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Licensing modifications to impact residential contracting

September 3, 2020

The Building Department Board of Directors’ modifications to the rules and regulations for licensing and sub-contractors will have a significant impact on the residential contracting industry.

Sections A8 and A9 were very strict on how sub-contracting worked, requiring any person working as a sub-contractor to have the appropriate license. Anyone working for the sub-contractor had to be an employee and not a 1099 sub-contractor.

While these rules had been in place for some time, the contracting community has changed significantly since the rule was created. The new rules place greater responsibility on the general contractor. All subs working on “Class 2” structures, which is where residential structures fall in the State’s General Administrative Rules, must still be licensed.
Subs who have taken and passed the appropriate test administered by a qualified third party can perform work in the categories they have tested under. Those subs can also pull “stand-alone” permits where appropriate and allowed by rules and regulations, and County Ordinance. These are referred to as “Category A” licensures.

Those who wish to only work under a general contractor and pass an exam offered locally by the building department can obtain a “Category B” licensure in the appropriate trade listed in A8 or A9. Category B license holders cannot do work independently of a general contractor. Testing will be offered in the last quarter of 2020, pending some COVID accommodations being figured out right now.

“Workers” on-site at Class 2 structures are not being checked for employment status by the inspectors, but the sub-contractor must be provided upon request by an inspector. Enforcement will not begin on Class 2 structures until January 1, 2021, and is subject to delay if the COVID order is still in effect or by Board recommendation. Contractors should expect the same rollout seen with the new code, which reflects education prior to enforcement efforts.

Thank you,
John Caywood
Allen County Building Commissioner

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