LLR action clarifies a licensed builder’s qualifications

The S.C. Department of Labor, Licensing, and Regulation (LLR) will be sending out the following notice to all building officials in SC.

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Dear Code Officials:

Many local codes departments in South Carolina require a Residential Specialty Contractor license/registration in Electrical, Plumbing, or HVAC before issuing a permit for this type of work. In the past, the Commission has issued such licenses/registrations to licensed Residential Builders. Please note, however, that S.C. Code Ann. § 40-59-20(7) specifically states that a residential specialty contractor may not be a licensed residential builder. Therefore, in accordance with the law, the Commission will no longer issue Residential Specialty Contactor licenses/registrations to Residential Builders.

The S.C. Residential Builders exam tests builder applicants on the three mechanical trades of Electrical, Plumbing, and HVAC. Therefore, a Residential Builder who received his or her license by exam is qualified to perform work in these trades and will have the designation “RBB” on his or her license and will have as the “Home Builders” as the license type on LLR licensee lookup.

The Commission also licenses Residential Builders without exam in three instances: (1) a passing score on the NASCLA exam; (2) a license issued by the SC Contractors Board; or (3) a license from a state with whom the Commission has an exam waiver agreement. A Residential Builder who received his or her license without exam is not qualified to perform work in the mechanical trades and will have the designation “RB” on his or her license as well as license type on LLR licensee lookup. RB Exam Waiver licensees must subcontract with an appropriately licensed person or company to perform any of the mechanical trades on a project.

I hope this clarifies any questions you may have. Please feel free to contact the Commission with any issues that may arise.
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This is not a new policy and does not change any licensing requirements. This issue has been brought up several times in the last few months (either a local municipality trying to exact additional business license fees, or builders who have had their license suspended trying to usurp the suspension).

Emergency License Information Regarding Out-of-State Contractors

As a result of the flooding across the State, many out-of-state builders and specialty contractors are seeking employment to perform repairs, construction work, or other services to residential structures.  Please be advised that when issuing building permits to any such builders or contractors applying to do work in this State, they must be appropriately licensed or registered by the South Carolina Residential Builders Commission (“Commission”).
The Commission anticipates issuing emergency licenses to qualified, out-of-state residential builders and residential specialty contractors in the classifications of electrician, plumber, and heating and air conditioner installer/repairer pursuant to S.C. Code Reg. 106-5.  A copy of this regulation is below for your review.  Under these emergency licenses, builders will be limited to a total valuation of $100,000.00 for any single project and electricians, plumbers, and heating and air conditioning installers/repairers will be limited to a total valuation of $35,000.00 for any single project. These emergency licenses are valid only for repairs/work related to heavy rain and flash flooding for which Governor Haley declared a State of Emergency on October 1, 2015, and will expire on April 1, 2016, such that any builder, plumber, electrician, or heating and air conditioner installer/repairer who plans to work in the affected counties beyond that time period is encouraged to apply for a regular license in the interim.
  
Residential builders licensed in Alabama, Georgia, Louisiana, North Carolina, and Utah qualify for reciprocity and have the option of applying for an emergency license or a regular residential builders license.
All other specialty contractors, including vinyl and aluminum siding installers, insulation installers, roofers, floor covering installers, masons, dry wall installers, carpenters, stucco installers, and painters/wall paperers, must apply to the Commission for a regular South Carolina residential specialty contractor registration before they can perform work in this State in excess of $200.  There are no emergency registrations for these specialty registrants. 
Attached are copies of the Emergency License Registration Application, and Residential Specialty Registration Application, which may be disseminated to any out-of-state builders or specialty contractors seeking licensure or registration in this State. 
The Commission intends to expedite and process the emergency applications as quickly as possible during this time of need.  For those applicants seeking a regular license that requires examination, the Commission is prepared to schedule additional testing times and sites. 
The emergency license is only for residential repairs.

106-5 Emergency License and Registration

A. In the instance of an event declared to be an emergency by the governor, the department, as defined by S.C. Code Ann. Section 40-59-20(2), is authorized to issue emergency licenses and registrations for out-of-state builders and specialty contractors.
B. To qualify for an emergency license or registration, an individual, at the time of application, must submit a verification letter issued by the state in which the applicant’s principal place of business is located (home state) as proof that his or her license is in good standing. The emergency license or registration may be issued only to the individual shown on the home-state license. The home-state license must have been issued by examination; a “grandfathered” license or registration will not be accepted as proof of licensure.
C. In addition to proof of home state licensure, an applicant must also provide:
1. An emergency license application;
2. A national criminal background report current within fourteen (14) days of the date of application. A criminal background report showing misdemeanors listed for twenty-four (24) months or felonies listed for fifteen (15) years prior to the application date will not qualify for licensure;
3. A current bond for home builders of at least Fifteen Thousand Dollars ($15,000.00) and current bond for specialty contractors of at least Five Thousand Dollars ($5,000.00); and,
4. A fee of One Hundred Dollars ($100.00).
D. An emergency license or registration will be:
1. Issued for one (1) specific event;
2. Limited to a total valuation of One Hundred Thousand Dollars ($100,000.00) for any single project for home builders, and a total valuation of Thirty-five Thousand Dollars ($35,000.00) for any single project for specialty contractors;
3. Valid only for the scope of work permitted by the applicant’s home-state license;
4. Valid only within the area of the declared emergency; and,
5. Valid only for the duration of the emergency declaration, or as extended at the board’s discretion.
HISTORY: Added by State Register Volume 36, Issue No. 6, eff June 22, 2012.

Counties currently declared by FEMA to be in the disaster area due to the October SC flood event are: Bamberg, Berkeley, Calhoun, Charleston, Clarendon, Colleton, Darlington, Dorchester, Florence, Georgetown, Greenwood, Horry, Kershaw, Lee, Lexington, Orangeburg, Richland, Sumter and Williamsburg.
If you are applying for an initial license with the South Carolina Residential Builders Commission, you may now apply online by clicking on the link below:

Thanks to the South Carolina Department of Labor, Licensing and Regulation (LLR) for sending this important information out. For LLR’s tips on how to prevent contractor scams, click here.

Sting Nets 73 Cases of Unlicensed Builders/Contractors in State

Investigators for the S.C. Residential Builders Commission (RBC) and S.C. Contractor’s Licensing Board (CLB) found 73 cases of unlicensed activity when they participated in a national sting operation during the week of June 16, 2015.  The sting was in coordination with the National Association of State Contractors Licensing Agencies (NASCLA).

Of the 33 cases that have resulted in public orders so far, three were for companies with Greater Greenville addresses.

Six investigators from the S.C. Department of Labor, Licensing and Regulation’s (LLR) Office of Investigations and Enforcement and three staff members reviewed internet listings and physically monitored home improvement store parking lots across the state to look for people who were advertising plumbing, electrical, carpentry, HVAC, roofing, home inspecting and other building services requiring licensure by LLR.

“The goal of the sting was to work together with NASCLA and other boards across the country to protect consumers and deter illegal construction activity,” RBC Administrator Janet Baumberger said. “This is the second time we have participated in the sting, and each time we have discovered at least 70 cases. We look forward to participating again to further protect consumers.”

In addition to South Carolina, eight states participated in the sting: Arizona, California, Florida, Nevada, Rhode Island, Texas, Utah and Washington.

“LLR is committed to its mission of protecting the health and safety of South Carolina citizens,” LLR Director Richele Taylor said. “Operations like these help us educate the public on how to protect themselves from unlicensed contractors and highlights the steps individuals must take to become licensed.”

RBC and CLB encourage consumers to check to see if a builder is licensed by going to llronline.com and clicking on Licensee Lookup. RBC licenses all residential builders and home inspectors and licenses/registers all specialty contractors in the state. RBC investigates complaints from homeowners having problems with builders or licensed/registered specialty contractors and, if necessary, takes disciplinary action against them.

Most builders who do home improvement projects will fall under the RBC. However, a contractor might be licensed by the CLB, which regulates the practice of general and mechanical contracting, burglar and fire alarm system businesses and fire protection sprinkler contractors.

“Persons holding themselves out to be a general or mechanical contractor while not licensed presents a threat to the general public,” CLB Administrator Roger Lowe said. “By participating in this operation, it is clear that unlicensed practice presents a very real problem in South Carolina. If a property owner discovers that a potential contractor is unlicensed, we would encourage them to pass that information along to our Office of Investigations and Enforcement. By law, offering to perform regulated work without a license is the same as actually doing the work.”

In addition to making sure a builder is licensed, the RBC and CLB offer the following tips when hiring someone to do work on your home:

  • Ask the builder to provide you with the names and contact information of people he or she worked for in the past. 
  • Check with the Better Business Bureau to see if there have been complaints filed against the builder. 
  • Don’t rely on verbal promises. Ask the builder to provide you with a contract, and read it thoroughly to make sure everything you agreed on is in the document. 
  • Don’t pay all the money upfront. 
  • Beware of any builder or contractor who solicits business saying he or she “has material left over from another job in the area and can give you a real good price.” This is a sign you may be dealing with an unlicensed contractor or scam artist. 
  • Ask the builder, contractor or specialty contractor to provide you with a copy of his or her license or registration. 
  • Click here to verify the individual is currently licensed with the RBC. 
  • Click here to verify the individual is currently licensed with the CLB.
  • Click here to search for any possible disciplinary actions with the RBC.
  • Click here to search for any possible disciplinary actions with the CLB.
  • Call the RBC at 803-896-4696 or the CLB at 803-896- 4686 for assistance in locating an individual. 

For more information on the national sting, click here.

For copies of Cease and Desist orders issued as a result of the sting, click here.  Orders are posted to this site as the Boards receive notice the orders have been served on the individuals.

Yes Virginia, your home builder can pour the sidewalk at your new home

For nearly a year in certain areas of the City of Charleston Licensed Residential Home Builders have not been allowed to supervise the construction of sidewalks or driveways in the city’s right of way.

This situation is the result of an erroneous interpretation of the law by a building official in that city who believed that only a Licensed General Contractor may construct a sidewalk or driveway in the city’s right of way.

On February 13, 2013, representatives of your Home Builders Association from the Charleston area took the matter to the Residential Builders Commission, a department of the S.C. Department of Licensing and Regulation (LLR).  As a result, an attorney for LLR has issued a letter affirming that, “where a sidewalk and driveway apron is to be provided in front of or beside the lot of a one single family residence, in conjunction with the construction or renovation of that residence only, a licensed residential builder or registered residential specialty contractor with the masonry classification (which includes concrete), may perform the work as part of the residential project.”  The letter further states, “this would also apply to the sidewalks and driveway aprons in front of or beside the lots of single family residences constructed by a licensed residential builder on contiguous lots.”

The letter is signed by Georgia L. Lewis, Advice Council for the Residential Builders Commission.

Yes Virginia, your home builder can pour the sidewalk at your new home.

LLR sting results in 70 cases against unlicensed contractors

The S.C. Residential Builders Commission recently participated in a national sting operation in which investigators found 70 cases of unlicensed activity in just an eight-hour period.

Six investigators from LLR’s Office of Investigations and Enforcement worked with the commission to review more than 200 Internet listings and patrol home improvement store parking lots across the state to find people who were advertising plumbing, electrical, carpentry, HVAC, roofing and other building services requiring licensure by LLR.

“What we found in just one day further emphasizes our message that consumers need to be on alert any time they hire someone to do work to their homes: Make sure they are licensed, and never pay the full cost of the work upfront,” Administrator Janet Baumberger said. “Our investigators and staff will continue their diligent efforts to find and shut down unlicensed builders.”

The sting on September 10, 2012, was coordinated by the National Association of State Contractors Licensing Agencies (NASCLA), and the goal was for states to work together to protect consumers and deter illegal construction activity. The sting resulted in 16 open cases in the Upstate alone.

In addition to South Carolina, six states participated in the sting: Arizona, California, Nevada, Oregon, Rhode Island, and Utah.  “This was not a one-time occurrence,” Baumberger said. “We routinely search the Internet for unlicensed people who are offering building services in our state. And our investigators always have their eyes open for unlicensed activity.”

Consumers can check to see if a builder is licensed by going to www.llronline.com and clicking on Licensee Lookup.  All Builder members of the Home Builders Association of Greenville maintain either a residential or commercial builders license with LLR as a condition of their membership.

The RBC licenses all residential builders and home inspectors and registers all specialty contractors in the state. The commission investigates complaints from homeowners having problems with builders or registered specialty contractors and, if necessary, takes disciplinary action against them.

Most builders who do home improvement projects will fall under the Residential Builders Commission. However, a contractor might be licensed by LLR’s Contractors’ Licensing Board, which regulates the practice of general and mechanical contracting, burglar and fire alarm system businesses and fire protection sprinkler contractors.

In addition to making sure a builder is licensed, the Home Builders Association of Greenville offers the following tips when hiring someone to do work on your home:

  • Ask the builder to provide you with the names and contact information of people he worked for in the past.
  • Check with the Home Builders Association of Greenville and Better Business Bureau of the Upstate to see if there have been complaints filed against the builder.
  • Don’t rely on verbal promises. Ask the builder to provide you with a contract, and read it thoroughly to make sure everything you agreed on is in the document.
  • Don’t pay all the money upfront.
  • Beware of any contractor who solicits business saying he “has material left over from another job in the area and can give you a real good price.” This is a sign you may be dealing with an unlicensed contractor or scam artist.