Getting ready to
break ground on a new project? Before the first crew shows up at the
job site, as a general contractor, you need to make sure that you have
secured all necessary permits for the job. Relying on others,
especially owners or subs, can be risky if the proper permits are not
obtained. As a general contractor you can be caught holding the bag for
failure to get proper permits before starting work. Thus, the failure
of someone else to secure a permit for particular work could be
crippling to your business, as you potentially face serious legal,
administrative, and financial consequences.
The North Carolina State Building Code
requires any "owner, authorized agent, or contractor" who is working on
a project to secure the proper permits or face the consequences. A
quick glance at the disciplinary actions in the North Carolina Licensing
Board's Bulletin, will provide you with examples of contractors
who have run afoul of permit requirements. One can pay a heavy price
for failure to obtain the proper permits. Penalties range from a
reprimand to the loss or suspension of a general contractor's license or
even a criminal or civil action.
For example, last year a North Carolina
contractor had his license suspended (stayed for 18 months with no
active suspension) because he failed to obtain a building permit and
call for the required inspections. Another contractor doing renovation
work on a single-family dwelling failed to obtain the required permit
and was placed on 12-months probation which carried with it a 120-day
active license suspension for any violations. Yet another contractor
voluntarily surrendered his license due to extensive allegations that
arose out of, among other things, failure to secure building permits.
As you may know, the Licensing Board considers the surrender of a
license a permanent revocation. Unfortunately, this list could go on
and on but the main focus of this article is to make sure that you keep
your name off that list.
The North Carolina State Building Code
mandates that just about anything you do as a contractor requires a
permit before you can do the work. Specifically, the relevant section
states that any contractor who desires to "construct, enlarge, alter,
repair, move, demolish, or change the occupancy of a building or
structure, or to erect, install, alter, repair, remove, convert or
replace any electrical, gas, mechanical or plumbing system, the
installation of which is regulated by the technical codes, or to cause
any such work to be done, shall make application to the building
official and obtain the required permit for the work". The North
Carolina General Statutes regulate that if a permit is required and not
obtained, there has been a violation of the permit requirements governed
by statute and a Class I misdemeanor may be incurred as a result.
Class I misdemeanors carry with them a
discretionary fine and probably some community service time. The North
Carolina General Statutes further provide civil penalties for permit
requirement violations. More importantly, the state licensing board may
suspend your general contractor's license which may bring your business
to an abrupt and grinding halt.
Waiting until after you have started the
job to get your permits is not a good idea either. That decision
carries with it a heavy price as well. According to the State Building
Code, a commencement of work prior to getting the proper permits
subjects the guilty party to a penalty of 100% of the usual permit fee
in addition to the required permit fees.
In order to not fall into this trap, a
contractor should simply secure from the local inspection department
with jurisdiction over the site, each permit required by the North
Carolina State Building Code and any other state or local law BEFORE
starting the job. The price for failing to do so is way too high to
depend on someone else.
The old saying that if you want something
done right you have to do it yourself, definitely applies here. Make
sure the proper permits are obtained prior to any work being done by
you. Otherwise, you may find yourself paying dearly for someone else's
incompetence or laziness.
For more information on this and other
related issues, please see the North Carolina Licensing Board for
General Contractor's home page at