I recently got my California specialty contractor's license in the field of doors, cabinets and trim (C6). I'm looking at a few avenues now and would really like to focus on the cabinet design and fabrication. I'm a sole proprietor with no employees, if that makes a difference.
I'm looking at contracts to begin my new venture and from what I understand, you really only need a contractor's license for building new structures or when you alter or attach something to a structure. The fabrication of a cabinet does not fall under that category. Installing would, but if I separate the installation price from the fabrication, it falls under the minimum bid price to install without a license.
I'm not trying to avoid anything. I just got the license to do it the right way, but here's the thing... In California, under a homeowner contract, you cannot ask for more than 10 percent of the contract price (or 1k, whichever is less). I cannot afford to build a set of cabinets with a down payment of anything less than 50 percent because of the cost of materials, so I was thinking maybe I could work it under a service contract, as opposed to a homeowner contract. Apparently not, because a service contract cannot exceed 750.00. What type of contract is generally used for custom fabrication? Should I be looking for a sales contract or something?
(Business and Management Forum)
From contributor L:
In Massachusetts they have a similar law. 10% or $1000, whichever is less. But that is to get them on your waiting list. As soon as you start to work on their project - i.e. order supplies - you can charge them whatever you need.