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 priority is to renew your licenses on time. It’s not an option, it’s the law! Ensure your business entity and license are in good standing to keep your company 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?
Assembling the supporting documents required for your renewal application takes time. Updating bonds, financial statements and continuing education requirements can take months to complete. When your corporate officers are out of the country, signing the form requires extra time. Additionally, coordinating schedules across time zones can delay the process. Accidentally missing compliance requirements could delay your renewal processing by months.
What are the consequences?
Renewing your license late will result in suspension, requiring you to stop work on all ongoing projects. 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. Additionally, this will affect your bottom line, your employees, subcontractors, and their employees.
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. Furthermore, seek clarification if any steps are unclear to prevent delays.
- 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. Moreover, the resulting suspensions can damage the business’s reputation.
- Contact NCLA for answers to questions and special services to resolve extreme issues.
How can we help:
National Contractor License Agency:
Saves your staff time assembling supporting documents.
Knows how to avoid the delays at the state license board.
Understands the state processing system and the people.
Offers Special Services such as: hand delivery and ALM Service.
Knows how to meet the deadline before the deadline.
Nick Forchette
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