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New Permitting and Licensure Requirements Take Effect in Philadelphia

Client Alert - January 10, 2014

In the City’s latest effort to improve upon safety, Philadelphia’s Licenses and Inspections Department (L&I) has issued new permitting and licensure requirements that took effect last week. The new requirements apply to all contractors conducting business in the City of Philadelphia. Permit applicants will be required to provide a Tax Clearance form and a Certificate of Insurance, and license holders will be required to clearly display license information on the job site and on business materials.

Applications for Construction and Demolition Permits

In the past, Philadelphia has required Tax Clearance certifications for limited situations such as zoning appeals. Now, the rules require all permit applicants to provide a Tax Clearance form certifying that the applicant is in compliance with, or intends to work with the City to cure any violations of, the tax and regulatory provisions of The Philadelphia Code. Contractors can obtain the Tax Clearance forms at the Department of Revenue’s website.

Permit applicants also must provide Certificates of Insurance to demonstrate appropriate insurance coverage for the work to be performed. These certificates are available from a contractor’s insurer, and must contain the following basic information:

  • indicate current general liability, workers’ compensation and automobile liability coverage;
  • reflect minimum general liability coverage of $500,000;
  • describe the type of operations/work covered by the insurance;
  • name the City of Philadelphia as Certificate Holder and an Additional Insured; and,
  • include contact name and phone number of the contractor’s insurance broker or agent.

Display of License Information

In addition to the new tax clearance and insurance certificate requirements, contractors should also be aware that recent changes to Title 9 of the Philadelphia Code have made display requirements significantly more stringent. Philadelphia Code Section 9-1004 lays out the requirements for trade license holders, including for all contractors, registered master plumbers, electrical contractors, warm air installers and fire suppression system contractors. The Code now requires all licensees to display their license number in the following places:

  • each job site;
  • business signage;
  • advertisements;
  • stationery / correspondence;
  • proposals and contracts; and,
  • all company vehicles when used during the course of business.

The Code requires the displays to be at least two (2) inches high and clearly visible. Unauthorized transfer or sharing of license numbers or failure to display required license information may result in license suspension, fines, or license revocation.

These new requirements represent a continued effort to shore up construction safety in the City. For more information about how these requirements affect you and your business, please contact Edward Seglias, Partner in the Construction Group of Cohen Seglias at 215.564.1700 or eseglias@cohenseglias.com.

Daniel E. Fierstein and Catherine Nguyen, both Associates in the Construction Group of Cohen Seglias, also contributed to this article.