the story you share is yours and accurate to the best of your recollection. By submitting you are allowing RMO Agency to use your video for promotional purposes without any further compensation to you or anyone else involved. RMO Agency reserves the right to determine if submissions are appropriate and useable, any submission determined inappropriate or unusable, will not be compensated. 

There are four primary CSLB license classification groups: A: General Engineering, B: General Building, B-2: Residential Remodeling, and C: Specialty. The C-class license group is composed of approximately 45 specialized trade classifications.

Are you working under the correct classification for your trade? Want to add a classification to your existing license? Read the descriptions of each classification below.

Also, be sure to advertise for work that falls under your existing license classification only!!

If you need any clarification regarding CSLB classifications or adding one to your license, we’ll be happy to help!

A recent graduate from RMO Agency shares his experience on how we helped him through the entire process of getting his license while continuing to work without taking the no exam! We are the REAL RMO Agency.

Two of our seasoned RMO’s welcome Sal to the RMO family. Here are a few things they had to say.

Got a successful RMO-Contractor relationship? Meet for lunch, share your story & tips of good RMO practices, send us a video and lunch is on us!
Details apply, terms are stated below and at the end of the video.

Terms: Send the link to your video to:
Story@RMOAgency.com

Receipt required to redeem payment. Payment to be equal to receipt presented or $50, whichever is less. Compensation to be made in the form of a Visa or MC Gift Card. Video Must be 2-5 minutes in length. One submission per person per calendar month. By submitting, you attest the story you share is yours and accurate to the best of your recollection. By submitting you are allowing RMO Agency to use your video for promotional purposes without any further compensation to you or anyone else involved. RMO Agency reserves the right to determine if submissions are appropriate and useable, any submission determined inappropriate or unusable, will not be compensated. 

Congratulations to our recent graduates:

• Perez Family Landscaping

Something you may not think about much, but the CSLB has rules for advertising for licensed contractors and it’s important to stay current.

You already know about advertising in newspapers, magazines, and on radio and television airwaves but, for licensed contractors, advertising is more than that.

It’s also:

• Your business card;
• Any contract proposal;
• Lettering on your trucks and other vehicles;
• Any sign or billboard identifying you or your company as a contractor;
• Any electronic transmission, including your company’s website content;
• Any soliciting brochure, pamphlet, circular, or Internet ad you or anyone else posts or distributes;
• Any clothing or giveaway items that include your company name or logo; and
• Any directory or listing that states or implies you are a contractor requesting or looking for the kind of work that requires a contractor license under California Contractors License Law.

These specifications are in Section 861 of the Contractors State License Board (CSLB) Rules and Regulations. They define what Business and Professions (B&P) Code Section (§) 7030.5 means when it says that licensed contractors are required to include their license numbers in “(a) all construction contracts; (b) subcontracts and calls forbid; and (c) all forms of advertising, as prescribed by the registrar of contractors.” The civil penalty (pursuant to California Code of Regulations § 884) for not complying with this requirement is between $100 and $1,000 for a first offense.

Identifying Business Vehicles C-36 Plumbing, C-45 Sign, and C-57 Well-Drilling contractors must display the following information on each side of every business vehicle with commercial registration in letters at least 1.5 inches high (B&P § 7029.5):

• Business name;
• Permanent business address; and
• Contractor license number.

All other licensed contractors must display their business names and contractor license numbers on every one of their commercially-registered vehicles. The name and number must be in a clearly visible location in letters at least 3/4 inch high and wide (B&P § 7029.6).

Make sure to check the CSLB for any current requirements.

In our latest episode in our complaint series, we discuss citations and how they work so you know what to expect if you have a complaint that gets to this point.

If you have missed previous episodes, click HERE for the playlist

In the past two years, RMO Agency has been hosting online meetings on RMO Connect Community for our RMOs to join, discuss construction-related topics, and network with one another.

Here are some questions they discussed during one of the Zoom meetings.
We will continue to share short clips of these meetings in the upcoming months.

If you have any business/construction-related questions for our RMOs, please send us an email and we’ll be happy to address your questions in the next meeting.

Please also let us know if you are interested in attending any of our upcoming Zoom or Live meetings with your fellow contractors!

Congratulations to RMO, Greg Zamora, for being featured on Turlock local news for innovative construction solutions! 

Developers are looking to bring a more modern look to Turlock’s residential architecture with new townhomes proposed on the north side of town.

Perfect Logistics, Inc. has submitted plans to the City for a 31-unit multi-family residential project at 4118 N. Tegner Rd. The development will consist of seven three-story townhomes with rooftop terraces and side patios, and each of the 31 units will feature either a carport or garage.

An existing home on the property will be demolished to make way for the new housing, which is across the street from a condo project that is now underway after being previously approved in 2019. According to Perfect Logistic owner’s representative Greg Zamora, architects from Chicago designed the project with a contemporary vision in mind.

Read Full Story Here

Got a successful RMO-Contractor relationship? Meet for lunch, share your story & tips of good RMO practices, send us a video and lunch is on us!
Details apply, terms are stated below and at the end of the video.

Terms: Send the link to your video to:
Story@RMOAgency.com

Receipt required to redeem payment. Payment to be equal to receipt presented or $50, whichever is less. Compensation to be made in the form of a Visa or MC Gift Card. Video Must be 2-5 minutes in length. One submission per person per calendar month. By submitting, you attest the story you share is yours and accurate to the best of your recollection. By submitting you are allowing RMO Agency to use your video for promotional purposes without any further compensation to you or anyone else involved. RMO Agency reserves the right to determine if submissions are appropriate and useable, any submission determined inappropriate or unusable, will not be compensated. 

Congratulations to our recent graduates:

• Cerda Designs Inc.

Meet Denisse Luna from JP’s Remodeling Home Improvement.

Denisse shares her story of going through the RMO program to graduate and get her own license.

It’s time for you to join Denisse and get on the path to your license.

Get started today! https://rmoagency.com/contractors/

In our latest episode in our complaint series we cover the type of arbitration available to you.

If you have missed previous episodes, click HERE for the playlist

“Unlicensed and unscrupulous contractors try to take advantage of consumers rebuilding after a disaster,”

said CSLB Registrar David Fogt. “Fire survivors need to check the license of any contractor they are considering before starting a rebuilding project.”

The January 19, 2022, undercover sting operation was conducted with representatives from the Butte County District Attorney’s Office and the Paradise Police Department. CSLB’s Statewide Investigative Fraud Team members posed as homeowners and contacted suspected unlicensed contractors through their advertisements to perform earthwork, fencing, paving, and remodeling work.

The four people arrested for unlicensed contracting face felony charges because the unlicensed activity took place in a declared disaster area. Punishment may include a fine of up to $10,000, and up to three years in state prison, or both.

One unlicensed contractor bid $17,000 for fencing on the sting property, which is well over the legal limit for contracting without a license. In California, it’s illegal for an unlicensed person to bid for or perform any home improvement valued at $500 or more in combined labor and material costs.

Another unlicensed contractor was also charged with possession of methamphetamine and fentanyl. All suspects were ordered to appear in Butte County Superior Court.

CSLB-licensed contractors have met experience and testing requirements, carry a license bond, passed a criminal background check, and carry workers’ compensation insurance for employees.

Got a successful RMO-Contractor relationship? Meet for lunch, share your story & tips of good RMO practices, send us a video and lunch is on us!
Details apply, terms are stated below and at the end of the video.

Terms: Send the link to your video to:
Story@RMOAgency.com

Receipt required to redeem payment. Payment to be equal to receipt presented or $50, whichever is less. Compensation to be made in the form of a Visa or MC Gift Card. Video Must be 2-5 minutes in length. One submission per person per calendar month. By submitting, you attest the story you share is yours and accurate to the best of your recollection. By submitting you are allowing RMO Agency to use your video for promotional purposes without any further compensation to you or anyone else involved. RMO Agency reserves the right to determine if submissions are appropriate and useable, any submission determined inappropriate or unusable, will not be compensated. 

Congratulations to our recent graduates:

• Economy Roofing & Repairs Inc
• All About Experts Inc Dba All About Plumbing
• American Renewable Energy Inc Dba Solargen
• JP’s Remodeling Home Improvement Services

What would you do if you got a CSLB complaint from a homeowner?

The quick answer is: Resolve it EARLY! Respond to any letters or calls by CSLB in a timely manner, and try to settle the issue directly with the consumer before it goes any further.

It may cost you more money than you expected and you may believe that you are right and the homeowner is wrong, but in order to keep your Contractor’s License clean and to continue working as a contractor, you must be complaint-free!

It is much easier to pay the homeowner and settle right away than to go through a full investigation process with the CSLB and come out clean on the other side. Under an investigation, CSLB can investigate all aspects of your business and potentially find other violations unrelated to the complaint.

The quicker it is resolved with the homeowner, the higher the chance for the license to stay clean.

We’ve been serving contractors for 15 years, and have witnessed complaints resolved easily and others dragging for years and leaving their mark on the license.

As soon as you know a homeowner is not happy, the ball is in your court to be proactive and settle this early. You have a Contractor’s License, while many others are still working unlicensed- Do everything that you can to keep it clean!

Because of increased operating costs, the state legislature recently approved a CSLB fee increase effective on January 1, 2022. This is the first statutory fee increase since 2017. The fee increases are the result of a study performed by a private consultant to establish CSLB’s actual cost of performing the services associated with the fees.

Read Full Article & Review Updated CSLB Fees

Want to make extra passive income using your active, inactive, or expired license? Click Here: https://rmoagency.com/rmo-sign-up/

RMO Agency has 15 years of experience in connecting new and seasoned contractors for success! Create a source of passive Income with your Contractor’s License- No Hands-on Work! Thank you for your support comment, like, and share! Follow @rmoagency

Got a successful RMO-Contractor relationship? Meet for lunch, share your story & tips of good RMO practices, send us a video and lunch is on us!
Details apply, terms are stated below and at the end of the video.

Terms: Send the link to your video to:
Story@RMOAgency.com

Receipt required to redeem payment. Payment to be equal to receipt presented or $50, whichever is less. Compensation to be made in the form of a Visa or MC Gift Card. Video Must be 2-5 minutes in length. One submission per person per calendar month. By submitting, you attest the story you share is yours and accurate to the best of your recollection. By submitting you are allowing RMO Agency to use your video for promotional purposes without any further compensation to you or anyone else involved. RMO Agency reserves the right to determine if submissions are appropriate and useable, any submission determined inappropriate or unusable, will not be compensated. 

Congratulations to our recent graduates:

• E & R Venice Design Inc
• Evans Heating And Air, Inc.
• GSML Corporation DBA Sharon Stone Design

Meet Bob- RMO Since 2011, Eric – RMO Since 2013, and Mickey – RMO Since 2012, they are our RMO ambassadors.

Over lunch, we listened to three of our RMOs tell some of their stories about how their business and their lives have changed for the better since becoming RMOs through RMO Agency.

Discover the legal way to Get Your California Contractors License without having to take a test by working with a Responsible Managing Officer (RMO), a licensed contractor whose experience will waive your exam requirement.

Watch this interview with our own Gal, VP of Operations, with the Contractor’s Resource Center to learn more.

Online Renewal is available on the CSLB website for sole owners or corporations with a SINGLE qualifier (multiple qualifiers still require the paper renewal).

Online renewal is only available within 60 days of license expiration and must be completed online by the license qualifier. Payment will be submitted online and you will see an IMMEDIATE update of the license expiration date.

CLICK HERE TO GO TO CSLB LICENSE RENEWAL PAGE

Got a successful RMO-Contractor relationship? Meet for lunch, share your story & tips of good RMO practices, send us a video and lunch is on us!
Details apply, terms are stated below and at the end of the video.

Terms: Send the link to your video to:
Story@RMOAgency.com

Receipt required to redeem payment. Payment to be equal to receipt presented or $50, whichever is less. Compensation to be made in the form of a Visa or MC Gift Card. Video Must be 2-5 minutes in length. One submission per person per calendar month. By submitting, you attest the story you share is yours and accurate to the best of your recollection. By submitting you are allowing RMO Agency to use your video for promotional purposes without any further compensation to you or anyone else involved. RMO Agency reserves the right to determine if submissions are appropriate and useable, any submission determined inappropriate or unusable, will not be compensated. 

Congratulations to…

• Renova Builders

We are excited about RMO World and our commitment to RMO’s, general contractors, and the construction industry. Our goal is to keep you up to date and to make the construction industry personal to you.

On our LinkedIn page, we hope to connect to all those in the construction industry especially RMO’s and aspiring contractors looking to learn more about each other’s experiences. We are seeking to expand our network and introduce our RMO Agency to those who want to or already are making a difference in the RMO construction world. This is an open invitation to all in the community of construction from contractors to landscapers to join our RMO network. Share with us your experiences, job opportunities, and stories so we can celebrate your success.

What is an RMO?

RMO = Responsible Managing Officer.
An RMO is an officer of the corporation and the qualifying individual for a licensed corporation. A corporation must have a qualifier to obtain and maintain its Contractor’s License. The corporation will be issued a new license number, separate from the RMO’s personal license.

Ownership: An RMO can qualify up to 3 corporations at one time only if RMO holds at least 20% of the shares of each corporation and is in compliance with the CSLB’s supervision requirements.

RMO duties:

• Direct supervision of Contractor’s construction operations (supervising construction, managing construction activities by making technical & administrative decisions, checking jobs for proper workmanship & OSHA safety, or direct supervision on job sites.)
• Review all construction documents for the projects
• Support resolution of project issues such as consumer complaints, settlements, investigations, disciplinary hearings, etc…

With an RMO, a new contractor may become the qualifier of the license after 5 years of working with a clean, in good standing contractor’s license (we call it ‘graduation’ of our RMO program). That is our goal with each of our clients – To support them from application to graduation (and everything in between!)

Got a successful RMO-Contractor relationship? Meet for lunch, share your story & tips of good RMO practices, send us a video and lunch is on us!
Details apply, terms are stated below and at the end of the video.

Terms: Send the link to your video to:
Story@RMOAgency.com

Receipt required to redeem payment. Payment to be equal to receipt presented or $50, whichever is less. Compensation to be made in the form of a Visa or MC Gift Card. Video Must be 2-5 minutes in length. One submission per person per calendar month. By submitting, you attest the story you share is yours and accurate to the best of your recollection. By submitting you are allowing RMO Agency to use your video for promotional purposes without any further compensation to you or anyone else involved. RMO Agency reserves the right to determine if submissions are appropriate and useable, any submission determined inappropriate or unusable, will not be compensated. 

Congratulations to…

• Builders Green Inc.
• Faragon Restoration, Ltd.