The Vermont Statutes Online

Title 26: Professions and Occupations

Chapter 106: Residential Contractors

• Subchapter 001: General Provisions

• § 5501. Registration required

  (a) A person shall register with the Office of Professional Regulation prior to contracting with a homeowner to perform residential construction in exchange for consideration of more than $10,000.00, including labor and materials.

  (b) Unless otherwise exempt under section 5502 of this title, as used in this chapter, “residential construction” means to build, demolish, or alter a residential dwelling unit, or a building or premises with four or fewer residential dwelling units, in this State and includes interior and exterior construction, renovation, and repair; painting; paving; roofing; weatherization; installation or repair of heating, plumbing, solar, electrical, water, or wastewater systems; and other activities the Office specifies by rule consistent with this chapter. (Added 2021, No. 182 (Adj. Sess.), § 14, eff. July 1, 2022.)

• § 5502. Exemptions

  This chapter does not apply to:

  (1) an employee acting within the scope of his or her employment for a business organization registered under this chapter;

  (2)(A) a professional engineer, licensed architect, or a tradesperson licensed, registered, or certified by the Department of Public Safety acting within the scope of his or her license, registration, or certification; or

  (B) a business that performs residential construction if the work is performed primarily by or under the direct supervision of one or more employees who are individually exempt from registration under subdivision (2)(A) of this section;

  (3) delivery or installation of consumer appliances, audio-visual equipment, telephone equipment, or computer network equipment;

  (4) landscaping;

  (5) work on a structure that is not attached to a residential building; or

  (6) work that would otherwise require registration that a person performs in response to an emergency, provided the person applies for registration within a reasonable time after performing the work. (Added 2021, No. 182 (Adj. Sess.), § 14, eff. July 1, 2022.)

• § 5503. Mandatory registration and voluntary certification distinguished

  (a)(1) The system of mandatory registration established by this chapter is intended to protect against fraud, deception, breach of contract, and violations of law but is not intended to establish standards for professional qualifications or workmanship that is otherwise lawful.

  (2) The provisions of 3 V.S.A. § 129a, with respect to a registration, shall be construed in a manner consistent with the limitations of this subsection.

  (b) The system of voluntary certification established in this chapter is intended to provide consumers and contractors with a publicly available, noncommercial venue for contractors to list optional approved certifications. The Director of Professional Regulation, in consultation with public safety officials and recognized associations or boards of builders, remodelers, architects, and engineers, may:

  (1) adopt rules providing for the issuance of voluntary certifications, as defined in subdivision 3101a(1) of this title, that signify demonstrated competence in particular subfields and specialties related to residential construction;

  (2) establish minimum qualifications, and standards for performance and conduct, necessary for certification; and

  (3) discipline a certificant for violating adopted standards or other law, with or without affecting the underlying registration. (Added 2021, No. 182 (Adj. Sess.), § 14, eff. July 1, 2022.)

• Subchapter 002: Administration

• § 5505. Duties of the Director

  (a) The Director of Professional Regulation shall:

  (1) provide information to the public concerning registration, certification, appeal procedures, and complaint procedures;

  (2) administer fees established under this chapter;

  (3) receive applications for registration or certification; issue registrations and certifications to applicants qualified under this chapter; deny or renew registrations or certifications; and issue, revoke, suspend, condition, and reinstate registrations and certifications as ordered by an administrative law officer;

  (4) prepare and maintain a registry of registrants and certificants; and

  (5) use the registry to timely communicate with registrants and certificants concerning issues of health and safety, building codes, environmental and energy issues, and State and federal incentive programs.

  (b) The Director, after consultation with an advisor appointed pursuant to section 5506 of this title, may adopt rules to implement this chapter. (Added 2021, No. 182 (Adj. Sess.), § 14, eff. July 1, 2022.)

• § 5506. Advisors

  (a) The Secretary of State shall appoint two persons pursuant to 3 V.S.A. § 129b to serve as advisors in matters relating to residential contractors and construction.

  (b) To be eligible to serve, an advisor shall:

  (1) register under this chapter;

  (2) have at least three years’ experience in residential construction immediately preceding appointment; and

  (3) remain active in the profession during his or her service.

  (c) The Director of Professional Regulation shall seek the advice of the advisors in implementing this chapter. (Added 2021, No. 182 (Adj. Sess.), § 14, eff. July 1, 2022.)

• § 5507. Fees

  A person regulated under this chapter shall pay the following fees at initial application and biennial renewal:

  (1) Registration, individual: $75.00.

  (2) Registration, business organization: $250.00.

  (3) State certifications: $75.00 for a first certification and $25.00 for each additional certification. (Added 2021, No. 182 (Adj. Sess.), § 14, eff. July 1, 2022.)

• Subchapter 003: Registrations

• § 5508. Eligibility

  To be eligible for registration, the Director of Professional Regulation shall find that the applicant is in compliance with the provisions of this chapter and applicable State law and has satisfied any judgment order related to the provision of professional services to a homeowner. (Added 2021, No. 182 (Adj. Sess.), § 14, eff. July 1, 2022.)

• § 5509. Requirements of registrants

  (a) Insurance. A person registered under this chapter shall maintain minimum liability insurance coverage in the amount of $1,000,000.00 per occurrence and $2,000,000.00 aggregate, evidence of which may be required as a precondition to issuance or renewal of a registration.

  (b) Writing.

  (1) A person registered under this chapter shall execute a written contract prior to receiving a deposit or commencing residential construction work if the estimated value of the labor and materials exceeds $10,000.00.

  (2) A contract shall specify:

  (A) Price. One of the following provisions for the price of the contract:

  (i) a maximum price for all work and materials;

  (ii) a statement that billing and payment will be made on a time and materials basis, not to exceed a maximum price; or

  (iii) a statement that billing and payment will be made on a time and materials basis and that there is no maximum price.

  (B) Work dates. Estimated start and completion dates.

  (C) Scope of work. A description of the services to be performed and a description of the materials to be used.

  (D) Change order provision. A description of how and when amendments to the contract may be approved and documented, as agreed by the parties.

  (3) The parties shall document an amendment to the contract in a signed writing.

  (c) Down payment.

  (1) If a contract specifies a maximum price for all work and materials or a statement that billing and payment will be made on a time and materials basis, not to exceed a maximum price, the contract may require a down payment of up to one-half of the cost of labor to the consumer, or one-half of the price of materials, whichever is greater.

  (2) If a contract specifies that billing and payment will be made on a time and materials basis and that there is no maximum price, the contract may require a down payment as negotiated by the parties. (Added 2021, No. 182 (Adj. Sess.), § 14, eff. July 1, 2022.)

• § 5510. Prohibitions and remedies

  (a) A person who does not register as required pursuant to this chapter may be subject to an injunction or a civil penalty, or both, for unauthorized practice as provided in 3 V.S.A. § 127(b).

  (b) The Office of Professional Regulation may discipline a registrant or certificant for unprofessional conduct as provided in 3 V.S.A. § 129a, except that 3 V.S.A. § 129a(b) does not apply to a registrant.

  (c) The following conduct by a registrant, certificant, applicant, or person who later becomes an applicant constitutes unprofessional conduct:

  (1) failure to enter into a written contract when required by this chapter;

  (2) failure to maintain liability or workers’ compensation insurance as required by law;

  (3) committing a deceptive act in commerce in violation of 9 V.S.A. § 2453;

  (4) falsely claiming certification under this chapter, provided that this subdivision does not prevent accurate and nonmisleading advertising or statements related to credentials that are not offered by this State; and

  (5) selling or fraudulently obtaining or furnishing a certificate of registration, certification, license, or any other related document or record, or assisting another person in doing so, including by reincorporating or altering a trade name for the purpose or with the effect of evading or masking revocation, suspension, or discipline against a registration issued under this chapter. (Added 2021, No. 182 (Adj. Sess.), § 14, eff. July 1, 2022.)