Contractor and General Contractor Board License Defense Lawyers

The construction industry is heavily regulated in the United States, especially for contractors working in specialized fields. To protect the public from harm, state and local governments impose strict licensing and oversight requirements on contractors. While these regulations aim to ensure quality work and business practices, they also create major hurdles for contractors who face license suspension, revocation, or other disciplinary action from licensing boards. This article provides an overview of contractor licensing issues and how specialized legal counsel can help defend contractors and general contractors in board investigations and enforcement proceedings.

Contractor Licensing Requirements Vary by State and Specialty

Licensing rules differ significantly across states and even counties or cities within a state. Some states require all general contractors to hold a valid license to operate, while others only regulate certain specialty trades like electrical, plumbing, and HVAC contractors. The requirements to qualify for and maintain these professional licenses also vary but often include:

Submitting an application and paying licensing fees
Meeting experience requirements
Passing trade-specific exams
Carrying a minimum level of insurance
Maintaining bonding
Completing continuing education

Failing to follow these renewal and compliance obligations can be grounds for discipline against a contractor’s license. Some states also require that a licensed contractor designate a qualifying individual who manages licensing obligations.

License Investigations and Violations

State licensing boards investigate complaints made by consumers, competitors, inspectors, and others against licensed contractors. Common allegations include:

Shoddy workmanship
Failure to complete projects
Misuse of client payments
Employment of unlicensed subcontractors
Issues with permitting or following building codes
Inadequate supervision of projects
Failure to carry required insurance or bonding
False or misleading advertising

These complaints can prompt in-depth investigations and audits by the licensing board. Investigators have broad authority to subpoena documents, interview witnesses, and gather evidence. If violations are found, the board can seek to impose disciplinary sanctions like:

Fines or civil penalties
Probationary license restrictions
Mandatory remedial education
Temporary license suspension
Permanent license revocation

A contractor facing license suspension or revocation may also be reported to Angie’s List and other consumer review sites. This can destroy their reputation and eliminate business opportunities even if the license is later reinstated.

The Role of a Licensing Defense Lawyer

Given the severe consequences, contractors must take licensing investigations and enforcement actions seriously. An experienced attorney can provide invaluable help navigating the board’s process and formulating an effective defense strategy. Key services a lawyer provides include:

Reviewing the licensing board’s rules, processes, and powers
Advising the contractor on responding to investigator inquiries
Assessing the strength of the allegations
Gathering exonerating evidence like receipts, photos, permits, etc.
Interviewing potential witnesses
Negotiating settlements or agreements
Drafting persuasive defense arguments
Representing the contractor in hearings
Pursuing appeals if necessary

Unlike dealing directly with investigators, contractors have strong legal protections when working with counsel. For example, some boards try to compel unrepresented contractors to interviews or testimony that could be self-incriminating. But a lawyer can assert privileges and rights to decline cooperating with certain inquiry tactics.

Common Defenses in Licensing Cases

Experienced licensing attorneys deploy a range of defenses to protect contractors from unfair discipline. Common strategies include:

Lack of jurisdiction – The contractor wasn’t properly licensed or regulated by the board filing the complaint.
No violation occurred – The allegations stem from a misunderstanding and no rule or law was broken.
Violations don’t warrant discipline – The conduct was minor or isolated and does not merit license suspension or revocation.
Unreasonable delay – The board failed to file the complaint in a timely manner, prejudicing the contractor’s defense.
Selective enforcement – The board is unfairly targeting the contractor compared to others who committed similar acts.
Negligent accusation – The evidence clearly shows the contractor was not involved in the alleged misconduct.
Retaliation – The complaint was filed by someone seeking revenge against the contractor.

In many cases, attorneys can get the licensing complaint dismissed outright or negotiate a favorable settlement like a fine or probation in lieu of a suspension. Even if some discipline is imposed, lawyers can often minimize the long-term impact and quickly restore a contractor’s licensing status.

Outsourcing Licensing and Compliance

Given the complex patchwork of licensing rules, some construction firms choose to outsource management of licensing and other compliance burdens. Companies like CT Corporation specialize in efficiently handling licensing applications, renewals, research, and ongoing compliance for contractors across the country. This allows contractors to focus on growing their business and building a reputation for quality work rather than stressing over administrative licensing tasks.

Work With a Lawyer Early On

The worst mistake contractors make when facing licensing complaints is trying to resolve the matter on their own. Licensing investigators can be intimidating and apply pressure to get information or statements that weaken the contractor’s defense. In some cases, politely declining to provide a statement or documents without counsel present may be the best approach. Experienced lawyers deal with licensing boards regularly and know how to advocate for contractors while avoiding unnecessary admissions or cooperation. This can be the difference between a mild settlement and a severely damaging license suspension.

With so much on the line, contractors should consult with specialized counsel at the first sign of an investigation. An attorney can provide reassurance, advice, and advocacy to resolve the case as favorably as realistically possible. Don’t go it alone and risk your contractor’s license. Work with a lawyer knowledgeable in contractor licensing defense and let them protect your livelihood.