Construction Management Update

By Bradley D. Bosomworth, Esq.

We previously commented that a contractors license was not required in California to provide construction management services except for public works. As of January 1, 2013, that has changed. With the intent of negating the holding of The Fifth Day, LLC v. Bolotin (2009) 172 Cal. App. 4th 939 that construction management does not require a contractors license for private works, the California legislature has amended Business & Professions Code Section 7026.1, which defines "Contractor," to add:

(2) For purposes of this subdivision, a consultant is a person, other than a public agency or an owner of privately owned real property to be improved, who meets either of the following criteria as it relates to work performed pursuant to a home improvement contract as defined in Section 7151.2:

(A) Provides or oversees a bid for a construction project.

(B) Arranges for and sets up work schedules for contractors and subcontractors and maintains oversight of a construction project.

Curiously, the change relates only to "home improvement" contracts. Thus, it appears that the Bolotin holding remains good law for private, but not home improvement, works.

 

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