Chapter 5.16
CONTRACTORS
Sections:
5.16.020 Contractors classified.
5.16.050 Fees not to be prorated.
5.16.070 Duties of Building Official – Requirements for issuance of license.
5.16.080 License application, examination and issuance procedure.
5.16.100 Contractor’s responsibility – License revocation.
5.16.110 Building Board of Appeals – Generally.
5.16.130 Building Board of Appeals – Officers.
5.16.140 Building Board of Appeals – Powers and duties.
5.16.150 Violation of chapter – Penalties.
Cross reference(s) – Buildings and building regulations, GJMC Title 15.
5.16.010 Contractor defined.
(a) A “contractor,” within the meaning of this chapter, is any person who:
(1) Undertakes with or for another, within the City, to build, construct, alter, repair, add to, move, or wreck any building or structure or any portion thereof, or who undertakes the improvement of any building or structure for which improvement a charge is made, either by a fixed sum, price, fee, percentage, or other combination besides wages, or any combination beside wages. Such definition shall include those normally denominated in the building trades as “subcontractors” or “special contractors.”
(2) Builds, constructs, alters, adds to, moves, or wrecks any building or structure, either on his own or other property, for purpose of resale or rental. A homeowner may secure a permit on only one residence in any 12-month period, and the construction of more than one residence by a person in any one year shall be construed to mean that such extra construction will be for resale or rental purposes, and that such party is to be classified as a contractor.
(b) The definition of “contractor” shall not include:
(1) A person who is paid wages by a homeowner, as defined in subsection (a)(2) of this section, if the owner of the building or structure buys his own building material.
(2) Plumbers, electricians or other specialized trades for which special licenses are required.
(3) Owners making nonstructural repairs or maintenance in their buildings where a contractor is not employed, except as such owner is governed by subsection (a)(2) of this section.
(4) Construction managers who provide design, inspection and administration services with the owner entering into separate contracts for construction or material purchases.
(Code 1994 § 10-81; Code 1965 § 7-31)
5.16.020 Contractors classified.
For the purposes of this chapter, contractors shall be divided into the following classifications for definition:
(a) General Contractor Unlimited. A contractor on an unlimited type or size of structure, as may by ordinance be permitted, shall be known as a “general contractor unlimited.”
(b) General Contractor Not to Exceed $750,000. A contractor on a type or size of structure, as may by ordinance be permitted, on which the total value of all labor and materials used shall not exceed $750,000, shall be known as a “general contractor not to exceed $750,000.”
(c) General Contractor Not to Exceed $250,000. A contractor on a type or size of structure, as may by ordinance be permitted, on which the total value of all labor and materials used shall not exceed $250,000, shall be known as a “general contractor not to exceed $250,000.”
(d) General Contractor Not to Exceed $150,000. A contractor on a type or size of structure, as may by ordinance be permitted, on which the total value of all labor and materials used shall not exceed $150,000, shall be known as a “general contractor not to exceed $150,000.”
(e) General Contractor Not to Exceed $75,000. A contractor on a type or size of structure, as may by ordinance be permitted, on which the total value of all labor and materials used shall not exceed $75,000, shall be known as a “general contractor not to exceed $75,000.”
(f) General Contractor Not to Exceed $25,000. A contractor on a type or size of structure, as may by ordinance be permitted, on which the total value of all labor and materials used shall not exceed $25,000, shall be known as a “general contractor not to exceed $25,000.”
(g) General Contractor Not to Exceed $10,000. A contractor on a type or size of structure, as may by ordinance be permitted, on which the total value of all labor and materials used shall not exceed $10,000, shall be known as a “general contractor not to exceed $10,000.”
(h) Special Contractor. A person who contracts for labor or for labor and material involving only one trade or one particular kind of work with the building industry shall be known as a “special contractor.” The following categories of special contractor are established based upon the contract amount of the total of labor and material for the performance of the specialty:
(1) Special contractor unlimited.
(2) Special contractor not to exceed $750,000.
(3) Special contractor not to exceed $250,000.
(4) Special contractor not to exceed $100,000.
(5) Special contractor not to exceed $50,000.
(6) Special contractor not to exceed $25,000.
(7) Special contractor not to exceed $10,000.
(Code 1994 § 10-82; Code 1965 § 7-32)
5.16.030 License required.
No person shall engage in the business of a contractor within the City without having first obtained a license from the City. No building permits shall be issued to, nor any work performed by, any contractor who has not first obtained a license, or is delinquent in the payment of his annual fee, or whose license has been suspended or revoked by action of the Building Board of Appeals. On any work requiring a licensed contractor, permits shall be issued only to the contractor or to his authorized representative. If any portion of the work is excluded from the contract, the application for a permit shall state the portions so excluded. Should the contractor be discharged, or abandon the work, he shall notify the Chief Building Official in writing of the fact. No further work shall be done until a new licensed contractor has been selected, who shall notify the Chief Building Official in writing of his selection to complete the work.
(Code 1994 § 10-83; Code 1965 § 7-38)
5.16.040 License fees.
For the purpose of providing for the regulation and licensing of contractors and special contractors, such contractors and special contractors are divided into separate classifications under this chapter and shall pay the annual license fee therefor as established by resolution of the City Council and on file in the City Clerk’s office.
(Code 1994 § 10-84; Code 1965 § 7-39)
5.16.050 Fees not to be prorated.
License fees required by this chapter shall not be prorated for any portion of a year.
(Code 1994 § 10-85; Code 1965 § 7-40)
5.16.060 Scope of licenses.
A person licensed as a special contractor shall be limited to the trade or particular kind of work specified in such license and such other work as may be incidental thereto, but shall not contract to do any work other than that so specified in his license. Nothing contained in this section shall prohibit the issuance of one or more licenses for different trades or particular kinds of work to the same individual; provided, however, that such person shall be first duly examined and qualified by the Building Official as to each trade or particular kind of work.
(Code 1994 § 10-86; Code 1965 § 7-41)
5.16.070 Duties of Building Official – Requirements for issuance of license.
(a) The Building Official shall receive and consider license applications, hold examinations for licenses, and issue new licenses as appropriate. Each applicant shall submit in writing, on forms made available by the Building Official, a completed application for license, information establishing the applicant’s net worth, assets and liabilities, additional personal information, and such fees as are required. The Building Official shall review the license application and shall issue the license if he finds the application to be complete and proper; if the required examinations have been successfully completed; and if the appropriate fees and charges have been tendered.
(b) Prior to issuing a contractor’s license, the Building Official shall see that the following conditions are met:
(1) No general or special contractor license shall issue unless the applicant establishes that the applicant’s net worth is equal to at least 25 percent of the stated dollar amounts in GJMC 5.16.020. An applicant for a “general contractor unlimited” license shall establish that the applicant’s net worth is at least 25 percent of $750,000.
(2) The Building Official shall obtain a credit report, from a credit reporting agency approved by him, which establishes that:
(i) There are no unsatisfied judgments against the applicant; and
(ii) There are no overdue accounts. For the purpose of this subsection (b)(2)(ii), “overdue” shall mean not having been paid within 60 days of the due date.
(3) Every contractor shall be required to maintain, at all times, Colorado employee’s liability (or worker’s compensation insurance). If there are no employees, a waiver of worker’s compensation, in a form as required by the Building Official, shall be permitted.
Automobile insurance, in any form, shall neither be offered in satisfaction nor found to satisfy these requirements.
(4) With respect to partnerships, joint ventures and limited liability companies, the applicant shall submit the necessary financial information or proof for the partnership, joint venture or company, as well as for each individual comprising the partnership, joint venture or company.
(5) The Building Official may require additional information, and may investigate at any time that a license is in effect in order to determine if a licensee is acting pursuant to the requirements of this code. Failure or refusal of the licensee to supply such information shall constitute grounds for suspension or revocation of the license, which suspension or revocation shall be referred to the Building Board of Appeals for action by it.
(6) If an owner of a structure for which a building permit is required pays wages to a person, and such owner purchases such owner’s own building materials, the Building Official may require of the owner that either the person performing the work and being paid wages or the owner provide proof that the owner is purchasing directly from the supplier.
(c) At any time that the Building Official has reasonable grounds to believe that a licensee’s net worth is not sufficient to satisfy the standards of an applicant for such license, the Building Official may require that such licensee submit additional and/or updated information to evaluate whether or not to suspend or revoke such license. A licensee’s failure to supply such information, or evidence of inadequate net worth, shall be grounds for suspension or revocation of the license by the Building Board of Appeals.
(Ord. 3868, 2-15-06; Ord. 3326, 2-7-01. Code 1994 § 10-87; Code 1965 § 7-37)
5.16.080 License application, examination and issuance procedure.
The determination of eligibility for licenses shall be made by the Building Official. All hearings for suspension or revocation of licenses and matters pertaining thereto shall be by the Building Board of Appeals. Applications for contractor’s licenses shall be on such forms, and the applicant shall furnish such information, as the Building Official may prescribe. Such applications shall be accompanied by an examination fee as established by resolution of the City Council and on file in the City Clerk’s office. Examinations shall be given at reasonable intervals and if, in the opinion of the Building Official, the applicant is qualified by training and/or experience and is financially and morally responsible to fulfill the obligations of a contractor, he shall direct the City Manager to issue the applicant a license upon payment of the annual license fee.
(Code 1994 § 10-88; Code 1965 § 7-42)
5.16.090 License renewal.
Licenses may be renewed annually without further examination upon payment of the annual license fee on or before January 31st of each successive year. Licenses which are one year or more in arrears may be renewed by the City Manager only upon reexamination and payment of all fees as set forth in this chapter.
(Code 1994 § 10-89; Code 1965 § 7-43)
5.16.100 Contractor’s responsibility – License revocation.
(a) A contractor shall be responsible for all work included in his contract, whether or not such work is done by him directly or by a subcontractor. He shall be responsible for all funds or property received by him for prosecution or completion of a specific contract or for a specific purpose. The chief Building Official may, upon his own motion, and shall upon the verified complaint in writing of any person, require any contractor to appear before the Building Board of Appeals for hearing upon five days’ notice in writing, mailed to his last known post office address, and the Board shall have the power to temporarily suspend or permanently revoke a license if the holder thereof is found guilty of, or commits, any one or more of the following acts or omissions:
(1) Abandonment of any contract without legal cause.
(2) Diversion of funds or property received for performance or completion of a specific contract, or for a specified purpose in the performance or completion of any contract, and their application or use for any other contract, obligation or purpose, or the failure, neglect or refusal to use such funds or property for the performance or completion of such contract.
(3) Fraudulent departure from, or disregard of, plans or specifications in any material respect without consent of the owner or his duly authorized representative and the Building Official.
(4) Willful and deliberate disregard and violation of the building code of the City or failure to comply with any lawful order of the Building Official.
(5) Failure to keep records showing all receipts and disbursements of the licensee in all of his transactions as a contractor, and to produce such records for examination by the Building Board of Appeals when so required.
(6) Misrepresentation of a material fact by the applicant in obtaining a license.
(7) The doing of any willful, fraudulent act by the licensee as a contractor in consequence of which another is substantially injured.
(8) Fraudulent use of a license to obtain building permits for another.
(9) Carelessness or negligence in providing reasonable safety measures for the protection of workmen and the public.
(10) Failure to obtain a building permit for any work as required by this code.
(11) Conduct by the licensee or an employee thereof consisting of threats of violence, direct or implied, against or harassment of any person, including harassment consisting of destruction of property of another or imposition by improperly altering boundary lines of property or improper use of property so as to burden adjoining properties, while the licensee or employee is engaged in work under the license.
(b) The Building Board of Appeals may reinstate a revoked license if sufficient evidence is presented to the Board.
(Code 1994 § 10-90; Code 1965 §§ 7-44, 7-45)
5.16.110 Building Board of Appeals – Generally.
(a) Appeals from administrative decisions made by the Building Official shall be heard by the Building Board of Appeals, which is established pursuant to GJMC 15.12.010. An appeal to such Board shall be initiated by an applicant for a license by submitting a completed appeal on an approved form to the Building Official within five days of mailing of notice of denial or other adverse decision.
(b) The Building Board of Appeals, when meeting as the contractors’ licensing appeal board, shall be governed by the rules applicable to the Building Board of Appeals, insofar as applicable. The Building Board of Appeals shall be governed by such rules as will afford due process and fairness, as determined by such Board.
(Code 1994 § 10-91; Code 1965 §§ 7-33, 7-34)
5.16.120 Building Board of Appeals – Meetings – Quorum – Removal of members for absence – Personal interest prohibited.
Meetings of the Building Board of Appeals shall be called by the Building Official in his capacity as secretary of the Board in order to give proper service to applicants for licensing under this chapter. A majority of the members of the Board shall also have the power to call a special meeting upon their own motion. Four members of such Board shall constitute a quorum and a majority. Continued absence of any member from regular meetings of the Board shall, at the discretion of the City Council, render any such member liable to immediate removal from the Board. No Board member shall act in a case in which he has a personal interest.
(Code 1994 § 10-92; Code 1965 § 7-35)
5.16.130 Building Board of Appeals – Officers.
At the first meeting in each year, the Building Board of Appeals shall elect officers to serve for a term of one year. These officers shall consist of a chairman and vice-chairman, and the Building Official shall act as secretary.
(Code 1994 § 10-93; Code 1965 § 7-36)
5.16.140 Building Board of Appeals – Powers and duties.
The Building Board of Appeals shall have the following powers and duties:
(a) To consider appeals of license applications or rejections.
(b) To decide appealed issues concerning examinations and other administrative tasks assigned to the Building Official and to revoke/suspend any license, as well as to adopt reasonable rules and regulations for the conduct of its business.
(c) To render all decisions and findings in writing to the Building Official, with a copy to the City Manager and a copy to the licensee or the applicant for the license.
(d) If undue hardship has arisen which results in an unfair application of the terms of this chapter, the Board may, in a specific case, by unanimous action, vary the application of the regulations in this chapter, so long as such variance is consistent with the general purpose and intent to protect the public and to maintain equal treatment among all licensees.
(Code 1994 § 10-94; Code 1965 § 7-37)
5.16.150 Violation of chapter – Penalties.
In addition to suspension or revocation of licenses by the Board as provided by this chapter, any person violating any of the provisions of this chapter or any lawful rule or regulation of the Building Board of Appeals, or any lawful order of the Building Inspector, shall be deemed guilty of a misdemeanor, and each such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this chapter is committed, continued or permitted.
A violation of this chapter shall be punished by a fine or imprisonment or both pursuant to the limits established in GJMC 1.04.090. Each day or portion thereof that any violation of any provision of this chapter exists shall constitute a separate offense.
(Ord. 4424 § 3, 5-5-10. Code 1994 § 10-95; Code 1965 § 7-48)