A joint venture between two licensed contractors wants to bid on a public works project. What must they do regarding licensing?
Correct Answer
A) Register the joint venture with CSLB
B&P Code Section 7029 requires joint ventures to register with CSLB when all participants are licensed contractors.
Why This Is the Correct Answer
B&P Code Section 7029 requires that a joint venture formed by licensed contractors must be separately registered with CSLB before it can legally operate. Even though both individual contractors are licensed, the joint venture entity itself must be registered as a joint venture with the CSLB.
Why the Other Options Are Wrong
Option B: Only the lead contractor needs a license
Only the lead contractor needs a license is incorrect. CSLB does not recognize a 'lead contractor' concept for joint ventures. The joint venture must be registered as an entity, not just one participant.
Option C: Each contractor uses their individual license
Each contractor using their individual license is incorrect. Individual licenses do not automatically cover work performed under a joint venture arrangement. The joint venture is a separate legal entity requiring its own CSLB registration.
Option D: Obtain a separate joint venture license
Obtaining a separate joint venture license is incorrect in terminology. CSLB does not issue a 'joint venture license' — it requires registration of the joint venture. This is a registration, not a new license application.
Memory Technique
Think of a joint venture like a new company formed by two contractors. Just as a new company needs its own license, a joint venture needs its own CSLB registration — you can't share individual licenses for a collective entity.
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