ALJDEC decisions subject to certification as final

2010A-20123485-ROC · Registrar of Contractors · 2010-06-22

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: June 22, 2010 at 8:00 a.m. APPEARANCES: The Complainants appeared through Susan Traikovich. The Respondent appeared through its attorney, Scott Hulbert. ADMINISTRATIVE LAW JUDGE: M. Douglas ________________________________________________________________

Evidence and testimony were presented and the following Findings of Fact, Conclusions of Law and Recommended Order are made:

FINDINGS OF FACT

1. The Respondent’s Class B- License was suspended on February 5, 2010 for lack of bond. 2. This is a residential matter where the Respondent started the construction of a large custom residence for the Complainants. 3. The Complainants were dissatisfied with the Respondent’s workmanship, the Respondent’s failure to pay its subcontractors, and the Respondent’s failure to properly correct and complete the construction of their new residence despite their repeated demands that the Respondent do so. 4. When the Respondent failed to comply with the Complainants’ repeated demands, the Complainants 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 conducted an on-site inspection and issued a lengthy written Corrective Work Order directing the Respondent to perform designated corrective work on the Complainant’s residence. 6. Credible testimony and evidence established that the Respondent failed to comply with the terms and conditions of the Corrective Work Order. 7. Credible testimony and evidence established that the Respondent failed to properly complete the construction of the Complainants’ residence. 8. Credible testimony and evidence established that the Respondent failed to perform its construction work in a professional and workmanlike manner. 9. Credible testimony and evidence established that the Respondent knowingly attempted to substitute cheaper “look alike” construction material in the residence without the Complainants’ authorization or knowledge. 10. Credible testimony and evidence established that the Respondent failed to pay numerous subcontractors for their construction work on the Complainants’ residence. 11. Credible testimony and evidence established that the Respondent failed to pay material suppliers for their materials utilized in the construction of the Complainants’ residence. 12. Credible testimony and evidence established that the Respondent contracted construction work while the Respondent’s Class B- License was under suspension for lack of bond from June 29, 2009 through July 14, 2009. 13. The Respondent’s actions, in failing to complete its construction work in a professional and workmanlike manner and in failing to comply with the terms of the Corrective Work Order, are found to constitute an abandonment of the construction project. 14. Notice is taken of the Respondent’s prior License record with the Registrar of Contractors. CONCLUSIONS OF LAW

1. Credible testimony and evidence supported findings that establish violations by the Respondent of the charged provisions of A.R.S. § 32- 1154: A(1) (Abandonment); A2 (Departure from or disregard of plans or specifications); A(9) (Failure in a material respect to complete a construction project for the price stated in the contract); A(11) (Failure to pay monies in excess of seven hundred and fifty dollars when due); A(18) (Contracting while license under suspension); A(23) (Failure to take appropriate corrective action); and A(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 Respondent’s Class B- License be revoked. It is further recommended, in addition to the above-provided penalties, if any, that Respondent pay the sum of $500.00 to the Registrar of Contractors by way of a civil penalty pursuant to A.R.S. §32- 1154D. The failure by Respondent to pay the entire amount of the aforesaid civil penalty, on or before 30 days following the effective date of the Order entered in this matter, shall result in the automatic revocation of Respondent’s contractor’s license, effective on such deadline date. No future license shall be issued to any entity consisting of persons associated with Respondent, as defined in A.R.S. §32-1101A(5), unless payment of any outstanding prior civil penalty is tendered. 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, June 22, 2010.

/s/ M. Douglas Administrative Law Judge

Transmitted electronically to:

William A. Mundell, Director Registrar of Contractors -----------------------

Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826