The construction industry is one of the most highly regulated in California. Especially for contractors and general contractors, even a minor mistake can place their licenses, businesses, and reputations at stake. If you are a contractor or general contractor facing a board investigation and possible disciplinary action, a skilled license defense attorney can help. At San Francisco License Lawyer, we understand the intricacies of contractor and general contractor licensing and the Contractors State License Board (CSLB) defense statutes, and we can fight for you to protect your career. Call us today for a consultation.
The CSLB Role
As part of the Department of Consumer Affairs (DCA), the CLSB is a double-edged sword for general contractors and contractors in California. It safeguards validly licensed contractors and general contractors against unlicensed contractors, while also protecting consumers against both licensed and unlicensed contractors. The CSLB safeguards consumers by regulating the construction industry through policies that enhance public safety, health, and overall welfare in construction-related matters. The board:
- Licenses contractors and general contractors and denies licenses to unqualified individuals
- Administers licensing exams to learners
- Enforces licensing laws
- Ensures construction is done in a competent, professional, and safe manner
- Necessitates that any professional providing construction services hold a license
- Enforces the regulations, standards, and laws governing construction contracting fairly and uniformly
- Educates the public so they make informed decisions
- Resolves disputes arising from construction activities
- Imposes disciplinary action against a contractor or general contractor found to have committed a violation
Unfortunately, the CSLB sometimes imposes harsher discipline against licensed professionals who make slight mistakes. That said, it is essential to hire a lawyer knowledgeable in CSLB license defense if you learn that the board has received an allegation of law violation against you. In this situation, do not deal with the board directly without a lawyer’s presence, as anything you say can be used against you if you are subject to a disciplinary process.
What Do Contractors and General Contractors Do?
There are over 300,000 duly licensed contractors and general contractors in California. Without the intervention of these professionals, buildings, playgrounds, highways, bridges, and more would be nonexistent or in bad condition. The services that contractors and general contractors render to clients are invaluable. California recognizes three categories of contractor license:
- Class A license. If you are a general engineering contractor, you will hold a Class A license, the highest level of contractor license. A general engineering contractor deals with paving, irrigation, grading, excavation, and related works. They are in charge of massive constructions such as bridges, dams, and other complex water systems.
- Class B license. As a general building contractor, you will hold a Class B license. A general building contractor remodels or builds both residential and commercial properties. They can handle a whole project by themselves or hire and supervise subcontractors who handle different tasks.
- Class C license. If you are a specialty contractor, you will have a Class C license. There are 54 different categories under this area, all of which focus on a specific specialty in building and construction. Examples of specialties include HVAC works, electrical work, drywall installation, fencing, roofing, welding, and plumbing. If you have this license, you must have the necessary special skills to do your work safely.
Having the proper license enables you to provide legal services and secure the payment you deserve without unnecessary problems. Unfortunately, irrespective of the type of license you acquire, your work constantly exposes you to situations that may easily subject you to an official complaint followed by a disciplinary process.
Even though some complaints filed against professionals lack merit, the CSLB ensures it conducts thorough investigations before it dismisses any complaint. That said, you want to consult a lawyer immediately when you learn that a complaint has been brought to the board against you. A lawyer can tell you what to expect at every step of the board investigation. They will tell you who to speak to and what to say so you avoid sharing any information that could be self-incriminating. Also, consulting a lawyer promptly will increase the chances that your case will be resolved at the investigation stage, sparing you the time-consuming and overwhelming disciplinary process.
The CSLB Complaint Process
The CSLB highly prioritizes complaints that involve a threat to public safety and health. Specifically, it prioritizes complaints contingent on the following:
- The severity and nature of the accusations
- The order of receipt
- Available board resources, including staffing and budget
Once the board receives a formal written complaint, the relevant parties will review it to establish whether it falls under the CSLB’s jurisdiction. If it does, the board will confirm to the complainant that they have received the complaint and send you a notice encouraging you to resolve the complaint without the board intervening further. If the board deems mediation appropriate, it will contact you and the complainant and try to mediate the dispute.
Being notified of a complaint against you can be highly disheartening. The crucial step to take is to act immediately. Read the complaint carefully and collect all documents related to the issues raised by the complainant, including invoices, contracts, permits, change orders, correspondence, and even pictures of the work in question.
If attempts at mediation are unsuccessful, you have no prior violations, and the approximated financial loss is below $10,000, the board may provide the complainant with details on how to pursue damages in small claims court and your license bond. If the complainant prevails in small claims court and you fail to adhere to an outstanding bond or civil liability payout, the CSLB has discretion to suspend your license.
If the board determines that the complaint necessitates a deeper investigation, it will assign it to one of its investigative centers. The investigations will determine whether there is clear, convincing evidence that shows you violated the contractors’ state license law. The investigations might include the investigator interviewing you, the complainant, other parties to the contract, and any other third party who can provide relevant information. The investigator may also request information from you that they think is material to the case. It is essential not to face the investigator alone. Ensure your lawyer is present so you do not say or give out anything that is incriminating.
If the investigations reveal that you indeed violated the law, the board may consider arbitration. There are two forms of arbitration the board provides: mandatory arbitration, which applies to disputes involving supposed damages of no more than $25,000, and voluntary arbitration for disputes involving accusations of damages ranging from $25,000 to $50,000. A complaint must satisfy strict criteria to be eligible for board arbitration.
Alternatively, if the investigation reveals compelling evidence of a violation, the board may refer your case to the Attorney General for further action. The Attorney General will then file an Accusation and then send you a notice of the same. If you are only a license applicant, the Attorney General will file a Statement of Issues instead of an Accusation.
Once you receive a notice of Accusation or Statement of Issues, you have only 15 days to respond and state whether or not you wish to defend your license. You respond to the notice of Accusation by filing a Notice of Defense. If you do not respond within the stipulated period, the CSLB will issue a default decision order, which will lead to the automatic revocation of your contract or general contractor license. A skilled lawyer can ensure your response is accurate and on time.
Also, it is essential to avoid talking to the complainant if you learn of a case against you. Once the complaints process begins, you should avoid giving them any chance to make other statements that could make your defense more challenging.
If you file a Notice of Defense, however, the CSLB will schedule an administrative hearing. This hearing is similar to a criminal court trial, except there is no jury. It will be conducted at the Office of Administrative Hearings (OAH), and an Administrative Law Judge will preside. At the conclusion of the proceedings, the judge will have thirty days to write the recommendations to the board on what disciplinary action it should impose if you are guilty. The board has the discretion to adopt those recommendations as they are, modify them, or not follow them at all. Some of the disciplinary actions the board may impose include the following:
- Public reprimand
- Citation and fines of up to $5,000
- Orders to make repairs to your project
- Orders to pay the complainant to hire other contractors to do the job.
- License revocation
- License suspension
- License probation
If you are dissatisfied with the board’s disciplinary decision or even the judge’s finding of guilt, you can file an appeal. You can appeal to the board itself or to the California Superior Court.
Violations that Contractors and General Contractors
A CSLB disciplinary process is often initiated when a complaint is filed with the board. The complaint could come from a consumer such as a homeowner, a subcontractor, another contractor, a public entity, another licensing board, or any other party. Most complaints that expose a contractor or general contractor to discipline stem from cost overruns caused by the professional’s inexperience or mismanagement, poor communication or misunderstanding between the professional and their client, or just poorly crafted contracts.
A CSLB investigation can also begin when a professional has been charged with or convicted of a criminal offense. The timeframe for the CSLB to bring an Accusation against a professional is four years. Common violations that can lead to disciplinary action against a contractor or general contractor are:
- Accepting a down payment over the legally allotted amount
- Practicing without a valid license
- Lacking proper permits
- Breach of contract
- Abandoning a project
- Incompetence, negligence, gross negligence
- Hiring unlicensed employees or aiding and abetting unlicensed practice
- Alcohol and drug abuse, particularly while on the job
- Professional misconduct
- Fraudulent activities, especially insurance fraud and real estate fraud
- A conviction of a crime substantially related to the duties, functions, and qualifications of a contractor or general contractor
- Poor workmanship or failing to match the trade standards in work
- Failing to pay material suppliers, employees, or subcontractors
- Misleading or false advertising
- Violating building codes
- Being under investigation by another state licensing agency.
Disciplinary Action Due to Criminal Conviction
In addition to civil discipline, a CSLB investigation can attract criminal prosecution. If the board finds that you have committed a severe violation, it may send your case to the District Attorney for prosecution. In this case, you will need the help of a lawyer who understands both criminal and administrative law. Violations that are likely to lead to criminal prosecution are those involving:
- Sexual misconduct
- Fraud, such as identity theft and false representation
- Driving under the influence
- Drugs, such as drug sales and drug possession
- Theft, such as burglary and grand theft
- Assault and physical violence
If you are convicted in criminal court, you may have to serve your sentence in addition to the disciplinary action imposed by the board. And if you are a new applicant, the board may deny you a license if you are convicted of a crime in criminal court. You may also be subject to administrative sanctions. Generally, the board will deny you a license for a conviction if seven years have not elapsed since you committed the offense. However, for more severe violations, the board may deny you a license even if seven years have passed from the time you committed the offense.
Contact an Experienced Professional License Defense Lawyer Near Me
Contractor complaints accompanied by CSLB investigations can significantly impact your license and livelihood. You need not let the situation reach that far. You want to move fast and involve a lawyer as soon as you learn you are under investigation. Early intervention can help you save your license, and you can continue to practice.
At San Francisco License Lawyer, our expert attorneys offer tailored defense strategies for contractors and general contractors involved in licensing disputes or administrative hearings. We are ready to fight to protect your rights and future. Call our office today at (415) 496-2811 to speak to a lawyer.
