A Philadelphia city councilmember has called for stronger safeguards after an NBC10 Investigators report exposed a loophole that lets contractors continue building while their licenses are suspended.
Construction Loophole
On Dec. 1, NBC10 Investigators revealed that contractors can create an ‘alter ego’ company to keep working even as their primary license is being suspended or revoked.
The term ‘alter ego’ refers to a different business name used by the same owners to obtain a new license and resume construction activities.
The report cited the case of Elegance Group, whose owners had their license suspended under the name Expert Builders just days before a home collapse.
New Bill
In response, Philadelphia councilmembers passed a bill on Thursday, Dec. 4, aimed at preventing similar incidents.
The legislation would require contractors to insure the properties adjacent to their construction sites, adding a layer of accountability.
Councilmember Jeffrey Young
Jeffrey Young, a co‑sponsor of the bill, highlighted the need for stronger oversight.
He said, “This should add some accountability to the process, but there is still work to do in closing the loophole.”
Elaine Thomas Case
Young also referenced Elaine Thomas during his speech to colleagues on Thursday.
Thomas’ home was demolished over the summer after it partially collapsed, a tragedy linked to the construction activities on the neighboring lot.
Philadelphia’s Department of Licenses and Inspections blamed Elegance Group for the collapse after the contractor planned to build a home on the empty lot beside Thomas’ house.
Alter Ego Allegations
During the meeting, Young remarked, “And now today, that same developer that destroyed her home is building under an alter ego.”
He cited the NBC10 report that found Elegance Group’s owners had their license suspended under a different business name, Expert Builders, just days before Thomas’ home collapsed.
The city alleges that the owners of Expert Builders and Elegance Group used the alter‑ego strategy to continue building.
Legislative Response
Young represents part of Center City and most of North Philadelphia, the area where Thomas lived.
He said, “My office is absolutely looking on all legislative realms to figure out how we can close this loophole.”
To address the issue, Young suggested a pre‑licensing test for contractors.
Proposed Measures
He explained, “Make sure they’re actually equipped to do the work. Make sure they actually know how to do the work that they’re set out to do.”
Philadelphia’s License and Inspections department can deny permits if a contractor has outstanding fines and violations.
Enforcement and Violations
Elegance Group allegedly has more than $20,000 in unpaid fines.
The company also faces over 100 violations according to the department.
Bill’s Path Forward
The bill that council passed on Thursday will now go to Mayor Cherelle Parker’s desk for her signature.
If signed, the law would take effect early 2026.
Current Status
NBC10 has reached out to Elegance Group, but the company has not yet responded.
The proposed legislation represents a significant step toward closing the construction‑industry loophole that has endangered Philadelphia residents.
