Default Banner Image


We’ve already covered the number one reason contractors get sued. Now, let’s talk about how to stay in the clear when it comes to your contractor’s license.

Ever wonder what will happen if by mistake your office person forgets to renew your contractor’s license during an active project?


Under California law you would NOT be able to sue to get payment for your work done on that project.  Even worse, the owner could sue to get back all of the amounts paid on the project from you.

This was an absolute rule until recently when the new law went into effect.  California Business and Professions Code §7031 now allows a court to determine if “a contractor has substantially complied with license requirements if specified conditions are met,” such as when the contractor did not know or should not reasonably have known that he or she was not licensed at the time.

California Law has some new changes in store for your contractor's license.

This is good to know but you cannot count on it. You would still have to show that you acted promptly and with good faith to try to reinstate his or her license upon finding out that the license was not valid.


Given all of this you should NEVER let your contractor’s license expire or become invalid.  Send out a memo to the person in charge in your company about your contractor’s license. Make sure more than one way of calendaring your expiration date is implemented.  Better safe than sorry.

If your company gets involved any issues with the company license or the individual license of the RME, give us a call.  We at Ghassemian Law Group consistently help contractors with their licensing issues.  Help is a quick phone call away!


This article is informational only and meant to provide guidance. It is not meant to be legal advice and it does not create an attorney-client relationship. For what to do in your specific situation, please consult with a qualified Construction Law attorney.


Mahyar was a big part in helping start our company and setting up our corporation. She also went to battle with a Billion dollar Corporation to keep our doors open when they tried everything to shut us down.

Danny Lamping

Classic Refrigeration Company

In 2008 -2009, our company was involved in a lawsuit with over 1 million dollars claimed against us. Mahyar Ghassemian handled our case expertly and conscientiously. She explained on a regular basis the progress of our case and how each of the actions of our opponent would ultimately affect our case. At no time did we feel alone or compromised as Mahyar boldly stayed her course which eventually provided us with the satisfactory outcome we had hoped to achieve. She will be our first call should the need arise in the future.

Kelly Owen

Clarion Construction, Inc.

Many years ago an insurance carrier hired Mahyar Ghassemian to defend my construction firm in civil litigation. Not only was Ms. Ghassemian very knowledgeable and competent regarding the legal proceedings, but she was also personally vested in our well-being; she cared what happened. She counseled us regarding the various options, listened to our input and proceeded accordingly. In multiple cases with Ms. Ghassemian, we have never experienced a negative outcome. Today my first call when a potential legal issue is on the horizon is to Ms. Ghassemian. She is both extremely effective and cost conscious.

Russell Patterson

The Patterson Company

Small Firm Value – Large Firm Expertise