S.226 – An act relating to expanding access to safe and affordable housing.
Subchapter 3, pg. 24-30 – Relating to residential contractor registration.
On Tuesday, June 7, 2022, Governor Phil Scot signed S.226 into law which reforms permitting and land use regulations to make it easier to develop new housing, includes tax incentives and grants to promote housing development, and makes housing more affordable.
Between December 1, 2022 and April 1, 2023, residential contractor registration with the Vermont Office of Professional Responsibility will be required if a contract exceeds $10K. If this applies to your business, before April 1, 2023you must:
- Register with the State of Vermont;
- Maintain minimum liability insurance coverage in the amount of $1M per occurrence and $2M aggregate.
- Execute a written contract prior to receiving a deposit or commencing residential construction work if the estimated value of the labor and materials exceeds $10K. This contract must specify price, work dates, the scope of work, and a change of order provision;
- If a contract specifies a maximum price for all work and materials or specifies a statement that billing and payment will be made on a time and materials basis, not to exceed a maximum price, a contractor 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; and,
- 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.
If you have any questions, please contact NRLA’s Legislative & Regulatory Affairs department at GovtAffairs@NRLA.org or contact VRLDA Lobbyist Bill Smith at Bill@SmithLawVT.com or 1-802-485-6100.