Can You Sue a Contractor for Unpermitted Work?

Home improvement contractors play a vital role in ensuring compliance with building codes in Massachusetts, which includes pulling permits for required projects. As a result, a homeowner may institute civil action if hired contractors fail to obtain the necessary authorization from the local building department. The cause of action or claim that a plaintiff may bring depends on the facts of the case and may include breach of contract, negligence, or fraud.

Before diving deeper, it’s essential to consider other important matters, such as the consequences of performing unauthorized projects, the insurance liabilities with unpermitted work, and how to pull permits after the fact.

What Happens if a Contractor Performs Unpermitted Work?

The homeowner may face legal action if a contractor performs unpermitted work in Massachusetts and the Board of Building Regulations and Standards (BBRS) finds out. The sanction for violating the state building code may include a fine, a term of imprisonment, or both. The exact penalty or sentence depends on the fact of each case but cannot exceed the fine or imprisonment maximums provided in the law.

The city officials will typically serve a notice of violation, which informs you that permits are necessary for such projects. The document may further state that you may be charged a separate offense for each day you violate the law. So, it’s vital to address the issues quickly before it escalates. Even when you do not receive a notice from the local building department, it’s best to take swift action when you realize your contractor is working without the required permits.

The Legal Liability of Unpermitted Work

A homeowner can face many legal consequences when a contractor performs unpermitted work. Here are four examples:

1. Fines

A person who violates the state building code may be liable to pay a fine. The amount depends on the facts of each case but should be at most $1,000 for each violation. Therefore, the total sum can exceed $1,000 when you are charged with multiple offenses. It’s vital to remedy the situation early to avoid an unbearable financial burden.

2. Imprisonment

Those who violate the state building code could also face a term of imprisonment. The duration of the sentence is determined on a case-by-case basis but should be a year at most. Imprisonment is typically a last resort, which may be ordered due to blatant disregard for the law. Also, the authorities may impose a fine and jail time when the situation demands.

3. Civil Action

If you sell the property with unpermitted work to another person without fully disclosing that fact, that person may institute legal action against you. In comparison, buyers may be reluctant to purchase the property or offer a reduced price when informed about the defect. Therefore, it’s important to legalize the unpermitted work before selling it.

4. Corrective Orders

The local building department may require the contractor to pull permits after the fact to ensure the work conforms to the state building codes and regulations. However, the building department has the discretion to order the contractor to remove the work or rebuild to comply with the building codes. Depending on the facts of the case, the contractor may bear the cost.

Does Homeowners Insurance Cover Unpermitted Work?

Homeowners insurance does not typically cover unpermitted work problems. In other words, insurance providers are less likely to approve your claim if they establish that the work was unpermitted. However, the situation may differ if you purchase a property after conducting proper due diligence but fail to discover the defect. If you knew or should have known about the defect after purchasing the property but did not remediate it, the insurance company may refuse to approve your claim.

For example, consider your house catching fire after unpermitted electrical work was done on the property. The lack of a permit could pass as negligence if you were aware of the defect yet failed to remedy it. Your insurance company may use that to deny your insurance claim. If a visitor is injured on your property while the unpermitted project is ongoing, you may have to pay the cost yourself. The insurance provider may also cancel your policy after discovering the defect.

How to Legalize Unpermitted Work

Legalizing unpermitted work is called “remediation.” The process usually begins with calling or visiting the local permit office and requesting remediation services. The office may ask you to put in an application and produce the plans and blueprints of the project.

Next, you may need to schedule an inspection. The city inspector will assess the work to confirm if it aligns with the building codes and safety standards. If satisfied, the authority may issue the permit. Otherwise, you’ll be asked to pull down the structure and rebuild it according to the code’s requirements.

Remediation attracts a fine for the violation, typically twice the original amount. While this expense is your responsibility, some owners claim it from the contractors responsible for the defect.

Can You Sue a Contractor for Unpermitted Work?

You may be able to sue a contractor for unpermitted work if it was their responsibility to pull permits, particularly if that responsibility is written into your contract. While homeowners typically leave permit work to the professionals, some decide to pull their own permits for whatever reason. Pulling your own permit can result in complications.

For example, homeowners who apply for their own building permits or work with unregistered contractors may be excluded from recovering up to $10,000 as reimbursement from the Guaranty Fund for specified losses. That means you should think twice if you want to do the project yourself. Ordinarily, contractors apply for permits by acting as the owner’s agent. So, if a contractor is reluctant to apply, they may lack the necessary license or registration.

Depending on the facts of the case, contractors may be liable for different causes of actions or claims. Possible lawsuits you can bring against the contractor may include breach of contract, negligence, or fraud. Here are a few examples:

• Breach of contract: For breach of contract lawsuits, you must establish that the contractor violated an express or implied term of an existing agreement.
• Negligence: A claim based on negligence would require you to establish that the contractor had a legal duty to pull permits which they failed to do, resulting in you facing sanctions from the local building department.
• Fraud: Suits based on fraudulent misrepresentation can arise when the contractor makes false claims, like having the requisite licenses or permits, although those facts are fabricated.

Suing the contractor allows you to claim damages for the loss incurred. However, litigation can be complex, so you should consult an experienced attorney for advice and representation. Partnering with a construction lawyer can increase your chances of success.

Apart from initiating legal action, you can also file a complaint with the BBRS. While that may not result in you recovering damages, you may get the contractor sanctioned for failing to pull permits.

Contact Calabrese Law Associates for Assistance With Contractor Disputes

Calabrese Law Associates has years of experience assisting clients in the Greater Boston area and throughout Massachusetts with construction-related matters. Our attorneys are committed to finding effective legal solutions to your problems and taking the load off your shoulders. Do you need urgent legal assistance with contractor disputes? Contact us today.

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This publication and its contents are not to be construed as legal advice nor a recommendation to you as to how to proceed. Please consult with a local licensed attorney directly before taking any action that could have legal consequences. This publication and its content do not create an attorney-client relationship and are being provided for general informational purposes only.