Regulations outdoor contractors can’t afford to ignore

By Emma Peterson.

John Kenney shares practical strategies for managing licensing, insurance, environmental compliance and zoning requirements.

With everything going on in the United States involving immigration, employment laws and other policies, those are often the first things thought about when it comes to contracting. But there are actually a lot of other important regulations you need to pay attention to as well! To learn about some of the legal challenges contractors need to manage, we hosted John Kenney of Cotney Consulting Group for an episode of From the Ground Up™!

Jurisdiction

The first legal topic John highlighted was licensing jurisdictions. He explained, “Many contractors assume that because they're licensed in one county or in one state or even one town for that matter, they're good to go. But that's actually rarely the case.”

The reality is that it is quite common for different municipalities to have different permitting requirements. So, in order to stay in compliance, contractors need to make sure they are registered for the right work in the right area before starting a project.

The consequences for not having the right licensing when you get to the jobsite can be incredibly damaging – from criminal penalties to monetary fines. John’s advice is simple, “Take the hour to understand local requirements of where you're gonna work. It’s not a hinderance to your business, it’s a process that will save your company weeks of delay and thousands of dollars later down the line.”

Insurance

Another legal hurdle for many outdoor contractors is insurance and liability. In this case, many contractors think that if they have an insurance policy at all, they can check off this box. However, that’s not accurate to the current insurance landscape. John explained:

It used to be if you had your certificate of insurance, you were good to go. I'm starting to see owners that are reviewing certificates more carefully. They're making sure that they are not just glancing at them anymore. For example, I'm seeing contracts that are requiring higher limits.

John’s advice? Work with your legal consultant to make sure you are well-covered. That should include everything from waivers of subrogation and completed operations coverage as well as professional liability and more. As John put it, “You should have a good agent partner that runs through your insurance policy with you alongside your contracts. Because I’ve seen companies unknowingly accept liability that wasn't covered under their insurance policy.”

Environmental

John also highlighted the legal importance of being aware of the environment and sustainability requirements in the area you are working in. He shared, “Environmental compliance is becoming increasingly important as new rules and regulations are developed.”

And for outdoor contractors, environmental compliance doesn’t always look like carbon emissions or recycling initiatives like it does for other businesses. Instead, it often looks more like controlling erosion, storing chemicals/fuels properly and protecting storm drains. John gave an example, “If I'm digging on property and we get a heavy rainstorm and my sediment runs down and gets into a brook or a stream, it could cost you a lot of problems due to local stormwater protection regulations.”

The best way to avoid any issues? A simple phone call or a little online research before your crew hits the jobsite. And not only does taking that time to learn the regulations help your business stay compliant, but it can also help demonstrate your professionalism to your clients. As John put it, “I just had my annual HVAC cleaning yesterday and there were some chemicals involved. And before I could even ask, the contractor went through their whole storage, use and disposal process. And, as a homeowner, that really impressed me and also assured me that I wasn’t going to have any issues down the road.”

Zoning

Lastly, John emphasized the importance of properly navigating zoning rules. Your first instinct might be wondering why whether a property is zoned for residential or commercial matters to an outdoor contractor, but zoning actually regulates more than just the type of buildings that can be constructed in an area. John explained, “Zoning regulations can be related to everything from drainage, retaining walls, fencing and lighting...This is especially important if your client wants things like extra structures or outdoor kitchens built.” On top of the regulations that come from the municipality that you are working in, you also must be aware of other regulatory bodies, such as homeowner associations and historic boards.

Overall, it’s important to make sure that you are aware of all these different legal organizations as your client might not even know themselves. As John put it:

Many contractors rely on owners to handle approvals. And that's very risky. I always encourage contractors to verify all approvals before scheduling work because a lot of times an owner may not know all the processes or permits that are needed and that liability will end up back on you.

Conclusion

These are just four examples of the many regulations that contractors need to navigate in the modern world. It can feel like a lot to manage, but John’s advice for proper compliance really comes down to the same two points: Do your research and keep your records in order. It might seem like a hassle at the time, but putting in the extra work to track your operations closely and double-check the rules in your area can save you a lot of time and money down the road. As John put it, “The companies that build compliance into their operations today [with record keeping and proactive research] are going to be much better positioned to grow tomorrow.” He went on, “Because at the end of the day, compliance isn't about paperwork. It's about running a professional business that protects you both your employees, your customers and your reputation.”

Listen to the whole episode or Watch the recording to learn more about the regulations outdoor contractors have to navigate.