NYC General Contractor License Proposal May 29, 2020
Goals of new General Contractor License 1. Experience Requirements • Currently General Contractors are not required to demonstrate any practical experience or obtain any trainings/certifications 2. Background Checks • Safety Registrants and Insurance Tracking Number holders are not subject to criminal background or DOB disciplinary record checks 3. Discipline General Contractor Businesses • Hold General Contractor licensees accountable for the work performed • General Contractor Businesses can continue to operate by changing out individual licensee 4. Deny, Suspend, Revoke, Deny Renewal • Currently only General Contractor Registrants are subject to disciplinary actions 2
General Contractor Requirements in other Jurisdictions Of the 50 largest cities in the US , a licensed or registered general contractor is required for major construction work in 40 cities (80%) . 1. Albuquerque, NM 15. Jacksonville, FL 29. Phoenix, AZ 2. Atlanta, GA 16. Las Vegas, NV 30. Portland, OR 3. Baltimore, MD 17. Long Beach, CA 31. Raleigh, NC 4. Boston, MA 18. Los Angeles, CA 32. Sacramento, CA 5. Charlotte, NC 19. Louisville, KY 33. San Diego, CA 6. Chicago, IL 20. Memphis, TN 34. San Francisco, CA 7. Colorado Springs, CO 21. Mesa, AZ 35. San Jose, CA 8. Columbus, OH 22. Miami, FL 36. Seattle, WA 9. Dallas, TX 23. Nashville, TN 37. Tucson, AZ 10. Denver, CO 24. New Orleans, LA 38. Virginia Beach, VA 11. El Paso, TX 25. Oakland, CA 39. Washington, DC 12. Fresno, CA 26. Oklahoma City, OK 40. Wichita, KS 13. Fort Worth, TX 27. Omaha, NE 14. Indianapolis, IN 28. Philadelphia, PA 3
General Contractor Requirements in other Jurisdictions Scope of GC license in other jurisdictions: • Several of the jurisdictions require a GC license for any work that requires a permit • Some jurisdictions have a dollar amount threshold in determining whether a GC license is required • (Range: $500 in Philadelphia, $7,500 for residential projects or $50k for commercial projects in Louisiana) • A few jurisdictions require GC License only for certain work (typically residential projects) such as in NYC • License/registration can be suspended or revoked • Home owners, trade licenses (plumbers, electricians, etc.) usually exempted • Qualifications range: • Basic: Application, insurance • In-depth: Plus experience, exam, training 4
Current NYC requirements • General Contractor Registration required for 1-, 2-, 3- family new building permits • Safety Registration Number required for all other new building construction, demolition, or large alteration work permits • Insurance Tracking Number required for minor alteration work and for all other non-trade specific work permits • Home Improvement Contractor License required for those who construct, repair, remodel, or perform other home improvement work costing more than $200 to any residential building or land in New York City • License issued by NYC Department of Consumer of Affairs 5
Current Administrative Code Requirements: GC NYC Administrative Code Section 28-418 sets forth the requirements for a General Contractor Registration General Contractor Registration applicants must provide: • Business documentation, including records disclosing names of owners and officers • Proof of Insurance (General Liability, Workers Compensation and Disability Insurance) • Proof of Financial Solvency (three months of banks statements reflecting contractor business has a balance of at least $25,000) • NYC Administrative Code Section 28-418 also requires General Contractor Registrants to provide warranties to home buyers, provide subcontractor information to the Department and maintain technical reports 6
Current Administrative Code Requirements: GC General Contractor Registrants are additionally subject to: NYC Administrative Code 28-401, General Licensing Provisions • Must be at least 18 years old, able to read and write in the English language and be of Good Moral Character • 3 Year License Terms • Subject to background investigations and ECB checks • Individual registrant must be an officer in the General Contractor business 7
Current Administrative Code Requirements: SR NYC Administrative Code Section 28-420 sets forth the requirements for a Safety Registration Number Safety Registration applicants must provide: • Business records, including documents disclosing names of owners and officers • Proof of Insurance (General Liability, Workers Compensation and Disability Insurance) Insurance Tracking Number applicants are only required to submit • Proof of Insurance (General Liability, Workers Compensation and Disability Insurance) • Proof of EIN number 8
Disciplinary Actions DOB is currently only able to discipline General Contractor Registrants. Grounds for discipline are found in NYC Administrative Code Section 28-401.19. Disciplinary and enforcement measures include: • Deny the individual’s original application • Deny the renewal of the individual’s GC Registration • Fine, Suspend or Revoke the individual’s GC Registration • Requires a hearing at the NYC Office of Administrative Trials and Hearings • DOB is authorized to immediately suspend a GC registration when public safety is imminently jeopardized 9
Disciplinary Actions: OATH Proceedings Revocation of a GC registration requires a hearing at the NYC Office of Administrative Trials and Hearings (OATH) per NYC Administrative Code Section 28-401.19.1 • Disciplinary cases are handled by DOB’s Licensee Disciplinary Unit (LDU) • Formal written charges are presented to GC Registrant • LDU will conference with GC Registrant prior to OATH hearing • By stipulation, GC Registrant may agree to voluntary surrender their Registration, agree to a term of suspension and/or pay a fine • GC Registrants frequently obtain their own counsel • On average a conference is scheduled 2-3 months after charges are presented • If no stipulation is reached, a hearing will be held 10
Disciplinary Actions: OATH Proceedings • Following the hearing, the OATH Administrative Law Judge provides a written determination and recommendation. DOB is authorized to adopt or reject the recommendation. • GC Registrant may challenge DOB’s determination by filing an Article 78 challenge in NYS State Supreme Court • Disciplined GC registrants are posted on DOB’s website https://www1.nyc.gov/site/buildings/industry/registered-individuals.page • Significantly less than .01% of licensees and registrants are disciplined per year • 2018 : 106 licensees/registrants were disciplined out of 26,727 • 7 of which were GC Registrants out of 2,152 • 2019 : 50 licensees/registrants were disciplined out of 29,895 • 6 of which were GC Registrants out of 2,318 • 2020 : 9 licensees/registrants disciplined to date out of 33,900 • 3 of which were GC Registrants out of 2,629 11
Licensed Individuals: Disciplinary Cases Andrew Trombettas (Master Plumber # 1671): Licensed Plumber connected to the March 26, 2015 Second Avenue Gas explosion that resulted in 2 fatalities, 19 injuries and the destruction of 3 buildings. A subsequent audit of the Licensee’s filings revealed a significant number of serious violations involving 22 different sites within a 6 year period. These violations included gas being supplied without inspection or proper authorization, installation of non-compliant equipment, failure to test new or altered installation work and work contrary to submitted plans. As a result of the audit and following a hearing at OATH, Trombettas’s license was revoked. Paul Geer (Hoist Machine Operator # 7825): Licensed operator of a crane that collapsed on January 9, 2013, resulting in 7 injured workers. Licensee was found to have overloaded the crane by 85%. Following a hearing at OATH, Greer’s license was revoked. NY Daily News, 9/3/2017, https://www.nydailynews.com/new-york/manhattan/building-manager-charged-fatal-east-village-gas-explosion-dies-article-1.3465542 12
Licensed Individuals: Disciplinary Cases Lina De La Hoz (General Contractor # 38518): Contractor was issued 69 ECB violations, including 25 Class One violations, and had amassed $108,000 in outstanding fines. Contractor also refused to cooperate with a Department investigation. Following a hearing at OATH, De La Hoz’s license was revoked. Yoel Roth (Construction Superintendent # 25802): Licensee was convicted of Falsifying Business Records in connection to his involvement in a fraudulent asbestos certification scheme. Licensee was found to have referred property owners and contractors to a corrupt Certified Asbestos Investigator in order for them to circumvent construction safety requirements. Based on this criminal conviction and following a conference with LDU, Roth surrendered his license. Patrick Duffy (Concrete Safety Manager # 2475): Licensee involved in the June 26, 2017 partial collapse of a 8 story building under construction in Long Island City. Duffy failed to report non- conforming concrete work. Following a conference with LDU, Duffy was fined $3,500 and received 2 years of probation. John K. Riley (Hoist Machine Operator # 10021 ): Licensed operator of a crane at 60 Hudson Street that collapsed in February of 2016. One person was killed. A Department investigation found that Mr. Riley failed to take precautionary measures to safeguard the crane during high winds. Following an OATH proceeding, Mr. Riley’s license was permanently revoked. 13
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