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ARTICLE · 06 JUNE 2024

Do I Need A Contractor License To Enter Into A Development Management Agreement?

Looking at statutes and case law from Washington and California for the answer.

United StatesGovernment, Public Sector

Whether a developer is required to obtain a contractor license to enter into a development management agreement ("DMA") must be viewed through a state-specific (and in some instances, a county- and/or municipality-specific) lens. The short answer is ... it depends.

Washington

This question is of particular importance in Washington since contractors can sue owners to recover compensation or for breach of contract only "if the contractor is properly registered, and the contractor holds the burden to allege and prove their registration." Coronado v. Orona, 137 Wash. App. 308, 311, 153 P.3d 217 (2007).

Under RCW 18.27.010(1)(a), a contractor includes any "person, firm, corporation, or other entity who or which, in the pursuit of an independent business undertakes to, or offers to undertake, or submits a bid to, construct, alter, repair, add to, subtract from, improve, develop, move, wreck, or demolish any building, highway, road, railroad, excavation or other

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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