Our local building department has turned over a new leaf, and now will not issue a permit unless the requestor provides evidence of workers comp, general liability, and disability insurance.
It is putting quite a damper on the business of the “pirate” remodelers.
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New Jersey just passed regulations that go into effect in November- no registration with the state- no permit. Registration requires proof of GL insurance. That'll probably just have more owners pulling permits themselves for their un-registered fly-by-nighters.
Bob
Which ends up letting the "fly-by-nighters" even further off the hook.
At least until they get caught. Previously, there was no registration, so it was "anything goes". Now, if you're caught contracting without being registered, there's some fat fines- up to $10k I believe. It'll take some time, but eventually some of them will get busted. We'll never get rid of the problem completely, but it's a start.
Bob
Hey, Bob, I'm from Jersey and sent my registration paperwork in on Monday. Personally, I just see it as another 'Jersey-cash-cow'. We'll see if they really enforce it. 'Fine' the 'fly-by-nighter' up to 10K? Great, but if they really wanted to put some 'teeth' in it, they would also threaten to 'fine' the homeowner, too. Does it not take 'two' to make an 'illegitimate' deal?
that's a great idea. Would probably do a better job of keeping folks honest than the current system(s).
Yeah, and when the story unfolds it always seems to start "another rotten contractor...". How about a few questions for the homeowner like - - "Well, why didn't you get a permit"? - - and - - "Why would you hire a guy without insurance"? - - and even - - "Did you think maybe it was suspicious when his work truck was a station-wagon with ladder racks and magnetic signs"? - - anyway, you get the point!
Edited 9/29/2004 10:10 pm ET by TR
TR,
I worked all over NJ for Five years. I carried Liability as well as WC. A one million dollar unmbrella and disability. Ya know what. NOt one person ever asked for an insurance Certificate. When I asked where They wanted it sent, Thye wre almost surprised
But here, owners are getting refused now. They need a legit contractor to pull the permit.
Is this happening elsewhere? An owner cannot get a permit for a remodel unless demonstrating WC, liability, and disability insurance coverages?
How can that be? You can't pull a permit to work on your own house? What if you're going to do the work yourself? Here, there are owner/builder permits (that's what I get for work on my place) and contractor permits (what I get for work on someone else's place). Owner/builder requires no proof of anything.
Edited 9/28/2004 10:08 pm ET by davidmeiland
If you are going to do the work yourself, or will hire family members, there is an out, but to go that route, you need to fill out and sign a special "owner/builder" certificate.
If you hire outside help of any kind, "outside" the family, you are subject to all the insurance requirements.
I also live in NJ and according to the site http://www.contractors-license.org/ the remodeling liscense is only if you are able to finance work. If you have any more info than this site please let me know.
Doubt if your information is updated. The paperwork states any home improvement job over the amount of $500 will require state licensing. Check here to be sure - - http://www.njconsumeraffairs.com/contractor.htm
Attached is the letter I have been sent.
Try again!
Most towns around me(northern weschester, NY) have required insurance info for 20+ years,wich I have no problem with. The registration bull sheet for a lisence though , is a scam. There is no testing or any thing, just show insurance,pay your fee, and yer good to go.
Both CT and RI won't issue a contractor's registration unless a copy of one's liability insurance certificate is enclosed with the application. And both states maintain the on-line database on a weekly basis. In most of the Cities & Towns I've worked in MA, they are now requiring proof of insurance, and in most cases, a CS (Construction Supervisor) licsence in order to pull a permit. Still the number of fly-by-night outfits seems to be growing....
Renaissance Restorations
Antique & Victorian Home Restoration Services
http://www.renaissancerestorations.com
Are you sure about CT? I'm pretty sure I didn't have to provide proof of insurance to register with the state.
AndyArguing with a Breaktimer is like mud-wrestling a pig -- Sooner or later you find out the pig loves it.
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When I sent in my application in a while back, they bounced it back asking if I had liability insurance or not. After checking off that I had insurance, and provided a copy of the certificate, the application was approved.Renaissance RestorationsAntique & Victorian Home Restoration Serviceshttp://www.renaissancerestorations.com
Not entirely correct, according to the CT website liability insurance is not required for registration... You have to attest as to whether you have it, but it isn't required, you just have to testify whether you do.
Edited 9/29/2004 9:23 am ET by PaulB
when i see the phrase "fully insured " in someone's ad..i usually assume it means maybe their truck is insured..
or maybe they have GL..
but it generally means they DON'T have the proper insurance
by law in RI, they have to have GL to get a contractor's registration..$359 annual premium.. for one individual..
that is often the extent of the insurance for someone building a $400K house..
what a sick joke
Mike Smith Rhode Island : Design / Build / Repair / Restore
Westchester County , NY. You purchase a licence (2 years) for $300.00.
Proof of 1,000,000./2,000,000. GL, workmens comp or a waiver from them. That's it, you're in business!! You can go destroy someones home for all the county cares cause ya know what?? The county provides no service for these fees, other than a list of 'registered contractors' upon request.
New home builders are EXEMPT!!
Median price of a home in the county is now close to 600k.
Go figure that one out!!
EricI Love A Hand That Meets My Own,
With A Hold That Causes Some Sensation.
Thars my point! We have always had to show ins. for a permit, the f'in county is just another b.s. tax we gotta pay.
eric..
ours not to reason why..
ours but to do and dieMike Smith Rhode Island : Design / Build / Repair / Restore
fubar!
That little "homeowner will do all work and will not be hiring anyone" loophole, or exception, is in play in some jurisdictions, but not in mine.
My local building department used to not concern themselves with insurance at all, but lately it seems absolutely primary in their minds. I think they got some legal advice after a couple of particularly bad accidents late last year.
They will not issue a permit to anyone unless certificates are attached to the permit app, evidencing current coverage and showing acceptable period end dates, for WC, general liability, and disability. Period. No exceptions.
It is having quite an effect on the business of the pirates, the moonlighting prison guards, and other cash-under-the-table folks.
Some of these "contractors," and homeowners themselves, are skirting the issue, if they can, by talking a legit contractor into pulling the permit in his name.
Guys that work as lead men for contractors, that want to do garages, room additions, etc., as evening and weekend work for homeowners, straight cash, are asking their bosses to pull permits for them in the company name.
Is this a unique set of circumstances?
anything that makes the competition compete on a level playing field is fine with me..
any contractor SHOULD have GL... and any employer SHOULD have WC...
the idiots that don't are only fooling themselvesMike Smith Rhode Island : Design / Build / Repair / Restore
Yeah, but in the mean time, us "new jacks" lose work to 'em.
Here, if you're the GC of record you have to have GL & WC insurance to get a permit. Got to have a permit on anything over $30,000 I've never heard of disability being required. Legal subs have the same, GL & WC.
I'm curious why you care about the "pirates?" Aren't you all legit? If you are, seems like you'd be getting more of those "trophy" houses now<G>
Don't worry, we can fix that later!