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California High Court Clarifies Licensing Law Licenses; Payment

Tuesday, August 09, 2005 03:00 pm


The California Supreme Court has ruled that in order to recover payment, a contractor must be properly licensed at all times during contract performance. But the contractor need not have been licensed at the time the contract was executed.

Niederhauser Ornamental and Metal Works Co., Inc., a contractor on a hotel project, awarded two subcontracts to MW Erectors, Inc., a structural steel contract and an ornamental steel contract. The contracts were executed in October and November respectively.

MW started work on the structural contract December 3, but did not obtain a California structural steel contractor's license until December 21. MW started work on the ornam [...]

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