ALJDEC decisions subject to certification as final

2018A-3723-ROC · Registrar of Contractors · 2019-03-27

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: March 7, 2019 APPEARANCES: Complainant Fernando Parra appeared on behalf of himself. James Zaborsky appeared on behalf of Respondent RML Residential Properties LLC, DBA: Village Construction. ADMINISTRATIVE LAW JUDGE: Velva Moses-Thompson _____________________________________________________________________ FINDINGS OF FACT 1. On or about May 8, 2018, Complainant Fernando Parra entered into a residential construction agreement with Respondent RML Residential Properties LLC, DBA: Village Construction (“Village Construction”). Village Construction agreed to remodel Mr. Parra’s home located at 2160 Lause Lane, Bullhead City, Arizona, 86442 (“property”), for $65,455.52. 2. The agreement did not include language which advised Mr. Parra of his right to file a Complaint with the Arizona Registrar of Contractors (“Registrar”) against All American for an alleged violation of Ariz. Rev. Stat. section 32-1154(A), within the time allowed by Ariz. Rev. Stat. section 32-1155(B). The agreement did not provide the Registrar’s telephone number or website address. 3. James Zaborsky is Village Construction’s qualifying party. 4. On or about May 8, 2018, Mr. Parra gave Village Construction a deposit for the construction work in the amount of $30,000. See Exhibit 1. 5. On or about May 10, 2018, Village Construction began work under the contract. 6. On or about July 8, 2018, Village Construction issued an invoice to Mr. Parra for $17,458.73. Shortly thereafter, Mr. Zaborsky informed Mr. Parra that Village Construction could perform no more work without additional money because Village Construction had used all of the deposit.

7. On or about June 28, 2018, Glen Wiltse, Development Services Director for the City of Bullhead, issued a stop work to Village Construction with regard to the construction project because there were no permits for the project and the existing work was substandard.[1] Mr. Wiltse determined that the plumbing and electrical work was substandard. Mr. Wiltse asked Mr. Zaborsky for the contract information for the contractors who completed the work. When Mr. Wiltse contacted the contractors, they informed him that they had completed no work on the property. Although a permit was issued on August 1, 2018, the permit was not for the entire remodeling project. The permit did not include the laundry room and the framing on the first floor. See id. 8. On or about August 13, 2018, the Registrar received a complaint from Mr. Parra alleging poor workmanship on the part of Village Construction. 9. Investigator Cliff Corlett reviewed the complaint documents. In the complaint, Mr. Parra alleged that Village Construction delayed in completing the project. 10. On or about August 28, 2018, Investigator Corlett conducted an initial job site inspection. Mr. Parra and Mr. Zaborsky were present for the inspection. Mr. Parra expressed that Village Construction delayed in completing the project. Mr. Zaborsky admitted that Village Construction started the remodeling project without the proper permit and that Village Construction used unlicensed contractors to perform electrical work. Mr. Zaborsky agreed to finish the project in 45 days. 11. On or about August 30, 2018, Investigator Corlett closed the case because Mr. Zaborsky stated that he would finish the project in 45 days. 12. In October of 2018, Mr. Parra requested that the case be reopened because Village Construction had not completed the work. 13. On or about October 24, 2018, Investigator Corlett reopened the complaint and scheduled a second job site inspection. 14. On or about November 1, 2018, Investigator Corlett conducted a second job site inspection. Mr. Parra and Mr. Zaborsky were present. Investigator Corlett observed that Village Construction had competed more work since he was last there. However, Investigator Corlett determined that there was still a substantial amount of work that needed to be completed. 15. On or about November 9, 2018, Investigator Corlett issued a Directive to Village Construction requiring that it repair 27 items by appropriate means. The November 9, 2018 Directive provided, in relevant part, as follows:

After investigation, the Registrar has substantiated that your work fails to meet minimum workmanship standards (see A.A.C. R4- 9-108). Failure to comply with this Directive constitutes a violation of A.R.S. § 32-l l 54(A)(22) and may result in the issuance of a Citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-l 154(E) of up to $500.00. Failure to comply with this Directive may also be treated as an aggravating factor should the Registrar pursue discipline of your license.

You must provide the Registrar with satisfactory written proof of your compliance with this Directive prior to 5:00 p.m. on December 10, 2018.

You are hereby directed to remedy the following violations by the appropriate means: ALL WORK TO BE PERFORMED BY PROPERLY LICENSED CONTRACTORS.

ITEMIZED LIST OF WORKMANSHIP ITEMS CONTRACTOR HAS FAILED:

Complaint Item 1: Window Trim/paint upstairs laundry room and master bathroom. Investigator's Observation: Work is incomplete and needs touch-up and clean-up. RESPONDENT SHOULD DETERMINE CAUSE AND CORRECT BY APPROPRIATE METHODS. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 2: Paint peeling off upstairs Jack & Jill bathroom wall. Investigator's Observation: Work is incomplete and needs touch- up and clean-up. RESPONDENT SHOULD DETERMINE CAUSE AND CORRECT BY APPROPRIATE METHODS. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 3: Drywall upstairs (incomplete). Investigator's Observation: Work is incomplete and needs touch- up and clean-up. RESPONDENT SHOULD DETERMINE CAUSE AND CORRECT BY APPROPRIATE METHODS. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 4: Crushed vent upstairs. Investigator's Observation: Vent appears to have been corrected prior to 11-01-18 inspection. ALL MECHANICAL WORK (i.e., PLUMBING, ELECTRICAL & HVAC) MUST BE PERFORMED BY PROPERLY LICENSED CONTRACTORS. ALL MECHANICAL WORK MUST BE PROPERLY INSPECTED AND APPROVED BY LOCAL BUILDING DEPARTMENT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 5: Flooring upstairs needs prep before laminate flooring.

Investigator's Observation: Respondent should properly complete floor prep and all contracted floor covering installations. RESPONDENT SHOULD COMPLETE BY APPROPRIATE METHODS Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 6: Ceiling is cracked upstairs. Investigator's Observation: Respondent repaired existing vaulted ceiling crack and it has re-cracked. RESPONDENT SHOULD DETERMINE CAUSE AND CORRECT BY APPROPRIATE METHODS. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 7: Laminate floor at entry to Jack & Jill bathroom. Investigator's Observation: Respondent agreed to correct poor installation cuts outside Jack & Jill bathroom door at original inspection 8/28/18. RESPONDENT SHOULD DETERMINE CAUSE AND CORRECT BY APPROPRIATE METHODS. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 8: Replace broken screen window upstairs bathroom # 1. Investigator's Observation: This screen was replaced prior to 11/1/18 inspection. Governing Rule: N/A. No violation could be substantiated.

Complaint Item 9: Wrong bathroom vanity cabinet purchased. Investigator's Observation: At the 11/1/18 inspection the parties agreed that the new vanity for the Jack & Jill bathroom was the wrong color. Respondent agreed to correct the incorrect color.

RESPONDENT SHOULD CORRECT BY APPROPRIATE THE METHODS. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 10: Replace/repair damaged refrigerator door. Investigator's Observation: Respondent agreed to correct the dented refrigerator door. (Stainless steel) Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 11: Drywall downstairs (incomplete) Investigator's Observation: Respondent needs to get all mechanical trades completed and the work inspected by and approved by Bullhead City building department. Respondent needs to complete all drywall hanging, repairs, tape, texture and painting through this project. RESPONDENT SHOULD COMPLETE ALL PHASES OF DRYWALL WORK BY APPROPRIATE METHODS. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 12: Outlet covers doesn't cover the opening completely. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL TRIM OUT OF PLUMBING, ELECTRICAL & HVAC FIXTURES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

ITEMIZED LIST OF ITEMS CONTRACTOR HAS FAILED TO COMPLETE:

Complaint Item 1: Re-paint upstairs bedroom# 1. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL PAINTING PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 2: Paint baseboard upstairs bedroom # 1. Investigator's Observation: RESPONDENT SHOULD TO PROPERLY COMPLETE ALL PAINTING PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 3: Re-paint upstairs bedroom # 2. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL PAINTING PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 4: Paint baseboard upstairs bedroom # 2. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL PAINTING PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 5: Re-paint upstairs Jack & Jill bathroom. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL PAINTING PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 6: Finish tiling upstairs Jack & Jill bathroom. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL FLOOR COVERING PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 7: Install new toilet upstairs Jack & Jill bathroom. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL TRIM OUT OF PLUMBING, ELECTRICAL & HV AC FIXTURERS THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 8: Laminate flooring upstairs loft, master bedroom & closet. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL FLOOR COVERING PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 9: Cover wall and ceiling with drywall in master shower. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL DRYWALL PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 10: Tile shower, floor, restroom and tub upstairs master bathroom. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL TILE PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 11: Install master bathroom shower valves. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL PLUMBING, ELECTRICAL & HV AC FIXTURERS THROUGH OUT THIS PROJECT. ALL MECHANICAL WORK (i.e., PLUMBING, ELECTRICAL & HV AC) MUST BE PERFORMED BY PROPERLY LICENSED CONTRACTORS. ALL MECHANICAL WORK MUST BE PROPERLY INSPECTED AND APPROVED BY LOCAL BUILDING DEPARTMENT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 12: Install bathtub upstairs master bathroom. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL PLUMBING, ELECTRICAL & HV AC FIXTURERS THROUGH OUT THIS PROJECT. ALL MECHANICAL WORK (i.e., PLUMBING, ELECTRICAL & HV AC) MUST BE PERFORMED BY PROPERLY LICENSED CONTRACTORS. ALL MECHANICAL WORK MUST BE PROPERLY INSPECTED AND APPROVED BY LOCAL BUILDING DEPARTMENT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 13: Install vanity, sink, valves and lights upstairs master bathroom Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL TRIM OUT OF PLUMBING, ELECTRICAL & HV AC FIXTURERS THROUGH OUT THIS PROJECT. ALL MECHANICAL WORK (i.e., PLUMBING, ELECTRICAL & HV AC) MUST BE PERFORMED BY PROPERLY LICENSED CONTRACTORS. ALL MECHANICAL WORK MUST BE PROPERLY INSPECTED AND APPROVED BY LOCAL BUILDING DEPARTMENT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 14: Install chandelier above tub upstairs master bathtub. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL TRIM OUT OF PLUMBING, ELECTRICAL & HV AC FIXTURERS THROUGH OUT THIS PROJECT. ALL MECHANICAL WORK (i.e., PLUMBING, ELECTRICAL & HV AC) MUST BE PERFORMED BY PROPERLY LICENSED CONTRACTORS. ALL MECHANICAL WORK MUST BE PROPERLY INSPECTED AND APPROVED BY LOCAL BUILDING DEPARTMENT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 15: Install screens upstairs windows master bath.

Investigator's Observation: Respondent should properly install the master bath window screens. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 16: Install sink, washer, dryer, and cabinets upstairs laundry room. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL TRIM OUT OF PLUMBING, ELECTRICAL & HV AC FIXTURERS, FLOORING THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 17: Laminate flooring on stairs. Invetstigator’s Observation: RESPONDENT NEEDS TO COMPLETE ALL FLOOR COVERING PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 18: Laundry room downstairs. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL TRIM OUT OF PLUMBING, ELECTRICAL & HV AC FIXTURERS, FLOORING THROUGH OUT THIS PROJECT. ALL MECHANICAL WORK (i.e., PLUMBING, ELECTRICAL & HV AC) MUST BE PERFORMED BY PROPERLY LICENSED CONTRACTORS. ALL MECHANICAL WORK MUST BE PROPERLY INSPECTED AND APPROVED BY LOCAL BUILDING DEPARTMENT.

Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 19: Paint all house downstairs. Investigator's Observation: RESPONDENT NEEDS TO PROPERLY COMPLETE ALL PAINTING PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 20: Flooring. laminate and tile downstairs, enfly. formal living room, dining room, kitchen. family room and hallway. Investigator's Observation: RESPONDENT NEEDS TO PROPERLY COMPLETE ALL FLOOR COVERING PHASES THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 21: Guest restroom downstairs new toilet, paint, sink, vanity lights. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL TRIM OUT OF PLUMBING, ELECTRICAL & HV AC FIXTURERS THROUGH OUT THIS PROJECT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 22: Kitchen downdraft exhaust vent. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL CONTRACTED WORK REGARDING THE NEW KITCHEN STOVE VENTING. ALL MECHANICAL WORK (i.e., PLUMBING, ELECTRICAL & HV AC) MUST BE PERFORMED BY PROPERLY LICENSED CONTRACTORS. ALL MECHANICAL WORK MUST BE PROPERLY INSPECTED AND APPROVED BY LOCAL BUILDING DEPARTMENT. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 23: Bar station in family room. Investigator’s Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL CONTRACTED WORK REGARDING THE FAMILY ROOM BAR STATION. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 24: Coffee station in family room. Investigator’s Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL CONTRACTED WORK REGARDING THE FAMILY ROOM COFFEE STATION. Governing Rule: A.R.S. § 32-1154(A), (B) R4-9-108 (A),(B)

Complaint Item 25: Fix patio door. Investigator's Observation: Patio sliding glass door appears to need a new lock. Respondent agreed to properly correct/replace. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 26: Fix front door. Investigator's Observation: Double entry door appears to need a new upper slide bolt lock. Respondent agreed to properly correct/replace. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

Complaint Item 27: Remodel master bedroom and bathroom downstairs. Investigator's Observation: RESPONDENT SHOULD PROPERLY COMPLETE ALL CONTRACTED REMODELING OF DOWNSTAIRS MASTER BEDROOM AND BATHROOM. Governing Rule: A.R.S. § 32-1154(A),(B) R4-9-108 (A),(B)

16. On November 27, 2018 and December 10, 2018, Mr. Parra called Investigator Corlett and reported that Village Construction had not completed the repairs outlined in the Directive. 17. On or about December 11, 2018, Investigator Corlett completed a compliance inspection and concluded that Village Construction had not corrected all of the items listed in the Directive. 18. On December 13, 2018, the Registrar issued a Citation for an alleged violation of Ariz. Rev. Stat. section 32-1154(A)(2), (A)(3), (A)(12), and (A)(22) namely A.A.C. R4-9-108.[2] 19. Village Construction filed a timely response to the Citation. 20. The Registrar referred the matter to the Office of Administrative Hearings, Independent agency, to schedule an evidentiary hearing. 21. On January 16, 2019, the Registrar issued a Notice of Hearing setting the above-captioned matter for hearing at 1:00 p.m. on March 7, 2019, at the Office of Administrative Hearings in Phoenix, Arizona. 22. A hearing was held on March 7, 2019. 23. Mr. Parra testified on behalf of himself. Mr. Parra also presented the testimony of Maria Parra, Glen Wiltse, Felix Gonzalez, Richmond Dubois, and Jeff Myers, and submitted exhibits 1 through 17. Mr. Zaborsky testified on behalf of Village Construction. Cliff Corlett provided testimony regarding his investigation of the complaint, his job site inspections, and his issuance of the Directive. 24. At hearing, Mr. Parra contended that Village Construction performed poor work when it remodeled his home. 25. At hearing, Mr. Zaborsky did not dispute that the construction project lasted longer than it should have. Mr. Zaborsky apologized to Mr. Parra that he was unable to finish his job. Mr. Zaborsky admitted that he used unlicensed contractors to perform some of the work under the contract.

26. Mr. Zaborsky asserted that some of the delay was caused by the fact that Village Construction had trouble staffing workers. Mr. Zaborsky explained that he lost his project manager. Mr. Zaborsky also asserted that the project was delayed because Mr. Parra continued to request changes from the origin contract and some issues are not discovered until demolition. Mr. Zaborsky admitted that he should have executed change orders but he is old fashioned and relies on a person’s handshake. Mr. Zaborsky also explained that he suffered from many health issues during construction which caused the delay. Mr. Zaborsky also testified to the effect that the amount of time required to obtain the engineering for the project was significant. 27. Mr. Zaborsky admitted that he contacted Mr. Giltse. However, Mr. Zaborsky alleged that he did not contact Mr. Giltse for an inspection. Mr. Zaborsky alleged that he did not tell Mr. Giltse the names of the contractors who performed the work, but rather, the names of the contractors who would pedrform the work. Mr. Giltse stated that he always intended to hire license contractors but he tried to work fast because Mr. Parra wanted the job done quickly. Mr. Zaborsky testified that he work was not inferior but incomplete. Mr. Zaborsky also stated that his plumber would say that what work was corrected appropriately Mr. Zaborsky testified that he stopped work in January of 2019 because Mr. Parra requested that he do no more work on the home. 28. Mr. Parra asserted that Village Construction delayed completing the project. Mr. Parra explained that he and his wife have been without a kitchen and a complete home since 2018 even though he has paid Village Contraction $45,000. 29. Administrative notice is taken of Respondent’s prior License record on March 27, 2019. Such prior License record reflects that Respondent’s License No. 302941 was first issued on January 21, 2013, and is suspended. Such prior License record also reflects that there are four open complaints against Respondent, two complaints that resulted in discipline against Respondent’s license, and one complaint that was resolved or settled. CONCLUSIONS OF LAW 1. The Registrar has jurisdiction over this matter, pursuant to A.R.S. § 32-1101, et seq., which authorizes the Registrar to impose disciplinary sanctions against licenses for violations of A.R.S. § 32-1154. 2. The suspended status of Respondent’s license does not deprive Complainant of its right to prosecute its complaint against Respondent or prevent the Registrar from determining the merits of Complainant’s complaint.[3] This dispute lies within the Registrar’s jurisdiction to resolve.[4] 3. To warrant such sanctions by the Registrar, Complainant must demonstrate by a preponderance of the evidence that Respondent violated the statutory section cited. Proof by a “preponderance” means that “the evidence is sufficient to persuade the finder of fact that the proposition is more likely true than not.” In re: Arnold and Baker Farms, 177 B.R. 648 (9th Cir. BAP (Ariz.) 1994). See also Culpepper v. State of Arizona, 187 Ariz. 431, 930 P.2d 508 (App. 1996). It is “evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.” Black’s Law Dictionary 1182 (Rev. 6th ed. 1990). 4. The preponderance of the evidence shows that the issues found by Investigator Corlett constituted workmanship issues with the remodeling of Mr. Parra’s home. It is undisputed that Valley Construction began the project without obtaining a permit. Valley Construction’s qualifying party, Mr. Zaborsky, admitted that Village Construction lost its project manager and had trouble keeping staff. Mr. Zaborsky admitted that the project lasted longer than it should have. The preponderance of the evidence shows that Village Construction delayed in completing the project and ultimately failed to finish the work. Mr. Zaborsky admitted that he used unlicensed contractors on the project. 5. The weight of the evidence established that the work by Respondent was not in compliance with the Registrar’s workmanship standards. The preponderance of the evidence established that Respondent did not perform the work in a professional and workmanlike manner in violation of A.A.C. R4-9-108, and thereby of A.R.S. § 32- 1154(A)(3).[5] 6. The preponderance of the evidence shows that Respondent failed to correct the items listed in the Registrar’s Directive without valid justification, which is a violation of Ariz. Rev. Stat. section 32- 1154(A)(22). 7. The preponderance of the evidence shows that Valley Construction did not perform in compliance with the plans for the project, in violation of A.R.S. § 32-1154(A)(2). 8. The undisputed evidence established that Valley Construction’s contract did not include a statement that the property owner has the right to file a written complaint with the Registrar for alleged violations of Ariz. Rev. Stat. section 32-1154(A). 9. The preponderance of the evidence showed that Valley Construction violated Ariz. Rev. Stat. section 32-1154(A)(12),[6] namely Ariz. Rev. Stat. section 32-1158(B).[7] RECOMMENDED ORDER Based on the foregoing, it is recommended that on the effective date of the order in this matter, License No. 283087 of RML Residential Properties LLC, DBA: Village Construction be revoked. In the event of certification of the 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 that certification. Done this day, March 27, 2019.

/s/ Velva Moses-Thompson Administrative Law Judge

Transmitted electronically to:

Jeffrey Fleetham, Director Registrar of Contractors

----------------------- [1] See March 7, 2019 Hearing Audio, Office of Administrative Hearings Document 2018A-3723-ROC.DSS at 48:35 – 57:47. [2] A.R.S. § 32-1154(A)(3) includes among the grounds for suspension, revocation, or other disciplinary action against a contractor’s license, “[v]iolation of any rule adopted by the registrar.” A.A.C. R4-9-108 requires that “[a]ll work shall be performed in a professional and workmanlike manner” and that “[a]ll work shall be performed in accordance with any applicable building codes and professional industry standards.” [3] See A.R.S. § 32-1154(C). That statute provides that “[t]he expiration, cancellation, suspension or revocation of a license . . . shall not deprive the registrar of jurisdiction to proceed with any investigation of or action or disciplinary proceeding against such license, or to render a decision suspending or revoking such a license . . . .” [4] See A.R.S. § 32-1101 et seq. [5] A.A.C. R4-9-108 requires that “[a]ll work shall be performed in a professional and workmanlike manner” and that “[a]ll work shall be performed in accordance with any applicable building codes and professional industry standards.” A.R.S. § 32-1154(A)(3) includes among the grounds for suspension, revocation, or other disciplinary action against a contractor’s license, “[v]iolation of any rule adopted by the registrar.” [6] A.R.S. § 32-1154(A)(22) includes among the grounds for suspension, revocation, or other disciplinary action against a contractor’s license, “[f]ailure in any material respect to comply with this chapter.” [7] A.R.S. § 32-1158(B) sets forth the required elements of the contract as follows:

From and after December 31, 2007, any contract in an amount of more than one thousand dollars entered into between a contractor and the owner of a property to be improved shall contain in writing at least the following information: 1. The name of the contractor and the contractor's business address and license number. . . . . 9. That the property owner has the right to file a written complaint with the Registrar for an alleged violation of section 32-1154, subsection A. The contract shall contain the Registrar's telephone number and website address and shall state that complaints must be made within the applicable time period as set forth in section 32- 1155, subsection A. The information in this paragraph must be prominently displayed in the contract in at least ten point bold type, and the contract shall be signed by the property owner and the contractor or the contractor's designated representative. This paragraph does not apply to a person who is subject to and complies with section 12-1365.

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Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826