CALPASC Questions Possible Trend Of Canadian Developers Hiring Subcontractors Without Licenses

SACRAMENTO, Calif., May 15, 2014 /PRNewswire/ -- The Contractor's State License Board (CSLB) distributed a news release earlier this week about Nova Drywall Systems, Inc. (Nova), out of Vancouver, British Columbia, operating without a California contractor license on a large project in Southern California. CSLB issued fines of nearly $200,000 and ordered the subcontractor, whose contract is estimated at $5.5 million, to stop work on the project.  Although the developer, Onni Contracting California (Onni), does have a valid contractor license, Nova had not secured a license. Onni was fined $10,800 for contracting with Nova. This is the second instance within the last few months of CSLB ordering a project to stop where a Canadian developer had subcontracted with an unlicensed contractor.  This past April, Clayton Wall & Ceiling Systems, Inc. was not licensed while working on a project in San Diego.

The following comments can be attributed to David Murillo, Deputy Executive Director, California Professional Association of Specialty Contractors (CALPASC):

"California contractors are watching to see if a pattern is emerging of Canadian developers hiring subcontractors who are not licensed before the work starts.

"The California construction underground economy is tough enough without developers from outside the U.S. not ensuring they subcontract with licensed contractors.

"The playing field gets more unlevel when contractors like these don't abide by the law.  CALPASC will continue to work with CSLB and other state and local agencies to ensure the playing field is leveled!"

SOURCE California Professional Association of Specialty Contractors (CALPASC)

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