Contractors – California takes about 60 days to renew your license!! This is the deadline before the deadline!
Why does it take that long?
All state agencies have a process to follow including multiple processing units that touch your application as it goes through the process. California is actually very efficient for the number of renewals they process monthly, with more than 350,000 contractors in the state.
Why should you care?
Your first concern is getting your licenses renewed on time. It’s not an option, it’s the law! Your business entity and license must be in good standing for your company to be properly licensed. Like your credit report, late license renewals negatively affect the status of your license including; license suspension, inability to process other changes and lost or delayed privileges. Most all states list the status of your license online for all the world to see. It is now a PR issue as well.
Why is the time it takes an issue?
It takes time to assemble the supporting documents that are required to accompany your renewal application. Updating bonds, financial statements and continuing education requirements can take months to complete. If your corporate officers are out of the country, it takes time just to get the form signed. If your corporate officers have left the company, you have bigger issues to deal with. Accidentally missed compliance requirements could cause months of delays before your renewal can be processed.
What are the consequences?
If your license is suspended for late renewal, you are required to stop work on all projects in progress. You are not allowed to submit any new bids for work. Fines and penalties could come from violation of state statutes as well as deadline provisions in your construction contracts. That will affect your bottom line, your employees, sub-contractors and their employees and so on.
What can be done to speed up the process?
- Open all mail from state agencies right away (deadlines don’t wait for you to open them).
- Anticipate required supporting documents needed.
- Use Express Mail to send your renewal and payment.
- Read and follow all of the renewal instructions explicitly.
- Workman’s Compensation Insurance renewals take time!!! Hundreds if not thousands of licenses get temporarily suspended every year because business owners fail to negotiate the renewal of their insurance policies far enough in advance to meet the deadline before the deadline!
- Contact NCLA for answers to questions and special services to resolve extreme issues.
How can we help:
NCLA saves your staff time assembling supporting documents.
NCLA knows how to avoid the delays at the state license board.
NCLA understands the state processing system and the people.
NCLA offers Special Services such as: hand delivery and ALM Service.
NCLA knows how to meet the deadline before the deadline.
Nick Forchette
Latest posts by Nick Forchette (see all)
- Role of NCLA in Contractor Licensing - May 12, 2023
- License Reciprocity in the U.S. Construction Industry - April 21, 2023
