Residential home contractors who take on jobs that cost $10,000 or more have had to register with the Office of Professional Regulation since April 2023.
Lawmakers passed the law to protect homeowners, who were being ripped off by contractors who took a deposit and never performed the work, or who delivered low quality outcomes.
But since the law went into effect, most of the complaints coming in to the Office of Professional Regulation have been from homeowners seeking smaller jobs, and the office wants lawmakers to revisit the $10,000 threshold when they return to Montpelier.
“Our agency mandates this public protection,” said Jennifer Colin, general counsel with the Office of Professional Regulation. “And having that $10,000 threshold absolutely weakens our ability to protect the public.”
The Office of Professional Regulation, which is located in the Secretary of State’s office, just issued a report on the residential contractor law.
Having that $10,000 threshold absolutely weakens our ability to protect the public.Jennifer Colin, Office of Professional Regulation
Colin said the registration system has been effective for the larger jobs, but the law only gives her office enforcement authority to prosecute contractors for fraud when they are at jobs greater than $10,000.
“We wanted to make sure we were providing the Legislature with as much information as possible about what we’re seeing in terms of the kinds of complaints that we get, and the kind of complaints we’re able to pursue,” Colin said. “Homeowners would benefit from additional protections.”
The office provides information to consumers, including an interactive map listing where registered contractors are located, and a sample contract homeowners can use when hiring a contractor.
Since the law has been in effect, 1,388 registrations have been approved.
About 60% have been for businesses, which pay $250, and the rest went to individuals, who pay $75.
Associated General Contractors of Vermont Vice President Richard Wobby said that while the registration system has been successful on some levels, he did not support lowering the threshold.
“If we had our druthers it would stay at that $10,000 rate, or increase in some fashion, especially with the inflationary factors that are going on in the marketplace right now,” he said.
Wobby said forcing smaller contractors to register would only cost the consumer more money in the end, and he said it would not protect homeowners because contractors who are looking to commit fraud will work outside the system, offering lower rates and sidestepping the increased regulatory burden.
“It’s not cost effective from both a compliance and a regulatory side frame,” Wobby said. “People should check references. That’s the best work going. Anyone can register.”
St. Johnsbury Rep. Scott Campbell was the sponsor of the original bill and said the threshold is something that should be looked at.
“The threshold was a topic of vigorous negotiation, and the idea is that if you’re doing minor repairs it isn’t really a big deal,” he said. “But in terms of consumer fraud, it would make sense for it to be lower. If you’re ripped off for $4,000 or $6,000, it’s still a pain."
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