Philadelphia building inspectors recently mandated construction be halted on more than 80 active projects associated with an unlicensed contractor, city officials said.
Stop work orders were posted at sites affiliated with Elegance Group LLC during a sweep Saturday, according to the city’s Department of Licenses and Inspections. The move came after a municipal board ruled that the company was created to skirt code enforcement.
NBC10, which detailed the scheme in an investigative segment in early December, reported that inspectors blamed Elegance Group for an August collapse in North Philadelphia that forced the demolition of an adjacent home.
“Public safety is our top priority,” Basil Merenda, head of L&I’s Inspections, Safety and Compliance (ISC) unit, said in a statement Monday evening. “When contractors operate outside the law and risk the well-being of workers and residents, L&I ISC will act swiftly and decisively.
“Contractors must adhere to the licensing requirements and established safety standards, or they will not be permitted to build in this city.”
ISC alleges that the folks behind Expert Builders, another general contracting firm, formed Elegance Group and shifted its work over to the new company when their license was suspended.
Inspectors moved Feb. 19 to put the license on hold for three months after determining that Expert Builders had falsified engineering documents, according information posted to L&I’s website. A little over a week later, the same business owner applied for a new license as Elegance Group, officials said.
The Board of Licenses and Inspection Review ruled Dec. 18 that the contractor “engaged in an illegal practice often referred to as the development of an alter ego company to evade regulator requirements,” ISC said in a news release Monday.
A representative from Elegance Group, in response to an email sent to an address listed in permitting documents, said Tuesday that they "respect L&I's decision."
"We are no longer in business," the emailer wrote. "The owners of the properties have to find other contractors."
Any property owner whose project was affected by the stop work order is advised to contact L&I’s Audits and Investigations Unit at AIU@phila.gov or 215-686-2616 for guidance on next steps. Data from L&I’s eCLIPSE system shows dozens of permits issued to Elegance Group, primarily in North Philadelphia.
ISC leaders said Saturday’s sweep is indicative of a broader effort to crack down on unlicensed contractors and potentially unsafe work.
Parker, in the first year of her administration, split L&I into separate two units, creating ISC to specifically handle construction and building code enforcement.
