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Subject: Contract with Contractor
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Author Messages
BettyO1
(California)

Posts:98


07/03/2010 12:50 AM  
If the board signs a contract with a contractor (in CA) not knowing that the contractor was unlicensed and then discovers the unlicensed status of the contractor, followed by the contractor obtaining a license, is the contract still in force? Or, should a new contract with the now licensed contractor be signed?
MaryA1


Posts:0


07/03/2010 8:20 AM  
Betty,

IMO, there is no need to enter into a new contract. Since the contractor has corrected the problem just append a copy of his license to the existing contract. In future the BOD should be careful to ask whether the contractor is licensed before entering into a contract.
RbR
(Washington)

Posts:4


07/07/2010 10:11 PM  
Could work either way. All depends.

If the Board guidelines clearly stipulate that no unlicensed contractors should be hired on, then for him/her to continue on can raise serious integrity questions.

You can't make a right out of a wrong. The first contract was illegal....not only according to Board guidelines, but according to your local ordinances and statutes. The first contract may not necessarily be legally binding.

Do it the right way. Stop all work on the project, immediately. Nullify any previous agreements, including the contract which wasn't legal to begin with.

Draw up a new contract.....the legal one.....then put him/her back to work. That way, the courts will have a lot more respect for you and the Board in the event there are any present or future legal issues.

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Forums > Homeowner Association > HOA Discussions > Contract with Contractor



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