Sign in to follow this  
Followers 0
jerseystriper

putting myself down as G/C vs the contrator I have been working with.

Rate this topic

32 posts in this topic

Been working with and waiting for final plans on redoing my house. Not a major job, going 10 feet out the back and 21 feet over on a cape. This new area will be the new Kitchen, current Kitchen witch is in the converted garage will go back to a garage, a 7x14 foot mud room/panrty/closet space is also part of the plan. Total cost including architic fee,applainces, counter tops, cabinits and outdoor shower is approximattly 81000. My question is hte G/C I have been using has requested I put my self down as the G/C with the town. He says it will make getting aprovials easier. Whats the downside to this or am I being paranoid.

Share this post


Link to post
Share on other sites

In NJ as a contractor you are required to be registered with the State Division of Consumer Affairs.In order to get a permit as a contractor you need to be registered and have a registration #.My guess is your G/C is not registered, or has another reason he does not want to deal with the the municipality. I would be very careful if I were you. Ask for his license # and his Certificate issued by the State Division of Consumer Affairs. If he cannot produce it within 24 hours, RUN! In his defense he may be in the data base and still under active investigation by the state. I waited forever for my credentials but they had cashed my application fee check immediately.

Share this post


Link to post
Share on other sites

Home Improvement Contractors

 

NOTICE TO CONTRACTORS PLEASE READ THIS NOTICE CAREFULLY TO ENSURE FULL COMPLIANCE

  • The Home Improvement Contractor Registration Act requires that contractors prominently display their registration number, listed as NJHIC# at the following places:
    • within their places of business (the original registration certificate)

    • in all advertisements

    • on business documents, contracts and correspondence with consumers

    • on all commercial vehicles

  • All Home Improvement Contracts in excess of $500 - as well as any changes in the terms and conditions - are required to contain the following information:

    • the legal business name and address and the sales representatives name and address

    • registration number

    • signatures of all parties (contractor and consumer)

    • total price to include finance charges

    • description of work to be performed and principle products and materials being used

    • description of any mortgage or security interest to be taken in connection with the financing or sale of the home improvement

    • a statement of any guarantee or warranty with respect to any products, materials, labor or services made by the seller

    • dates or time periods for when the work will begin and be completed

    • a copy of the certificate of commercial general liability insurance must be attached to the contract. The certificate must include the telephone number of the insurance company issuing the certificate

    • notice to Consumer in 10- point bold face type as follows:
    YOU MAY CANCEL THIS CONTRACT AT ANY TIME BEFORE MIDNIGHT OF THE THIRD BUSINESS DAY AFTER RECEIVING A COPY OF THIS CONTRACT. IF YOU WISH TO CANCEL THIS CONTRACT, YOU MUST EITHER:

    1. SEND A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED; OR

    2. PERSONALLY DELIVER A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION TO:

    (Name, Address and phone number of contractor) If you cancel this contract within the three day period, you are entitled to a full refund of your money. Refunds must be made within 30 days of the contractor"™s receipt of the cancellation notice.

     

  • Contractors should also make sure they have read through the Statutes and Regulations which can be found on the Divisions home page and which is also contained in the original home improvement registration application package.

Share this post


Link to post
Share on other sites

JS - don't know all your info, but he may be a little light in insurance coverage. Or, may not have registered officially with the state of NJ. So with you on the papers, he can do his work without the microscope. But I don't know any of this, am only making assumptions. You will have to fill in the blanks if you need better info.

 

Downside if he is light in insurance is that your homeowners ins. will have to cover any liability if something happens beyond the limits of that insurance. And some times homeowners ins now has clauses saying they will not pay out claims resulting from uninsured or unlicensed contractors.

 

Towns are generally a little more lenient when they know a homeowner is in charge of the work, but everything will still have to meet code, or you will fail inspection. All inspections must conform to code. And if it's a big job, the town inspector may want to see licensed and insured subs pull out permits for each phase of the work (elec,plumbing at the very least) .

 

If you pull the general permit under your name, many towns (in NJ) have a clause that says you, as the undersigned, will be doing the work you sign for, and are telling the truth, under penalty of law. Lots of people sign this every day just because they are in the situation you describe, and are never caught or prosecuted. A sneaky way around this is to say your brother in law is helping you with the work, but I didn't recommend that.

 

The benefit of having his name as the official GC is that by law (in NJ anyway, not sure about other states) they cannot receive final payment until you pass all inspections. So you are kind of protected from getting burned, and the state has some control if he is licensed.

 

This is a big topic in home improvement and construction. People have strong opinions on both sides, and I don't want to get in the middle of a firestorm. That issue would be better saved for another post.

 

There is always an unlicensed/underinsured contractor who can bid less. That's exactly because he is unlicensed, and costs are way cheaper. Guys with licenses and solid reputations in the community tend to do consistent, quality work, and get it done on time (time is $).

 

On the other hand, I had to fire a licensed sub doing roofing work for me b/c he turned a 2-day job into 3 weeks, and I caught 2 guys fighting while moving a 2-story ladder (one of them was so drunk he could barely stand). Tough choices - are you ready to fire this guy if it comes to that? What are your back-up plans if it doesn't work out with him?

 

So plse be very aware of these risks. Your decision in the end is your own, and one you will have to live with. And no matter how well you think you know this GC and what contract you have with him, insist on a graduated payment plan. A 50/50 arrangement gives you no leverage. You are better off with 30/30/30/10, if you stand your ground and get him to agree. Good luck - Dark

Share this post


Link to post
Share on other sites

Dark Skies to clarify, whether or not JS pulls the permit or not it is against the law for any contractor to do a job over $500.00 if he/she is not licensed by the state. In order to be licensed you have to have a minimum of $500,000.00 in liability insurance. I also suspect that (this is only my opinion) your homeowner's insurance could easily reject a claim if you let an unlicensed person work on your home.If they are not already doing it you can bet your ass the insurance companies will wise up to it soon. I am sure KOQ knows more about it.

Share this post


Link to post
Share on other sites

Nitro, I agree with everything you said. I mentioned the possibility of homeowners ins declining a claim in my post:

 

"And some times homeowners ins now has clauses saying they will not pay out claims resulting from uninsured or unlicensed contractors."

 

Moreover, I believe there are cases where ins companies are now rejecting claims if a catastrophe befalls your house (fire caused by faulty wiring or installation; flood caused by faulty plumbing or installation) if they determine from investigation that you did major or sub-legal rehab (basement apartment?) without pulling proper permits, and that work was not done by licensed/insured subs.

 

There are many examples of this (KOQ feel free to post, I don't have as many facts as I would like on this), but my post was long enough without going into greater detail.

 

It's also illegal (in NJ) to represent that you are doing the work (as a homeowner) when you have someone else doing it for you. I really thought this was clear in my post.

 

I think he is on thin ice if he pulls the permit as GC. Didn't advise him to do it. Just tried to illustrate the pitfalls with some of my experiences:

 

"Guys with licenses and solid reputations in the community tend to do consistent, quality work, and get it done on time (time is $)."

 

 

'Nuff said - This seems to me the most important point. I also pointed out the financial risk if he's the G/C, and the contractor bails on him. - Dark

Share this post


Link to post
Share on other sites
Nitro, I agree with everything you said. I mentioned the possibility of homeowners ins declining a claim in my post:

 

"And some times homeowners ins now has clauses saying they will not pay out claims resulting from uninsured or unlicensed contractors."

 

Moreover, I believe there are cases where ins companies are now rejecting claims if a catastrophe befalls your house (fire caused by faulty wiring or installation; flood caused by faulty plumbing or installation) if they determine from investigation that you did major or sub-legal rehab (basement apartment?) without pulling proper permits, and that work was not done by licensed/insured subs.

 

There are many examples of this (KOQ feel free to post, I don't have as many facts as I would like on this), but my post was long enough without going into greater detail.

 

It's also illegal (in NJ) to represent that you are doing the work (as a homeowner) when you have someone else doing it for you. I really thought this was clear in my post.

 

I think he is on thin ice if he pulls the permit as GC. Didn't advise him to do it. Just tried to illustrate the pitfalls with some of my experiences:

 

"Guys with licenses and solid reputations in the community tend to do consistent, quality work, and get it done on time (time is $)."

 

 

'Nuff said - This seems to me the most important point. I also pointed out the financial risk if he's the G/C, and the contractor bails on him. - Dark

 

 

DK, I wasn't disagreeing with anything you said.I just wanted JS to know what the new law is as far as the licensing issue. You were clear on the representing that he was doing the work when he would not be issue.HappyWave.gif

Share this post


Link to post
Share on other sites

Thank you. Im not going to put myself down as G/C. Since I needed to redo the morgage to pay for this i have already a P/C to my attorney, I will ask hime about it. I plan on telling the contractor Im not doing it, and see what happens.

Share this post


Link to post
Share on other sites
Thank you. Im not going to put myself down as G/C. Since I needed to redo the morgage to pay for this i have already a P/C to my attorney, I will ask hime about it. I plan on telling the contractor Im not doing it, and see what happens.

 

 

Smart move.

Share this post


Link to post
Share on other sites
I'm not aware of any clause that would allow an insurance company to deny a claim if an unlicensed contractor worked on your home.

 

 

How about if an unlicensed person works on your electric and your house burns down because of an electrical fire?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to register here in order to participate.

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0

  • Recently Browsing   0 members

    No registered users viewing this page.