Undoubtedly, securing a contractor or general contractor license is an exciting and fulfilling milestone. In addition to being a time-consuming process because you must complete thorough training, securing a practice license as a contractor or general contractor is costly. Once you secure your license, you can offer your professional services to earn an income and build your professional career.
Unfortunately, you could lose that practice license within the blink of an eye when the Contractor State License Board (CSLB) receives an allegation or complaint against you, pouring all your efforts down the drain. If you hold a general contractor or contractor license, understanding what to do when the CSLB receives a consumer complaint or criminal allegation against you is critical.
At Santa Cruz License Attorney, we understand how the CSLB treats complaints and allegations against licensed contractors and general contractors. If you are in this situation, we can negotiate with them to secure a positive outcome.
Valuable Responsibilities of General Contractors and Contractors
Undoubtedly, the construction industry is one of the largest contributors to the nation’s economy, as it employs many people. With over 300,000 licensed general contractors and contractors, residents of our state have witnessed several construction projects and developments over the years, including bridges, highways, playgrounds, and buildings.
The work you offer the general public and your clients is undoubtedly invaluable and indispensable. While you do not require any formal education to render your services as a contractor or general contractor, the vital work you undertake on a day-to-day basis requires significant know-how, hands-on training, and experience. Moreover, without proper training, the CSLB cannot issue a practice license.
As a qualified and licensed contractor, your work may involve working directly with various clients and managing all facets of any construction or renovation projects. Conversely, if you are a general contractor, your work could involve supplying building materials, labor, and construction equipment.
Depending on a client’s project needs, you may need to work with subcontractors to provide crucial services. Here are three classes of construction contractor licenses you could qualify for:
- Class A—If you qualify or hold a Class license, some of your work duties will include grading, irrigation, excavation, paving, and other related or similar construction activities or work.
- Class B — If you are a trained general building contractor, you will need to acquire a Class B license to offer your services. Some of your services could include building and remodelling residential buildings
- Class C — Holders of Class C practice licenses are also vital in the construction industry. As a holder of a Class C license, your duties could include fencing, masonry, drywall installation, roofing, plumbing, and welding
Having a proper contractor license is key if you want to offer your services lawfully and secure payment without unnecessary problems. Unfortunately, due to the nature of your services, you could face complaints or allegations that could jeopardize your practice license. While several of these allegations are not credible, the licensing board takes every case against a licensed contractor seriously.
Therefore, working with an attorney is crucial if you have received the board’s notice of investigation or are under arrest for any crime that is closely related to your duties as a contractor, including drunk driving. The attorney you hire will be your voice throughout the board’s administrative process, increasing your odds of securing a desirable outcome.
Common Violations or Complaints That Could Attract the CSLB’s Disciplinary Actions
As mentioned in the previous paragraph, due to the nature of your services as a contractor, you are prone to allegations that could put your professional license at risk of suspension or revocation. Hence, understanding what to do when the board receives a complaint against you is crucial.
The CSLB can receive a complaint from your clients, colleagues, or law enforcement agencies following an arrest for a crime that is closely related to your profession. What you do after learning about the complaint or receiving the board’s notification of it could mean the difference between securing a dismissal of the charge or a lighter sentence.
The following are examples of common complaints and allegations that many licensed contractors and general contractors face:
- Operating without a license
- Working while under the influence of illegal drugs or alcohol
- Willfully violating building codes and employment laws
- Poor workmanship
- Illegally obtaining payments
- Committing insurance fraud
- Operating with an expired, suspended, or fraudulently obtained license
- Using misleading, dishonest, or false advertising
- Willfully breaching a contract’s terms
- Abandoning a project without any legal reason
- Hiring unqualified or unlicensed workers
- An arrest or conviction for a crime related to your duties or qualifications
When the board receives a claim against you for any of these violations or complaints, it will launch an investigation and a process to help resolve the issue. Below are possible results of this process:
- Case dismissal based on weak or inconsistent evidence
- A resolution of the case based on a mutual agreement between you and the client
- You will receive a citation or a warning letter
- The board investigators will file a formal accusation against you
- Filing of a criminal charge, depending on the facts of your unique case
If the board’s investigators contact you to gather information about the case, your response could complicate the matter. When they insist that you should speak up, you should politely tell them to speak to your attorney. A skilled attorney can offer you legal guidance and representation during these stressful moments to secure a positive result, including case dismissal or lenient disciplinary action.
A Guide on What to Do After Receiving a CSLB Accusation or Complaint
Receiving a CSLB complaint can be an intimidating process, especially if the allegation is serious and could lead to revocation or suspension of your license. Understanding how to handle the situation can positively influence the outcome of your case. Here are crucial steps you should take when you receive the CSLB notice of a complaint filed against you:
- Take the Alleged Complaint Seriously
Even if you are sure the allegations are untrue or lack credible evidence, you should treat the matter seriously. Ignoring the allegations could lead to harsher disciplinary actions or default findings.
- Avoid Contact with the Client That Filed the Complaint
While you could feel the need to address the issues or misunderstandings with the client, it is advisable not to do so. Confronting or speaking with the complainant could negatively influence the outcome of your case.
- Hire a Dependable Contractor License Defense Attorney
You will rely on an attorney at every stage of the administrative process. In addition to being your legal counsel, you will depend on the attorney to speak with the CSLB investigators and present defense arguments at the administrative hearing for the best possible outcome.
- Compile Adequate Evidence
Ensure you gather adequate evidence and documentation to strengthen your case and increase your odds of securing a favorable outcome. Examples of evidence that could work to your advantage include the following:
- Invoice
- Correspondence logs
- Contracts
- Permits
If the CSLB finds the complaint filed against you as credible evidence to warrant an administrative hearing, it will send you a formal accusation notification or an administrative order. When that happens, you should act proactively to protect your practice license and source of livelihood.
Common Disciplinary Actions the CSLB Could Order Against You
A disciplinary action is not automatic if the CSLB has received a complaint against you. If the complaint filed against you has substantial or credible evidence, the board will schedule a formal hearing that allows you to present your side of the story. The board will appoint an ALJ (administrative law judge) to determine whether the allegations you face are true.
The seriousness of the disciplinary actions you will face will depend on various factors, including (but not limited to) the following:
- Your prior record of violations
- Your attorneys’ mitigating arguments
- Whether you are remorseful
- The seriousness of the allegations or violation
Serious violations, including sexual assault or abuse, will attract harsher disciplinary actions than minor violations such as:
- Unprofessional conduct
- Poor workmanship
Nonetheless, the common forms of disciplinary action the board could order for your violation include the following:
- License revocation
- License suspension
- A fine and a citation
- License probation
If the complaint filed against you involves illegal conduct, the board may refer the case to the criminal justice system, which may result in a conviction and legal penalties, including jail time and fines. For example, if your offense involves fraudulent activities that caused your client to incur financial losses, the board may redirect the case to the criminal court for prosecution.
Criminal Offenses That Could Trigger CSLB Investigations
As mentioned in the previous paragraph, the CSLB investigations could attract criminal charges if your acts or omissions were illegal and negatively affect the status of your contractor’s license. Common criminal offenses that put your practice license as a general contractor or contractor in jeopardy include the following:
Driving Under the Influence
You commit a driving under the influence, or DUI offense, when you operate a vehicle under the influence of drugs or alcohol, or a combination of both. The court and prosecutors treat DUI-related offenses seriously because they are some of the leading causes of fatal road accidents. Even if your BAC was below 0.08 percent, the prosecutor can file DUI charges against you under Vehicle Code 23152(a).
A first-time conviction for VC 23152(a) is punishable by a fine of up to $1,000 and up to 6 months in jail. However, if your BAC exceeds 0.08 percent, the prosecutor will file your charges under Vehicle Code 23152(b). A first-time DUI conviction under this statute will carry the following penalties:
- Up to six months of jail time
- A fine of up to $1,000
- Summary probation
- Driver’s license suspension
In addition to these legal penalties, the CSLB will also likely revoke your contractor license after a DUI conviction.
Theft
Theft is another criminal offense that could compromise your contractor’s practice license. You commit this crime when you steal someone’s goods or property without his/her permission or consent. If the property’s worth is below $950, the prosecution team will file your case as petty theft.
Petty theft is a misdemeanor, and your penalties after conviction could include a fine not exceeding $1,000 and a jail term of up to six months. However, if the property’s monetary value exceeds $950, the prosecution team will file the charge as grand theft. A misdemeanor grand theft offense is punishable by up to one year in jail, but if your case qualifies as a felony, you could face up to three years in jail.
Insurance Fraud
According to Penal Code (PC) 550, knowingly submitting or causing the submission of fraudulent insurance claims to receive an undeserved payment is illegal. The prosecutor will file insurance fraud as a felony, resulting in a fine of up to $50,000 or up to 5 years in jail.
Rape
Another egregious crime that could put your contractor’s license at risk of suspension or other harsh disciplinary actions is rape. You commit a rape offense when you use fraud, force, or threats to engage in non-consensual sexual intercourse with another person. Also known as sexual assault, a conviction for a rape offense could result in the following felony penalties:
- Up to eight years of jail time
- Inclusion in the sex offender registry
Assault
PC 240 makes it illegal to attempt (while having the present ability) to cause a severe injury to another person. For example, throwing a stone or a phone at someone could qualify as assault even if you did not hit him/her. A PC 240 violation conviction is punishable by up to 6 months in jail and a fine not exceeding $1,000.
Find a Credible License Defense Attorney Near Me
As a licensed general contractor or contractor, you must comply with specific rules and codes of conduct because of the contractual relationship you have with clients. When you fail to do so, a client could file a claim against you with the CSLB, leading to an investigation and possible disciplinary actions mentioned in the previous paragraph.
At Santa Cruz License Attorney, we understand the efforts and sacrifices you undergo to secure a practice license to work as a general contractor or contractor. We invite you to call our professional license defense attorneys at 831-770-6474 if you need aggressive representation challenging complaints filed against you with the licensing board for the best attainable outcome.
