In a prior blog post, we identified the traditional steps to maintaining a contractor’s license. Here we identify several more nuanced issues that impact Virginia contractors.
1. Designated employees can serve two contractors. In Virginia, companies, not the individuals that take the contractor’s exam, hold the contractor’s license. Those individuals are called “designated employees.” They must be a full-time employee or member of the responsible management. While not expressly written in the Board’s regulations, the Board has confirmed that one person can serve as the designated employee for two separate companies. This can be particularly helpful when a company is acquiring a construction business – in that instance, the designated employee can aid the new company in obtaining its license, while helping the acquired company maintain the license through the acquisition.
2. Classifications matter. A Class A, B, or C license identifies the size of the Project on which contractors can work. The classification or specialty identifies the type of work a contractor can pursue. For example, a contractor with a commercial improvement classification (CIC) cannot construct a commercial building from the ground up like a commercial building contractor (CBC) can. A contractor who holds a CBC classification, however, cannot perform electrical work without a electrical service contracting (ESC) classification. The Board has authority to discipline or revoke a contractor who performs work outside of its classification or specialty.
3. Mechanic’s liens require licensure. The General Assembly now requires all mechanic’s lien claimants to identify their license number and issuance date, or state that a license is not required. (Typically contractor’s licenses are not required for material or equipment suppliers that do not provide construction labor). Contractors that do not provide accurate information will likely lose their liens.
4. Prohibited acts. Many breaches of private contract may also constitute cause for discipline by the Board of Contractors. Periodic review of the Board’s “prohibited acts,” (18 VAC 50-22-260) is a good reminder of actions that can cause the Board to intervene. Negligence, failing to keep contracts for five years, dishonored warranties, and inadequate supervision all constitute grounds for Board intervention.
5. Communicate with the Board. The Board requires written notice of change in ownership or corporate structure. The licensing section of the Board of Contractors is available by telephone to field questions. They have proven helpful in clarifying the regulations and contractors’ obligations.
As president of Hirschler and head of the firm's litigation section, Courtney knows how to lead people and projects to a successful outcome.
Leveraging deep experience in the construction industry, Courtney advises public and ...
Liz combines enthusiasm and diligence to help her clients resolve complex disputes. Whether the dispute is a construction claim, a breach of contract, or a business tort, Liz brings focus and determination to every case. Liz has ...
Kelly’s practice focuses on construction law, commercial and product liability law, with an emphasis on dispute resolution—including mediation, arbitration, jury and bench trials in state and federal court. She routinely ...
Nate fully engages in each case and shoulders his clients’ needs. Communication, efficiency and careful judgment define his practice. In every case, he investigates competing claims to thoroughly understand their strengths ...
A professional engineer (P.E.) and an experienced lawyer, Webb began practicing at Hirschler Fleischer following four years of work as a consulting engineer. His multidisciplinary practice focuses on general business and ...
SubscribeSubscribe to Hirschler by Email
- Right to Work Laws and What a Potential Repeal Could Mean
- Construction Year in Review: 2019 Trends and What to Expect in 2020
- Department of General Services Conducts “Town Hall” on Statute of Limitations Bill
- New Virginia Supreme Court Case Refocuses Attention on Commonwealth's Immunity from Statutes of Limitation
- Virginia Department of General Services Releases Survey on Statute of Limitations Issue
- Alternatives to Pay-if-Paid Provisions
- Changes to Mechanic’s Lien Law Effective July 1!
- Virginia General Assembly: Construction Bills To Watch- Part 2
- Courtney Paulk and Kelly Bundy Discuss “Unpreventable Employee Misconduct” Defense in Article for Construction Executive
- Five Licensure Issues All Virginia Contractors Should Consider
- Dispute Resolution
- Workforce Development
- Government Contracts
- Little Miller Act
- Miller Act
- Mechanic's Liens
- Occupational Safety and Health Act (OSHA)
- Department of Professional and Occupational Regulation (DPOR)
- Virginia Employment Commission (VEC)
- Virginia Workers' Compensation Commission
- Uniform Statewide Building Code
- Change Orders
- January 2020
- November 2019
- August 2019
- June 2019
- April 2019
- February 2019
- January 2019
- December 2018
- October 2018
- September 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- November 2017
- October 2017
- September 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016