October 13, 2011
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Comment
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Ken,
Regarding the September 10 e-mail newsletter¦
Dusan writes, 'Is this true? Hiring a licensed alarm contractor thru an unlicensed contractor is contrary to the law. How then would general contractors stay in business?'
A brief internet search makes it apparent that most States require General Contractors to be licensed. A licensed General Contractor should be able to hire licensed sub-contractors. My own State of FL has strong laws regarding unlicensed contractors of every type. Unfortunately, the FL Department of Business and Professional Regulation does not, can't or won't enforce the laws very well. Their standard reply when questioned is that, 'we're understaffed; we don't have the budget to do our job, etc.'
Two years ago, I actually spoke with a FL 'super lawyer' regarding his obviously unlicensed low voltage contractor client. I had threatened to turn his client in for unlicensed activity, who then contacted the lawyer. He was adamant that his client was licensed for the same reason the client stated – he had paid for a County Business Permit (which doesn't make him a 'licensed' contractor in FL) and followed up by stating that it didn't make any difference because the FL DBPR didn't have the resources to deal with the issue. Was that lawyer stupid (I doubt it), or did he think I was stupid (probably). And, of course, he tried to intimidate and threaten me.
By the way, in FL, the statutes state that a licensed contractor who knowingly fails to turn in an unlicensed contractor faces penalty of fine and more.
Dusan, respectfully, here is your answer: Why would we want an unlicensed General Contractor to stay in business? That unlicensed contractor takes food from the mouths of a licensed General Contractor's family...a licensed contractor that meets a higher standard, who carries insurance and workers compensation, and more. Unlicensed General Contracting is a violation of most State laws and can be a gross misdemeanor and in some cases a felony. Simply ask yourself, why isn't that contractor licensed? There must be a reason! They know they are supposed to be licensed.
The unlicensed General Contractor is no different than the 'unlicensed security alarm system and security camera trunk-slammers' I read about in this forum. What makes the General Contractors so special that they should be able to operate without a license? My suggestion to all of the licensed security alarm contractors reading this is to recognize that it is time to report all of the unlicensed activity and don't work for unlicensed General Contractors.
We, you, me and others that fail to report unlicensed contractors is how unlicensed contractors of all types are able to stay in business! The product vendors are guilty too. It is time for the licensed contractors to demand that the product distributors selling equipment to the unlicensed "security alarm and CCTV contractors" stop providing them with equipment to install.
Yes, I have turned in unlicensed activity. Have the offending parties been dealt with or fined? Some of them have received fines up to $2500 and a subsequent felony charge if it occurs again (back to the DBPR on that issue).
Now, we have a new subject, 'Business Ethics'. Are you a slave to the $$ in this economy, or are you motivated enough to report the offenders? Will you do the right thing to protect your business and industry?
Steve Joos, President
Safe & Sound Security & Fire Systems
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Response
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CSAA's members recently addressed whether central stations do or should monitor unlicensed dealers. Here are a few of the comments:
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Here in Florida the law is pretty clear:
Doing business with and/or providing services to an unlicensed contractor is aiding and abetting in a unlicensed practice.
In the event that a company losses it's licensee, there are provisions whereby it is permissible to continue business while a new licensee is being put into place with the Board, but this is a window of only a few months.
If the central station is reported and an investigation reveals that the central station is doing business with an unlicensed contractor, the licensee will be called before the Board of Professional Regulation, definitely be fined, and face possible license suspension.
It is not worth the risk for a small amount of revenue to put your entire business at risk in a state that requires licensur.
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All applications from dealers are checked to assure they are licensed in the state in which they operate. If the dealer is in a state that does not have licensing we check to see if the municipality or county they reside in does. No license - no contract!
If they lose their license we notify them of fact and give them a period to correct the issue. If they don't they are cancelled. Our policy is that our services are available only legitimate alarm dealers.
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Another license question
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Dear Ken,
I know you went over this question about three months ago and I would like you to clear some of my points out to all the LICENSED companies out here.
In the State Of New York what will happen to a unlicensed alarm company, who uses Licensed technicians to do their work for them. Can these companies use these technicians to get around the license law?
Thank You
Steven Pagliaro
Safe World Alarm Co
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Response
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An unlicensed company should not be able to use a technician that holds his own license. Also can't use technicians who are "documented" by another licensed company. An alarm company needs to have it's own license and document its own employees when selling, installing and servicing alarm systems in New York. As to what happens? Well, first of all you have to get caught, because if you don't then nothing happens. If you do get caught there could be civil and criminal sanctions.
In New York, the alarm company must be licensed. The license is held by a qualified licensed person. All employees must be documented, which includes finger printed. Out of state companies without an actual office in New York must have a Secondary Office where the license is hung and New York personnel and subscriber files are maintained. My office does serve as a Secondary Office and those interested should contact Eileen 516 747 6700 x 312.