Does Common areas repair need a licensed contractor in a Condo?

We got a contractor for our condo to do repair - sheet rock/walls/doors/paint. He is unlicensed with the department of building or department of consumer affairs. He doesn't have general contractor license or home improvement license. He says he has Domestic Business Corporation and that is enough to do this sort of repair as along as it is not modification or improvement to the structure? We are self contained condominium and we usually vote on all the repairs - the rest of the condo members voting for the cheapest (which makes it unlicensed) contractor. They are also saying it is not necessary to have this work done by licensed contractor. Please shed some light if we indeed need licensed contractor and if so is it noted anywhere in the governing docs or is there a law for it in New York City? If they do vote for the unlicensed and as stated in governing docs we need 60% vote to approve any repairs/contractor - what can I do legally to not go with a particular contractor?

Much appreciate any info!

He gave us his liability insurance with our condo in it. I just don't understand how is it possible if he doesn't have license to do construction work? Owning a corporation doesn't really gives you a right to do construction in residential building? Is it not right?

We had a guy that was incorporated that did handyman work in our HOA. I would NOT recommend it at all. It's waaay too shady of a deal. I would open up the bidding to only those with license and insurance exclusively for the kind of work they are doing. You don't hire a lawncare person to cut trees as my neighbor just found out. Any damage they do is NOT covered by the HOA's insurance if they do work outside of their license/designation.

Make sure to bring this up as to establish a policy for hiring contractors. I did this. Any job under $100 didn't need a licensed person if it was minor repairs or clean up. After that, they had to be licensed and insured. If this guy is interested in keeping his job then he should go and get his license and insurance just like everyone else.

True story that just happened a few days ago. My neighbor decided to hire a landscape contractor to cut down a half dead tree between his house and my other neighbors. They are NOT licensed in tree cutting. I saw what they were doing and could see an accident waiting to happen. It sure did. They got the neighbors outbuilding and chainlink fence with part of the tree. They then went on to get the owners roof! They ripped off a gutter and some fascia boards. Luckily did NOT go through the roof. So who do you think is going to pay for this? Not the owner's insurance as they guys are unlicensed to do this work. (He paid them cheap). The landscaper's insurance wouldn't because they aren't supposed to be cutting down trees. These expenses for repairs are coming out of the owners pocket to fix. Imagine if that had been in a HOA? ALL the owners would have had to pay for the repairs needed.

Get a policy established for licensed and insured contractors and a 3 bid system. That is what we did and never been happier or less poor...

Elona:

Let me offer my advice. There are some jobs that may require contractors to be licensed. There are other jobs that may not require a license. Depending on what your local codes are to pay for a contractor to carry a licesne may in fact be a waste of money.

Now as you have already been told the minimum requirment would be for insurance coverge that is 100% necessary.

Now if you are simply painting a floor in the basement and the contractor provides you with proof of insurance myself I would have no roblem allowing them to do the work.

In the area where I live some towns or cities require a license for electrical or plumbing work. In other towns or cities no license is required. I have never heard of a license being required for painting or sheetrock work.

And as you mentioned if you call in the building department you just migh get way more than you bargined for. In NYC they would be the last people I would call because that can open a whole can of worms.

To paint, sheetrock, hang a door, which in my mind is rather simple work find a trustworthy contractor who offers you a fair price and go with them. But proof of insurance is a MUST.

Good luck.

It really comes down for insurance. I would make a suggestion for a review of the insurance policy at the next meeting. Put it in perspective of what your HOA's insurance really covers and what each individual's insurance covers. Each owner should have their own policy. It may just be time for clarification of the entire insurance policy. People may have the wrong impression of what HOA insurance is about. It does NOT always cover damages on common areas. Insurance can be in place just to cover board members. So make sure you all know what liability your exposing yourselves to when hiring non insured or licensed contractors.

I do agree some handyman small repairs can be done without official license and insurance. We used to have a "volunteer day" where we would get the owners together to do some clean up and small repairs. Those being things like painting, wall repair, or cleaning pool furniture. Anything that would take a professional for or they have a special department in a "Lowes" for, used a contractor. That's my lithmus test for the dividing line. Installing doors and windows may fall into that area for professional.

A Domestic Business Corporation only means that his business is incorporated in New York. I also have a Domestic Business Corporation based in Arizona. The "Domestic" part means only that the corporation is doing business in the same state where it is incorporated. If it was incorporated in another state such as Delaware, it would be a "Foreign" corporation.

I agree.

Elona,

Upon second reading, you say your condo HOA has hired a "contractor" who is unlicensed. Is the use of the term "contractor" a word you're using in writing on this forum or has someone claimed to be contractor without a license to your HOA?

We are discussing the hiring of a carpenter or handyman company that's equipped to handle projects under a certain dollar amount. We are NOT discussing contractors who call themselves "contractors" but don't have licenses to contract on construction jobs.

Your task seems to be carpenter/handyman worthy......not contractor, unless you're replacing a large amount of doors, applying large amounts of paint and repair many many doors.

For example, carpenters/handymen can handle jobs under (I think) $25,000. For projects over that cost, only a general contractor may oversee. But, a general contractor can accept any jobs beneath that $25,000 limit.

For sake of conversation look up national franchise handy man companies like Mr Handyman. They are national franchise operation so they are not operating by the seat of their pants. I expect they well understand local laws, licensing, insurance, etc. which can well vary from state to state.