The Somersbys bought a set of canned house plans and were overjoyed. Here they were at step No. 1, and already they’d saved thousands of dollars just on the plans alone. “Wow, this is gonna be great!” they thought. The owners repeatedly congratulated themselves for their good fortune. (Note: Any architect worth his or her salt would have steered the owners away from a brand new, unlicensed and therefore uninsured contractor.)
The project proceeded well for months. It was at the finish stage, and the owners were looking forward to moving into their new home in just five weeks. Jim was working alone on site on a Saturday afternoon, taking care of small tasks, organizing work lists for the following week, and thinking about what a great project this had been for all parties involved. It had been a clear winter day with gusting winds during the morning. Jim needed to get up on the roof to finish some work on the chimney cricket but wanted to wait until the afternoon to see if the winds would die down.
He placed an extension ladder onto the fascia and tied it off, just as his previous employer had taught him. Then he climbed onto the roof and proceeded to the chimney. Suddenly he lost his footing and slid off the roof, falling approximately 35 feet to the forest floor. He landed head first. The fall knocked him unconscious.
Since Jim was the only person working, no one was there to call 911 or offer assistance. Just after dark, a security guard for the gated community noticed a truck parked in front of the house and thought it odd that no lights were on and no one seemed to be around. Upon inspection, the guard heard moaning and immediately found Jim on the ground. He was taken by ambulance to the local hospital with multiple head, back, and neck injuries combined with other serious trauma. I’m happy to report that Jim eventually recovered 90 percent of his health, but it took 16 months of intense effort.
This accident led to several lawsuits and claims between the owners and their insurance company, subcontractors and suppliers, the IRS, the state tax agency, the unemployment office, workers’ comp administration, Jim Dandy, and the numerous entities that rendered services for the injuries and rehabilitation. Even the subdivision became involved. Its CC&Rs required that all work be conducted by licensed, sanctioned professionals who carried substantial insurance coverage, which of course were never met.
Arizona requires a contractor’s license when work on any single project or for any client exceeds $750 during the calendar year. Jim had never applied for and did not have such a license. That in turn meant that he had no liability insurance, no workers’ comp, no fire insurance. It did turn out that the property owner had taken out a course of construction policy, which would convert to a homeowners insurance policy at the conclusion of construction, but unfortunately that required all contracting work to be performed by a legally registered, licensed, bonded contractor.
The anticipated savings evaporated quickly for the Somersbys. In Arizona, property owners of record are responsible for their property. As a result, the Somersbys were liable for all injuries, medical costs, lost wages, and even permanent disability expenses for the injured, unlicensed worker. At last count, this amounted to approximately $350,000.
Dennis A. Dixon is an author, contractor, and speaker with 21 years of experience in the building industry.
