The Contractors State License Board of California, or CLSB, issues licenses to contractors operating in different construction fields. These contractors face significant challenges as they try to meet the needs of demanding clients, adhere to project budgets, and retain skilled employees and subcontractors.

Licensees might not always know that their actions violate the rules in Los Angeles, but they need experienced and competent legal help when they do. In such cases, you should contact the attorneys at the Law Office of Sara L. Caplan. We have extensive experience working defending licensees against license-related claims in administrative hearings.

California Contractors and General Contractors

The construction industry creates nearly $1.3 trillion worth of structures annually and employs over 7 million people countrywide. It is one of the most significant contributors to the U.S. economy. California has over 300,000 licensed contractors and has seen significant construction projects over the years. These include:

  • Hospital buildings
  • Entertainment and sports centers
  • Hotels
  • Factories

Construction contractors oversee day-to-day operations and undertake massive construction projects. Their responsibilities begin with evaluating project plans and extend beyond supervising physical labor.

Being a speciality or general contractor does not require a college degree. However, you must undergo training and hands-on experience to acquire a professional license and establish a successful career in this field.

A contractor handles every aspect of construction or renovation projects. Contractors often hire subcontractors with specialized training to perform certain tasks in a construction project. They also work directly with the client.

A general contractor is responsible for the following:

  • Obtaining building permits
  • Providing the necessary materials, equipment, labor, and services

In California, a general contractor can be tasked with building office com, a second story in a house, a railroad, parking lots, excavations, or any other buildings in the state. As a general contractor, you must have a state license issued by the CLSB for any structure or construction project worth more than $500.

To obtain a contractor license, you need at least four full years of journeyman experience within the previous ten years, or you must have served as a supervisor or foreman.

As a prerequisite for obtaining a state license in California, you must pass a business and law and a trade exam. Your construction capabilities will determine whether you can apply for a general engineering or a general building contractor license.

  • General engineering contractors who work in paving, grading, excavation, irrigation, and other related areas are eligible to obtain Class A licenses when they meet the requirements
  • Class B licenses are issued to general building contractors working in constructing or remodelling residential and commercial properties. These contractors can manage entire products independently and employ subcontractors to handle various project-related tasks
  • A different category of contractor license, Class C, applies to contractors who specialize in a particular field. 41 different types of licenses fall under this category, including those for electrical work, HVAC work, fencing, drywall installations, plumbing, and various other occupations

The California Contractors State License Board’s Objectives and Duties

The CSLB, founded in 1929, is part of the California Department of Consumer Affairs (DCA). It enforces licensing requirements, ensures businesses and professionals adhere to a code of conduct, and oversees the construction industry. The CSLB establishes rules to protect customers from contractors who fail to meet their licensing and professional obligations.

The board's job is to ensure people’s safety, well-being, and health regarding construction issues. To accomplish this, CSLB may initiate investigations based on submitted complaints, and if they find California contractors at fault, they will impose appropriate penalties.

The type and severity of accusations often determine the punishment’s intensity. Penalties can range from a warning letter to revoking a professional contractor’s license. Claims regarding safety and health violations typically receive the most attention.

You should understand that the board is not on your side. Its purpose is to hold contractors accountable. The board’s role is not to support builders or foster growth in the construction industry. Instead, its primary function is to monitor contractors and protect the public from financial loss or harm caused by unethical building practices employed by dishonest contractors.

CSLB Investigations and Client Complaints

Anyone can file a grievance against a contractor, but homeowners, construction companies, subcontractors, and competitors do it most often. Due to the high volume of complaints, the CSLB employs an extensive team of investigators to examine each complaint thoroughly.

The CSLB can receive a complaint up to four years after the alleged violation. This long period is problematic for contractors, as the initial project may have changed during this time, leaving them with few or no visual records of their original work. The CSLB can conclude an investigation of a complaint in three ways:

  • Closing the case due to insufficient evidence against the contractor
  • Issuing the contractor a citation and fine
  • Filing an accusation to revoke the contractor’s license

For contractors, complaints and citations become part of the CSLB public file. They are also posted on the Board’s website, allowing anyone, including potential customers and competitors, to view them. The citation or accusation lists all unproven claims against the contractor. These public documents can potentially ruin a contractor’s reputation and business.

Online Public Discipline Records

Licensed professionals rarely compete directly with each other, but contractors often do when bidding on projects. Homeowners and potential clients frequently research prospective contractors online using the CSLB’s public record system. They check for licenses and past problems. A history of citations or accusations might cost you business opportunities.

Citations Issued By the Board

The CSLB may issue a citation if investigators believe a contractor has violated a law or a regulation. The following infractions can be cited against a contractor and become part of the public record:

  • Violations of contract forms
  • Employees’ compensation violations
  • Providing assistance and support to an unlicensed contractor
  • Violations of down payments
  • Failure to complete projects within the contract budget
  • Departure from commercial standards

Citations hurt a contractor’s reputation and come with expensive fines. The board may also require the alleged contractor to pay the customer substantial compensation to rectify the situation, amounting to thousands of dollars. Licensed contractors can appeal CSLB tickets and attend a hearing before an administrative law judge to present their facts disputing the claim.

Accusation to Suspend or Revoke a License

The CSLB will file a claim to revoke or suspend a contractor’s license if it finds that the contractor has broken the law, does poor work, or otherwise poses a danger to the public.

If the CSLB sends you an accusation, get a lawyer immediately. You have only fifteen days to submit a Notice of Defense to the CSLB’s lawyer, indicating your intent to appeal and request a hearing. Failing to submit the Notice of Defense may result in immediate license loss. The CSLB hires lawyers specifically to suspend or revoke contractor licenses.

Some common accusations that lead to the filing of a complaint are:

  • Abandonment
  • Failure to adhere to trade standards
  • Breaking the contract terms
  • Fraud or deception
  • Criminal convictions

The contractor has the right to an administrative hearing if they respond to the accusation within 15 days. The CSLB will ask the Office of Administrative Hearings to set a hearing for the case as soon as it receives the Notice of Defense. Based on the expected duration of the hearing, the case will be scheduled at least one month after the Notice of Defense is received.

Along with the Accusation, they also receive a discovery request. Both the CSLB and the contractor must provide evidence to the other side. Discovery includes any evidence that relates to the allegations in the indictment, including what the CSLB intends to present at the hearing as evidence of the allegations.

During this time, your contractor licensing attorney can discuss settling your case with the CSLB attorney. This can help you avoid the stress and expense of a contested administrative hearing. The board often solves cases before they go to court, and many claims are settled during this process.

The case will proceed to a hearing if the CSLB does not offer satisfactory settlement terms. For cases expected to last four or more days, the Office of Administrative Hearings will schedule a settlement and pre-hearing conference several weeks before the hearing.

At the settlement conference, you will meet with an Administrative Law judge. This judge will review the facts of the case with both the CSLB attorney and your attorney to settle the allegation. If a settlement is reached, it will be documented, and the case will be closed.

The Administrative Law Judge assigned to the hearing may hold a hearing conference if no agreement is reached. This hearing is to rule on all motions before the hearing. It also ensures that both sides have met the discovery standard and are adequately prepared for the hearing.

The Administrative Hearing Proceedings

An Administrative Law judge oversees the hearing. Unlike criminal or civil cases, there is no jury, and fewer rules govern admissible evidence. During the proceedings, the CSLB presents its argument by submitting investigative and expert findings and calling witnesses.

Your contractor license attorney can question the board’s witnesses and challenge the presentation of irrelevant or improperly obtained evidence. The CSLB will present its case, and your attorney will present the facts and testimony.

You should hire an expert attorney to challenge the CSLB’s expert testimony if they designate one. The hearing concludes when all the testimony and proof have been added to the record.

The ALJ has thirty days to make a proposed decision and send it to the CSLB for consideration. The CSLB has one hundred days to review the proposed decision and:

  • Acknowledge it as the ultimate CSLB ruling
  • Change the proposed decision
  • Dismiss the proposal and make a new ruling

If the CSLB takes no action after 100 days, the Proposed Decision becomes the final verdict. Determining whether to pursue an administrative hearing is a significant choice that requires careful consultation with your licensing attorney. During these hearings, the administrative law judge has no final say on how the case will be resolved.

The CSLB is the sole organization with the final authority. However, the board is not bound by its Proposed Decision. You could win the hearing, yet the CSLB may reject the judge's proposed ruling and decide to suspend your license.

Before you decide to attend a hearing, you should talk to your lawyer about a Proposed Decision and what options you have to appeal if the Board disagrees with the administrative law judge’s decision.

The California Contractors State License Board wields extensive authority over contractor licensees in California. It can revoke your license and prohibit any certified contractor from hiring you. Consequently, some professionals may be ineligible to work in the construction sector once they lose their license.

Denial of Your License Application

The CSLB can reject a license request if they determine the applicant has not met the requirements. The main reasons for rejection are insufficient work experience, previous convictions, or previous license revocation. If a license application is denied, applicants have a limited time to file an appeal and request an administrative hearing.

Applying for a license can be stressful and time-consuming. You may have invested significant money and time preparing to become licensed. A contractor’s license lawyer can help you navigate this process with ease.

Find a Los Angeles License Defense Attorney Near Me

If you are facing an Accusation that seeks to revoke your professional license, a contractor’s license defense attorney can help you. A license defense attorney knows the ins and outs of contractor license law and can help you retain your license and reputation in this sector.

Our attorneys at the Law Office of Sara L. Caplan are well-versed in building solid defenses for our clients. Our team of experienced attorneys takes a proactive approach when defending clients against state licensing board actions and accusations. We also educate contractors on how that can prevent future complaints from their customers or competitors. For more information about your general contractor and contractor license case, call us at 310-550-5877 to speak to one of our attorneys.