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Building Permits
Your Responsibility & Your Liability

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 www.nclbgc.net

Contributed by Safran Law Offices, Raleigh

NOTE:    North Carolina General Statute Sec. 87-14, "Regulations as to Issue of Building Permits," applies to the issuance of building permits in North Carolina.  North Carolina law provides that applicants seeking building permits in North Carolina, where the project cost is $30,000 or more, may be required to show satisfactory proof to the city or county issuing authority or building inspector that the applicant is either duly licensed or exempt from applicable law.

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North Topsail Beach
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