Q: If people pay me to find them floor installers and to manage them the job do I need to be licensed, insured or anything?
I quote flooring installs in California, find someone to do the job (not my company or employees), charge a percentage of the job for finding a floorer to do the job and make sure the job is done right. I'm not a contractor or anything like that. I just connect homeowners with service providers and make sure the job is done right like a project manager. Do I need to have any a licenses or insurance to do this? I also never know if the floorers I hire are licensed or insured. Also am I liable for the workers in anyway? Thank you!
A: Dear Flooring Installation "Manager": This will not be a sugar-coated reply, and so for that I apologize; however, the conduct that you have described violates California State License Law as you are operating as a contractor without a license. "Finding someone to do the [flooring installation] job" and "making sure it is done right" and getting paid for those services ? That's performing as a contractor. You definitely have exposure to the CSLB and to each project owner for operating as a contractor without a license (exception: flooring jobs where the total installation cost is less than $500.00). You also have exposure for any negligent performance by the licensed/unlicensed tradespersons whom you are referring to the project (these tradespersons are your ostensible agents and impliedly your subcontractors). And, you may be exposed for injury claims brought by any tradesperson's laborers if their employing tradesperson does not have worker's compensation insurance coverage for the said laborers. For further detail as to the breadth of your exposure to project owners, please contact a reputable construction attorney. For further instruction on how to become a licensed contractor, examine the applicable CSLB websites. This will be a tough pill to swallow, but you should discontinue your present manner of operations based upon your exposure to possible (likely ?) future civil and/or administrative claims.
In California, individuals who engage in construction-related services for compensation must generally be licensed by the Contractors State License Board (CSLB). This includes individuals who act as project managers or consultants, as well as those who engage in the actual physical work of construction.
However, there are certain exceptions to this requirement. For example, a person who provides consulting services that do not include actual construction work, such as those you describe, may not need to be licensed as long as they are not engaging in any activities that require a contractor's license.
As for liability, if the floor installers you hire are not properly licensed or insured and something goes wrong, you could potentially be held liable for any damages. To protect yourself, it is recommended that you ensure any contractors you work with are properly licensed and insured, and that you have liability insurance in place to cover any potential claims.
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