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How much do you know about contractor advertising requirements?

The demand for residential property here in the Golden State remains strong just a few months into 2017 -- much to the delight of realtors and prospective home sellers. Indeed, statistics show that home sales across the state remain strong, experiencing only a slight dip in February.

It's not just the aforementioned parties who stand to make a splash in these favorable market conditions, as with this turnover in homes, comes a demand for the services of contractors to make repairs, construct additions, and transform bathrooms and kitchens.

Those looking to capitalize on this demand by opening up their own outfit need to understand, however, that it's not as simple as just throwing a toolbox into a pickup. Rather there is licensure to secure, a bond to post, and advertising guidelines with which to comply.

Contractors must abide by advertising requirements?

Section 7030.5 of the California Business and Professions Code dictates that all licensed contractors must include license numbers in all construction contracts, subcontracts and calls for bid, and "all forms of advertising as prescribed by the registrar of contractors."

What types of advertising have to include a license number?

Section 861 of the Contractors State License Board Rules and Regulations makes clear that the types of advertising covered by the rule set forth above include:

  • Business cards
  • Vehicle lettering
  • Contract proposals
  • Electronic transmissions, including company websites
  • Signs and billboards
  • Circulars, brochures, pamphlets and web-based ads
  • Clothing and giveaway items bearing the company name and/or logo
  • Directory or listings implying/stating that you are a contractor seeking to be hired for the sort of work necessitating a contractor's license

What happens if a person fails to post their license number as required?

Failure to post a contractor's license number as required can result in a civil penalty of $100-$1,000 for a first offense.

We'll continue this discussion in our next post …

In the meantime, if you are a contractor with questions about this issue or about starting your own outfit, consider speaking with an experienced legal professional who can guide you through the process.

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