Authority Industries Contractor Code of Conduct
The Authority Industries Contractor Code of Conduct establishes the behavioral, ethical, and operational standards that every contractor listed through the Authority Industries network must meet and maintain. This page covers the full scope of those standards — from how they are defined and enforced to the specific scenarios where they apply and the thresholds that determine when a contractor remains in good standing versus when removal proceedings begin. Understanding these standards matters because the Authority Industries consumer protection framework depends directly on contractor adherence to documented, enforceable rules rather than informal expectations.
Definition and scope
The Contractor Code of Conduct is a formal behavioral agreement binding all contractors who participate in the Authority Industries network, regardless of trade category, geographic region, or network membership tier. It applies from the moment a provider completes onboarding and remains active for the full duration of their listing.
The code covers five core domains:
- Licensing and legal compliance — Contractors must hold all trade-specific licenses required by the jurisdiction in which they operate. Licensing requirements vary by state and trade; the Authority Industries licensing requirements by trade reference provides the jurisdiction-by-jurisdiction breakdown.
- Insurance adequacy — General liability coverage must meet the minimums defined in the Authority Industries insurance standards, which align with the contractor insurance benchmarks published by the National Association of Insurance Commissioners (NAIC).
- Transparent pricing — All estimates must be provided in writing before work begins. Oral-only quotes are treated as a code violation.
- Professional conduct — This includes punctuality, worksite cleanliness, respectful communication, and accurate representation of scope and timeline.
5.
The code explicitly excludes subcontractors hired by listed contractors unless those subcontractors are themselves independently listed. This boundary limits direct enforcement scope but does not limit the primary contractor's accountability for work performed on their behalf.
How it works
When a contractor applies for a listing, code adherence is evaluated as part of the Authority Industries vetting process. Applicants must acknowledge the code in writing as a condition of approval. The acknowledgment is not a one-time event — contractors are required to re-confirm adherence annually or whenever the code is materially updated.
Ongoing compliance is monitored through three mechanisms:
- Homeowner-submitted reviews, assessed under the Authority Industries ratings and reviews methodology
- Periodic documentation audits, which verify that licenses and insurance certificates on file remain current
- Complaint-triggered investigations, initiated when a homeowner files a formal grievance
Each mechanism feeds into the contractor's performance record. Contractors with a performance score below the threshold defined in Authority Industries contractor performance metrics are flagged for review. Flagged contractors receive a written notice and a 30-day remediation window before any suspension action is taken, except in cases involving active consumer harm, fraud, or license revocation.
Common scenarios
Scenario 1 — Unlicensed work in a regulated trade. A plumbing contractor listed in a state that requires a journeyman or master plumber license allows an unlicensed employee to perform permitted work without supervision. This constitutes a direct violation of the licensing domain of the code. Because plumbing is a regulated trade in all 50 U.S. states (National Conference of State Legislatures, contractor licensing overview), the violation is treated as a Tier A (immediate-review) infraction.
Scenario 2 — Oral quote followed by inflated invoice. A homeowner receives a verbal estimate for HVAC replacement. The final invoice exceeds that estimate by 40% with no written change order. This violates the transparent pricing domain.
Scenario 3 — Insurance lapse. A roofing contractor's general liability policy lapses during renewal and they perform a job during the gap period. Even if no incident occurs, this is a code violation. The contractor is suspended from active listings until a valid certificate of insurance is submitted and verified.
Scenario 4 — Dispute non-response. A homeowner files a complaint about incomplete electrical work. The contractor does not respond within the 5-business-day window. Non-response is itself a code violation, independent of whether the underlying complaint is substantiated.
Decision boundaries
The code distinguishes between two violation categories based on severity and consumer risk:
| Category | Trigger Examples | general timeframe | Possible Outcome |
|---|---|---|---|
| Tier B — Standard Review | Oral-only quote, single missed dispute response, minor insurance documentation gap | 30-day remediation window issued | Written warning, performance flag, or suspension if uncorrected |
A contractor who accumulates 3 Tier B violations within a rolling 12-month period is automatically escalated to Tier A review, regardless of whether each individual violation was resolved. This escalation rule prevents pattern violations from remaining invisible to the review system.
Reinstatement after suspension requires documentation of corrective action, re-acknowledgment of the code, and a clean 90-day monitoring period. Permanent removal decisions are final and are not subject to appeals under the standard dispute process; they require a separate written petition reviewed by network administration.
Contractors disputing a violation finding may submit supporting documentation, but the burden of proof rests with the contractor, consistent with the standards outlined in the Authority Industries verified contractor criteria.
References
- National Conference of State Legislatures — Contractor Licensing
- National Association of Insurance Commissioners (NAIC)
- Federal Trade Commission — Home Improvement Scams and Contractor Fraud
- U.S. Small Business Administration — Licensing and Permits