Contractors and residents complain about late changes to village septic grant program

Several contractors and residents told the council during open forum that a town-run Chappacutt Village septic grant program changed required insurance and the three‑quote rule late in the process, disadvantaging installers who purchased insurance to meet the original requirements and leaving homeowners struggling to find multiple insured bidders.

One local designer said the program’s original requirement for pollution/indemnity insurance was expensive and that several firms had bought additional coverage to qualify. The designer said an internal decision subsequently removed or relaxed the insurance requirement after organizers found homeowners could not obtain three competitive insured quotes — a condition required by the grant to ensure competitive pricing.

Town staff reported the change came after difficulty obtaining three competitive bids from insured contractors for some applicants; the program manager and the Rhode Island Interlocal Trust had recommended adjustments to keep the program viable and preserve grant funding. Officials said the town’s agreement is with the homeowner as grantee, and the program administrators attempted to balance contractor availability, homeowner timelines and insurer guidance.

Councilors asked planning staff and the grant administrator to review the implementation, consider extending deadlines if necessary, and report back. Residents asked for clearer contractor lists and better communication. Council agreed to have planning staff and town administration investigate whether deadlines can be extended or other remedies applied so eligible homeowners are not excluded and contractors who purchased coverage are not unfairly disadvantaged.