ENROLLED ORIGINAL
AN ACT
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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To amend Chapter 28 of Title 47 of the District of Columbia Official Code to create a Board of
Construction Managers and General Contractors, to establish eligibility criteria for the
licensure of construction managers and residential and commercial contractors, and to
establish a Residential and Commercial Contractor Guaranty and Education Fund.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
act may be cited as the “General Contractor Licensing Amendment Act of 2024”.
Sec. 2. Chapter 28 of Title 47 of the District of Columbia Official Code is amended as
follows:
(a) The table of contents is amended by adding a new part designation Part D-ii to read as
follows:
“Part D-ii. Construction managers and general contractors.
“Sec. 47-2853.78. Definitions.
“Sec. 47.2853.78a. Scope of practice for construction management and general
contracting.
“Sec. 47-2853.78b. Necessity for license; exemptions.
“Sec. 47-2853.78c. Eligibility criteria for construction managers and general contractors.
“Sec. 47-2853.78d. Financial statements or balance sheets; surety bonds in lieu of
providing financial statements or balance sheets.
“Sec. 47-2853.78e. Recovery on bond.
“Sec. 47-2853.78f. Establishment of Residential and Commercial Contractor Guaranty
and Education Fund.
“Sec. 47-2853.78g. Applications for payments from Fund; maximum payment;
management of Fund.
“Sec. 47-2853.78h. Responsibility for contracting with persons lacking proper license.
“Sec. 47-2853.78i. Certain representations prohibited.”.
(b) Section 47-2853.04(a) is amended as follows:
(1) A new paragraph (8A) is added to read as follows:
“(8A) Commercial contractor;”.
(2) A new paragraph (11A) is added to read as follows:
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“(11A) Construction manager;”.
(3) A new paragraph (29A) is added to read as follows:
“(29A) Residential contractor;”.
(c) Section 47-2853.06 is amended by adding a new subsection (i) to read as follows:
“(i)(1) There is established a Board of Construction Managers and General Contractors to
consist of 8 members, of whom:
“(A) One shall be a construction manager licensed in the District with at
least 2 years of experience in construction management;
“(B) Two shall be general contractors licensed in the District with at least
2 years of experience in residential property construction or repair;
“(C) Two shall be general contractors licensed in the District with at least
2 years of experience in commercial property construction or repair;
“(D) One shall be a consumer member;
“(E) One shall be a member of the District of Columbia Bar in good
standing engaged in the practice of construction law or finance law; and
“(F) One shall be an ex officio non-voting member designated by the
Director of the Department of Buildings.
“(2) The Board shall regulate the practice of construction management and
general contracting, except as provided for in §§ 47-2853.78a and 47-2853.78b(b). The Board
may establish insurance requirements, subcategories for licensure, education, and experience
requirements for licensure, and other requirements.”.
(d) Subchapter I-B is amended by adding a new Part D-ii to read as follows:
“Part D-ii. Construction managers and general contractors.
“Sec. 47-2853.78. Definitions.
“As used in this part:
“(1) “Board” means the Board of Construction Managers and General
Contractors.
“(2) “Commercial contractor” means a contractor who acts with regard to all or
any part of any real property or appurtenance that is not residential real property.
“(3) “Commercial property” shall have the same meaning as set forth in § 42–
2103(1A).
“(4) “Construction manager” means any person, firm, partnership, corporation,
association, or other organization or entity which, for compensation, is contracted to supervise
and coordinate the work of design professionals and multiple general contractors, while allowing
the design professionals and general contractors to control individual operations and the manner
of design and construction. Services provided by a construction manager may include:
“(A) Coordination, management, or supervision of design or construction;
“(B) Cost management, including estimates of construction costs and
development of project budgets;
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“(C) Scheduling, which may include critical path techniques, for all phases
of the project;
“(D) Design review, including review of formal design submission and
construction feasibility; and
“(E) Bid packaging and contractor selection.
“(5) “Contractor” means any person, firm, partnership, corporation, association,
or other organization or entity which, for compensation or with the intent to sell, undertakes or
offers to undertake, or submits a bid to construct, alter, repair, add to, subtract from, improve,
move, wreck, or demolish any building, highway, road, railroad, excavation, or other structure,
project, development or improvement.
“(6) “Licensee” means a residential contractor, commercial contractor, or
construction manager licensed under this part.
“(7) “Residential contractor” means a contractor acting with regard to all or any
part of a residential real property or appurtenance.
“(8) “Residential real property” means:
“(A) A single-family residential dwelling or unit, including a
condominium, cooperative unit, townhouse, or rowhouse; or
“(B) Improved real estate that consists of 2 residential units or more.
“Sec. 47-2853.78a. Scope of practice for construction management and general
contracting.
“(a) For purposes of this part, the term “practice of construction management” means
scheduling, estimating and approving, coordinating, managing or directing phases of a project
for the construction, demolition, alteration, or reconstruction of any commercial or residential
property.
“(b)(1) For purposes of this part, the term “practice of general contracting” means
undertaking or offering to undertake, or submitting a bid to construct, alter, repair, add to,
subtract from, improve, move, wreck, or demolish any building, excavation or other structure,
project, development, or improvement with respect to residential real property or commercial
property.
“(2) For purposes of this part, the term “practice of general contracting” does not
include construction work on electrical systems, elevators, fire protection systems, refrigeration
or air conditioning systems, or any other work that requires a specific trade license issued by the
Board of Industrial Trades pursuant to this subchapter.
“Sec. 47-2853.78b. Necessity for license; exemptions.
“(a) No person may engage in the District in any activity as a construction manager,
commercial contractor, or residential contractor, or submit a bid to perform work as a
construction manager, commercial contractor, or residential contractor, as defined in § 47-
2853.78, unless that person holds an applicable license issued under the provisions of this part.
“(b) The following are exempt from licensure:
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“(1) Work done exclusively by employees of the United States government or the
District of Columbia;
“(2) The sale or installation of a finished product, material or article, or
merchandise that is not actually fabricated into and does not become a permanent fixed part of
the structure;
“(3) A material supplier who renders advice concerning use of products sold and
who does not provide construction or installation services;
“(4) Work performed by an employer’s employees, for which the employees are
paid regular wages and not a contract price, on commercial property or residential real property
owned or leased by the employer which is not intended for speculative sale or lease;
“(5) Work performed by a public utility, as defined in § 34–214;
“(6) Work performed directly under the supervision of a licensed residential or
commercial contractor when the work is performed by:
“(A) A student in good standing and enrolled in a public or private
institution of higher education;
“(B) A student enrolled in a career or technical education program; or
“(C) An apprentice; and
“(7) Work personally performed on a residential real property by the owner or
occupant thereof.
“Sec. 47-2853.78c. Eligibility criteria for construction managers and general contractors.
“(a) Notwithstanding subsection (b) of this section, an applicant for licensure shall
establish to the satisfaction of the Board that the applicant:
“(1) For a construction manager license:
“(A) Holds one of the following licenses:
“(i) Commercial contractor;
“(ii) Residential contractor;
“(iii) Professional engineer; or
“(iv) Architect; and
“(B) Has not had a license held under subparagraph (A) of this paragraph
denied, suspended, or revoked within one year prior to the date on which the application is filed.
“(2) For a commercial or residential contractor license:
“(A) Has at least 4,000 hours or 2 years of experience performing
construction work on commercial properties if he or she is applying for a commercial contractor
license, or has at least 4,000 hours or 2 years of experience performing home improvement or
construction work within the last 6 years if he or she applying for a residential contractor license,
or has comparable experience or a combination of education and experience that the Board
deems equivalent;
“(B) Has passed an examination or examinations given by or under the
direction of the Board, or any other examination acceptable to the Board;
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“(C) Is compliant with financial statement, balance sheet, or bonding
requirements under § 47-2853.78d and any insurance requirements established by the Board;
“(D) Has not had a license issued pursuant to this part denied, suspended,
or revoked within one year prior to the date on which the application is filed; and
“(E) Provides such additional evidence as the Board determines is
necessary.
“(b) A construction manager, residential contractor, or commercial contractor with an
active basic business license issued prior to the effective date of this act is deemed to be eligible
for licensure until the expiration of his or her basic business license and shall satisfy the
eligibility requirements for licensure at the renewal of his or her business license.
“Sec. 47-2853.78d. Financial statements or balance sheets; surety bonds in lieu of
providing financial statements or balance sheets.
“(a) As proof of financial responsibility, an applicant for a commercial or residential
contractor license shall demonstrate compliance with a minimum net worth requirement fixed by
the Board by providing either:
“(1) A financial statement on a form prescribed by the Board, subject to additional
verification if the Board determines that sufficient questions or ambiguities exist in the
applicant’s presentation of financial information; or
“(2) A balance sheet reviewed by a certified public accountant licensed by the
Board of Accountancy;
“(b)(1) Notwithstanding subsection (a) of this section, an applicant for a commercial or
residential contractor license may demonstrate financial responsibility by electing to obtain and
maintain a bond:
“(A) In the amount of $25,000 for a residential contractor; or
“(B) In an amount fixed by the Board, for a commercial contractor.
“(2) Proof of current bond shall be submitted to the Board and shall come from a
corporate surety certified by the U.S. Department of Treasury to do business pursuant to 31
U.S.C. § 9305.
“Sec. 47-2853.78e. Recovery on bond.
“(a)(1) If a commercial or residential contractor who elected to hold a continuous bond
pursuant to § 47-2853.78d(b) fails to satisfy a judgment awarded by a court of competent
jurisdiction in the District for improper or dishonest conduct, the judgment creditor shall have a
claim against the surety bond for such damages. In order to recover the amount of any unpaid
judgment, up to but not exceeding the maximum liability fixed by the Board, the judgment
creditor shall meet the eligibility requirements of § 47-2853.78g(b)(1) through (5) and shall bring
suit directly on the surety bond no later than 12 months after the judgment becomes final.
“(2) The liability of such surety shall be limited to actual monetary loss, court
costs, and attorney fees assessed against the contractor as part of the underlying judgment. The
liability of such surety shall not include any sums representing interest or punitive damages
assessed against the contractor.
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“(3) The corporate surety shall notify the Board when a claim is made against a
contractor’s bond, when a claim is paid, and when the bond is cancelled. Such notification shall
include the amount of the claim and the circumstances surrounding the claim. Notification of
cancellation shall include the effective date and reason for the cancellation. The bond may be
cancelled as to future liability by the contractor’s surety upon 30 days’ notice to the Board.
“Sec. 47-2853.78f. Establishment of Residential and Commercial Contractor Guaranty
and Education Fund.
“(a) There is established a Residential and Commercial Contractor Guaranty and
Education Fund (“Fund”).
“(b)(1) On or after the effective date of the Construction Manager and General Contractor
Licensing Amendment Act of 2024, passed on 2nd reading on October 1, 2024 (Enrolled version
of Bill 25-737), every commercial residential and residential contractor licensed under this
subchapter shall, as a condition for renewing his or her license, pay, in addition to other fees
required under this subchapter, a sum to be established by the Mayor for deposit into the Fund.
“(2) Such amounts as may be appropriated to the Fund shall be deposited into the
Fund.
“(3)(A) The money deposited into the Fund but not expended in a fiscal year shall
not revert to the unassigned fund balance of the General Fund of the District of Columbia at the
end of a fiscal year, or at any other time.
“(B) Subject to authorization in an approved budget and financial plan,
any funds appropriated in the Fund shall be continually available without regard to fiscal year
limitation.
“Sec. 47-2853.78g. Applications for payments from Fund; maximum payment;
management of Fund.
“(a) Any person who obtains final judgment, including a settlement reduced to a final
judgment, in any court of competent jurisdiction in the District against any other person on the
grounds of fraud, misrepresentation, deceit, embezzlement, false pretenses, forgery, or violations
of the provisions of this subchapter, arising directly out of any transaction which occurred when
the other person was licensed under this subchapter, during the course of which the licensee
performed acts for which a license is required under this subchapter, and which transaction
occurred on or after the effective date of the Construction Manager and General Contractor
Licensing Amendment Act of 2024, passed on 2nd reading on October 1, 2024 (Enrolled version
of Bill 25-737) (“Act”); and who meets the requirements of subsection (b) of this section, may,
upon termination of all proceedings, including reviews and appeals in connection with the
judgment, file a written application, under oath, with the Mayor for an order directing payment
from the Fund of the amount of actual and direct loss in the transaction (excluding the amount of
any interest, attorney’s fees, court costs, or punitive or exemplary damages) which remains
unpaid upon the judgment. The application shall be filed no later 12 months after the date on
which the judgment became final.
“(b) A person filing an application meets the requirements of this subsection if:
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“(1) The person is not an employee of the licensee;
“(2) The person is not a vendor of the licensee;
“(3) The person is not another licensee;
“(4) The person is not spouse or child of the licensee;
“(5) The person is not a financial or lending institution or any person whose
business involves the construction or development of real property;
“(6) The person has made an investigation as is reasonably necessary to determine
whether the judgment debtor possesses real or personal property or other assets that are liable to
be sold or applied in satisfaction of the final judgment and has filed with the Board an affidavit
that states that the investigation has been made; and
“(7) The investigation required pursuant to paragraph (6) of this subsection has
not disclosed the existence of any real or personal property or other assets, or, if the investigation
has disclosed the existence of real or personal property or other assets (which shall be described
in the affidavit), the person has taken all action necessary for the sale or application, and the
amount so realized is insufficient to satisfy the judgment (which amount shall have been stated in
the affidavit together with the balance remaining due on the judgment after sale or application).
“(c) The maximum amount that may be paid from the Fund to satisfy in whole or in part a
final judgment against a licensee as provided for herein, including any amount paid from
recovery on a contractor’s bond pursuant to § 47-2853.78e, shall be as follows:
Amount
$10,000 ...... Judgment is final during the first year following the effective date of the Act;
$20,000 ...... Judgment is