[HISTORY: Adopted by the Board of Supervisors of the Township of Middletown as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Construction standards — See Ch. 190.
[Adopted 11-12-1991 by Ord. No. 91-30 (Ch. 13, Part 6, of the 1992 Code)]
This article shall be known and may be cited as the "Middletown Township Contractor Licensing Ordinance."
The following words and phrases, as used in this article, shall have the meanings ascribed to them in this section, unless the context clearly indicates a different meaning. The masculine includes the feminine, the singular includes the plural, and the plural includes the singular.
CONTRACT
An agreement, whether oral or written and whether contained in one or more documents, between a contractor and an owner or another contractor for the performance of work, including all labor, services and materials to be furnished and performed thereunder.
CONTRACTOR
Any person, other than a bona fide employee of the contractor, who undertakes or offers to perform construction, repair, reroofing, remodeling, rehabilitation, demolition, paving, electrical and any other residential or nonresidential construction or demolition work in the Township, whether as general contractor, subcontractor, specialty contractor or home improvement contractor with respect to the property owner.
LICENSE YEAR
The twelve-month period beginning the first day of January of each year.
OWNER
Any property owner, tenant or other person who orders, contracts for, or purchases the services of a contractor, or any person entitled to the work of a contractor pursuant to a contract, gift or otherwise.
PERSON
Any individual, partnership, limited partnership, association, corporation, trust or other legally cognizable entity.
TOWNSHIP
The Township of Middletown.
The Building Inspector or his authorized representatives shall administer and enforce the provisions of this article.
No person shall act as a contractor in the Township except in compliance with the provisions of this article. Any person, including an owner, who willfully aids a contractor or participates with a contractor in violating any provisions of this article is in violation of this article. The provisions of this article may not be waived by agreement.
A license issued pursuant to this article shall not be construed to authorize the licensee to perform any particular type of work or type of business which is reserved to qualified licensees under other provisions of state or local law.
A. 
For the license year beginning January 1, 1992, and each license year thereafter, every person desiring to continue to engage in or hereafter to begin to engage in the business of acting as a contractor in the Township shall, on or before the first day of January of the license year or prior to commencing business in such license year, make application for a license to act as a contractor in the Township.
B. 
Such application shall be made by the completion of an application furnished by the Building Inspector and the payment of the prescribed license fee. Each application must contain the information required hereinafter by this article and must present satisfactory proof of insurance. Each application for a license shall be signed by the applicant if a natural person, and in the case of an association or a partnership, by a member or partner thereof, and in the case of a corporation, by an officer thereof.
C. 
Each authorized successful applicant shall be issued a license, which license shall be in the form of a wallet-sized card and in the form of a vehicle bumper sticker. Every licensed contractor, while actually acting as a contractor in the Township, shall carry said license card with him and shall display it to the Building Inspector or his representatives upon request to do so. Every licensed contractor shall at all times display his bumper sticker license on the rear bumper of the vehicle he primarily uses in his activities as a contractor.
D. 
All contractors' licenses shall expire at midnight on December 31 of each license year unless the license is revoked or suspended prior thereto under the terms of this article. A person with an unexpired license which has not been revoked or suspended during the current license year who makes application for a license for the following license year need not complete an application form, but must only submit the required license fee and, if he qualifies for the following license year, he will be issued a new license card and bumper sticker for the following license year.
A. 
The provisions of this article shall not apply to the official transactions of any authorized representative of the government of the United States, any state or commonwealth of the United States, any political subdivision of any state or commonwealth or any agency or instrumentality of the foregoing governments; provided, however, that no person engaged by the representative of any of the foregoing shall act as a contractor in the Township unless such person shall first have complied with and have been licensed under the provisions of this article.
B. 
No contractor's license shall be required of any person when acting in a particular capacity or particular type of transaction as follows:
(1) 
A person who performs labor or services for a contractor for wages or salary.
(2) 
A person who is required by other state or local law to attain standards of competency or experience, and who must obtain licensing under such other state or local law as prerequisite to engage in a craft or profession, and who is acting exclusively within the scope of such craft or profession for which he is currently licensed pursuant to such other law.
(3) 
The provisions of this article shall not be interpreted as to require licensing for small repairs or other minor construction work which is not performed for compensation and is done by the owner and/or his family or friends in self-help on the owner's property.
A. 
No contractor's license shall be issued unless the applicant files a certificate of insurance with the Building Inspector at the time of license application. The certificate of insurance shall contain a provision that coverages afforded under the policy will not be canceled until at least 15 days' prior written notice of such cancellation has been given to the Township of Middletown. The certificate of insurance must evidence policies of insurance, maintained at the expense of the applicant, for public liability, property damage, products liability, completed operations and worker's compensation, each of which must have a single occurrence limit of at least $100,000. Additional blasting and demolition liability insurance coverage shall be determined by the Building Inspector at the time of application and shall be reasonably based on the nature and the extent of the applicant's proposed operations.
B. 
All types and limits of insurance for which certificates are presented at the time of application, and based upon which a license is issued, shall be maintained throughout the license year, or the license will be suspended or revoked as hereinafter set forth in this article. The Building Inspector must be advised of any change in an insurance carrier during a license year.
[Amended 10-27-1992 by Ord. No. 92-11]
A. 
At the time of application for a new license or for the renewal of a current license, the applicant shall pay an annual license application fee to the Township of Middletown. The amount of the annual application fee shall be established from time to time pursuant to resolution of the Board of Supervisors.[1] No fee or portion thereof shall be returned to a successful or unsuccessful applicant. There shall not be a prorated reduction in the license fee if application is made during the license year or suspended or revoked during the license year; provided, however, a person shall be required to pay only one license fee per year under this article regardless of the number of jobs or the number of trade areas in which the contractor will provide services.
[1]
Editor's Note: Township fee schedules are on file in the Township Municipal Building and available to be viewed on the Township's website at www.middletownbucks.org.
B. 
In addition, every person licensed in a specific construction trade, such as plumbing, mechanical, sign construction and like trades, in which the Township currently requires a license and imposes a registration or license fee, shall be required to be licensed as a contractor pursuant to this article, provided that each such person shall only be required to pay one license or registration fee per year regardless of the number of licenses, including plumbing, mechanical and sign construction, required by the Township.
[Amended 12-27-1992 by Ord. No. 92-11]
A. 
Upon submission of a proper application, the Code Enforcement Officer shall, within a period of 30 days following the receipt of the application, issue or refuse to issue the appropriate contractor's license to the applicant. If issuance of a license is denied, the Building Inspector shall mail to the unsuccessful applicant a written statement setting forth the reason or reasons for the denial within the aforesaid thirty-day period.
B. 
The application for a license shall be in printed form, provided to the applicant by the Township, and shall require a written answer to all questions contained thereon. Failure to answer all questions on the application form shall mean that the applicant is not entitled to consideration of his application until he has answered all questions. The application form shall be signed by the applicant under oath. The information requested on the application form shall include, but not be limited to, the following:
(1) 
The names of owners, partners, directors and officers of the applicant, and the business address and trade name of the applicant.
(2) 
A statement as to whether or not any municipalities have refused to issue or have revoked any similar contractor's licenses to the applicant within two years prior to the date of the application. In the event that there has been such a denial or revocation, the applicant must explain in writing the reasons for such denial or revocation.
(3) 
A listing of all jobs performed within the preceding three-month period, but at a minimum a listing of the last 10 jobs performed by the contractor, along with a statement of the location of the jobs and the names, addresses and telephone numbers of the party or parties who contracted with the applicant for such jobs. In addition, the applicant shall specify in detail his areas of competence and all proposed work activities.
(4) 
A listing of all convictions within two years prior to the date of the application for any crimes or offenses under any federal or state criminal statute or common law criminal offense, or for violation of any Township ordinance, so long as such convictions were for crimes or offenses related to the applicant's work or contracts as a contractor. The term "conviction" shall include guilty pleas and pleas of nolo contendere. If any such conviction exists, the applicant shall give in writing the caption, court and term number of the proceeding leading to the conviction. The applicant shall also explain, in writing, the nature of the conviction.
Every contractor licensee shall, within 10 days after a change in ownership, directors, officers, management, address or trade name, notify the Building Inspector of such change.
No license shall be issued or renewed under the following circumstances:
A. 
If the applicant falsely answered any question or questions contained on the application form.
B. 
If the applicant has been convicted within two years prior to the date of the application for any crimes or offenses under any federal or state criminal statute or common law criminal offense or for violation of any Township ordinance so long as such convictions were for crimes or offenses related to the applicant's work as a contractor. The term "conviction" shall include guilty pleas and pleas of nolo contendere.
The Building Inspector shall revoke any license issued under the provisions of this article under the following circumstances:
A. 
If the licensee falsely answered any question or questions contained on an application for licensing or renewal of licensing previously submitted to the Building Inspector.
B. 
If the licensee fails to maintain, during the license year, the policies of insurance required under the provisions of this article.
C. 
If the licensee violates any of the terms or provisions of the Building Code of the Township of Middletown or any terms or provisions of this article.
D. 
If the licensee violates any condition or requirement of a building permit, sewer construction permit or highway permit issued by the Township of Middletown.
E. 
If the licensee willfully deviates from or disregards any plans or specifications for any contracting job in any material respect without first obtaining the consent of the owner, in writing, to any such change and without first notifying the Building Inspector of any such change.
F. 
If the licensee does any business through any person who is subject to the licensing requirements of this article and who is not licensed as required by this article.
G. 
If the licensee conducts a contractor's business in the Township under any name other than that under which he is licensed.
H. 
If the licensee fails to comply with an order, demand or requirement lawfully made by the Township under the authority of this article or any other Township ordinance.
[Amended 6-23-1998 by Ord. No. 98-08]
A. 
Penalties. Any person, firm or corporation who shall violate any provision of this article or who fails to correct a violation or institute a remedial action as ordered by the Code Enforcement Officer or who violates a provision or fails to comply with any requirements of this article or any of the other applicable provisions of the Code of the Township of Middletown, upon conviction thereof in an action brought before a Magisterial District Judge in the manner provided for the enforcement of summary offenses under the Pennsylvania Rules of Criminal Procedure, shall be sentenced to pay a fine of not more than $1,000 plus costs and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 90 days. Each day that a violation of this article continues or each section of this article which shall be found to have been violated shall constitute a separate offense.
B. 
The imposition of the penalties herein prescribed shall not preclude the Township Solicitor from initiating appropriate actions or proceedings at law or in equity to effect the purpose of this article.
Whenever the requirements of this article are in conflict with other requirements of the ordinances of the Township of Middletown, the most restrictive or those imposing the higher standards shall govern.
[Adopted 2-28-2006 by Ord. No. 06-05; amended in its entirety 5-7-2018 by Ord. No. 18-02]
A. 
To effectuate the purpose of selecting responsible contractors and developers for public contracts and to protect the Township's investments in such contracts, prospective contractors, subcontractors and developers should be required to meet preestablished, clearly defined, minimum standards relating to contractor and developer responsibility, including requirements and criteria concerning technical qualifications, competency, experience, adequacy of resources, including equipment, financial and personnel, and satisfactory records regarding past project performance, safety, compliance with the law and business integrity.
B. 
Due to the critical impact that skilled construction craft labor has on public works projects, and due to the limited availability of skilled construction craft labor, it is necessary to require contractors, subcontractors and developers, as a condition of bidding, to demonstrate their training and qualifications such as through participation in established, formal apprenticeship training programs, for the purpose of promoting successful project delivery, cost-effectiveness and workforce development.
C. 
The Township also recognizes that it is beneficial to the local community to ensure that firms receiving public contracts provide adequate wages and benefits to their employees and utilize fair business, employment and training practices that have a positive impact on local communities affected by such contracts.
D. 
Therefore, the Township shall require compliance with the provisions of this article by business entities seeking to provide services to the Township as specified herein.
E. 
The requirements of this article are intended to supplement, not replace, existing contractor and developer qualification and performance standards or criteria currently required by law, public policy or contracting documents. However, in the event that any of the provisions of this article conflict with any law, public policy or contracting documents of the Township, this article shall prevail.
A. 
All contractors, subcontractors and developers of any tier who perform construction, alteration, and/or renovation work on any public facility or public work project, which work is valued at an amount equal to or greater than $25,000, shall meet all of the requirements of this article.
B. 
All contractors, subcontractors and developers of any tier shall have sufficient capabilities in all respects to successfully perform the contracts on which they are engaged, including the necessary experience, equipment, technical skills, training and qualifications and organizational personnel and financial resources, as well as a record of successful past performance and compliance with all statutes, ordinances, regulations or policies of all governmental and regulatory agencies with jurisdiction over said contractors, subcontractors and developers and over the Township.
A. 
As a condition to the award of a public works contract subject to this article, a firm that seeks the award of a contract to perform the services of a general contractor, construction manager, general contractor, other lead or prime contractor, or developer shall submit a contractor/developer responsibility certification at the time it submits its bid or proposal for a contract.
B. 
The contractor/developer responsibility certification shall be completed on a form that the Township provides and shall reference the project for which the bid or proposal is being submitted by name and contract or project number.
C. 
In the contractor/developer responsibility certification the general contractor, construction manager, general contractor, other lead or prime contractor, or developer shall confirm the following facts regarding past performance and work history and current qualifications and performance capabilities:
(1) 
The firm has not been debarred by any federal, state or local government agency or authority in the past three years.
(2) 
No officer, director, owner or managerial employee of the firm has been convicted of a felony relating to construction, maintenance, service or repair contracting industries.
(3) 
The firm has not defaulted on any project in the past three years.
(4) 
The firm has not had any type of business, contracting or trade license revoked or suspended by any government agency or authority in the past three years.
(5) 
The firm has not been found in violation of any other law relating to its development or contracting business, including, but not limited to, wage or hour laws, environmental laws, antitrust laws, licensing laws or tax laws, the Pennsylvania Human Relations Act, 43 P.S. § 951, et seq., the Occupational Safety and Health Act, 29 U.S.C. § 651, et seq., the Pennsylvania Minimum Wage Law, 43 P.S. § 333.101, et seq., the Pennsylvania Wage Payment and Collection Law, 43 P.S. § 260.1, et seq., the Pennsylvania Unemployment Compensation Law, 43 P.S. § 751, et seq., and the Pennsylvania Workers Compensation Act, 77 P.S. § 1, et seq., by a final decision of a court or government agency authority in the past three years.
(6) 
The firm has all technical qualifications and resources, including equipment, personnel and financial resources, to perform the referenced contract, or will obtain same through the use of qualified, responsible subcontractors.
(7) 
The firm has been incorporated and conducting business in the trade or craft for which it is bidding for at least three years. The term "conducting business" shall mean having completed projects either the same or substantially similar to the project for which it is bidding. If queried on this paragraph, the firm shall produce legal documents, photographs and references as to the longevity of its business. The Township Manager or the Board of Supervisors or its designee shall conduct this review.
(8) 
The firm or its subcontractor's employees shall be in the United States legally, and a list of all possible employees and their citizenship/legal standing shall be supplied to the Township Manager on a monthly basis.
(9) 
The firm participates in a Class A apprenticeship program for each separate trade or classification in which it employs craft employees and shall continue to participate in such program or programs for the duration of the project or contract. Such apprenticeship program must be registered with the United States Department of Labor or the Pennsylvania Apprenticeship and Training Council and must have graduated apprentices to journeyperson status for each of the past five years. To permit development of recently registered programs, the graduation requirement of this provision shall not apply to: an apprenticeship training program registered within the past five years; or an apprenticeship program registered within the past 10 years, if the program provides apprenticeship training for a craft or trade that was not recognized as an apprenticeship craft or trade by the U.S. Department of Labor or the Pennsylvania Apprenticeship and Training Council at the time that the program was registered.
(10) 
To demonstrate compliance with § 196-203C(9), the firm shall provide, as an attachment to the Responsible Contractor/Developer Certification, appropriate documentation including a list of all trades or classifications of craft employees it will employ on the project, together with documentation verifying that:
(a) 
The firm participates in the requisite apprenticeship program for each such trade or classification listed; and
(b) 
Each craft employee to be used on the project for the duration of the contract is a participant in or graduate of such apprenticeship program.
D. 
The Township may require any other additional information it deems necessary to evaluate a prospective contractor's or developer's technical qualifications, resources and performance capabilities. The Township may require that such information be included in a statement of qualifications and experience as an attachment to the contractor responsibility certification.
E. 
In the contractor/developer responsibility certification, the submitting firm shall stipulate that if it receives a notice of intent to award contract it will provide the Township with a subcontractor list and subcontractor information as specified herein.
F. 
If the submitting firm is or was in the past five years related to any other company or business entity that provided or provides contractual services in the construction, maintenance, service or repair industries, whether as a parent company, subsidiary or any other business relationship, it shall submit a detailed written explanation of such relationship and provide a contractor/developer responsibility certification for the related company if requested.
G. 
If any person or entity that is a shareholder, owner or partner of the submitting firm owns an interest of 20% or more in another entity that provides or has provided contractual services in the construction, maintenance, service or repair industries, it shall submit a detailed written explanation of such relationship and provide a contractor/developer responsibility certification for such other entity if requested.
H. 
The Township may require that contractor/developer responsibility certifications and other information required by this article be submitted electronically.
I. 
The Township may charge firms submitting bids or proposals a reasonable fee to defray costs for processing and evaluating contractor/developer responsibility certifications and related information and documents.
A. 
Consistent with § 196-203A of this article, the Township shall open and consider only those bids by firms that have submitted a contractor/developer responsibility certification. It shall then issue a notice of intent to award contract to the firm offering the lowest responsive bid or, in the case of competitive proposals, the firm offering the most advantageous proposal.
B. 
Such notice shall be issued as soon as practicable after bids or proposals are submitted and shall stipulate that the contract award will be conditioned on the issuance of a written contractor/developer responsibility determination, as required by this article.
A. 
Within 14 days of receiving such a notice of intent to award contract, a prospective awardee shall submit to the Township a subcontractor list containing the names of all subcontractors it will use for the referenced project, their addresses and a description of the work each listed subcontractor will perform on the project.
B. 
At the time a prospective awardee submits its subcontractor list it shall also submit subcontractor responsibility certifications for all listed subcontractors to the Township. Subcontractor responsibility certifications shall be executed by the respective subcontractors and shall contain the same information and representations required in contractor/developer responsibility certifications.
C. 
A construction manager, general contractor, other lead or prime contractor, or developer shall not be permitted to use any subcontractor on procurement contracts subject to this section which is not on the subcontractor list, unless it demonstrates compelling reasons for using an unlisted subcontractor and obtains prior written approval from the Township.
D. 
The Township shall not approve an unlisted subcontractor, unless it executes a subcontractor responsibility certification as required by this article at least 30 days prior to commencing work. This thirty-day requirement may be waived in emergency situations. Any such certification shall be made available to the public as specified in § 196-208C of this article.
A. 
Contractor/developer and subcontractor responsibility certifications shall be executed by a person who has sufficient knowledge to address all matters in the certification and shall include an attestation stating, under the penalty of perjury, that all information submitted is true, complete and accurate.
B. 
If it is subsequently determined that a contractor/developer or subcontractor responsibility certification contains false or misleading material information that was provided knowingly or with reckless disregard for the truth, or omits material information that was omitted knowingly or with reckless disregard of the truth, the firm for which the certification was submitted shall be prohibited from performing work for the Township for a period of three years and shall be further subject to any other penalties and sanctions, including contract termination, that are available to the Township under law. A contract terminated under these circumstances shall further entitle the Township to withhold payment of any monies due to the firm as damages.
A. 
Once a notice of intent to award contract has been issued, the Township shall undertake a thirty-day agency review to determine whether the prospective awardee is a qualified, responsible contractor or developer in accordance with the requirements of this article and other applicable laws and regulations.
B. 
As part of this agency review, the Township shall ensure that the contractor/developer responsibility certification, subcontractor list and subcontractor responsibility certifications, as required by this article, have been submitted and properly executed.
C. 
The Township may further conduct any other inquiry to independently verify that the prospective awardee and its listed subcontractors have the technical qualifications and performance capabilities necessary to successfully perform the contract and has a sufficient record of compliance with the law and business integrity to justify the award of a public contract. In conducting such inquiries, the Township may seek information from firms which have submitted responsibility certifications, prior customers of such firms, or from any other relevant source. In conducting this evaluation, the Township may also consider relevant information on any business entities that are found to be related to the firm.
D. 
In the event that the Township determines that a prospective subcontractor does not meet the qualification standards included in the subcontractor responsibility certification or does not otherwise qualify as a responsible firm, it shall inform the general contractor, construction manager, other lead or prime contractor, or developer and permit it to self-perform the work of the subcontractor or substitute another subcontractor which meets the requirements of this article.
E. 
In the event that a subcontractor is disqualified under this article, the general contractor, construction manager, other lead or prime contractor, or developer shall not be permitted to make any type of contractual claim against the Township on the basis of a subcontractor disqualification.
F. 
If at the conclusion of its internal review the Township determines that all responsibility certifications have been properly completed and executed and if it concludes that the qualifications, background and responsibility of the prospective awardee and the firms on its subcontractor list are satisfactory, it shall issue a written contractor/developer responsibility determination verifying that the prospective awardee is a qualified, responsible contractor or developer. The contractor/developer responsibility determination shall be issued within 30 days from the date the notice of intent to award contract is issued. This responsibility determination may be revoked or revised in any manner at any time during the public review process set forth in § 196-208 of this article in the event the Township obtains relevant information warranting any such revocation or revisions. If the Township determines that a prospective awardee does not meet the qualification standards of this article, it shall issue a determination stating that it finds the firm nonresponsible.
A. 
Beginning on the date that the Township issues a notice of intent to award contract, it shall provide a fourteen-day public review period, during which time the contractor/developer responsibility certification, subcontractor list, subcontractor responsibility certifications and contractor/developer responsibility determination, as specified herein, shall be subject to immediate public inspection as they become available in a public document room or on a publicly accessible website. Upon written request for the same, copies of these records shall be provided to the public within five business days of such request.
B. 
During the public review period, any person or organization may protest a contractor, developer or subcontractor for failing to meet applicable requirements of this article or for any other legitimate ground by submitting a letter, together with evidence supporting the protest, to the Township Manager.
C. 
The Township shall not execute a contract that is subject to this article until all of the requirements of this article have been fulfilled.
A. 
If any provision of this article shall be held to be invalid or unenforceable by a court of competent jurisdiction, any such holding shall not invalidate any other provisions of this article and all remaining provisions shall remain in full force and effect.
B. 
The requirements of this article shall not apply to contracts executed prior to the effective date of this article, except that the exercise of an option on a contract covered by this article shall be deemed to create a new contract for purposes of this article.