The state board of examiners of pluming, heating & fire sprinklers issues licenses to contractors wishing to operate in a specified capacity under the direction of the Department of Insurance. You may be wondering what the department of insurance has to do with licensing of contractors and I'm going to do my best to explain that as well as how it affects you as a consumer.
The department of insurance in the state of North Carolina oversees the board of examiners to ensure multiple things to include but not limited to, qualifying competent contractors to safely install/repair mechanical systems, ensure public safety, and protect consumers from fraud. They do this by first adopting the codes and regulations that dictate how we will install equipment in North Carolina. A code is a legally enforceable mandate that tells contractors the acceptable way to do something. Some of these codes can be minor things such as the type of thermostat allowed to be installed, and others will be geared more towards protecting structures such as the requirements for condensate management. I as a licensed contractor have to pull a permit and get an inspection anytime I replace a piece of equipment or ductwork. This can be an entire system, but it doesn't necessarily have to be. If I replace just an outdoor unit only, I have to pull a permit for it and get it inspected. I don't always agree with every code that exist, but they are there for a reason. Let's talk about the qualifying process to understand what the DOI is doing to protect consumers.
The process to become a licensed contractor starts with a minimum experience requirement. For every license a contractor wants to obtain they must have at least 4000 hours and W2's to prove it, of qualifying field experience. That's roughly 2 years per license so it's not a lot, but it's a good starting point to ensure someone is at least familiar and hopefully qualified for the license they seek. Our state has 3 heating license groups and you can basically think of them like this; one is for residential and light commercial, another is for large commercial air distribution systems, and the last is for hydronic systems like boilers and chillers commonly used in hospitals or industrial process applications. After completing an application and showing proof for the license you are trying obtain, the board will allow you to sit for the exam. Each heating contractor exam is composed of two parts, one is a technical exam where you are give 3.5 hours to complete and the other is a business law exam where you are given 1.5 hours to complete. I used to not agree with the business law portion thinking that's what we have lawyers for, now after being in business for several years I completely understand this portion and I now know how important it is. Upon successful completion of both exams with a passing grade you are granted a license. These exams test the knowledge of an individual to ensure they fully understand what they are about to do. The technical exam for the residential license tests for competencies in duct design, condensate management, fuel and gas piping, ventilation, cutting holes in load bearing walls, installation requirements, and various general residential codes. This section is designed to ensure that licensed contractors at least have a general understanding of the code books and how to use them should we have a question. It's important to not only understand these codes, but also understand why they exist and typically it's for structural integrity, basically so we don't burn or knock you home down. The business exam test you on a very basic understanding of business and tax laws. I say this is important because if I didn't know some of that information, I probably would have been out of business in the first 2 years. That's not good for the consumers purchasing equipment from me and relying on me to be around if/when they have a warranty issue. See where this is still designed to protect you as a consumer?
With being a licensed contractor operating at a certain capacity, we are required by law to carry a certain amount of insurance. A typical legal and legit contractor will usually have an auto policy just incase our vehicles cause damage to property, general liability insurance in case we damage someone's home (or worse), and workers compensation in case our employees get injured on the job. A side note, did you know that if a contractor is working in your home without workers comp insurance, and one of their employees gets injured, you as the homeowner are liable for a lawsuit? I'm not saying this is fair or that it will happen, but that is law in North Carolina. You can try and argue with it because you don't agree with it, but just because you don't agree with it doesn't mean your going to win that fight! A similar situation exist with general liability insurance. If someone is doing work in your home without the proper liability coverage and they damage or burn your house down, you can only sue them for damages. That's great, get a judgement, but a judgment doesn't give you all that money you need right away. Courts typically issue a pay schedule for judgements as they understand that individual still needs eat and live. Oh, in that situation your insurance is likely not to cover the damages as you had an illegitimate business operating in your home that left it damaged. This happens all the time, go to google and search for horror stories of homeowners being left to clean up the mess after bad contractors make mistakes. If the mistake is bad enough, the individual may go to jail, making it even more difficult to get reimbursed for damages. I'm not trying to spread fear, just knowledge to help protect you. There was a time I did some of the things I'm talking about here and looking back at how irresponsible I was, it scares me to think of the risk and liability I put myself and my family in. I meant well, just trying to make money and support my family, but good intentions doesn't rebuild someone's home!
The last thing I will say about being licensed and how it protects you as a consumer is about proper installation practices. Licensed contractors have to install equipment properly to pass local inspections, so when the day comes that your new equipment fails under warranty, it won't be denied. Warranties are through the manufacturer's, not your installing contractor. Manufacturer's have specific requirements in regards to honoring warranties and many times an unpermitted, uninspected, and illegal install will get denied for warranty meaning you will be paying full retail price to repair your new equipment. The worst part of that scenario is when the fly by night group that put your unit in won't return your phone calls during a time of need because they've moved on to their new hustle, so your calling on a contractor you've never used to repair your new unit!
It's easy to protect yourself, you can visit the state boards website https://public.nclicensing.org/Public/Search and search for any active license in good standing to ensure who you are dealing with is properly licensed in North Carolina.
Kenneth Casebier
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