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New Castle amends contractor rules to exempt owner-builders, lowers registration fee
Summary
The City Council approved amendments to Chapter 150 clarifying that homeowners acting as their own general contractors are not required to hold a general-contractor registration, reduced the registration fee and clarified insurance and workers-comp expectations for contractors working on others' property.
The New Castle City Council on Feb. 10 approved amendments to Chapter 150 of the city code clarifying who must register as a general contractor and lowering the registration fee.
City staff said the ordinance change clarifies that a homeowner or property owner acting as their own contractor does not need to pay the general-contractor registration fee or show liability insurance and workers' compensation coverage, while contractors working on other people’s properties must register and show the required coverage.
A staff member leading the discussion told the council, “It does not require a general contractor's license for a homeowner or property owner that's gonna be acting as their own contractor. Therefore, they don't have to pay the permit fee.” The staff member added, “This way, it protects homeowners as well.”
Council members asked whether the change is a registration or a license and how the city would enforce coverage. Staff said the amendment is principally a clarification following adoption of the 2018 building code: the item cleans up language in Chapter 150 and Appendix A, reduces the initial fee from $200 to $100, and sets the renewal at $50. Staff explained that trades such as plumbing, electrical and mechanical remain separately licensed and that the registration helps verify liability insurance and workers' compensation for contractors working on others' property.
During the discussion council members raised implementation questions: whether proof of coverage could be checked at the time of permit application, how registrations would be associated with a company when multiple contractors work under one business name, and what enforcement tools the city would have if a contractor repeatedly failed to meet obligations. Staff said registrations and insurance documents would create a paper trail that city staff could review and use to flag repeat offenders.
Planning commission staff recommended approval. The council moved, seconded and approved the ordinance amendment. The motion passed with no further amendments.
The ordinance change applies citywide and does not alter trade-specific licenses; it clarifies the general-contractor registration requirement, adds an explicit homeowner exemption for owner-build projects, and reduces the registration fee and renewal amount.
Council members said staff will monitor implementation and enforcement and that staff will continue outreach about the change to local builders and permit applicants.
