Public Works
California public works projects are creating new opportunities for construction businesses across the state. Roads, schools, housing, transportation, and infrastructure projects require skilled contractors.
For growing construction companies, public works can provide valuable revenue opportunities. However, contractors must meet specific licensing requirements before submitting bids.
Is Your License Classification Correct?
California contractors must hold the appropriate license classification for the work being performed. The Contractors State License Board (CSLB) provides specific classification descriptions for different types of construction work.
Before pursuing a public works project, contractors should review:
- Their current California contractor license classification.
- The project’s complete scope of work.
- CSLB classification requirements.
- Licensing requirements for subcontractors.
- Any additional project-specific requirements.
Using an incorrect classification can affect bid eligibility. It may also create compliance and enforcement issues.
Public Works and SB 1455
Senate Bill 1455 strengthened California’s requirements for public works license classifications. Awarding agencies must determine classifications using CSLB regulations.
This means contractors should pay close attention to the classification listed in each bid opportunity.
The Class B General Building classification also deserves special attention. CSLB notes that a B license is not appropriate for every construction project.
Could an RMO Help?
Business expansion can expose gaps in a contractor’s existing license classifications. An RMO, or Responsible Managing Officer, may help qualified companies address those licensing needs.
A properly structured RMO relationship can help a business obtain the appropriate contractor classification. This can position the company to pursue additional construction opportunities.
RMO relationships must comply with California contractor licensing laws. The RMO should also have appropriate experience and involvement with the company’s operations.
Prepare Before the Opportunity Arrives
These projects can represent significant growth opportunities for California contractors. Being properly licensed before bidding can provide a competitive advantage.
Review your classifications now. Understand your target projects. Make sure your licensing strategy supports your business goals.
When the next public works opportunity appears, you want your license ready.
Need a license through an RMO? Click HERE for more info.
Have a license and want to become an RMO? Click HERE for more info.