Agencies | Governor
Virginia Regulatory Town Hall
Department of Professional and Occupational Regulation
Board for Contractors
Board for Contractors Regulations [18 VAC 50 ‑ 22]
Action General review
Stage Proposed
Comment Period Ends 11/13/2009
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11/13/09  10:50 am
Commenter: Tyler Craddock, Virginia Chamber of Commerce

Net Worth Requirements

November 13, 2009

Mr. Eric Olsen
Executive Director
Board of Contractors
9960 Mayland Drive, Suite 400
Richmond, VA23233

Dear Mr. Olsen,

Please accept these comments on behalf of the Virginia Chamber of Commerce regarding proposed changes to regulations for the Board of Contractors.

We understand that these changes have been vetted by various stakeholders and in most instances on occupational liceinsing regulatory proposals, we certainly defer to the expertise of groups like the Home Builders Association of Virginia and other industry representatives on specific issues that affect their industry.

With that stated, there is one issue that we feel compelled to address. We are concerned that that the proposed increase in the Net Worth Requirement for Class A and Class B contractors will have unintended consequences.

This type of change will have the net effect of possibly dropping existing Class A contractors to Class C status. What that means is that you could have contractors who own lots on which they can no longer build homes, and they would be in this posture during economic conditions that make it very tough to sell those lots at anything more than “fire sale” prices. Thus, bad economic conditions would be made worse by a change in governmental policy.

In addition, this type of change could push folks out of the construction business altogether or push them “under the table.” Based on member feedback, the operation of unlicensed contractors is an ongoing concern. This type of change could make that problem worse.

As you move forward, we urge you to reconsider raising the Net Worth Requirement for Class A and Class B contractors at the levels that have been proposed.

Tyler Craddock
Director of Government Affairs

CommentID: 10089