Posted by Mark Paskell on Sat, Jul 24, 2010 @ 08:11 PM
In a recent RRP training in Southampton, New York a contractor yelled out "how am I going to survive when I have to compete against illegal immigrants and the local fireman contractor working illegally". In another training in Mass a painting contractor told us that he is getting killed in his town going up against local teachers and college kids with under the radar side businesses. In another training in Mass, a contractor says he competes against the whole town fire department on half of his window and siding jobs.
All too often we hear numerous reports of illegal contracting activity all over the region. The contractors in our RRP trainings tell us they are there to be certified because it is the right thing to do even though they are tight on funds from the economic slow down.
Since January, we have trained 3000 contractors in Mass and New York and we consistently hear the pleas for a level playing field and equal enforcement. The majority of the contractors fear lost projects from a homeowner who is all to willing to accept the lower price from the illegal contractor. Many doubt the local building inspector or state officials have the will or resources to enforce the rules and regulations on the books. They further doubt that the RRP lead rule will be enforced. The contractors cite overworked and under staffed building departments as well as the age old tradition of protecting the old boy network.
In our trainings we are constantly reminded that there are four groups that make up the underground contracting community.
Group 1; The contractor who elects to work with no insurance, under the table labor, no permit, cash payment so they don't have to pay taxes, no license, no certifications.
Group 2; the undocumented illegal immigrant contractor
Group 3; the local fireman with an illegal side contracting business
Group 4; the local teacher and college kids with an illegal side contracting business.
Legal contractors are paying thousands of dollars to comply with the rules and regulations to be a professional contracting company. These include but are not limited to; liability and workmen's comp insurance, building license, state registration, W-2 employees with matching taxes, OSHA training, proper classification of employees, pulling permits, paying taxes, and most recently becoming EPA RRP certified.
Legal contractors deserve a level playing field
There is no better time than now for our state and local officials to begin the crack down on all illegal contractor activity. It should not matter if it is an illegal immigrant contractor or the local fireman who chooses to own a side business without the required practices. Those who play by the rules deserve a level playing field. Maybe the RRP Lead Rule will give officials the tool they need to shut down illegal activity by imposing fines and work stoppages.
Comments from contractors in our RRP Trainings
We asked many of the contractors in our RRP trainings which group they think is the greatest threat to their livelihood and this is what we were told.
Group 2; The undocumented illegal alien contractor is one of the biggest threats. They are good at hiding and many homeowners are attracted to the rock bottom price. In addition group one contractors often pick them up at the local big box store or on the side of the road on an as needed basis and pay them under the table with no insurance or taxes.
Group 2 an 3; the local fireman or teacher who works on the side without the proper credentials. These groups cause the greatest angst among the legal contractors because;
1. The local fireman and teacher often use their profession and community reputation as a gage of trust to convince homeowners to hire them. Then they ask the homeowner to pay cash with nothing in writing. One contractor told us it goes something like this; "you can trust me, I am your local fireman or in the case of the teacher " I am the teacher who has your kid in class."
2. The local fireman and teacher are part of the old boy network and often buddies with the town inspectors and selectman.
One contractor was careful to point out that he also knows many fireman and teachers who have legal side business and they play by the rules. He went on further to say that a couple of legal contractor firemen he knows well, actually take issue with other firemen in their department who choose to work illegally.
I wonder how that dynamic works when they are all in the firehouse late at night with no fires to fight!
Which group do you think poses the greatest threat to your contracting prospects for business in your marketplace?
mark the coach
Posted by Mark Paskell on Thu, Jul 08, 2010 @ 08:41 PM
I received a call today from a nice guy who had a similar mindset to a contractor I spoke with earlier this year. I thought I would republish my post Mr EPA Man and share the views of concerned contractors.
Post from January;
Today I received a phone call from a contractor who is gravely concerned about his future. This man was polite and sincere. His story has touched me and I am compelled to write it for him as I believe it may resonate with many hard working contractors who share the same concerns about the realities of complying with the new EPA RRP Lead Rule. To the best of my ability I convey his story to you.
Dear Mr. EPA Man,
Two weeks ago I was at the lumber yard buying supplies and I saw a publication about the EPA RRP Lead Rule. I was not aware of this impending law due to my busy schedule and family responsibilities. Now that I am, I will follow the law and apply for my firm certification and I have scheduled my Certified Renovator Training. I beleive that I must be a totally legit business. I pay my taxes, carry general liability insurance, carry workmen's compensation for my carpenters, pay my workers matching taxes, have my builder's license, obtain permits, follow the code, have my state registration and follow safe work practices as required by OSHA.
I am an average hard working contractor and I love what I do. I have a great wife, two wonderful children and do the best I can to be a good father, husband, employer and community man. I must confess it is extremely hard these days since the housing industry has been decimated by the mismanagement of our economy.
With that said, I spent the past week reading the law and the requirements on the EPA sites. I have learned what must be done in order to comply. I see an estimate of $35.00 per job in the EPA wording and I am troubled how such a number was conjured up.
I have listed the things that I will have to do comply with the practices. The costs are no where near what you claim.
First the training and certification is 300.00 for my firm and 900.00 for my employees. Second, I see I must purchase materials that will likely cost 600.00 to 700.00 to get started. Third, I see I must be extemely diligent about the documentation and I must keep records for three years. I do not know what this will cost but I know that I must create a new paper work and filing system to make sure everything is correct in case of an audit. My best guess is that the paperwork will add several hours to each project and the office systems will cost several thousand in developing the right system, training my office manager, training my staff and setting up office infrastructure. Fourth, I see that the lead safe practices which I can and will do, will impact productivity. Fifth I see that my subs will have to become certified and I am concerned will they or will I be responsible for them as well. Sixth, I wonder if my insurance will skyrocket. I called my agent and he said there is no insurance coverage for this. Only abatement coverage costing over $6000.00. Seven, I see that enforcement will be by the EPA and building inspectors are not part of the plan. Eight, will I have to compete against dozens of contractors who will fly under the radar and Nine how will I explain this additional cost to a homeowner who has no equity, is fearful of losing their job, and facing huge increases in taxes, health care and energy. Adding up the costs; priceless.
I love my country, my family and my work helping homeowners improve their homes. I have no union to fight for me and yet I see they get preferred status from a government that has forgotten me and the residential construction industry. I don't want a bail out only a fair level playing field. Our industry is decimated and the more I have looked into this new law I picture thousands of contractors not abiding by these rules due to inadequate funding for enforcement.
So would you please do something for me? I will abide by the law. Could you at least promise me that you will require all cities and towns to cast a wide net to prevent all illegal contractors from perfoming illegal work? Will you demand that all pre-1978 projects requiring permits also require proof of your firm certification and certified renovator training? Will you deputize building and health inspectors to locally enforce this rule? Will you demand that insurance companies come up with a fairly priced insurance products that will protect us against claims for essentially dust protection and not abatement?
Then at least I can have some confidence that my government is striving to maintain a level playing field and I won't be the only one doing what is right. I too believe in the spirit of the rule to protect children, pregnant woman, homeowners and employees from lead poisoning.
What concerns me is the timing and the likelihood of no enforcement or insurance causing me to lose my business and not be able to provide for my family. If everyone else has to comply then I will compete on even ground and then may the best company prevail.
From a legal hard working contractor, father, husband, taxpayer, and small business owner who loves helping homeowners improve their homes.
mark the coach
Posted by Mark Paskell on Tue, Mar 23, 2010 @ 07:07 AM
I am ready to leave for my meeting today to fight for the rights of legal contractors in Massachusetts. Maybe this will even help contractors throughout the country.
I am scheduled for a meeting at 9:30 AM in Charlton, Mass with the Mass Federation of Building Officials. I was invited by the President, Robert Camacho. It turn out that a friend I grew up with is a building inspector and he got me the invitation.
I have invited Industry expert Shawn McCadden to join me. We will be joined by Nancy Barmakian and Jim Bryson from the Boston EPA Regional Headquarters. Also we have invited Ernie Kelley and Patty Sutcliff from the Division of Occupational Safety. DOS has applied to the EPA to take over the administration and enforcement of the EPA RRP Lead Rule.
My goal is to seek a requirement that will allow the building inspector to require an EPA Certification when any contractor applies for a permit.
I am excited to have this opportunity to fight for contractors and hope I can help lead the charge to establish a level playing field for all legal hard working contractors in Massachusetts and maybe even America.
Wish me luck.
I will let you all know the results in a few days.
mark the coach
Posted by Mark Paskell on Tue, Jan 19, 2010 @ 05:14 AM
On 4/22/2010 the EPA Renovate, Repair and Painting Lead Rule goes into effect. There are only 90 days left to complete the application to become registered.
Yesterday I spoke with many contractors who have not sent in their application to be an EPA certified Firm.
Have you sent in your firm application?
On 4/22/2010 all contractors who want to work on pre-1978 homes must be registered with the EPA. The turn around time for processing the application is 90 days on a first come first served basis.
This affects remodelers, electricians, plumbers, roofers, siding and window contractors, painters, alarm and it installers, tile installers, insulation, plasterers and any contractor who works on pre-1978 homes. It also includes property owners who rent apartments.
It is not necessary to complete the Certified Renovator training before sending in the application. The application is below.
If you know any contractors be their friend and ask them if they know about this new law. Ask them are they ready for the new EPA RRP Lead Rule which goes into effect on 4/22/2010. The fine for non-compliance is $37,500 per violation. Ouch!
If they need help they can call me.
EPA Lead Paint renovation firm application.pdf
mark the coach
Posted by Mark Paskell on Sat, Jan 16, 2010 @ 07:46 PM
Last Wednesday we had Kachina Contractor Solutions, an EPA Certified Trainer conduct EPA RRP Training for our contractors. The training answered many questions about this new rule.
One question confusing contractors is does a contractor have to be a Certified Renovator before they can qualify to become a Certified Firm. The answer is no. The EPA started accepting applications in October 2009, from contracting firms who want to work on pre-1978 properties on or after the effective date of 4/22/2010.
This confusion is causing a huge problem for contractors in the industry. Many contractors believe that they must obtain their EPA RRP Certified Renovator Training first and then apply to become a Certified Firm. This confusion has led to delays in completing the required application for firm certification. We have received numerous phone calls this week from contractors who did not know they could apply.
The EPA has stated in their publications, that all contracting firms in the United States, who wish to work on pre-1978 must be a Certified Firm by 4/22/2010. The application will take 90 days to process on a first come first serve basis. This means that a contractor only has 3 months and one week to receive the approval if they send the application in today.
Does anyone remember the cash for clunkers program? The underfunded government agency handling this program was inundated and could not process all the applications. Payments were delayed for months. We may experience a similar situation come April when thousands of contractors may miss the deadline and have to wait for their firm certifications.
Most contractors, building officials and US citizens are unaware of the impending effective date. Our EMNARI President, Greg Antonoili recently reported that he spoke with several health and building inspectors in the Boston market and they had no knowledge of this new rule. What do you think is about to happen with only three months left? We suspect after speaking with the EPA, that they will be flooded and the turn around time will be limited by the amount of resources they have on hand to process the applications. If you are reading this please let all contractors you know that if they haven't sent in their application yet they should do so right away. Of course, if you haven't sent yours in yet we suggest you do this weekend. The fines for violations are $37,500 per day per violation. Another choice while you are waiting for your application to be processed, would be not to work on any home built before 1978 until you receive your approval.
The Contractor Coaching Partnership has included this form on our website along with other important forms. You can also obtain these forms from the EPA Lead sites. Their are numerous links on our site that you can use. We are providing the firm application download below.
EPA Lead Paint renovation firm application.pdf
mark the coach
Posted by Mark Paskell on Sat, Jan 02, 2010 @ 04:56 PM
Recently on the NARI LinkedIn group, professional contractors shared their views on the EPA's enforcement of the Renovate, Repair and Painting Rule. One huge concern is contractors who comply will have to compete against thousands of illegal contractors who do not.
Most question whether there will be a concerted effort by government officials to effectively enforce this rule. For starters, most contractors have no idea this rule will take effect on 4.22.2010. As far as homeowner awareness, it is somewhere between slim and none. In addition, most building inspectors are unaware and many that are want nothing to do with the enforcement. They say they have enough new regulation to deal with.
So why don't we ask the big boys to start using their immense market presence to publicize the EPA RRP Law to consumers and contractors in every store in America. Imagine if every Home Depot and Lowes painting department had a huge sign at the register warning homeowners and contractors about this law. Let homeowners know that it is illegal for any contractor in America to work on a home that was built before 1978, unless they are an EPA Registered Firm and will employ a Certified Renovator on the project. Also publicize what can happen if consumers hire a non-certified company to work on the property. Show the fine amount of $37,500 that illegal contractors can be fined for non-compliance.
What about Service Magic and other Lead Generation Companies who boast having reputable contractors. They can post the EPA RRP LAW requirements on their website for anyone that is looking for a contractor. After all, companies like Service Magic claim that they only send out Certified, Licensed, and Reputable Contractors to consumer's homes. Let's ask Lead Gen Firms to require that they ask homeowners how old the house is. If the house is pre-1978 then inform the homeowner that only EPA Registered Firms who employ Certified Renovators can work on the home for projects that disturb the minimum square feet of painted area.
Is this too much to expect from companies who receive millions of dollars from contractors in the residential industry?
I think not. What if every contractor asked their local Home Depot, Lowes, Lumberyard and Painting supply store to publish the law at their counters? The stores can hand out a flyer explaining the EPA RRP Rule with every can of paint.
Let's ask Sherwin Williams and all paint manufacturer's to place information about the law on every can of paint.
Maybe this will help contractors and remodelers who decide to follow the rules. This grass root effort can help fill the void created by the EPA's inability to inform the public in the short term.
Lastly why not ask the leadership of NARI and the NAHB to persuade Home Depot and Lowes to publicize the EPA RRP Rule in every store in America. Isn't this only fair for all the business these associations give the big box stores?
What do you think? Can you think of any other grass root efforts?
mark the coach
Posted by Mark Paskell on Mon, Dec 21, 2009 @ 08:15 PM
Another well intended unfunded mandate is about to turn the residential construction industry up side down. By now, many readers of this blog know of the impending EPA RRP Lead Law effective on 4.22.2010. Needless to say the EPA doesn't have the funding for the appropriate enforcement. There are many comments on the forums, saying the EPA is looking for contractors to report on other illegal contractors. Then they will fine the violator and publicize the offense. How does that sound for an enforcement plan?
Maybe there are additional ways.
Grass root enforcement influenced by contractors
How can contractors, remodelers and the trades influence RRP enforcement on the local level?
To answer this, ask yourself the question who is empowered to insure that local state and federal codes are enforced in your city or town. In many towns these powers are entrusted to the local inspectors who know people in the community they serve. They also know the contracting community that works in their community.
What if remodelers and contractors utilized the following approaches;
1. Identify the towns and cities that you work in. Find out the names and addresses of the local building inspector, health inspector, board of selectman, town managers, mayors, town lawyers, and town administrators. Then write a letter asking them how they are going to implement oversight of the new lead law. Ask them what are their procedures going to be when issuing permits. Let them know that you are going to comply and you want to make sure you understand how they want you to provide the required information. Chances are they don't know about the law yet based on what we are hearing from the same people in several Massachusetts towns. Then help them learn about the law by offering to meet with them. In some areas there are quarterly building inspector meetings. Offer to come in and show them how you will use your professional training to protect homeowners and children in their community. Show them what EPA approved protection protocol is all about.
What do you think they will do if you offer to help them learn from a pro, you?
2. Next, call up your local newspaper and ask them if they are doing a story on the lead law. Let them know that the town officials are unaware of this unfunded mandate because the EPA failed to budget enough money for education of the public. Let them know that you have written letters to the officials about the lead law offering assistance. Let them know that the law will impact every homeowner in town who has a home that is built before 1978. Let them know that every contractor working on pre-1978 homes has to comply or risk fines over $30,000.00 for exposing homeowners to unsafe lead dust control. Explain that when a contractor is fined it will likely bankrupt the company and result in an incomplete project hurting the homeowner. The home will be reported as a site with an EPA violation. Where that information will go after that is anybodies guess.
3. Offer to do a seminar at the local home show or fair to educate consumers and send out a press release. If there is a local radio station offer to go on and teach the audience about the rule.
What else can we do to help spread the word in a pro-active way in our communities?
mark the coach
Posted by Mark Paskell on Sat, Dec 12, 2009 @ 10:09 PM
The current buzz created by the pending EPA RRP Lead Rule is causing the formation of camps; those who are for it, those who are against it, and those resigned to the fact that they have no choice but compliance.
The debate is heating up. Defiant contractors, remodelers, property owners and realtors continue to fight until the inevitable effective date and beyond while others will comply with the new procedures and persevere.
Are the beneficiaries of this rule worth the effort?
Sometimes we can lose sight of the reason for well intentioned regulation designed to help others, namely children, pregnant women, homeowners, and our employees. Costs and burdens associated with the Rule stir numerous emotions and concerns that are understandable, yet divisive.
Arguably, the EPA could have done a better job with procedures, enforcement, abiguities, funding, education, waste, and economic impact issues. The same can be said for the construction and real estate industries that have continually argued that it will be too costly and difficult to implement effective remedies. The net result, a 1992 law that has been marginally effective at curbing the poisoning of thousands of children. Now 17 years later, Congress has mandated the EPA to implement the rule without delay to prevent lead poisoning.
With that said, please view the video below and for a moment set aside the objections to the rule and consider the good that can be realized from this effort.
Lead poisoning video from MSNBC.
http://www.msnbc.msn.com/id/21134540/vp/25687293#25687293