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HomeMy WebLinkAboutDefining Construction Contractors: Providing for the Licensing and Regulations Thereof: Fixing the Fees for Such LicensesORDINANCE NO. 7 \mot WHEREAS, the Common Council of the city of South Bend, Indiana, pursuant to authority granted by bhapter 209 of the Acts of the General Assembly of the State of Indiana approved March 6th, 1929, deems it necessary in order to conserve the value of property in said city and to protect its citizens from unsafe construction and from loss occasioned by the operation of unskilled, incompetent or unscrupulous building contractors, that building contractors be examined, regulated and licensed by said c1ty; NOW, THEREFORE, BE IT ORDAID',ED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: Section 1. It shall hereafter be unlawful for any person, firm, co- partnership, corporation or other association to engage in or act within the limits of the city of South Bend in the business or capacity of a construction contractor as defined in this ordinance unless such person, firm, co- partnership, corporation or association shall have first ob- tained a license therefor or unless exempt therefrom as herein- after provided. Wherever in this ordinance the term "person or per- sons" is used without other limitation, it shall be construed to "Include persons, firms, co- partnerships, corporations, assoc- iations or any combination of any thereof. CONSTRUCTTION CONTRACTOR DEFINED. Section 2. Every person, firm, co- partnership, corporation, association or other organization or any combination of any thereof, who is engaged in or proposes to engage in the business of accepting orders or contracts on cost plus basis, fixed fee, stated sum, percentage or any combination thereof, or other compensation other than wages, doing work on or in any build- ing or structure requiring the use of paint, stone, brick, mortar, cement, wood, structural steel or iron, sheet iron, metallic piping, tin, lead, or any other building material, or in doing any paving or curbing on sidewalks or streets, on public or private property, using asphalt, brick, stone, cement or wood or any combination thereof; or in excavation for foun- dations or any other purpose; or in constructing sewers, septic tanks, bridges, retaining walls and bulkheads of any and all descriptions; or who is engaged in the business of building, remodeling, repairing or roofing buildings or other structures whether it be by day labor, contract, cost plus, fixed fee, stated sum, percentage, or any combination thereof, or other compensation other than wages; shall be deemed to be a con- struction contractor within the meaning of this ordinance. Provided that the term "contractor" shall not be deemed to in- clude any one who merely furnishes materials or supplies without fabricating the same into or consuming the same in the work of such construction. EXMTTIONS FROM OPERATION OF ORDIN"ANCE. Section 3. This ordinance shall not apply to: (a) Building or other construction by private owners where the materials and supplies are furnished by the -2- owner and the labor is paid in the form of wages. Pro- vided, that any person claiming exemption under this sub- section may be required when securing a building permit to make an affidavit that he is the bona fide owner of the premises where the building or other structure is to be erected and that there is no collusion between him and the true owner for the purpose of evading the provisions of this ordinance. (b) Authorized representatives of the United States, State of Indiana, or any muncipal or political sub- division thereof, engaged in work under their direct super- vision and not let by contract. (c) Any contractor engaged solely in undertakings by contract or contracts, the aggregate contract price for which, including labor, material and all other items is less than four hundred ( &400.00) dollars, such work or operations being considered as of a casual, minor or inconsequential nature; provided however, that this exemption shall not apply in any case wherein the work of construction is only a part of a larger or major operation, whether undertaken by the same or a different contractor, or in which a division of the operation is made into contracts for amounts less than four hundred ($400.00) dollars for the purpose of evading the pro- visions of this ordinance. (d) Any work or operation connected with the sale or installation of any finished product, material or article of merchandise which is not fabricated into and does not become a permanent fixed part of the structure. -3- (a) Any contractor who is licensed to engage in construction under the provisions of any other ordinance of the.city of South Bend, such as plumbing and electrical contractors. (f) This ordinance shall not apply to contracts or con- struction projects where actual construction has been started or permits issued therefor prior to the time this ordinance is in effect. ADMINISTRATION OF-ORDINANCE. Section 4. The administra- tion of this ordinance, except as hereinafter provided, is hereby placed under the jurisdiction of the Department of Public Works and Safety. Within five (5) days after this ordinance is in effect, the Mayor shall appoint a Board of Examiners to consist of five members, all of whom shall have been residents of the city of South Bend for at least one year prior to their appointment, and two of whom shall be experienced general building contractors who have been so engaged in the city of South Bend for at least five years prior to their appointment, one member shall be a registered architect, one member shall be a qualified civil engineer, and the fifth member shall be the Building Commissioner who shall also act as clerk of said Examining board. All persons so appointed shall hold their positions at the pleasure of the Mayor. Immediately after their appointment the board shall meet and organize by elect- ing a chairman and vice- chairman; they shall prepare necessary forms for applications, licenses and certificates as hereinafter provided and shall keep a complete record of their proceedings which shall be open to public inspection during business hours in the office of the Building Department. It shall be the duty of the board to examine all applicants for license under the provisions of this ordinance as to their knowledge, training and experience in the work in NLich they propose to engage, and to approve or reject the appli- cation, and they may institute or investigate complaints as to the violation of this ordinance and if any complaint is found justified, -4- may recommend to the Mayor that the license of the offending contractor be revoked. Any three members of the Board of Examin- ers shall constitute a quorum, and in case of a disagreement a majority vote of all members present shall control. The Board shall hold regular meetings for the purpose of considering app- lications for license and such other business as may properly come before them on the first Monday in February, May, August and November of each year and may hold special meetings at the call of the clerk of the board. Members of the board shall re- ceive such compensation as the Mayor may fix. For the purpose of carrying out the provisions of this ordinance, the board may adopt reasonable rules and regulations to govern their deliber- ations, not inconsistent with law or this ordinance. APPLICATIONS FOR LICENSE. Section 5. To obtain a license under this ordinance, the applicant shall submit upon such forms as the Board of Examiners shall prescribe and in accordance with such rules and regulations as may be adopted by them, an applica- tion in writing for such license, verified by the applicant or some person on his behalf, which application shall contain a com- plete statement of the business in which the applicant is engaged, how long and where so engaged and the business in which he proposes to engage under the license applied for. Such application shall further show, if by an individual, his name and address; if by a co- partnership, the name under which the applicant proposes to operate and the names and addresses of the partners; and if by a corporation, the correct corporate name, the location of their principal place of business and the names and addresses of the executive officers, together with such other information as the board may require. REQUIREMENT FOR LICENSE. Section 6. No license shall be issued except upon the approval of such board of examiners or -5- board of public works and safety on appeal. Before such board shall approve any application for a license, they shall investigate the character and qualifications of the applicant and find: 1. That the applicant or, in case of a corporation or association, its executive officers are apparently of good moral character. Lack of good moral character may be established by evidence that the applicant or any of its executive officers have, within the year preceding the date of the application, been con- victed of any crime or misdemeanor involving fraud or deceit, or any other dishonesty in applicant's business. 2. That the applicant, or the person designated by him to be in charge of construction, has had at least three years ex- perience in the construction in which he proposes to engage and that he is apparently qualified by experience, skill and training to perform work of that character. 3. That the applicant has not been an habitual violator of this ordinance or of any law or ordinance governing or regul- ating his business. Such application shall not be heard and determined by the board until the same has been on file with the clerk for at least five days unless the board shall find and enter of record that an emergency exists for an earlier determination thereof. The issuance of a building permit under the provisions of the Building Code shall not be deemed a compliance with this ord- inance nor to excuse the requirement for a license as provided in section one hereof. FEES. Section 7. Each application shall be accompanied by an examination fee of $5.00 which shall be deposited by the clerk with the city comptroller and by him paid into the general fund of said city. LICENSE. HOW ISSUED. Section S. Upon the receipt of the application and examination fee the clerk of the board shall fix __ €6_ a date for the hearing of the application and shall notify the applicant in person or by mail at the address given of the time and place where said application will be heard. The applicant shall have the right to be present at such bearing in person and by counsel and to present evidence in support of his application. Any person opposed to the issuance of a license to the applicant shall also be heard. If after such hearing the board finds that the applicant 4" in all respects qualified as a construction con- tractor under the provisions of this ordinance, they shall ex- ecute in duplicate a certificate to that effect, one copy of which shall be placed on file with the records of said board and one copy of which shall be delivered to the applicant. Upon the presentation of such certificate to the city comptroller, he shall issue such license upon the payment by the applicant of a further fee as follows: General contractors are hereby divided into two classes, designated as A and B classes. Class A contractors shall in- clude all those general contractors engaged in or proposing to engage in taking contracts for any kind of construction unlimited in price and such Class A contractors shall pay an initial license fee of 0100.00. Class B contractors shall include only those general con- tractors engaged in or proposing to engage in taking contracts when the total contract price, including labor and material for any one undertaking, does not exceed $25,000.00 and such Class B contractors shall pay an initial license fee of 6,50.00. Sub - building contractors (permitted to do general contracting when the floor area of the building does not exceed 1500 square feet without additional license; over 1500 square feet requires general contractors license) shall pay an initial license fee of -t7 Other construction contractors and sub - contractors not spec- ially classified herein, $25.00. . All license fees collected shall be paid into the general fund of said city. All licenses shall be for the calendar year in which issued and shall automatically expire on the first day of January of the suceeding year. Licenses remaining unrevoked may, upon application, be renewed for each succeeding year upon payment of a renewal fee as follows: Class A contractors, $15.00; Class B contractors, $10.00; all other contractors, $5.00, and without any further examination. Application for the renewal of a current license at any time before January 1st of each year shall authorize operation as a contractor by such licensee until actual issuance of such renewal license. Each licensee shall keep his license displayed in a conspicuous manner at the principal office or place of business whitin the city of South Bend of such contractor and shall exhibit the same upon de- mand of any public officer. Licensees shall report to the Building Department any change of executive officers or address within thirty days after the same shall occur. Whenever application for a license is made by a firm, co- partnership, corporation or association, an officer or agent of the applicant who is to be in general charge of the construction shall be designated to take the examination for such applicant. Any person so taking the examination must be an active member of, or a legally authorized agent or employee of the applicant and cannot qualify to so operate under more than one license at any one time, issued under the provisions of this ordinance. If such officer or agent shall sever his connection with the contractor, both he and the contractor shall immediately notify the Building Department of such fact. The contractor shall, within a reasonable time, not to exceed ten days, designate some other person to take the examination for him which, if satisfactorily passed, will entitle the contractor to operate under his license for the re- -8- mainder of the calender year without any additional fee. Licenses shall not be transferable except when there is a bona fide sale and transfer of the property and business of the licensee and then only where the individual in charge of construction has sat- isfactorily passed the examination provided for by section four of this ordinance. LICENSE WHEN REFUSED. Section 9. If, after hearing, the board shall find that the applicant is not qualified for a license under the provisions of this ordinance, they shall execute, in duplicate, a certificate to that effect stating therein the reason or reasons why such application has been denied, one of which copies shall be placed on file with the records of said board and the other copy delivered or mailed to the applicant. If within five days after the receipt of such notice the applicant shall file with the clerk of the Board a verified petition for a rehear- ing, stating therein that he has new and additional evidence to sub- mit in support of his application and in opposition to the finding of the board, a re- hearing shall be granted but no evidence shall be heard except as bearing upon the reasons given by the board for denying such application. After such re- hearing, the board shall again pass upon such application, approving or denying the same, and their action shall be final unless appealed from. Provided that the applicant may, after a period of six months, file a new application under the same prooeedure as provided for in his orig- inal application. Provided further that if any application is re- jected solely upon the ground that the person designated has failed to pass the examination, the applicant may at any time amend his application by designating a different person to take the examina- tion upon the payment of an additional fee of $5.00 and shall be entitled to a new hearing thereon. APPEALS. HOW TAKEN. Section 10. If any application for a license is rejected by the Board, after a hearing as provided in Section 9 of this ordinance, the applicant may appeal to the Department of Public Works and Safety. Such appeal must be taken within three days after the applicant receives notice of the finding of the Board of Examiners and may be taken by simply filing in the office of the Building Department a written notice of his intention to so appeal. The clerk of the Board of Examin- ers shall forthwith transmit to the Department of Public Works and Safety all papers and records relating to said application, including said notice of appeal. The Departments of Public Works and Safety shall fix a date for the hearing of said appeal and gives. to the applicant and each member of the examining board a written notice of the time and place of such hearing. At the time and place so fixed, the Board of Public Works and Safety shall hear such application anew, together with any evidenee in opposition thereto, and shall approve or reject said application and endorse their approval or rejection upon the certificate on file in the office of the City Comptroller, and their decision shall be final. LICENSE. HOW REVOKED. Section 11. Any license issued under the provisions of this ordinance may be revoked by the Mayor upon his own motion or upon the recommendation of the board after notice and hearing before the Mayor as hereinafter provided for any one or more of the following reasons: 1. Abandonment without legal excuse of any construction project or operation engaged in or undertaken by the licensee as a contractor within the provisions of this ordinance. 2. Diversion of funds or property received for prosecution or completion of a specific construction project or operation or for specified purposes in the prosecution or completion of ary such project and their application or use for any other construction pro- ject or operation without the consent of the person owning or furnish- ing the same. 5XIM 3. Wilful departure from or disregard Of plans or speci- fications in any material respect and prejudicial to another without consent of the owner or his duly authorized representa- tive or without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications. 4. Wilful and deliberate disregard and violation of the building laws of the State of Indiana,.or any political sub- division thereof, or of the safety laws or labor laws of the state. 5. Misrepresentation of a material fact by applicant in obtaining license. 6. Failure in a material respect on the part of the licensee to complete any construction project or operation for the price stated in the contract or any modification thereof. 7. Aiding or abetting an unlicensed person to evade the provisions of this ordinance, or knowingly combining or conspir- ing with an unlicensed person, or allowing ones license to be used by an unlicensed person, or acting as agent or partner or associate or otherwise of an unlicensed person with the intent to evade the provisions of this ordinance. The word person as used herein shall be deemed to apply to an individual, firm, co- partnership, corporation, association or other organization or any combination of any thereof. 8. Failure in any material respect to comply with the pro- visions of this ordinance. 9. The doing of any wilful, dishonest or fraudulent act by the licensee as a contractor by the consequence of which an; other is substantially injured. If any complaint charging any of the foregoing acts or omissions is filed with the Building Department or the Mayor of said city, the same may be referred to the Board of Examiners for -14- investigation who shall report their findings to the Mayor. No license shall be revoked except after notice to the party charg- ed and hearing before the Mayor and all complaints made and charges filed against licensee shall be in writing.and verified and a copy thereof shall be delivered to the accused at least five days prior to the date fixed for such hearing. The accused shall have the right to be represented at such hearing by counsel and to produce witnesses in his behalf. PENALTIES. REPEAL. Section 12. Any person, firm or cor- poration or association who shall violate any provisions of this ordinance, shall be subject upon conviction thereof to a fine of not to exceed $100.00 and upon failure to pay the some maybe im- prisoned in the oo.unty jail until such fine and costs are paid., not exceeding thirty days. Continued violation of any provision shall constitute a separate offense for each and every day such violation may continue. All ordinances in conflict with the provisions hereof are hereby repealed and if any section or sections of this ordinance are held by the court to be invalid for any reason, such holding shall not have an effect of invalidating any other section or sections. PUBLICATION. Section 13. This ordinance shall be in full 4fo and effect from and after its passage and legal publication. Ist & 2nd READING 1.2- OOMMffTEE OF THE PUBLIC HEARINB Member of the Common Council. � 2 _ Z � _ � S — 3rd READING NOT APPROVED REFERRED PASSEO