Bots Inc (BTZI)

[lesgetrich]

Why doesn't mcig have a general contractor license? Aren't they a construction company?

Actually, they are a Construction Management Company, and are not necessarily required to have a general contractor's license as long as they have a general contractor under contract to do the actual construction work. The distinction in the law is a bit controversial and fuzzy in many states but it leaves room for mCig to legally pursue and manage cultivation project bids just as they have been doing...

Do Construction Managers Need to be Licensed in California? A Case of Blurred Lines

Construction Managers or “CMs,” are one of those construction professionals where it’s hard to say whether they’re a relatively new development or whether they’ve been around forever but simply never given a formal name. Whether new or old, it appears that CMs are here to stay, and often fill the gap between design professionals and general contractors, offering pre-construction and construction advice on constructability, scheduling, project costs, contract administation, project safety, and construction operations.

But if they do all these things, yet they don’t put pen to drawing board or pick up a hammer, do they need to be licensed?...

...The answer depends, at least in part, on the type of project...

...for state and local public works projects the answer is yes...

...However, when it comes to private works projects the lines get . . . well, a bit blurred.

The issue came up a few years ago in California in regards to condominium Home Owners Association (HOA) managers who oversaw projects for the HOA. In response, the California Legislature adopted new rules to govern the situation...

Assembly Bill 2237 amended the California Business and Professions Code to add subsection 7026.1(a)(2)(B) which defines a “consultant” (i.e., a CM) as a person other than a public agency or owner-builder who performs work pursuant to a home improvement contract and either: (1) provides or oversees a bid for a construction project; or (2) arranges for and sets up work schedules for contractors and subcontractors and maintains oversight of a construction project:

(a)(2)(B) For purposes of this paragraph, a consultant is a person, other than a public agency or an owner of privately owned real
property to be improved, who meets either of the following criteria as it relates to work performed pursuant to a home improvement contract as defined in Section 7151.2:

(A) Provides or oversees a bid for a construction project.

(B) Arranges for and sets up work schedules for contractors and subcontractors and maintains oversight of a construction project.

After the passage of A.B. 2237, attorneys representing homeowners associations (“HOAs”) began to ask whether A.B. 2237 applied to HOA community managers and most concluded that it does not unless the HOA community manager performs actual physical work...

...Thus, according to the HOA attorneys, a CM does not need a license if he or she merely provides or oversees a bid for a construction project or arranges for and sets up work schedules for contractors and subcontractors and maintains oversight of a construction project so long as the CM does not actually physically “construct” anything.

...I would agree that it does appears that the courts have taken a task-based approach (although not always consistently) and looked at whether the tasks being performed by a CM are advisory in nature (i.e., no licenses needed) or directive (i.e., license needed). And, while this provides some guidance to CMs, it is far from a bright line that CMs can rely on to know whether they’ve crossed or are about to cross the proverbial line.

see also...

Construction Managers – Consultants or Contractors?

mCig, to my knowledge, never hired Ron Sassano as an employee. He's always been referred to as under contract. Whether he is still working with mCig or not, as long as mCig has a general contractor under contract overseeing each project, nothing has changed (this could be a different individual or company for each project). They have stated in the past that they provide bids and tack on an extra 10% profit to manage each one. All bid revenue flows thru the construction manager. There is no reason to believe that this is not still the case.