Builders are slow to sign up

BOISE – More than 500 Idaho building contractors have registered under the state’s new contractor registration law, and another 500 are in the process of registering.

But Idaho has an estimated 17,000 contractors – suggesting many are risking their businesses if they don’t sign up by the Jan. 1 deadline.

“There may be some people actually lose their ability to lien and their ability to sue for payment,” said Rayola Jacobson, chief of the state’s Bureau of Occupational Licenses. “My concern is that some really good, hard-working folks are going to jeopardize their business because they weren’t registered.”

Idaho lawmakers enacted the contractor registration law this year after decades of debate. All of Idaho’s surrounding states license contractors, and many suggested that Idaho’s long-standing lack of any requirements made the state a magnet for unscrupulous building contractors who bilk customers and never complete the work. Idaho’s Better Business Bureau told lawmakers that home improvement services were its top source of consumer complaints.

“The vast majority of construction professionals within our state operate with integrity and skill,” Gov. Dirk Kempthorne wrote in an official statement when he signed the measure into law. “Those few who do not, however, post a great risk to Idaho consumers.”

The registration law’s requirements call for contractors to sign up annually, provide proof that they’ve complied with workers’ compensation laws and have liability insurance of at least $300,000, and disclose if they’ve ever lost the right to practice construction in Idaho or any other state. The registration fee is $30; annual renewals are $25.

A state board reviews the applications, and can reject or revoke registration for contractors who are found to be “incompetent, dishonest or unprincipled.”

“It makes people accountable and it gives the consumer at least the knowledge that they’re dealing with somebody that has liability insurance and is a reputable contractor,” said Kris Pereira, owner of Ginno Construction in Coeur d’Alene, who’s been in the construction business in North Idaho for 14 years. “That’s the biggest deal, is to make sure people know they’re dealing with somebody that has at least the basic requirements to be in business.”

Pereira, who currently serves as president of the North Idaho Building Contractors Association, said it was a snap to register. “It was real easy – it’s a pretty simple format,” he said. “I actually had my office manager do it for me.”

Contractors can download a registration form or find out about the program by going to the Bureau of Occupational Licenses’ Web site, www.ibol.idaho.gov/cont.htm. There, they can read the rules for registration, view a list of frequently asked questions, and learn other details about the program.

The new law has exceptions for those who do less than $2,000 in construction work, and for owners who do construction work in any amount on their own property, providing they don’t then sell the property within 12 months.

The bill was proposed by the Idaho Building Contractors Association and the Idaho Realtors Association, and had broad support from chambers of commerce, business groups and cities across the state.

Pereira said, “The people that I talk to have been very receptive to it. But on the flip side of it, there’s also a lot of subcontractors who are not aware of it. We’re trying to educate our subcontractor base that they need to do it.”

Some may be procrastinating, he added. “There are ramifications if you don’t do it. You lose your lien rights. That’s a big deal for a lot of people.”

After Jan. 1, contractors who go to purchase building supplies will be asked for their registration number, Pereira said, and they may have trouble obtaining supplies if they don’t have one. “Supply houses are going to be reluctant to sell to anybody that doesn’t have a lien right on their contract,” he said. “I really believe you’re going to see a huge rush of people in the next two months to get registered.”

Jacobson said after the system takes effect Jan. 1, consumers who are hiring contractors should ask if the contractor is registered. “Just ask to see their registration card,” she said.

The contractor board also will take complaints about contractors, she said. “If it’s egregious enough, the board has the authority and the ability to revoke the registration, and they can also refuse to issue. So if you are looking to hire someone and they are not registered, you may want to think about hiring someone else.”

Jacobson urged contractors to register now, rather than waiting for the deadline – when there could be delays if there’s a big rush. “Register now,” she said. “Protect yourself and your business.”