October 11, 2011
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comment
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Ken
how many lawyers does it take to screw in a light bulb?
Please take the time to read a blank permit application:
A.Owner in fee
B. Contractor (company doing the work) NOT THE GC (unless he holds the licence)
C. CERTIFICATION IN LIEU OF OATH
Its very simple the answer was there all the time.
A sub contractor is doing the work for the owner of the PROPERTY NOT THE GC.
Yes you are being payed by the GC but he has a contract with the owner to do so as his agent.
Additional information can be found inside the Construction permit application folder.
Also take the time to read you states Division of consumer affairs Statutes and Regulations for your licence. If you have questions call them.
PS Thanks Ken for all that you do for the trade
Charles D'Alessandro
Vice President
Sequoia Electrical Contractors Inc.
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Response
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Not so sure how many to screw in light bulb, but will only take one to screw you. And that could happen if you're not careful with making sure you have contractual protection. First of all, not every construction transaction is structured the same way, so not every GC is the agent of the owner. In fact, I don't think most GC's are agent of the owner. For example, if the GC doesn't pay the sub the owner is not generally liable, except to pay off statutory mechanic liens, but that's not because the GC was an agent.
Secondly, as a sub you usually don't know what kind of contract the GC has with the owner or tenant, or whoever the GC is working for. The GC may not have the sophistication and expertise to understand the exposure an alarm company faces for its services, and most likely will not be concerned with after installation services, such as monitoring, inspection and service.
I am not so sure that your analysis of the permit is correct. The permit does not create or supersede a contract. The fact that the alarm company may be listed as the contractor for the alarm system doesn't create any contract, and certainly does not provide any contractual protection.
But I think the original issue was how do these general or unlicensed contractors enter into contracts to perform licensed services, alarm being only one of them [electrical and plumbing other examples]. We did receive several responses which were circulated letting us know that in some jurisdictions the issue is addressed [ California for one which permit a two trade removal if I understand it correctly]. In other jurisdictions I think it's just not addressed and as long as licensed contractors perform the licensed work according to AHJ requirements, no one objects or minds.
For the alarm industry, the focus is more specific, and I think less obscure. Can an unlicensed alarm company enter into alarm installation, monitoring or service contracts [where all of those services require a license], in its name, if the actual work is performed by licensed companies or technicians? I think not; In my opinion that unlicensed company should not be permitted to contract for the services.
If the answer were otherwise, I could go into the alarm business in New York and elsewhere, enter into contracts for all kinds of licensed services, and as long as I subcontracted out the work I could make a profit on the overage. Kind of defeats at least part of the reason for licensing [yes, at least the consumer has licensed people performing the work - but why bother to get the license if you can market a company and just use licensed people. I think it may be easier to understand when the licensed activity is practicing law or medicine or other profession].
One of the provisions in my Standard Subcontractor Agreement is that both parties, general and sub contractors, are licensed alarm companies.