A contractor leaves its license inactive to save fees but signs two new construction contracts. May it enter those contracts while inactive?
- ANo, because inactive licenses can never be reactivated
- BYes, if work begins later
- No; reactivate and verify proper status before contracting
- DYes, if the customer agrees
Why C is correct
The best answer is: No; reactivate and verify proper status before contracting. Inactive status does not authorize new contracting activity. The entity should complete reactivation and confirm bond, insurance, qualifier, and classification requirements first. The new fact pattern changes the setting, not the governing rule or management control. The other choices either skip a required step, apply a different rule, or fail to address the stated risk.