[HISTORY: Adopted by the Council of the Borough of Sharon Hill as indicated in article histories. Amendments noted where applicable.]
Article I Licensing of Contractors
Article II Standards for Responsible Contractors
[Adopted 12-14-1983 by Ord. No. 1133 (Ch. 71A, Art. I, of the 1972 Code)]
This article shall be known and may be cited as the "Sharon Hill Contractor Licensing Ordinance."
The Council finds it to be in the best interest of the residents of Sharon Hill Borough, Delaware County, Pennsylvania, that persons or firms who engage in construction, repairs, remodeling, rehabilitation or demolition and operating as general contractors, subcontractors, specialty contractors or home improvement contractors be required to obtain a license from the Borough for such purpose, to the end that only responsible and qualified persons shall be permitted to engage in such business in said Borough of Sharon Hill.
As used in this article, unless the context clearly indicates a different meaning, the following terms shall have the meanings indicated:
- An agreement, whether oral or written, and whether contained in one or more documents, between a contractor and an owner or another contractor for the performance of work, including all labor, services and materials to be furnished and performed thereunder.
- Any person, other than a bona fide employee of the owner, who undertakes or offers to perform construction, repair, reroofing, remodeling, rehabilitation, demolition, paving and any other residential or nonresidential construction or demolition work in the Borough, whether as a general contractor, subcontractor, specialty contractor or home improvement contractor.
- The Borough Engineer.
- The Building Inspector and/or the Code Enforcement Officer of the Borough.
- LICENSE YEAR
- The twelve-month period beginning on January 1 of each year.
- Any property owner, tenant or other person who orders, contracts for or purchases the services of a contractor or any person entitled to the work of a contractor pursuant to a contract, gift or otherwise.
- Any individual, partnership or limited partnership.
The inspector or his or her authorized representatives shall administer and enforce this article.
No person shall act as a contractor in the Borough except in compliance with the provisions of this article. Any person, including an owner, who willfully aids a contractor or participates with a contractor in violating any provision of this article is also in violation of this article.
A license issued pursuant to this article shall not be construed to authorize the licensee to perform any particular type of work or type of business which is reserved to qualified licensees under the other provisions of state or local law.
Every person desiring to engage in or hereafter to begin to engage in the business of acting as a contractor in the Borough shall, on or before January 1 of the license year or prior to commencing business in such license year, make application for a license to act as a contractor in the Borough. Such application shall be made by the completion of an application form furnished by the inspector and the payment of a license fee as hereinafter set forth in this article. Each application must contain information as set forth hereinafter in this article, and each applicant must present satisfactory proof of insurance as set forth hereinafter in this article. Each application for a license shall be signed by the applicant, if a natural person, and in the case of an association or a partnership, by a member or partner thereof, and in the case of a corporation, by an officer thereof.
Each successful applicant shall be issued a license, which shall be in the form of a wallet-size card and in the form of a vehicle bumper sticker. Every licensed contractor, while actually acting as a contractor in the Borough, shall carry such license card with him or her and shall display it to the inspector or his or her representatives upon demand. Every licensed contractor shall at all times display his or her bumper sticker license on the rear bumper of the vehicle he or she primarily uses in his or her activities as a contractor.
All contractors' licenses shall expire at 12:00 midnight on December 31 of each license year, unless the license is revoked or suspended prior thereto under § 144-13.
A person with an unexpired license which has not been revoked or suspended during the current license year who makes application for a license for the following license year need not complete an application form but must submit the required license fee, and if he or she qualifies for licensing and renewal under the terms of this article, his or her license shall be renewed for the following license year, and he or she will be issued a new license card and bumper sticker for the following license year.
Any contractor carrying on the business of a contractor in the Borough must obtain a license under this article for each license year during which he or she carries on such business.
No contractor's license shall be required of:
A person who performs labor or services for a contractor for wages or salary.
A person who is required by other state or local law to attain standards of competency or experience and who must obtain licensing under such other state or local law as a prerequisite to engage in a craft or profession and is acting exclusively within the scope of such craft or profession for which he or she is currently licensed pursuant to such other law.
No contractor's license shall be issued unless the applicant files a certificate of insurance with the inspector at the time of the license application. The certificate of insurance shall contain a provision that coverages afforded under the policy will not be canceled until at least 15 days' prior written notice of such cancellation has been given to the Borough. The certificate of insurance must evidence policies of insurance, maintained at the expense of the applicant, for public liability, property damage, product liability and completed operations, each of which must have a single occurrence limit of at least $300,000. Blasting and demolition insurance shall also be required for blasting and demolition contractors, and the reasonable limits of such insurance shall be determined by the inspector or the engineer at the time of the application, based on the nature and extent of the applicant's proposed operations.
All types and limits of insurance for which certificates are presented at the time of application, and upon the basis of which a license is issued, shall be maintained throughout the license year or the license will be suspended or revoked as set forth in § 144-13. The inspector must approve the responsibility of new insurance carriers prior to a change in a carrier during a license year.
No contractor's license shall be issued unless the applicant files a certificate of insurance evidencing worker's compensation coverage with said inspector at the time of the license application. The certificate of insurance shall contain a provision that coverage afforded under the policy will not be canceled until at least 15 days' prior written notice of said cancellation has been given to the Borough.
[Added 10-21-1993 by Ord. No. 1233]
[Amended 12-11-2003 by Ord. No. 1295]
At the time of the application for a new license or for the renewal of a current license, the applicant shall pay to the inspector a license application fee as set from time to time by resolution of the Borough Council, payable to the Borough, for the following:
[Amended 5-24-2012 by Ord. No. 1359]
No fee or portion thereof shall be returned to any applicant.
When an application has been filed with the inspector in proper form, the inspector must, within a period of 30 days from the date following the date the application is received, issue or refuse to issue the appropriate contractor's license to the applicant. If issuance of a license is denied, the inspector shall mail to the unsuccessful applicant a written statement, setting forth the reason or reasons for the denial, within the aforesaid thirty-day period.
The application for a license shall be a printed form provided to the applicant by the inspector, and the application shall require a written answer to all questions contained thereon. Failure to answer all questions on the application form shall mean that the applicant is not entitled to consideration of his or her application until he or she has answered all questions. The application form shall be signed by the applicant under oath. The questions and information requested on the application form shall include but shall not be limited to the following:
The names of owners, partners, directors and officers of the applicant and the business address and trade names of the applicant.
A statement as to whether or not any municipality has refused to issue to the applicant or has revoked from the applicant any similar contractor's license within two years previous to the date of the application. If there has been such a denial or revocation, the applicant must explain, in writing, the reasons for the same.
Every contractor licensee shall, within 10 days after a change in ownership, directors, officers, management, address or trade name, notify the inspector of such change.
Any of the following circumstances is sufficient cause to deny the issuance of a license under this article, or a renewal thereof, or for revoking a license previously issued:
The applicant falsely answered any question contained on the application form.
The applicant has been refused a similar contractor's license or has had a similar contractor's license revoked or suspended by another municipality within two years prior to the date of application for issuance or renewal, if the refusal, revocation or suspension by the other municipality was due to failure to comply with that municipality's building codes.
The licensee fails to maintain, during the license year, the policies of insurance required under this article.
The licensee violates any of the provisions of the Building Code or any provision of this article.
The licensee violates any condition or requirement of a building permit, sewer construction permit or highway permit issued by the Borough.
The licensee willfully deviates from or disregards any plans or specifications for a contracting job in a material respect without first obtaining the consent of the owner, in writing, to such change and without first notifying the inspector of such change.
The licensee does business through a person who is subject to the licensing requirements of this article but who is not licensed as required by this article.
The licensee conducts a contractor's business in the Borough under a name other than that under which he or she is licensed.
The licensee fails to comply with an order, demand or requirement lawfully made by the inspector under the authority of this article or any other Borough ordinance.
[Amended 7-14-1988 by Ord. No. 1180]
In addition to refusal or revocation of a license, as provided in § 144-13, whoever violates or fails to comply with any of the provisions of this article shall be fined a maximum fine as provided from time to time by state statute for each offense, together with the costs of prosecution, or shall be subject to imprisonment in the county jail for a term not to exceed 30 days, or both. The fine imposed under this section shall be in addition to any other penalty imposed by this article.
[Adopted 2-25-2010 by Ord. No. 1341]
The Borough of Sharon Hill recognizes that there is a need to ensure that all work on public construction and maintenance contracts is performed by responsible, qualified firms that maintain the capacity, expertise, personnel and other qualifications and resources necessary to successfully perform such contracts in a timely, reliable and cost-effective manner.
To effectuate the purpose of selecting "responsible" contractors for public contracts and to protect the Borough of Sharon Hill's investments in such contracts, prospective contractors and subcontractors should be required to meet preestablished, clearly defined, minimum standards relating to contractor responsibility. Such standards include requirements and criteria concerning technical qualifications, competency, experience, adequacy of resources, including equipment, financial and personnel, and satisfactory records regarding past project performance, safety, law compliance and business integrity.
Further, due to the critical impact that skilled construction craft labor has on public works projects, and due to the limited availability of skilled construction craft labor and imminent craft labor skill shortages, it is necessary to require contractors and subcontractors to participate in established, bona fide apprenticeship training programs for the purpose of both promoting successful project delivery and ensuring future workforce development. The Borough of Sharon Hill also recognizes that it is beneficial to the local community to ensure that firms receiving public contracts provide adequate wages and benefits to their employees and utilize fair business, employment and training practices that have a positive impact on local communities affected by such contracts.
Therefore, the Borough of Sharon Hill shall require compliance with the provisions of this article by business entities seeking to provide services to the Borough of Sharon Hill as specified herein. The requirements of this article are intended to supplement, not replace, existing contractor qualification and performance standards or criteria currently required by law, public policy or contracting documents. However, in the event that any of the provisions of this article conflict with any law, public policy or contracting documents of the Borough of Sharon Hill, this act shall prevail.
All contractors and subcontractors of any tier that perform work valued at over $25,000 on any public facility or public works project, including construction, alteration, renovation, repair and maintenance work, shall meet the requirements of this article.
All firms engaged in contracts covered by this article shall be qualified, responsible contractors or subcontractors that have sufficient capabilities in all respects to successfully perform contracts on which they are engaged, including the necessary experience, equipment, technical skills and qualifications and organizational, financial and personnel resources. Qualified responsible firms shall also have a satisfactory past performance record and a satisfactory record of law compliance, integrity and business ethics.
As a condition of performing work on a public works contract subject to this article, a general contractor, construction manager or other lead or prime contractor seeking award of a contract shall submit a contractor responsibility certification at the time it submits its bid for a contract.
The contractor responsibility certification shall be completed on a form provided by the Borough of Sharon Hill and shall reference the project for which a bid is being submitted by name and contract or project number.
In the contractor responsibility certification the construction manager, general contractor or other lead or prime contractor shall confirm the following facts regarding past performance and work history and current qualifications and performance capabilities:
The firm has or will obtain all valid, effective licenses, registrations or certificates required by federal, state, county or local law, including, but not limited to, licenses, registrations or certificates required to:
The firm meets the bonding requirements for the contract required by applicable law or contract specifications and any insurance requirements, as required by applicable law or contract specifications, including general liability insurance, workers' compensation insurance and unemployment insurance requirements.
The firm has not been debarred on any project by a federal, state or local government agency or authority in the past three years.
The firm has not defaulted on any project in the past three years.
The firm has not had any type of business, contracting or trade license, registration or other certification suspended or revoked in the past three years.
The firm has not committed a willful violation of federal or state safety laws as determined by a final decision of a court, arbitration panel or government or administrative agency in the past three years.
The firm and its owners have not been convicted of any crime relating to the contracting business by a final decision of a court or governmental or administrative agency for the past 10 years.
The firm has not, within the past three years, been found by a final decision of a court, arbitration panel or government or administrative agency to be in violation of any law applicable to its contracting business, including, but not limited to, licensing laws, tax laws, prompt payment laws, wage and hour laws, prevailing wage laws, environmental laws or other, where the result of such violation was the imposition of a fine, back-pay damages or any other type of penalty in the amount of $1,000 or more.
The firm will pay all craft employees that it employs on the project the current wage rates and benefits as required under applicable state or federal law for the duration of the referenced project.
The firm participates in a Class A apprenticeship program for each separate trade or classification in which it employs craft employees and shall continue to participate in such program or programs for the duration of the project.
For purposes of this section a "Class A apprenticeship program" is an apprenticeship program that is currently registered with and approved by United States Department of Labor or a state apprenticeship agency and has graduated apprentices to journeyperson status for three of the past five years.
If a firm is identified as the lowest responsible bidder or otherwise selected as the prospective awardee or as a subcontractor of an awardee, it shall provide appropriate documentation, as determined by the Borough of Sharon Hill, to verify it meets the requirements of this section for each trade or classification of craft workers it will employ on the project. This verification shall be provided prior to performance of work by the firm.
The firm has all other technical qualifications and resources, including equipment, personnel and financial resources, to perform the referenced contract, or will obtain same through the use of qualified, responsible subcontractors.
Execution of the contractor responsibility certification required by this article shall not establish a presumption of contractor responsibility, and the Borough of Sharon Hill may require any other additional information it deems necessary to evaluate a prospective contractor's technical qualifications, financial capacity or other resources and performance capabilities. The Borough of Sharon Hill may require that such information be included in a separate statement of qualifications and experience or as an attachment to the contractor responsibility certification.
In the contractor responsibility certification, the submitting firm shall stipulate that if it receives a notice of intent to award contract it will provide a subcontractor list and required subcontractor information as specified in § 144-19 of this article.
If the submitting firm has ever operated under another name or controls or is controlled by another company or business entity or in the past five years controlled or was controlled by another company or business entity, whether as a parent company, subsidiary or in any other business relation, it shall attach a separate statement to its contractor responsibility certification that explains in detail the nature of any such relationship. Additional information may be required from such an entity if the relationship in question could potentially impact contract performance.
Contractor responsibility certifications shall be executed by a person who has sufficient knowledge to address all matters in the certification and shall include an attestation stating, under the penalty of perjury, that all information submitted is true, complete and accurate.
If a firm fails to provide a contractor responsibility certifications required by this section, it may be disqualified from bidding. No action of any nature shall lie against the Borough of Sharon Hill because of its refusal to accept a bid for failing to provide information required by this section.
After it has received bids for a project, the Borough of Sharon Hill shall issue a notice of intent to award contract to the firm offering the lowest responsive bid.
Such notice shall be issued immediately or as soon as practicable after bids are submitted and shall stipulate that the contract award will be conditioned upon the issuance of a written contractor responsibility determination, as required by § 144-20 of this article, and any other conditions determined appropriate by the Borough of Sharon Hill.
Within seven days from the date of notice of intent to award contract, a prospective awardee shall submit to the Borough of Sharon Hill a subcontractor list containing the names of subcontractors that will be used for the referenced project, their addresses and description of the work each listed subcontractor will perform on the project.
At the time a prospective awardee submits the subcontractor list it shall also submit subcontractor responsibility certifications for all listed subcontractors to the Borough of Sharon Hill. Subcontractor responsibility certifications shall be executed by the respective subcontractors and contain the same information and representations required in contractor responsibility certifications.
Subcontractor responsibility certifications shall be executed by persons having sufficient knowledge to address all matters in the certification and shall include an attestation stating, under the penalty of perjury, that all information submitted is true, complete and accurate.
After notice of intent to award contract has been issued, the Borough of Sharon Hill shall undertake a review process for a period of at least 30 days to determine whether the prospective awardee is a qualified, responsible contractor in accordance with the requirements of this article and other applicable laws and regulations and has the resources and capabilities to successfully perform the contract.
As part of this review process, the Borough of Sharon Hill shall ensure that the contractor responsibility certification, the subcontractor list and subcontractor responsibility certifications, as required by this article, have been submitted and properly executed.
The Borough of Sharon Hill may conduct additional inquiries to verify that the prospective awardee and its subcontractors have the technical qualifications and performance capabilities necessary to successfully perform the contract and that the firms have a sufficient record of law compliance and business integrity to justify the award of a public contract. In conducting such inquires, the Borough of Sharon Hill may seek relevant information from the firm, its prior clients or customers, its subcontractors or any other relevant source.
If at the conclusion of its internal review the Borough of Sharon Hill determines that all responsibility certifications have been properly completed and executed and if it concludes that the qualifications, background and responsibility of the prospective awardee and the firms on its subcontractor list are satisfactory, it shall issue a written contractor responsibility determination verifying that the prospective awardee is a qualified, responsible contractor. In the event a firm is determined to be nonresponsible, the Borough of Sharon Hill shall advise the firm of such finding in writing and proceed to conduct a responsibility review of the next lowest, responsive bidder or, if necessary, rebid the project.
The contractor responsibility determination shall be issued at least 30 days after the date of the notice of intent to award contract. This responsibility determination may be revoked or revised in any manner at any time in the event the Borough of Sharon Hill obtains relevant information warranting such revocation or revisions.
A construction manager, general contractor or other lead or prime contractor shall not be permitted to use a subcontractor on any work performed for the Borough of Sharon Hill unless it has identified the subcontractor on its subcontractor list and provided a subcontractor responsibility certification in accordance with the requirements of § 144-19 of this article.
A subcontractor listed on a firm's subcontractor list shall not be substituted unless written authorization is obtained from the Borough of Sharon Hill and a subcontractor responsibility certification is provided for the substitute subcontractor.
In the event that the Borough of Sharon Hill determines that a prospective subcontractor listed by the apparent low bidder does not meet the responsibility standards of this section, it may, after informing the prospective awardee, exercise one of the following options:
Permit the awardee to substitute a qualified, responsible subcontractor in accordance with the requirements of this section;
Require the awardee to self-perform the work in question if the firm has the required experience, licenses and other qualifications to perform the work in question; or
Disqualify the prospective awardee.
In the event that a subcontractor is disqualified under this article, the general contractor, construction manager or other lead or prime contractor shall not be permitted to make any type of contractual claim against the Borough of Sharon Hill on the basis of a subcontractor disqualification.
The contractor responsibility certification for a firm identified in a notice of intent to award contract, subcontractor lists and subcontractor responsibility certifications shall be made immediately available to the public for inspection at Borough Hall.
During the public review period, any person or organization may protest a contractor or subcontractor for failing to meet applicable requirements of this article or on any other relevant grounds by submitting a written objection with supporting evidence to the Borough of Sharon Hill.
If the Borough of Sharon Hill determines that the contractor or subcontractor responsibility certification contains false or misleading material information that was provided knowingly or with reckless disregard for the truth or omits material information that was omitted knowingly or with reckless disregard of the truth, the firm for which the certification was submitted may be prohibited from performing work for the Borough of Sharon Hill for a period of up to three years. Such firms may also be subject to any other penalties and sanctions, including contract termination, available to the Borough of Sharon Hill under law. A contract terminated under these circumstances shall further entitle the Borough of Sharon Hill to withhold payment of any monies due to the firm as damages.
A procurement contract subject to this article shall not be executed until all requirements of this article have been fulfilled and until contractor and subcontractor responsibility certifications and subcontractor lists have been made available for public inspection for at least 21 days.
The applicability of this article to any contract shall be determined by the Borough Manager, and such applicability may be waived in the event of emergency or in such other event when, in the opinion of the Borough Manager and with the approval of Borough Council, it is determined that such action would be in the best interest of the Borough of Sharon Hill.
The requirements of this article shall not apply to contracts executed prior to the effective date of this article, except that the exercise of an option on a contract covered by this article shall be deemed to create a new contract for purposes of this article.