Philadelphia, December 2, 2025
A contractor in Philadelphia has been found circumventing city regulations by forming a new company, allowing him to continue operations after a house collapse incident. The contractor, linked to multiple violations, established Expert Builders despite having his license suspended. This situation highlights significant enforcement gaps in the city and raises red flags about construction safety. The incident has led to concerns regarding contractor accountability and the need for regulatory reforms to protect residents.
Philadelphia Contractor Exploits Licensing Loophole to Continue Operations After House Collapse
Philadelphia, PA – A contractor linked to a recent house collapse in North Philadelphia is circumventing city regulations by establishing a new company, allowing him to continue obtaining building permits despite a history of violations. This practice highlights significant gaps in the city’s enforcement mechanisms and raises concerns about construction safety standards.
Contractor’s License Revocation and Subsequent Actions
In late August, a home in North Philadelphia collapsed, leading the city’s Department of Licenses and Inspections (L&I) to issue over 10 violations to the contractor, Elegance Group. These violations included the use of unlicensed and suspended contractors on-site. Despite these infractions, the president of Elegance Group, Andrei Hlushan, established a new company, Expert Builders, which had its contracting license suspended weeks prior for falsifying engineering reports. This maneuver allowed Elegance Group to continue its operations under a different name, effectively bypassing the license suspension. L&I officials acknowledged the loophole but stated that due process rights prevent immediate revocation of the new license. The department is exploring legislative changes to address such circumventions. Additionally, Elegance Group has accumulated over 100 violations this year and owes more than $20,000 in fines. The company has appealed the license revocation, allowing it to operate until the appeal is resolved. A hearing is scheduled for December 18.
Historical Context and Regulatory Challenges
This incident is not isolated. In April 2024, a family’s rowhouse in the Francisville neighborhood was severely damaged due to excavation work by Dornelas Construction Inc., a company with a history of causing damage to neighboring properties. Despite multiple violations and a suspended license for an associated company, Dornelas Construction continued operations, underscoring systemic issues in contractor accountability and city enforcement.
These cases highlight the need for more robust enforcement and regulatory reforms to ensure construction safety and protect residents from negligent practices.
Recommendations for Homeowners
Homeowners are advised to remain vigilant during adjacent construction projects. If construction causes damage, they should notify the property owner and contractor, obtain the contractor’s liability insurance information, and consider seeking legal representation. For immediate safety concerns, especially if a neighboring construction project poses a risk of collapse, homeowners should evacuate and call 911.
Conclusion
The exploitation of licensing loopholes by contractors like Elegance Group and Dornelas Construction Inc. underscores the urgent need for regulatory reforms in Philadelphia’s construction industry. Strengthening enforcement mechanisms and closing existing loopholes are essential steps toward ensuring the safety and well-being of residents.
FAQ
What is the licensing loophole exploited by contractors in Philadelphia?
Contractors whose licenses are revoked can establish new companies to obtain building permits, effectively circumventing enforcement actions.
What actions is the Department of Licenses and Inspections (L&I) taking in response?
L&I is exploring legislative changes to address the loophole and is considering a phased approach to enforcement, including withholding permits for contractors with outstanding fines.
How can homeowners protect themselves during adjacent construction projects?
Homeowners should monitor construction activities, report any damage to the property owner and contractor, and seek legal advice if necessary. In cases of immediate danger, evacuate and contact emergency services.
Key Features
| Feature | Description |
|---|---|
| Licensing Loophole | Contractors can establish new companies to obtain building permits after license revocation. |
| L&I Enforcement | L&I is considering legislative changes and phased enforcement to address the loophole. |
| Homeowner Recommendations | Homeowners should monitor construction, report damage, seek legal advice, and contact emergency services if necessary. |
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Author: STAFF HERE PHILADELPHIA WRITER
The PHILADELPHIA STAFF WRITER represents the experienced team at HEREPhiladelphia.com, your go-to source for actionable local news and information in Philadelphia, Philadelphia County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Mummers Parade, Philadelphia Flower Show, and Thanksgiving Day Parade. Our coverage extends to key organizations like the Greater Philadelphia Chamber of Commerce and United Way of Greater Philadelphia, plus leading businesses in telecommunications, food services, and healthcare that power the local economy such as Comcast, Aramark, and Children's Hospital of Philadelphia. As part of the broader HERE network, we provide comprehensive, credible insights into Pennsylvania's dynamic landscape.
