Qualifying for and securing a general contractor or contractor license is not an overnight accomplishment. To secure this vital license, you must undergo thorough training and pay a certain amount to the Contractors State License Board (CSLB).
Unfortunately, losing your hard-earned license can happen within the blink of an eye, throwing all your efforts and hard work to become the best contractor down the drain. Some of the reasons that can make you lose your practice license as a general contractor include allegations of professional misconduct and criminal charges.
That is particularly true if the alleged criminal offense or violation is significantly related to your professions and services as a licensed contractor, for example, burglary or rape. If the CSLB has received a complaint against you or your business, you should take this case seriously and defensively, even though you are sure these claims are untrue.
Serious in this specific context means retaining the services of a competent attorney. If a consumer complaint or criminal charge has triggered an investigation by the CSLB, our attorneys at Riverside License Attorney can provide you with aggressive legal representation to secure a favorable outcome.
Valuable Services That General Contractors and Contractors Offer
Undoubtedly, the construction industry is one of the significant contributors to our nation's economy because it employs several people. Generally speaking, there are more than 300,000 licensed contractors, and without these professionals, several bridges, buildings, playgrounds, and highways would either be in significant disrepair or would not exist at all.
The services you offer to all your clients, including the government, are unquestionably indispensable and irreplaceable. While formal education is not necessary to provide your services as a general contractor or contractor, the crucial work these professionals undertake requires hands-on training, know-how, and experience to secure a practice license and build your reputation.
As a licensed contractor, you will work directly with your clients and manage all aspects of any renovation or construction project. On the other hand, general contractors help provide equipment, materials, and labor and secure the necessary building permits.
Depending on the project's needs, sometimes contractors could hire subcontractors to offer some services vital to the project. Below are different classes of construction contractor licenses you can acquire:
1. Class A
Class A practice licenses are for general construction contractors who perform paving, excavation, irrigation, grading, and related construction activities.
2. Class B
You can secure a Class B license if you have received the necessary training to become a general building contractor. Some of your Class B license holder duties include remodeling and building commercial and residential properties.
As a general building contractor, you have the legal authority to manage a construction project independently or supervise other contractors and subcontractors who perform various activities.
3. Class C
If your specialty in the construction industry is offering certain services like electrical work, welding, plumbing, roofing, masonry, fencing, or drywall installation, you would be an excellent candidate for a Class C license.
Having the right contractor license allows you to offer your services legally and secure your deserved payment without unnecessary issues. Unfortunately, regardless of the unique type of construction contractor license you have acquired, your services as a contractor could easily put your license at risk of revocation or suspension due to consumer complaints.
While some of these complaints or allegations have no merit, the board treats any claim filed against a licensee seriously. Hence, retaining the services of an attorney if you are under investigation by the CSLB for a complaint filed against you is vital.
You will rely on your attorney's services through every stage of the investigation process and administrative hearings to secure a favorable outcome, including a lighter disciplinary action or dismissal of the entire case.
The Primary Mission of CSLB
Unlike what many licensed contractors think, the CSLB is a consumer-centered agency. Its primary mission is to protect consumers and the general public from suffering physical harm or incurring financial losses due to licensed contractors' breach of contractual agreements and unsafe construction activities.
Although the CSLB’s primary mission is great and noble, it can cause several innocent contractors to face harsh or undeserved disciplinary actions for minor mistakes or allegations without merit. That is particularly true if you do not have an attorney to investigate the case and challenge the allegations you are up against to secure the best possible outcome.
Common Reasons Many Contractors Receive the CSLB’s Disciplinary Actions
Below are examples of common complaints or allegations that could attract the CSLB’s disciplinary actions:
- Illegally taking deposits from your clients
- Alcohol or drug abuse
- Fraud cases, for example, insurance or real estate fraud
- Contractual disputes or alleged breach of your contract terms
- Not adhering to the necessary code of conduct in your project duties
- Hiring unlicensed or unqualified workers
- Having a criminal charge or conviction that is significantly related to your qualifications and duties as a contractor
- Being under investigation by another state’s licensing agency
In response to the unique complaints or allegations you are up against, the CSLB will send their investigators to thoroughly investigate the matter and resolve the disputes, if possible. Below are the potential outcomes of this investigation:
- Dismissal of the complaints you are up against because they are outside the licensing board's jurisdiction, or they are unsubstantiated or lack adequate evidence
- A mutually fair and acceptable agreement between the involved parties
- A warning letter or citation
- Filing of a formal accusation against you, which can attract license revocation or suspension, depending on your unique case’s facts and circumstances
- Filing of criminal charges against you
It is not a brilliant idea to deal with the board's investigators without seeking legal advice and assistance from a seasoned attorney. With the help of your attorney, you could obtain a dismissal of the case without having to go through the uncertainty of the formal administrative hearing.
Having a reliable attorney who understands how important your practice license is to your livelihood and career is key if you have received the board's notice of investigation for any alleged misconduct issue or criminal offense.
The CSLB Disciplinary Process
Once the licensing board receives a complaint against you, it will thoroughly investigate the matter to determine if the case falls within the board's jurisdiction. The nature and facts of your case will come into play when determining whether your case falls within the CSLB’s jurisdiction. The board will likely dismiss your case if it is out of its jurisdiction or lacks sufficient evidence.
Then, the board will notify the complainant in official writing that his/her complaint has been well received. As the involved contractor, you will also receive a notice about this, notifying you to resolve the matter with the complainant without the board's invention.
When you fail to come to an acceptable agreement with the other party, the board will intervene and attempt to resolve the matter through settlement or mediation, if possible. This generally involves the non-formal settlement of the alleged complaint or dispute instead of a heavy payment. You can consider this option an early chance to resolve the allegations you are up against at a reduced cost.
Since every case is unique, you will rely on your attorney to help determine whether settlement or mediation is a favorable way to resolve your unique disciplinary case. When this alternative form of dispute resolution is unsuccessful, the board will consider other settlement options, including:
- Assignment of a qualified enforcement representative (ER) for further thorough investigation
- Referral to an alternative dispute or civil resolution methods
- Referral to the board’s arbitration program
In most cases, the board will dismiss the complaint and issue a warning letter if you are not a repeat offender and the allegations you are up against are non-serious. A warning letter will warn you that you could receive disciplinary action for future violations or professional misconduct.
It is worth noting that the CSLB will keep the warning letter on your record and will refer to it when determining appropriate disciplinary action for future misconduct issues or violations. If these alternative dispute resolution options fail, you should be ready to challenge the allegations you are up against in a formal hearing before an administrative law judge (ALJ).
However, before this formal hearing, the board will send you a notice of the accusation and allow you to file a Notice of Defense. When you fail to file a notice of defense within fifteen (15) days, the board will automatically revoke your contractor license.
During the administrative hearing, you will rely on your attorney's services to provide mitigating arguments to convince the ALJ to drop your case or impose a lighter disciplinary action. Generally speaking, below are the potential disciplinary actions you could receive at the end of the administrative hearing when you lose the case:
- Probation
- License revocation
- License probation
The specific disciplinary action you will receive will depend on your case's unique nature and facts. When the board suspends your contractor's license, you must pause your services during the suspension duration. If the board revokes your license, your attorney can help you apply for reinstatement.
However, you must wait at least one to five years to petition the board to reinstate your practice license after the revocation.
Criminal Offenses That Would Attract the CSLB’s Disciplinary Actions
Aside from the possible disciplinary actions, the board's investigations could turn to criminal charges. For a serious violation, you could face criminal prosecution, making the services of an attorney vital. As mentioned in the previous paragraph, a criminal charge or conviction substantially related to your qualifications and duties as a contractor or general contractor can attract the board's disciplinary actions.
The court and the CSLB have broad discretion on what violation is substantially related to your qualifications and duties as a certified and licensed contractor. Examples of these offenses include (but are not limited to) the following:
Driving Under the Influence (DUI)
You commit a DUI offense when you operate a vehicle under the influence of drugs and alcohol. Being “under the influence” means you can operate a car like a sober person would under the same circumstances.
Theft
You commit a theft offense when you take or steal another person's property or goods without his/her consent. Depending on the worth of the property in question, the prosecutor could file petty theft or grand theft charges against you. If the value of the property in question is $950 or less, the prosecutor will file petty theft charges against you.
Insurance Fraud
You commit insurance fraud when attempting to obtain insurance benefits or payments you are not legally entitled to.
Rape
According to Penal Code (PC) 261, you commit rape when you use threats, fraud, or force to engage in non-consensual sex with another person. Aside from the possible criminal penalties and disciplinary actions the CSLB could impose if you are a licensed general contractor or contractor, a conviction under this statute will lead to a life duty to register as a sex offender.
Assault
Another common offense substantially related to your qualifications as a contractor is assault. According to PC 240, you commit assault when you illegally attempt to commit a violent or severe injury to another person, and you have the present ability to do so. Since it is a misdemeanor, you should expect a jail term of up to six months and a fine of up to $1,000 upon conviction.
If you are under arrest or investigation as a suspect for any criminal offense, you should retain the services of an attorney for legal guidance and representation. A reliable attorney can help you avoid a conviction or secure a lighter sentence.
If you are a qualified and licensed contractor, winning your criminal charge could help you avoid possible disciplinary actions by the CSLB.
Find a Professional License Defense Attorney Near Me
As a contractor or general contractor, you must abide by certain rules due to your contractual relationship with your clients. Failure to do so could cause the CSLB to start an investigation against you. That is where we at Riverside License Attorney come in to help challenge the allegations or complaints you are up against for the best possible results.
We invite you to call us at 951-404-0569 to discuss your case with our reliable and credible defense attorney.
