FIND A CONTRACTOR BUYER'S GUIDE
BECOME AN INDUSTRY PARTNER
MCAA Logo
MEMBER LOGIN JOIN
NEWS
World of Concrete 2026 Registration Is Open ↗

No Ticket, No Payment

Words: Timothy AhoLack of proper licensing can have a tremendous impact on your ability to secure payment for work performed. In some states, lack of licensure inhibits claims for payment. In others, lack of licensing can be a complete bar to recovery. Lack of licensure can actually create a claim where an owner can force disgorgement of all monies paid to the unlicensed contractor for work performed.

A recent District of Columbia case highlights the extreme risk associated with failure to comply with applicable licensing regulations.

Background of District of Columbia Law
The District of Columbia has long required all contractors who perform work on home improvement jobs to obtain a license to act as a "home improvement contractor." Unlike the states that have some elasticity in the requirements, the District of Columbia took a harsh approach to failure to comply with the regulations. Specifically, contracts for work to be performed by unlicensed contractors were deemed void from the initiation of the contract.

In application, this bright line test has resulted in some harsh cases. The courts have ruled that an owner can accept the benefit of a fully and properly performed contract. The owner has a complete defense to payment. Indeed, the owner can even institute its own offensive claim for disgorgement of funds paid to the contractor and will win under the law of the District of Columbia.

The Recent Case
The September 2007 decision in the case of Carlson Construction v. Dupont West Condominium addresses the question of exactly what constitutes "home improvement." In Carlson, a contractor was hired to renovate the common areas of a condominium structure. The scope included work in the vestibule, lobby, elevators, mailroom and hallways. The contractor was not retained to perform work on the units.

The condominium association made a single progress payment. Before the work was completed, the association learned the contractor was not licensed as a home improvement contractor. The association refused to make further payments. The contractor sued for breach of contract, and the association counterclaimed seeking return of all funds paid.

The trial court ruled that the regulations required contractors working on condominium projects to obtain home improvement contractor licenses. Based on the regulations, the trial court granted summary judgment to the association and ordered the contractor to refund all monies paid.

On appeal, the District of Columbia Court of Appeals affirmed the trial court's rulings. Reviewing the statute, the court found that "home improvement" as defined included work on "residential property." This language expressly included individual apartments. The court found no reason to distinguish between apartments being included and condominiums being excluded from application of the license requirements. The statute further expressly required licensure for areas that were "appurtenant" to residential property. As such, even common areas were included within the license requirements. The court upheld summary judgment in favor of the owner and return of all funds paid to the contractor.

Conclusion
Failing to research and obtain required licenses could have extremely harsh results. The result in the Carlson case highlights the potential financial impact of lack of licensure, in addition to potential criminal or administrative complaints. At its heart, however, this type of case emphasizes the need to avoid self-inflicted misery. Prudent contractors can and should learn from this lesson. Fully research and obtain required licenses in accordance with the laws of their subject states.
 0
2026 Masonry Alliance Program Spots Now Open To All Suppliers
November 2025

The Mason Contractors Association of America (MCAA) has officially opened all remaining spots for its 2026 Masonry Alliance Program (MAP) to the public. Following the renewal period for current partners, a limited number of positions are now available.

Read More
The QUIKRETE Companies Continues Its Multi-Tiered Involvement in the 2026 Masonry Alliance Program
November 2025

The Mason Contractors Association of America (MCAA) is happy to announce that The QUIKRETE Companies will reaffirm its significant, multi-level commitment for the 2026 Masonry Alliance Program.

Industry News
Read More
Precision, Performance, and Innovation for Masonry Professionals
November 2025

For many masons and contractors, EZG is synonymous with reliable, durable, and efficient equipment. Tools like the Mud Hog Mixer, the Grout Hog Material Delivery System, and Hog Pumps have become staples on job sites across the country. But behind every p

Abigail Spung
MAP Partner
Read More
AVAILABLE NOW: The GEORGE Wall Evaluation Hardware and Software Kit
November 2025

We're thrilled to announce the launch of the GEORGE Wall Evaluation Kit, a revolutionary all-in-one system built specifically for the entire masonry industry.

Dan Kamys
Read More