Licensing and permitting issues in Colorado are very confusing. So we here at Square One have decided to write this article to help give the home owner a basic understanding of these processes and the benefits to you as the decision maker of the home.

Licensing for an HVAC contracting firm is different from that of Electricians or a Plumbers etc. With other industries a contracted firm or individual must obtain a state wide license to do work in Colorado. These licenses are generally excepted throughout the entire state.

HVAC contractors do not enjoy this privilege and must be licensed in each and every city they work in. This is very expensive for us to maintain, not to mention that the licences do not all come up for the typical 1 year renewal at the same time. So it is a constant struggle to maintain all of these licenses. We are hoping that future legislation may help to simplify this process but it is what it is for now.

Square One is joined with the rest of the international HVAC community who’s work is ultimately governed by the rules and laws of the International Code Council (ICC), where Square One is also a member. However each state, county and city may have building codes that are more exact for their specific area and are therefore even more strict than that of the ICC. For this reason we must be attentive to the individual laws of each location and work closely with your local building departments and the equipment manufacturers when performing work in your home. It is very important to check with your local building department to make sure that the contractor your about to hire is in fact licensed for your area. This public information can be provided to you by your building department. Many can even be found online at the building department’s website. You may also ask your HVAC contractor to provide his/her company license for you to see. Contractors do not always have these licenses on their persons so call ahead to the main office if you would like to see it. Don’t be fooled by the one who says that they have a license somewhere else in the state and are therefore licensed in your area. If they don’t have a license for your City and/or County, they won’t be able to obtain the required permit(s) in most jurisdictions. For more information about choosing contractors please visit our Choosing a Contractor page.

Permits, as it pertains to HVAC, are an extremely hot topic in the Colorado market. Some contractors will not disclose the fact that permits are required for almost any kind of work done in your home by any contractor anywhere in the state of Colorado. Usually minor repairs (requiring NO modifications) and don’t create an unsafe condition are found to be an exception but always check with your local building department first. Emergencies are also the exception but a permit will still need to be obtained by the next working day. The consequences to the home owner could be great. I will insert the MINIMUM ICC standard below which basically boils down to this. If you are adding new equipment (never existed before), OR changing out any current equipment (even like for like), Or modifying the structure in any way, you will need to obtain a building permit. It’s also a good idea to verify that your project doesn’t violate any neighborhood restrictions by contacting your HOA.

International Mechanical Code (IMC) 2009, chptr 1, part 2, Section 106 “PERMITS”

“106.1 When required. An owner, authorized agent or contractor who desires to erect, install, enlarge, alter, repair, remove, convert or replace a mechanical system, the installation of which is regulated by this code, or to cause such work to be done, shall first make application to the code official and obtain the required permit for the work.”

A permit serves multiple purposes. Permits ensure that the contractor has paid the applicable sales tax for the equipment and any related parts in the permitting jurisdiction (Not all taxes are included in the building permit only those in which the permitting jurisdiction is allowed to enforce). A permit includes a visit from a city inspector, (not a home inspector), from your building department. He/She is the legal authority which carries the authority to inspect the contractor’s work to see if the job was done to at least the minimum industry standards. This will offer the home owner piece of mind knowing that the work was done right. Also if there is ever a question, say when the house goes up for sale, about the equipment not being to code by a buyer or their selected home inspector, the home owner can produce the finished permit and in many cases diffuse the issue, assuming that no changes were made after the original inspection.

It is important to remember that obtaining a building permit  is the law and neither the home owner or the contractor has a choice in the matter. It may also absolve the home owner of any user tax liabilities that will be associated with the transfer of ownership of any and all taxable products used for the specific permitted job. That is assuming that the permit filed with the appropriate building department contained accurate information. As with the licenses, do not be fooled by the contractor that tells you that permits are unnecessary and or a waste of time because it is you who will ultimately pay the consequences.

I hope this helps clarify a complicated issue for you and as usual, we are always happy to hear from you if you have any questions whatsoever.