Obtaining a contractor license is hard, especially when facing allegations, criminal convictions, or a denied license application. Your source of income, reputation, and right to practice as a contractor are at risk in such situations. Whether you are an experienced general contractor or a beginner, facing the Contractors State License Board (CSLB) and its disciplinary process without legal representation could jeopardize your career.

Disciplinary measures include fines and citations, license suspension, or revocation. If you have issues with your license, you should hire a professional license defense attorney. At Oakland License Attorney, we represent contractors and general contractors in the administrative hearing process. We will work hard to defend your rights and your license.

Services Offered by California Contractors

California contractors construct dwelling units, businesses, and industrial structures to ensure that the built environment in California is effective and beautiful. As the largest state economy in the U.S., there is a need for competent contractors in all sectors of the California economy, such as construction, transport, and the energy and power sector, especially in the renewable energy sector.

California contractors are also involved in rehabilitating existing structures. This includes seismic retrofitting to reinforce structures in preparation for seismic events because California is vulnerable to earthquakes.

Furthermore, contractors are the ones who directly incorporate measures and techniques for environmental responsibility, including energy-efficient systems and green construction. Such efforts are important because California remains at the forefront of environmental policies and green programs.

Contractors’ experience and manpower contribute greatly to California’s GDP, surpassing $4 trillion in the third quarter of 2023. This economic contribution demonstrates that California's construction industry is needed to remain a leading world economy. Without the services of contractors, California would be troubled to ensure that the growing population has ample housing and other basic needs, and the burgeoning industries also require infrastructure to support their growth.

Contractors also contribute to the construction of schools, hospitals, and other public facilities required for California’s population’s well-being. Contractor efforts ensure people have safe structures to live in and interact with each other. These include the roads we drive on and the water systems we use every day.

Classes of California Contractor Licenses

In California, contractors must possess the appropriate license for their work, as required by the CSLB. These licenses are categorized into three primary classes, including:

Class A (General Engineering Contractor)

A Class A license is granted to general engineering contractors undertaking infrastructure and engineering construction work. This license is applicable if your job includes construction projects like irrigation, grading, paving, or excavation.

Class B (General Building Contractor)

A Class B license is ideal for general building contractors who construct or renovate residential and business premises. If you handle projects where you organize several trades like framing, carpentry, and electrical work, this license is for you. The first condition to qualify for a Class B license is to oversee more than two unrelated trades on any project.

Class C (Specialty Contractor)

A Class C license is for specialty contractors specializing in a particular construction business segment. There are different types of Class C licenses in California, ranging from plumbing (C-36) to electrical (C-10) and other classifications.

If your business is limited to a particular trade, including fencing, masonry, plumbing, drywalling, roofing, HVAC, painting, or landscaping, you require a class C license for that particular trade. This license is only available to qualified contractors who specialize in their tasks.

The Mission of the Contractors State License Board of California

The Contractors State License Board of California (CSLB) was founded in 1929 to protect consumers and enhance the credibility of contractors. The CSLB limits the issuance of licenses for large construction projects that cost $500 or more.

As a contractor or general contractor, you are responsible for constructing and maintaining structures, homes, and business premises. You should also maintain high standards of professionalism and ethics.

The CSLB’s purpose is to safeguard the public, ensure ethical business conduct, and ensure the competence of its licensees. The board does this by licensing and regulating contractors in over 40 classifications.

CSLB’s mission focuses on protecting consumers by enforcing licensing laws, handling consumer complaints, and prosecuting law violations. The regulations provided help eliminate the recklessness of some contractors and companies in the construction industry. These measures help maintain the integrity of the profession.

The board is mandated to prefer disciplinary actions like license revocation, suspension, or denial. When contractors do not meet the requisite standards, the CSLB intervenes in defense of the public and ensures that construction projects are safe and of good quality.

Common Complaints and Allegations

Even the most hardworking contractors can be involved in some complaints or allegations that may destroy their careers and means of earning a living. Common complaints that the CSLB deals with include:

  • Substandard work, failure to meet contract specifications, and noncompliance with the provisions of the building codes.
  • Fraud, such as overbilling
  • Using inferior materials or not delivering the work on time.
  • Financial improprieties. This encompasses acts such as not paying subcontractors or suppliers, resulting in liens being placed on a project.
  • Conflict of interest between contractors and their clients or between the contractors themselves. Even seemingly petty quarrels may gradually transform into formal accusations. The CSLB says contractors should keep their clients informed and also seek to resolve any complaints amicably without escalation.

The CSLB does not take any complaint lightly, no matter the type. After a complaint has been filed, the board investigates the matter and tries to establish whether there has been any violation of the regulations.

If CSLB deems there is enough basis for the complaint, the contractor is subject to penalties, including fines, suspension, or revocation of the license.

Based on the possible outcomes of a complaint, contractors should be careful when conducting their business. This includes guaranteeing that all work done meets the regional construction laws, proper record-keeping in financial records, and good client relations. When you have a complaint or an allegation against you, consultation with a professional contractor license defense lawyer can go a long way in dealing with the CSLB.

The CSLB Disciplinary Process

The CSLB discipline procedure is a formal process to regulate the conduct of contractors who provide their services in California.

Filing a Complaint

The disciplinary process is initiated when a complaint is made against a contractor to the Contractors State License Board (CSLB). Homeowners, contractors, or any other party involved in the construction project can file them.

Common reasons for complaints include:

  • Poor workmanship
  • Unfulfilled contracts
  • Building code violations
  • Unethical business practices

After the complaint is lodged, the CSLB reviews it to determine whether the case falls under its purview and whether the allegations presented are strong enough to warrant the investigation.

Investigation

If the complaint is deemed valid, the CSLB assigns an investigator. The investigator collects evidence, speaks to the necessary people, and studies the work as per California Business and Professions Code 7000–7191. The investigation aims to determine whether the contractor followed the law. The investigator may also review contracts, permits, and other correspondence relating to the project.

Proposed Resolution

In light of the investigation, CSLB may resolve the complaint. This could also involve rectifying faulty work, refunding money, or paying penalties to correct the situation.

There are circumstances when the CSLB issues a citation or a written order stating the violation, and it usually comes with a penalty. The contractor is usually allowed 15–30 days to reply to the proposed resolution and may either accept it or demand a hearing.

Administrative Hearing

The case may proceed to an administrative hearing if the contractor disagrees with the findings or the proposed solution. Generally, the hearing is to be conducted within 45 to 90 days from the time the request has been made. This hearing is held before an Administrative Law Judge (ALJ), which resembles a court trial but is not presided over by a judge.

The CSLB and the contractor provide evidence, witnesses, and arguments at the hearing. The contractor's representatives may include an attorney. After hearing all the evidence, the ALJ will make findings and conclusions. Within 30 days after the hearing ends, the ALJ will develop a proposed decision, which is then submitted to the CSLB for final action.

Final Decision

After the administrative hearing, the CSLB shall review the ALJ's proposed decision. The Board can approve, amend, or disapprove the decision within 100 days from the date of its receipt. Once the CSLB decides, it is the last and cannot be changed by any other party. The final decision may also lead to other disciplinary actions, such as license suspension, license revocation, or placing the license on probation.

Appealing the CSLB’s Decision

If the contractor is unsatisfied with the CSLB’s final decision, the contractor has the right to appeal by filing a petition for reconsideration or an appeal in a court of law. The petition for reconsideration is filed with the CSLB within 30 days. The board may grant or deny the petition.

If denied, the contractor can file a writ of mandate with the Superior Court within another 30 days. This process enables the court to scrutinize the CSLB’s decision to determine whether it was made by the California Code of Civil Procedure, Sections 1094.5 and 1094.6.

Denial of Contractor License Applications

The CSLB's failure to approve a contractor license is a major setback for anyone who wishes to enter the contractor practice.

The CSLB may deny a contractor's license application for various reasons, including:

  • Lack of experience, education, or failing the necessary examinations that have been set as the minimum requirements for the applicant
  • A criminal record, especially one that entails fraud, dishonesty, or violence.
  • Outstanding debts related to construction projects, unresolved legal judgments, or failure to disclose material information on the application

When the CSLB rejects your license application, they will write to you to inform you why they have denied it. This notice describes the reasons for the denial and advises you of the opportunity to appeal. The notification will also state the procedure to appeal the denial and the time frame within which the appeal must be made.

Appealing a License Denial

When you have been issued a denial notice, you can contest CSLB’s decision to deny your license. However, you must write an appeal for an administrative hearing within 60 days of the denial notice. The denial becomes final and conclusive if the applicant does not request a hearing within this period.

This informal trial, presided over by an Administrative Law Judge, entails the presentation of evidence as in a court trial. It is also when you can put forward proof, summon witnesses, and make arguments for your sake.

The CSLB will also be allowed to give its side of the story, stating why the request was denied. After the hearing, the ALJ must make a proposed decision, which the CSLB can accept, change, or dismiss. If the CSLB implements the decision and this decision is adverse, you can petition for further review by filing a writ of mandate in the superior court.

Next Steps After License Denial

If your application is denied, learn the reasons and take corrective action. If the denial was due to insufficient experience or education, you could gain more experience, complete additional training, or take supplementary courses to strengthen your application.

If the denial was based on a criminal record, you might be able to demonstrate rehabilitation, obtain a certificate of rehabilitation, or delete your record, depending on the nature of the conviction and the time that has passed.

In all cases, consult with a knowledgeable license defense attorney who specializes in contractor license law.

Contact a Contractor License Defense Lawyer Near Me

Involvement in any case, accusation, or receiving a criminal conviction and rejection of your contractor license application is a danger to your source of income and reputation. These difficult circumstances may require hiring a dedicated contractor license defense lawyer. At Oakland License Attorney, we know how the Contractors State License Board (CSLB) conducts its disciplinary proceedings, and we will fight for your rights and freedom. Call our office today at 341-234-0408 to book an appointment and preserve your license.