ALJDEC decisions subject to certification as final

07F-T1627-ROC · Registrar of Contractors · 2008-07-18

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: July 7, 2008 at 9:00 a.m. APPEARANCES: The Complainant appeared through his attorney, Eric Hawkins. The Respondent appeared through its authorized representative, David Riley. ADMINISTRATIVE LAW JUDGE: M. Douglas

Evidence and testimony were presented and, based upon the entire record; the following Findings of Fact, Conclusions of Law and Recommended Order are made:

FINDINGS OF FACT 1. Respondent is the holder of a Class B- License issued by the Registrar of Contractors. 2. This is a residential matter where the parties entered into an agreement to construct a new residence for the Complainant for the sum of $350,414.00. 3. There was no dispute that the Respondent started the construction project. During the course of construction the Complainant became increasingly dissatisfied with the Respondent’s workmanship and with the Respondent’s failure to complete the construction project in a timely manner and with the Respondent’s failure to follow plans and specifications and with the Respondent’s supposed cost overruns. 4. When the Respondent stopped work on the construction project the Complainant retained an alternative contractor to finish the construction of the new residence and filed a formal complaint, against the Respondent, with the Registrar of Contractors. 5. Pursuant to the filing of the formal complaint, an assigned Agency Inspector contacted the Complainant and was informed that the Complainant retained an alternative contractor and that no onsite inspection was desired by the Complainant. 6. Consequently no on-site inspection was performed and no Corrective Work Order was issued. 7. On July 12, 2007 the Complainant filed a request for an administrative hearing. 8. Credible testimony and evidence, presented at hearing, established that the Respondent abandoned the construction leaving the Complainant with an unfinished residence. 9. Credible testimony and evidence, presented at hearing, established that much of the framing, concrete and septic work that the Respondent had completed prior to stopping work on the construction project failed to comply with applicable industry and workmanship standards and had to be removed and replaced by the alternative licensed contractor which finished the construction of the Complainant’s residence. 10. Credible testimony and evidence, presented at hearing, established that the Respondent failed to comply with applicable building code requirements 11. Credible testimony and evidence, presented at hearing, established that the Complainant’s actions, in retaining an alternative licensed contractor to correct the Respondent’s substandard workmanship and complete the construction project, were reasonable and justified under the circumstances. 12. Credible testimony and evidence, presented at hearing, established that the Complainant was forced to expend an additional $251,335.42 to finish the construction of his new residence. 13. There was no dispute that the Respondent’s Class B- License was suspended by the Registrar of Contractors for lack of bond from January 21, 2006 through February 28, 2006. 14. Credible testimony and evidence, presented at hearing, established that the Respondent performed construction work on the Complainant’s residence while the Respondent’s Class B- License was under suspension.

15. Notice is taken of the Respondent’s prior License record with the Registrar of Contractors. CONCLUSIONS OF LAW 1. The credible evidence of record established violations by the Respondent of the provisions of A.R.S. (32-1154 (A) (1) (Abandonment), (2) (Departure from or disregard of plans or specifications or any building codes), (9) (Failure to complete a construction project for the price stated in the contract), (18) (Contracting while the license is under suspension), and (3); namely, Rule R4-9-108 (Failure to perform work in a professional and workmanlike manner). RECOMMENDed order In view of the foregoing, it is recommended that the Respondent’s Class B- License be revoked. In the event of certification of this Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be 40 days from the date of the certification. Done this day, July 17, 2008.

______________________________________ M. Douglas Administrative Law Judge

Original transmitted by mail this ____ Day of ____________, 2008, to:

Registrar of Contractors Fidelis V. Garcia 3838 N. Central Ave., Ste. 400 Phoenix, AZ 85012-1906

By ___________________________

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Office of Administrative Hearings 100 N. Stone Ave., Suite 704 Tucson, AZ 85701 520-628-5488 Fax: 520-628-5575 www.azoah.com