Unlicensed Contractors

If you have let your state contractors license lapse or have not renewed your license yet, this is a reminder of renewal for you! More and more contractors are finding themselves in contracts with unlicensed subcontractors that were previously licensed. Business and Professions Code section 7031(a) prevents anyone engaged in contracting to file a lawsuit in order to collect funds.  Business and Professions Code section 7031(b) goes further to state that all compensation paid to the unlicensed contractor can be recovered by the person who paid. This means that if you have not renewed your license you cannot sue the owner or general contractor for not paying you, and if they decide to sue you they can recover 100% of their funds paid out.

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