Construction Contractors License Application Step-by-Step

Transcription

1 Construction Contractors License Application Step-by-Step For Partnerships and Joint Ventures 9/29/11

2 Select a business entity: Partnership; Joint Venture A partnership is a voluntary association of two or more persons for the purpose of owning and operating a business. A joint venture is a partnership formed solely for the purpose of a single business undertaking. In the following slides, partnership includes joint venture and partner includes joint venturer.

3 Create: Partnership There needs to be an agreement, usually in writing.

4 Register: Assumed Business Name Unless the partners use their full legal names such as John C. Jones & Michael L. Smith the partnership must register any other name such as Jones & Smith Construction with the Oregon Corporation Division Business Registry as an assumed business name (ABN).

5 Complete: Parts 1 and 2 of the Application (page 2A):

6 Determine: Class of Independent Contractor If the partnership has no employees and no more than two unrelated partners, the partnership is an EXEMPT independent contractor. If the partnership has employees or more than two unrelated partners, the partnership is a NON- EXEMPT independent contractor.

7 Unrelated Partners Unrelated partners are persons who are not members of the same family. Family refers to parents, spouses, sisters, brothers, daughters or sons, daughters-in-law or sonsin-law or grandchildren.

8 Workers Compensation Insurance If the partnership is Exempt and applies for a Residential endorsement, it does not need workers compensation insurance. If the partnership is Non-Exempt or applies for a Commercial endorsement, it needs workers compensation insurance.

9 Workers Compensation Insurance: Non-Exempt If the partnership has employees, it is Non- Exempt and needs standard workers compensation insurance.

10 Workers Compensation: Commercial Endorsement If the partnership has no employees, but holds a commercial endorsement, it needs Personal Election workers compensation insurance for its partners.

11 (For Employers) Obtain: Workers Compensation Obtain a 7-digit compliance number from the Workers Compensation Division (WCD); or Obtain the name and policy number of a workers compensation policy. If you have questions, contact the WCD at

12 (For Employers) Obtain: Taxpayer Identification Numbers Obtain an Oregon Business Identification Number (BIN) from the Oregon Department of Revenue. A registration form is available at Or call Obtain a federal employer identification number (EIN) from the Internal Revenue Service (IRS). Contact the IRS at or call

13 Complete: Part 3 of the Application (page 2B)

14 Appoint: Responsible Managing Individual (RMI) Every contractor must appoint and maintain at least one RMI. For a partnership, either the partner or an employee may qualify as an RMI. (If your RMI is an employee, make sure you selected the NON- EXEMPT independent contractor status). The RMI must exercise management and supervisory authority over the construction activities of the business by meaningfully participating in: the administration of the construction contracts; or the administration of the day-to-day business operations.

15 Training and Testing The RMI must complete 16 hours of training offered by a CCB-approved training provider. (See instructions, pages 14-15, for list of approved providers). The RMI must pass a test. (See instructions pages for scheduling testing).

16 Experience in Lieu of Training and Testing Training and testing is not required if: The RMI is listed on the CCB s current licensing records before July 1, 2000 as a sole proprietor, partner, or other principal of a business that was licensed before July 1, 2000, and The business license has not lapsed, or, if lapsed, has not lapsed for more than 24 months (before the application date); and The RMI was the sole proprietor, partner, or other principal within the 24-month period before the application date.

17 NOTE You will next complete Part 6 of the Application You will complete Parts 4 and 5 of the Application after reviewing additional slides.

18 Complete: Part 6 of the Application (page 7)

19 Endorsements Related to Types of Structures To determine an endorsement, identify the structure type upon which work will be performed: Residential Structure Small Commercial Structure Large Commercial Structure

20 Residential Structure Site-built home Structure with one or more dwelling units only, four stories or less above grade Condominium, rental or other residential unit part of a larger structure, separate property interest Modular home Manufactured dwelling Floating home

21 Small Commercial Structure Non-residential structure, area less than or equal to 10,000 square feet; not more than 20 feet high Non-residential unit part of larger structure, area less than or equal to 12,000 square feet; not more than 20 feet high Non-residential structure, any size, costs less than $250,000 for contract price of construction

22 Large Commercial Structure A structure that is not a residential structure or a small commercial structure.

23 Select: Endorsement by Structure Type Residential Endorsement: May perform work involving residential or small commercial structures or projects. Commercial Endorsement: May perform work involving small or large commercial structures or projects. Both Endorsements: May perform work on any structure or project.

24 Endorsement Classifications Related to Scope of Work To determine an endorsement classification, identify the scope of work that will be performed: General Contractor Specialty Contractor Limited Contractor (Residential Only) Developer

25 General Contractor A (prime) contractor that supervises or performs any number of unrelated business trades or crafts

26 Specialty Contractor A (sub) contractor who performs two or fewer unrelated building trades or crafts

27 Limited Contractor (Residential Only) A residential limited contractor can perform any number of unrelated building trades, but may not: Perform work as a contractor exceeding $40,000 in gross annual income; or Enter into contracts to perform work as a contractor in excess of $5,000.

28 Developer Owns the property being developed; Acts in association with general contractors, one or more of whom has sole responsibility for overseeing all phases of the construction; and Does not perform any construction work on the property.

29 Select: Residential Endorsement Classification Residential Endorsement Classification Residential General Contractor (RGC) Residential Specialty Contractor (RSC) Residential Limited Contractor (RLC) Residential Developer (RD) Scope of Work May supervise, arrange for, perform an unlimited number of building trades. May perform one or two unrelated building trades. May perform more trades if cost for labor and materials is $2,500, or less. May supervise, arrange for, perform an unlimited number of building trades, if work per job site is $5,000, or less, and annual gross is $40,000 or less. Owns property; arranges for work to be performed by licensed contractors; does not perform any construction work.

30 Select: Commercial Endorsement Classification Commercial Endorsement Classification Commercial General Contractor Level 1 (CGC-1) Commercial General Contractor Level 2 (CGC-2) Commercial Specialty Contractor Level 1 (CSC-1) Commercial Specialty Contractor Level 2 (CSC-2) Commercial Developer (CD) Scope of Work May supervise, arrange for, perform an unlimited number of building trades. May supervise, arrange for, perform an unlimited number of building trades. May perform one or two unrelated building trades. May perform one or two unrelated building trades. Owns property; arranges for work to be performed by licensed contractors; does not perform any construction work.

31 IMPORTANT TIPS Level 1 and Level 2 Commercial Contractors Level 1 and Level 2 commercial contractors may perform the exact same types of work on the same structures or projects (small or large commercial). Level 1 contractors must maintain a higher bond and more insurance coverage. (See below). Key employees must have prerequisite experience: Level 1 = 8 years Level 2 = 4 years

32 Complete: Parts 4 and 5 and of the Application (page 6)

33 Certify: Experience for Commercial Contractors An applicant for any Level 1 license must certify that the applicant s key employees have 8 years of construction experience. An applicant for any Level 2 license must certify that the applicant s key employees have 4 years of construction experience. See instructions, page 16, for education that may substitute for experience.

35 Purchase: Residential Surety Bond and Insurance Residential Endorsement Classification Residential Bond Residential General Contractor (RGC) $20,000 Insurance Policy $500,000 per occurrence Residential Specialty Contractor (RSC) $15,000 $300,000 per occurrence Residential Limited Contractor (RLC) $10,000 $100,000 per occurrence Residential Developer (RD) $20,000 $500,000 per occurrence

36 Purchase: Commercial Surety Bond and Insurance Commercial Endorsement Classification Commercial General Contractor Level 1 (CGC-1) Commercial General Contractor Level 2 (CGC-2) Commercial Specialty Contractor Level 1 (CSC-1) Commercial Specialty Contractor Level 2 (CSC-2) Commercial Bond Insurance Policy $75,000 $2 million aggregate $20,000 $1 million aggregate $50,000 $1 million aggregate $20,000 $500,000 per occurrence Commercial Developer (CD) $20,000 $500,000 per occurrence

37 IMPORTANT TIPS - Both Endorsed Licenses A licensee that holds both endorsements is a licensee that may perform work on all types of structures, residential, small commercial, and large commercial. The licensee must maintain BOTH the residential and the commercial surety bonds. The licensee need maintain ONLY ONE insurance policy, in the higher amount for the classification selected.

38 Complete: Parts 8 and 9 of the Application (page 8)

39 Select: Standard Industrial Classification (SIC) Codes SIC Codes are used to identify, for statistical purposes only, the type of work the contractor performs. The contractor should select between one and three codes. Building Construction 1521 Single Family Houses 1522 Residential, Other than Single Family 1523 Operative Builders 1541 Industrial Buildings and Warehouses 1542 Nonresidential Buildings other than Industrial Buildings and Warehouses Heavy Construction 1611 Highways and Streets 1622 Bridge, Tunnel and Elevated Highways 1623 Water, Sewer, Pipeline, Communications, Power Lines 1629 Heavy Construction not otherwise classified Special Trades 1711 Plumbing, Heating and Air Conditioning 1721 Painting and Paper Hanging 1731 Electrical Work 1741 Masonry and Stone Work Special Trades (Continued) 1742 Plastering, Drywall, Acoustical and Insulation Work 1743 Tile, Marble and Mosaic Work 1751 Carpentry 1752 Floor Laying, Other Floor Work 1761 Roofing, Siding and Sheet Metal 1771 Concrete Work 1791 Structural Steel Erection 1793 Glass and Glazing Work 1794 Excavation Work 1795 Wrecking and Demolition Work 1796 Installation of Building Equipment Not Elsewhere Classified 1799 Special Trades, not elsewhere classified 0783 Tree Services 7342 Pest Control 7349 Chimney and Other Structural Cleaning 7363 Help Supply Services 7389 Inspection Services

40 Residential Contractors - Certified Home Inspectors If a residential general contractor or a residential specialty contractor will perform home inspections, the partner must be certified as a home inspector or must employ a certified home inspector.

42 List: Debts and Criminal Convictions The law requires disclosure of the partner s construction debts or obligations relating to construction activity that arose no more than 5 years before the application. The law requires disclosure of certain criminal convictions of the partner that occurred no more than 5 years before the application.

44 List: Licensing History and Business Information Applicants must provide information regarding their license histories as contractors, in Oregon as well as other states. The application requests information, for statistical use only, relating to the amount of business that the applicant expects to perform in the upcoming year.

47 Sign and Date: Application Sign the application at Part 17 (page 12). Partners sign on the second and third lines after the certification. If there are more than two partners, attach additional page(s). Print name of partners. Insert dates that application was signed.

49 Pay: $325 fee Complete part 18 (page 13) and submit application with a $325 non-refundable application fee. If qualified, the license will be issued for two years. Payment may be made by check, money order, some credit cards, and cash (if delivered in person and exact amount only).

50 Complete: Part 18 of the Application and (optional) Credit Card Payment Section (page 13)

51 FINISHED!!!! Following these step-by-step instructions, you should have completed all portions of the CCB license application for partnerships. If you need help or have any questions, contact the CCB at (503)