Your license could be at risk if you are a contractor or general contractor in California currently facing a formal accusation or complaint. In some situations, you could ultimately face a criminal conviction. Some factors that can trigger an investigation by the licensing board include committing a criminal offense or if a client files a complaint against you. Consult an attorney as early as possible to help you maximize the chances of securing a favorable outcome for your case. Ensure that you consult an attorney who understands how to engage and negotiate with the Contractors State License Board in a way that is in your best interests. At the San Bernardino License Attorney, we have experienced attorneys. We can fight on your behalf if your contractor or general contractor license is at risk.

Crucial Services That Contractors Provide

If you are a contractor, you must oversee construction projects. You can provide labor, construction materials, or other services required to execute the project. A contractor could also lead a team of professionals, relying on their decision-making abilities. This level of responsibility could elevate your risk of liability, and a mistake from the past or present could jeopardize your entire career. When building builders or general contractors engage in unethical or criminal behavior, they risk losing their professional licenses. The California Contractors State License Board (CSLB) can deny, suspend, or revoke your license.

The state of California has hundreds of thousands of licensed contractors. Without contractors, playgrounds, highways, bridges, buildings, and other facilities would not exist or be in bad condition. The work that contractors provide to the public is indispensable. Typically, there are three categories of contractor licenses in California:

Category A – General Engineering Contractors

The contractors under this category deal with irrigation, grading, paving, excavation, and similar work areas.

Category B – General Building Contractors

This category includes contractors who remodel or build residential and commercial properties. These contractors can handle the whole project independently or supervise others who hold various jobs.

Category C – Specialty Contractors

These contractors handle many projects, including welding, plumbing, roofing, masonry, fencing, drywall installation, electrical, HVAC, and more.

Regardless of the construction services you provide and your contractor license, your work probably exposes you to situations that could easily lead to accusations. A client could file a formal complaint against you with the Contractors State License Board. Any allegation could put your whole career and license in jeopardy. If this happens, you should consult an attorney with a record of successfully defending professionals against all accusations. A contractor's license attorney can develop a strong defense and win the best possible outcome for your charges.

The Duties of The Contractors State License Board

The Contractors State License Board of California was established in 1929. It has overseen licensing for all major construction projects for decades. The board is strict on projects valued at $500 or more to ensure only eligible contractors provide their services to the public.

The board's mission is to help contractors protect and expand the industry. It also must protect the public from suffering physical or financial harm because of the breaking of contractual agreements or unsafe construction practices.

The mission is noble in principle, but it could make the board implicate innocent contractors. Innocent contractors can be subjected to undeserved or highly exaggerated disciplinary actions. You require an attorney to balance the scales and ensure you are not "gobbled up by the system." A reputable attorney will apply their intricate knowledge of laws, regulations, and procedural requirements to give you an advantage over the prosecution.

The following are some of the accusations that a client or other parties could file with the Contractors State License Board:

  • You are under investigation by the licensing board of another state.
  • You have a criminal conviction on your record that significantly affects your duties or eligibility as a licensed contractor.
  • You have engaged in various forms of fraud, especially insurance or real estate fraud.
  • You are involved in alcohol and drug abuse, especially while on the job site. The use of alcohol or drugs can affect your ability to deliver your duties as a contractor or general contractor.
  • You are hiring unlicensed workers to work under you.
  • You do not measure up to the trade standards in your work.
  • Taking deposits illegally or accepting advance payments and failing to complete the work according to the contract terms.
  • Contractual disputes, alleged breach of contract.

The board will begin an investigation and a process to try to respond to the above and other allegations. These could be the possible results of this process:

  • You could face criminal charges based on the matter contained in the complaint.
  • Formal allegations against you could lead to the revocation or suspension of your contractor's license. The board could suspend your license for a designated period. On the other hand, the duration of a revocation is indefinite.
  • You could be served with a warning letter or a citation reserved for relatively minor crimes. However, sometimes, the fine attached to the citation is very high.
  • Coming to a mutually acceptable agreement between you and the complainant to resolve the issue.
  • Allegations dropped as unsubstantiated, outside the board's jurisdiction, or lacking sufficient evidence.

If you are under investigation, you need an attorney who recognizes that your license and professional reputation are indispensable to your career and livelihood. A skilled attorney will handle communications with the board for you and advise you at every step of your case as required. You should not deal with the board investigators solely without consulting your attorney. If you try to go alone, you risk incriminating yourself or needlessly limiting your defense options.

You can challenge a citation not only because of the fine accompanying it. Do not ignore a citation because it will appear on your public record and make your clients lose faith in you. If you fail to pay the fine after 90 days, the board could revoke your license. Your attorney could defend your license as you continue with your contractor duties and ensure you are not "surprised" by unknown actions or rules of the board.

Contractors State Licensing Board Disciplinary Process

When the CSLB receives a complaint, a review procedure establishes whether the consumer complaint falls within the board's limitations. If there is no sufficient proof or the complaint does not fit under the board's jurisdiction, it can be dismissed as unverified.

The complainant receives formal notice that the board has received their complaint. The contractor involved will also receive a notification and be encouraged to remedy the underlying complaint without additional action from the board.

When a complaint cannot be settled between the two parties, the CSLB will, if appropriate, pursue dispute mediation or settlement to resolve cases as quickly as possible. This usually entails settling the disagreement in exchange for a large sum. You can consider it an opportunity to fix a disciplinary issue at a lesser cost and risk. An attorney can assist a contractor in deciding whether a settlement is beneficial in their particular circumstance.

If this form of alternative dispute resolution fails, the CSLB will select one of many additional settlement options after evaluating all of the circumstances in the case. Possible settlement options include assigning an enforcement representative for further investigation and referring them to an arbitration program or other dispute resolution methods.

If a contractor is not a repeat offender or the violation is not severe, the complaint can be dismissed with a warning letter. The warning letter informs the contractor that future violations will result in disciplinary action. Warning letters remain on the contractor's file and can be used against them as aggravating factors in future disciplinary procedures.

An enforcement representative handles serious complaints by conducting further investigations. The representative can request additional information or evidence from the complainant and interview all relevant parties. If the investigation reveals a violation of the Contractors Law and concludes with compelling and convincing evidence against the contractor, the following can happen:

  • A citation with penalties not exceeding $ 5,000.
  • A CSLB arbitration program.
  • A petition to seek injunctive relief.
  • An accusation charge that can lead to license suspension or revocation.
  • Referral to criminal prosecution, depending on the complaint.

If your license is suspended, you cannot continue to work during that period. Even if your license has been revoked, you can still apply for reinstatement with the assistance of an attorney. However, you are not permitted to petition for reinstatement for at least one to five years, depending on the nature of the previous crime.

Negotiating a Resolution

In most situations, there could be an arbitration process to resolve a dispute without any board disciplinary actions or criminal charges. This could be voluntary or mandatory and is often the best way. If the complainant fails to cooperate, your attorney could challenge and win against the accusations. Your attorney could also negotiate for a lesser form of discipline, which could help you keep your contractor's license and continue with your career.

The board could start investigating you even four years after you committed the crime. The board could also investigate you for specific structural defect issues ten years later. The accusations against you could come from different sources, including government agencies, partners, and clients. The board will notify you once a complaint is filed against you. You and the complainant can contact one another, and the board can instruct you to find a resolution. Often, the board’s consumer services representative could mediate this process.

Resolving the matter is always faster, simpler, and cheaper. However, if the first attempt fails, the matter could go to arbitration or be investigated further by the board's enforcement unit. Financial matters of $12,500 or less always attract mandatory arbitration. On the other hand, higher amounts could apply for voluntary arbitration. You could be required to provide additional information to the board throughout the process. The board representative seeking to resolve the matter by mutual consent will interview you.

You will face an administrative hearing at some point if the issue cannot be resolved through negotiation. Your attorney will present exculpatory and mitigating evidence in your favor during the hearing to help you avoid suspension or revocation of your license. An attorney can help you apply for your license reinstated if the board has already revoked it. However, you will have to wait one to five years, depending on the nature of the previous crime.

A reasonable attorney will walk with you from the beginning to the end and bargain for the most favorable outcome possible. An experienced attorney understands how to resolve licensing issues and how to win a dismissal if it is not possible to avoid an administrative hearing. Attorneys also understand how to bargain at the hearing for reduced discipline rather than losing your license.

Disciplinary Action Triggered By a Criminal Conviction

Apart from civil disciplinary proceedings, CSLB investigations might lead to criminal prosecution. A contractor can face criminal charges for significant crimes, necessitating legal representation. A contractor can be convicted of certain types of crimes significantly related to different operations conducted by a contractor. In this case, the licensing board has the authority to request the commencement of criminal legal processes under the Contractors Licensing Law's criminal statutes.

The CSLB and courts broadly interpret "substantially related" crimes, often involving a licensed contractor's functions, qualifications, or duties. If convicted, dishonesty, fraud, theft, physical assault, and any other felony or misdemeanor can result in disciplinary action.

The licensing board takes complaints regarding unlicensed contractors or unlicensed contracting activities seriously. There are severe penalties and fines, as well as the stigma of a guilty verdict or entering a plea of guilty. This violation will be a criminal offense because it is illegal for unlicensed people to work as contractors and conduct operations for a contract price greater than $500, including supplies and labor costs. Furthermore, it is illegal for a contractor to use another contractor's license, just as it is illegal for a driver to use another person's driver's license.

Find an Experienced License Defense Attorney Near Me

Contractors should take licensing investigations and disciplinary actions seriously, given the potential implications. An expert attorney can assist you in navigating the board's process and developing an effective defense plan. If you need a reliable attorney, contact the San Bernardino License Attorney. We have helped many contractors and general contractors defend their professional licenses and avoid harsh disciplinary actions. Contact us at 909-966-4095 to speak to one of our attorneys.