2023A-09587-CHC-ROC Notice of Hearing and Packet MAILED

2023A-09587-CHC-ROC · Registrar of Contractors · 2023-11-02

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Jimmie Johnson , Case No. 2023-09587 COMPLAINANT, Docket No. 2023A-09587-CHC-ROC v. NOTICE OF HEARING ON CONTESTED CASE Black Diamond Builders LLC License No. ROC 297510,

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D). HEARING INFORMATION The hearing is set for: December 19, 2023 9:00 AM Velva Moses-Thompson Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

If you have requested to appear in-person at the hearing, the hearing will be held at 1740 W Adams Street, Phoenix, AZ 85007.

You must attend this hearing. This is an adversarial hearing before an administrative

law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be

prepared to present evidence, including witness testimony and documents, in support of your case.

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq. All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,

Chapter 6, Article 10. A.R.S. § 32-1156.

The statutes and rules governing the hearing can be found at: Arizona Revised

Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122.

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED The statutes and rules the Respondent is alleged to have violated are cited in the

complaint and citation, which were served on the Respondent on October 12, 2023. SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED The complaint and citation allege that the Respondent committed the following act(s): Charge: 1 A.R.S. § 32-1154(A)(1)

Charge: 2 A.R.S. § 32-1154(A)(2)(a)

Charge: 3 A.R.S. § 32-1154(A)(2)(b)

Charge: 4 A.R.S. § 32-1154(A)(3) - R4-9-108(a)

Charge: 5 A.R.S. § 32-1154(A)(3) - R4-9-108(b)

Charge: 6 A.R.S. § 32-1154(A)(12) - A.R.S. § 32-1158

Charge: 7 A.R.S. § 32-1154(A)(16) Charge: 8 A.R.S. § 32-1154(A)(17) Charge: 9 A.R.S. § 32-1154(A)(22)

THE PARTIES TO THE ADMINISTRATIVE HEARING Because Respondent is a licensee and is charged with an act(s) or omission(s) that is cause for the suspension or revocation of a license, Respondent is a party to this case and will

be a party to the hearing.

Because Complainant alleged Respondent committed an act(s) or omission(s) that is

cause for the suspension or revocation of a license, Complainant is a party to this case and will

be a party to the hearing. Respondent and Complainant, as the parties to the hearing, will present evidence and argument to the administrative law judge. The Registrar’s assigned investigator will appear as a witness at the hearing.

RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32- 1156(B).

CHANGE OF ADDRESS Each party must inform the Registrar and the Office of Administrative Hearings of any change of address within five (5) days of the change. A.R.S. § 41-1092.04.

HEARING PROCEDURES AND RULES The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092

to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and

processes governing the administrative hearing. Copies of the statutes, rules, and articles

regarding the administrative hearing process can be found at https://www.azoah.com/. REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE The Registrar’s investigators, employees, and attorneys will appear at the hearing via

video conference or telephone unless requested by a party to appear in-person. Requests for

the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with

the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days

prior to the hearing date. HEARING PACKET In the interests of administrative efficiency, the Registrar compiles and discloses certain documents to the parties and the Office of Administrative Hearings. These documents are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below.

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS

The parties to the hearing must be prepared to present evidence in support of their

case. If a party wants to obtain testimony from a witness or documents not in the party’s possession, the party must prepare and file a written subpoena for the Administrative Law

Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com. The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT At least seven calendar days before the hearing, each party must prepare and serve a disclosure statement on all other parties, and file it with the Office of Administrative Hearings.

A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the

party will use at the hearing. A party’s failure to timely disclose any witness or exhibit,

without good cause, may result in the administrative law judge excluding those witnesses or

exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/content/prehearing-disclosure- statement. CHANGING THE HEARING DATE

The date of the hearing may only be advanced or delayed on the agreement of the

parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may

be changed by filing a written agreement of the parties to change the date of the hearing. The

written agreement must be filed with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com

If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties. The motion must state in detail good cause for why the date of the hearing should be advanced or delayed, and the position of all other parties regarding the advancement or delay. A party may also file a motion asserting a right to an expedited hearing upon a showing of

extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION In any case which is resolved or settled by the parties, or which is withdrawn by the Complainant without objection from Respondent after the Notice of Hearing is issued, the parties must notify the Office of Administrative Hearings of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed

Complaints – Resolved/Settled/Withdrawn.”

Dated November 2, 2023.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class mail November 2, 2023 to:

Respondent(s) Black Diamond Builders LLC 280 E Sherri Dr Gilbert, AZ 85296 Complainant(s) Jimmie Johnson 1008 E Bluebell Lane Tempe, AZ 85288 Copy sent electronically this same date to: Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar

Case No. 2023-09587 /

Katie Hobbs, Governor Martin Quezada, Director

Hearing Packet FAQ What is the Hearing Packet?

The Hearing Packet is a packet of certain documents collected or issued by the Registrar over the course of its investigation.

Who gets the Hearing Packet?

The Hearing Packet is assembled and distributed to all parties and to the Office of Administrative Hearings (“OAH”) prior to an administrative hearing.

What types of cases does the Registrar prepare a Hearing Packet for?

The Registrar prepares a Hearing Packet for Complainant-Handled Cases and No-Pay Cases. Note: If the Docket Number on the Notice of Hearing contains a “CHC” or “NPC”, your case is a Complainant-Handled Case or a No-Pay Case.

What is in the Hearing Packet?

The Hearing Packet contains essential case-specific documents and at a minimum will include the following documents:

● Original complaint;

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martin Quezada, Director

● Citation; and ● Answer.

The Hearing Packet will also contain the following documents (if applicable):

● Jobsite inspection notices, notes, and photos; ● Written directives; and ● Compliance inspection notices, notes, and photos.

What if there are documents missing from the Hearing Packet?

If there is any evidence you submitted to the Registrar that are not included in the Hearing Packet it is your responsibility to introduce that evidence at the administrative hearing. Note: The administrative law judge assigned to your case does not have access to the entire Registrar record.

If there is additional evidence you submitted to the Registrar during the investigation that you also want to introduce as evidence during your hearing, it is your responsibility to:

● Properly disclose that evidence to the other party; and ● Introduce the evidence during your hearing.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martin Quezada, Director

How do I disclose evidence I intend to use at a Hearing?

You must properly disclose any and all documents and witnesses you intend to use at your hearing according to the Registrar’s Prehearing Disclosure Rules. See Arizona Administrative Code Section R4-9-118.

A sample prehearing disclosure form and instructions are provided to the parties by the Registrar.

How do I obtain documents I previously submitted to the Registrar?

If you previously submitted documents to the Registrar and need a copy of these documents, please contact the Registrar’s Legal Department or submit a public records request at https://roc.force.com/AZRoc/s/roc-public-request.

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Complainant: Jimmie Johnson 1008 E Bluebell Lane Tempe, AZ 85288

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: Black Diamond Builders LLC 280 E Sherri Dr Gilbert, AZ 85296

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 August 23, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-09587

Dear Complainant and Respondent:

A formal complaint has been filed with the Arizona Registrar of Contractors.

A jobsite inspection is scheduled for September 7, 2023 at 11:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

COMPLAINANT: 1. Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the work complained of within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on this complaint. 2. The Registrar may also be precluded from taking further action on this complaint, if the work that is the subject of the complaint is subject to neglect, modification, or abnormal use. A.R.S. § 32-1155(D)(2) 3. You must provide safe access to any area to be inspected. If access to a roof or other elevated area is required, you must provide a means to safely access the area (ladder or manlift as appropriate). Additionally, please secure any animals.

RESPONDENT: 1. Enclosed is a copy of the complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity to inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time.

If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely, Miles Crosby Miles Crosby, Investigator #213 928 6370485 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Complainant Respondent

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Jobsite Inspections

Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license alleging poor workmanship, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

Jobsite Inspection Rights and Responsibilities Access to inspect: The property owner has complete control over who they allow on the property. However, if the Registrar’s investigator or the contractor cannot inspect the work, the Registrar will not move forward with a citation.

Cooperation: Arizona law enables injured parties to seek relief for damages through several paths. When dealing with a licensed contractor, the Registrar of Contractors’ administrative complaint process may serve as one of those possible paths. However, in order to use that path, the Registrar relies on the cooperation of all parties to a complaint.

Minimum workmanship: The Registrar investigates workmanship complaints for compliance with minimum workmanship and professional industry standards. The Registrar does not issue citations for work that meets these standards.

Scope: The scope of the Jobsite Inspection is limited to items listed in the complaint filed with the Registrar’s office. It is the complainant’s responsibility to point out the complaint item(s) and the Investigators role to review the item(s). If the complainant identifies additional workmanship items not listed in the original complaint, they must file an addendum to the complaint. The Registrar’s Investigator may identify additional administrative violations by the contractor (e.g. work performed out of scope of the license and failure to provide a contract that meets requirements set by Arizona law) at the time of the inspection.

The Role of the Investigator At the Jobsite Inspection, the Registrar’s investigator will: ● Only investigate the items listed on the complaint form filed with the Registrar. ● Will gather evidence to make an informed decision about the complaint items.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will leave the jobsite and review the evidence provided during the inspection. Generally, the investigator does not make any determination at the time of the jobsite inspection regarding whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Written Directives Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will determine whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

Written Directives Access: In order to use the administrative process offered by the Registrar, a property owner must provide reasonable access to allow the contractor to fix their work as directed by the Registrar in a Written Directive. Complainants may not put any additional, unnecessary restrictions on the Respondent above and beyond the initial contract requirements agreed upon at the beginning of the project. Respondents are required to make repairs on items identified on any Written Directive, not otherwise restricted by local code or HOA limitations. Complainants must make access available to the Respondent to make the required repairs and failure to provide reasonable access may result in the Registrar dismissing the complaint.

Contractor obligations: The Written Directive will set a deadline for compliance. This is the period of time determined by the Investigator as necessary to complete the items listed in the Directive. ● The deadline for compliance assumes the contractor will promptly begin working on the items listed in the Directive. ● Do not wait. Both parties should communicate quickly to schedule the work.

Extensions: If good cause exists to extend this deadline, either party may submit a written request to the Investigator. The Registrar will review requests for extension and determine if the Directive should be extended.

Manner and method of performance: The Registrar does not provide specific instructions for how to correct poor work. A licensed contractor is expected to have the skill and professionalism to complete the work. Moreover, the complainant may not dictate the manner of repair. If the contractor fails to appropriately correct the work according to the contract, the Registrar will issue a citation.

Compliance Inspection: After the Written Directive expires, the Registrar’s Investigator will contact the complainant to determine if the contractor performed any corrective work. ● If the contractor did corrective work, the Investigator may schedule a Compliance Inspection to determine if the poor work is corrected. ● If the contractor did not perform any corrective work, the Registrar’s Investigator will not do a Compliance Inspection and will determine whether to issue a citation based on the administrative record.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Work performed after the directive ends: After the Directive period ends, a property owner may choose to allow the contractor to continue its work. The Registrar encourages parties to work cooperatively, but cannot require a homeowner to continue to allow a contractor access to the property after the Directive period ends in order for the administrative process to continue. Denying access after the Directive ends is not grounds to close or dismiss a complaint.

Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter. If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Jobsite Inspection Notes

Case No.: 2023-09587 Investigator: Miles Crosby Inspection Date: September 7, 2023 Inspection Time: 11:00 AM

Complainant: Jimmie Johnson Respondent: Black Diamond Not Present: Builders LLC Not Present:

Jobsite General Notes:

JSI photos taken with my Google Pixel 3a work phone JSI audio recorded with my Olympus DM-720 JSI photos and audio have been placed into the Salesforce Case folder.

As this project is still in progress it should be completed according to plans and at the contracted amount, with any change orders that are agreed upon by and signed by both parties. Changes with vague costs and not properly documented that do not meet the criteria of Title 32 Chapter 10 will not be accepted. Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, local building codes and manufacturers installation instructions.

The Respondent was not present for the JSI and upon calling did not answer his phone. I sent a courtesy text to which the Respondent advised, “No sir I believe there is no need you already claimed I’m 100 responsible for that job whether I bought the materials or not, and I don’t need Tobe [to be] around that kind of hostility, I assume I just won't be building anymore.” The respondent is referring to the Building Confidence Complaint 2023-07944. The BCP resulted in the moving forward of this Formal Complaint due to the inaction of the Respondent with the Complainant after the BCP. The Respondent did not communicate any further once that appointment was concluded. At the time of the BCP, it was discovered that the Respondent was purposely misleading the Complainants and lying about the use of subcontractors. The Respondent went as far as lying to me about who installed the electrical for the downstairs. The Respondent advised the Complainants that the electrical would be done by Dragon Electric, who is a licensed electrical contractor. When the Complainants contacted the Dragon Electric they discovered no contract 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

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was made with the Respondent. When I questioned the Respondent about this, he stated he has other electricians he uses but would not advise the name of the electrician to me. Eventually, he advised he did the electrical himself, which is not in the scope of his license. This pattern continued throughout the BCP inspection. The Respondent used the ignorance of the Complainant to adjust the plans with no review from an engineer or city approval. The Respondent blamed the plans and design for his changes.

The Respondent has stated he was fired by the Complainants, as reason for his inaction. No documentation was provided to substantiate this and the Respondent is still under contract to complete the job for the contracted amount.

Complaint Item: 1 - Deck joists are 24" centers but should be at 16" per plan Investigator’s Observation: Joist were not build according to plans. Respondent attempted to change the design of the plans without proper engineering signoff. Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 2 - We were told numerous times that costs were higher than original bid but never received a written change order with associated costs per contract. Then days later, would increase price again. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. However, the Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, local building codes and manufacturers installation instructions. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 3 - Excavation was not done correctly per plan which resulted in the downstairs patio being 3 feet shorter than the plan and the need for a 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

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retaining wall, then contractor charged us an additional $10,230. Investigator’s Observation: The Respondent has changed multiple items from the plans with no documentation or engineering to support the change. Respondent should complete according to plans or have proper documentation.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code.

Complaint Item: 4 - Bathroom windows should have been tempered glass per approved city plans. Investigator’s Observation: The glass had not yet been installed. This item is considered in progress and should be completed according to plans. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 5 - Basement electrical floor outlets on plan were missed when cement poured. Investigator’s Observation: At the BCP inspection, the Respondent stated he completed the electrical himself. The Respondent does not have the ability to complete electrical work per his license.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

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Complaint Item: 6 - GC took bank draw of $10,500 for electrician (Dragon Electric). Discovered that Dragon Electric does not have a contract in place with Black Diamond builders and did not do any of the electrical work. GC is doing electrical work. Investigator’s Observation: This item is in relation to Item #5 and is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 7 - Garage foundation is not correct. Holes in footings and poor workmanship. Investigator’s Observation: The footer for the garage wall has a very large gap with no attempt of correction. In fact, the Respondent proceeded to hide the mistake by covering up the hole with dirt. This is the garages support footer.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Departure from or disregard of: (b) A building code of this state or any political subdivision of this state in any material respect that is prejudicial to another.

Complaint Item: 8 - Roof gable is on plan and required by HOA. Intentionally omitted by GC without informing us. When we asked about the gable, GC indicated he didn't think it looked good and didn't feel it was necessary. Gable is still not completed. Investigator’s Observation: Respondent did not follow plans and specs and left the roof incomplete.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar;

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Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 9 - GC allowed permits to expire with no notification to us or city. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Complaint Item: 10 - GC removed pillars/posts for deck without getting revision re-engineered or approved by city and did not provide written change order showing associated costs. GC verbally indicated there would be no additional costs because the money saved on material for pillars/posts would be used for larger beams, yet we were charged extra several times for deck materials. In addition, remaining pillars/posts and beams do not appear to be placed correctly or safe. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 11 - Incorrect Trex decking material ordered, $3,600, then cut too short to use and still expects us to pay for it. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Complaint Item: 12 - GC took bank draw of $35,000 in April stating it was for North Mechanical who did the HVAC work. Recently discovered that North

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Mechanical was never paid. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Complaint Item: 13 - GC stated that the wall with the egress window in the basement would not work as designed on plan. Informed us that we would have leakage issues down the road. Told us that we needed a walkway and retaining wall to avoid issues. Never provided a written change order or associated costs and refuses to supply invoices/receipts. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents. Stem walls should be completed in accordance with IRC R608.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Complaint Item: 14 - GC ordered Tongue and Groove planks for patio ceiling. Planks were delivered and left outside for weeks which resulted in a good portion of the planks being unusable. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. However, the Respondent should cull the material as necessary. Governing Rule:

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Complaint Item: 15 - Several times throughout the project, the GC 'abandoned' the site with no work being done for weeks at a time which contributes to the project not meeting timeline. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Complaint Item: 16 - We are being told by the fireplace installer that the chimney does not meet the manufacture specs which were given to the GC. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Complaint Item: 17 - GC states that the roof is complete and roofers have been paid, yet the gable, chimney, and front porch need to be fixed before the roof can be completed. Investigator’s Observation: This item is in relation to Items #8 and #16. This is an in progress item that should be completed per plans and specs. Governing Rule:

Complaint Item: 18 - GC refuses to provide a list of all subcontractors he has contracted with, receipts for work and/or labor, proof of payments to subcontractors, or to refund all outstanding money he has taken for deposits on future material purchases. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Respondent should comply with ARS contractual laws. Governing Rule:

Complaint Item: 19 - Because GC refuses to provide receipts/invoices/cancelled checks that we have requested multiple times, we are unsure of how much money is owed back to us.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Complaint Item: 20 - Ridge vent that was on the plans was omitted. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Complaint Item: 21 - Beams over master bedrooms patio doors are smaller than the plan and need changed. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 22 - Due to length of build past HOA guidelines, driveway not being paved and mound of dirt not being removed, has resulted in runoff from our lot and is plugging the neighbors drainage which they want rectified at our expense. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Complaint #2023-09587 P 1 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 2 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 3 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 4 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 5 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 6 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 7 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 8 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 9 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 10 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 11 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 12 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 13 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 14 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 15 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 16 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 17 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 18 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 19 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 20 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 21 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 22 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 23 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 24 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 25 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 26 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 27 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 28 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 29 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 30 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 31 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 32 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 33 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 34 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 35 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 36 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 37 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 38 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 39 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 40 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 41 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 42 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 43 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 44 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 45 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 46 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 47 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 48 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 49 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 50 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 51 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 52 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 53 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 54 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 55 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 56 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 57 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 58 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 59 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 60 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 61 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 62 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 63 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 64 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 65 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 66 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 67 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 68 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 69 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 70 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 71 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 72 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 73 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 74 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 75 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 76 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 77 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 78 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 79 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 80 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 81 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 82 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 83 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 84 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 85 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 86 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 87 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 88 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 89 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 90 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 91 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 92 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 93 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 94 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 95 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 96 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 97 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 98 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 99 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 100 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 101 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 102 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 103 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 104 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 105 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 106 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 107 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 108 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 109 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 110 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 111 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 112 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 113 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 114 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 115 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 116 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 117 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 118 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 119 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 120 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 121 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 122 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 123 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 124 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 125 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 126 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 127 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 128 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 129 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 130 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 131 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 132 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 133 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 1 Complainant Provided PHOTOS Complaint #2023-09587 P 2 Complainant Provided PHOTOS Complaint #2023-09587 P 3 Complainant Provided PHOTOS Complainant: Jimmie Johnson 1008 E Bluebell Lane Tempe, AZ 85288

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Respondent: Black Diamond Builders LLC DBA: 280 E Sherri Dr Gilbert, AZ 85296

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 September 19, 2023

License No. ROC 297510

Re:Complaint No. 2023-09587

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on October 5, 2023.

RESTRICTIONS  You may not perform or hire other contractors to perform work that is outside the scope of your license.  If your license is currently suspended for administrative reasons1, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated.

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

Compliance Item: 1 - Deck joists are 24" centers but should be at 16" per plan Investigator’s Observation: Joist were not build according to plans. Respondent attempted to change the design of the plans without proper engineering signoff. Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar;

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F). 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - We were told numerous times that costs were higher than original bid but never received a written change order with associated costs per contract. Then days later, would increase price again. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. However, the Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, local building codes and manufacturers installation instructions. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 3 - Excavation was not done correctly per plan which resulted in the downstairs patio being 3 feet shorter than the plan and the need for a retaining wall, then contractor charged us an additional $10,230. Investigator’s Observation: The Respondent has changed multiple items from the plans with no documentation or engineering to support the change. Respondent should complete according to plans or have proper documentation.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 have the particular construction project or operation completed in accordance with such plans and specifications and code.

Compliance Item: 4 - Bathroom windows should have been tempered glass per approved city plans. Investigator’s Observation: The glass had not yet been installed. This item is considered in progress and should be completed according to plans. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 5 - Basement electrical floor outlets on plan were missed when cement poured. Investigator’s Observation: At the BCP inspection, the Respondent stated he completed the electrical himself. The Respondent does not have the ability to complete electrical work per his license.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 6 - GC took bank draw of $10,500 for electrician (Dragon Electric). Discovered that Dragon Electric does not have a contract in place with Black Diamond builders and did not do any of the electrical work. GC is doing electrical work. Investigator’s Observation: This item is in relation to Item #5 and is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule: Violation of any rule adopted by the Registrar;

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 7 - Garage foundation is not correct. Holes in footings and poor workmanship. Investigator’s Observation: The footer for the garage wall has a very large gap with no attempt of correction. In fact, the Respondent proceeded to hide the mistake by covering up the hole with dirt. This is the garages support footer.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Departure from or disregard of: (b) A building code of this state or any political subdivision of this state in any material respect that is prejudicial to another.

Compliance Item: 8 - Roof gable is on plan and required by HOA. Intentionally omitted by GC without informing us. When we asked about the gable, GC indicated he didn't think it looked good and didn't feel it was necessary. Gable is still not completed. Investigator’s Observation: Respondent did not follow plans and specs and left the roof incomplete.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 10 - GC removed pillars/posts for deck without getting revision re-engineered or approved by city and did not provide written change order showing associated costs. GC verbally indicated there would be no

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 additional costs because the money saved on material for pillars/posts would be used for larger beams, yet we were charged extra several times for deck materials. In addition, remaining pillars/posts and beams do not appear to be placed correctly or safe. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 13 - GC stated that the wall with the egress window in the basement would not work as designed on plan. Informed us that we would have leakage issues down the road. Told us that we needed a walkway and retaining wall to avoid issues. Never provided a written change order or associated costs and refuses to supply invoices/receipts. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Compliance Item: 21 - Beams over master bedrooms patio doors are smaller than the plan and need changed. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Compliance Item: 9 - GC allowed permits to expire with no notification to us or city. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Compliance Item: 11 - Incorrect Trex decking material ordered, $3,600, then cut too short to use and still expects us to pay for it. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Compliance Item: 12 - GC took bank draw of $35,000 in April stating it was for North Mechanical who did the HVAC work. Recently discovered that North Mechanical was never paid. Investigator’s Observation: This is a statement and not an allegation

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 that implicates poor work that I can inspect and report on. Governing Rule:

Compliance Item: 14 - GC ordered Tongue and Groove planks for patio ceiling. Planks were delivered and left outside for weeks which resulted in a good portion of the planks being unusable. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. However, the Respondent should cull the material as necessary. Governing Rule:

Compliance Item: 15 - Several times throughout the project, the GC 'abandoned' the site with no work being done for weeks at a time which contributes to the project not meeting timeline. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Compliance Item: 16 - We are being told by the fireplace installer that the chimney does not meet the manufacture specs which were given to the GC. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Compliance Item: 17 - GC states that the roof is complete and roofers have been paid, yet the gable, chimney, and front porch need to be fixed before the roof can be completed. Investigator’s Observation: This item is in relation to Items #8 and #16. This is an in progress item that should be completed per plans and specs. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Compliance Item: 18 - GC refuses to provide a list of all subcontractors he has contracted with, receipts for work and/or labor, proof of payments to subcontractors, or to refund all outstanding money he has taken for deposits on future material purchases. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Respondent should comply with ARS contractual laws. Governing Rule:

Compliance Item: 19 - Because GC refuses to provide receipts/invoices/cancelled checks that we have requested multiple times, we are unsure of how much money is owed back to us. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Compliance Item: 20 - Ridge vent that was on the plans was omitted. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Compliance Item: 22 - Due to length of build past HOA guidelines, driveway not being paved and mound of dirt not being removed, has resulted in runoff from our lot and is plugging the neighbors drainage which they want rectified at our expense. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Please direct all questions regarding this Directive to the undersigned Investigator. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Sincerely,

Miles Crosby Miles Crosby, Investigator #213 928 6370485 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Choose an item. Choose an item. Choose an item. Choose an item.

License mailing address (if different from account/company address of record):

Black Diamond Builders LLC

280 E Sherri Dr Gilbert, AZ 85296

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Complainant Attorney:

,

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Respondent Attorney:

,

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 9/21/23, 1:13 PM State of Arizona Mail - The file "20230919 C009 Written Directive 2023-09587.pdf" you shared has been accessed

Miles Crosby <[email redacted]>

The file "20230919 C009 Written Directive 2023-09587.pdf" you shared has been accessed message

Egnyte <[email redacted]> Thu, Sep 21, 2023 at 1:12 PM Reply-To: [email redacted] To: [email redacted]

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20230919 C009 Written Directive 2023-09587.pdf

The recipient has accessed the file from Gilbert, Arizona, United States (24.255.4.157).

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https://mail.google.com/mail/u/0/?ik=7dfe6f54c7&view=pt&search=all&permthid=thread-f:[number redacted]&simpl=msg-f:[number redacted] 1/1 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Jimmie Johnson, Case No. 2023-09587 COMPLAINANT, v. Black Diamond Builders LLC CITATION License No. ROC 297510, RESPONDENT.

The Registrar issues this Citation to Black Diamond Builders LLC (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by October 27, 2023, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission of the act or acts charged in the underlying complaint, and the Registrar may then suspend or revoke Respondent’s license(s). THE WRITTEN COMPLAINT On August 18, 2023, Jimmie Johnson (“Complainant”) filed a written complaint with the Registrar. A copy of that Complaint is attached to this Citation. A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT The Registrar investigated this matter and finds cause to charge Respondent with violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged with violating: Charge :1 A.R.S. § 32-1154(A)(1) Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal. Charge :2 A.R.S. § 32-1154(A)(2)(a) of 6

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to

have the particular construction project or operation completed in accordance

with such plans and specifications and code. Charge :3 A.R.S. § 32-1154(A)(2)(b) Departure from or disregard of: (b) A building code of this state or any political subdivision of this state in any material respect that is prejudicial to another. Charge :4 A.R.S. § 32-1154(A)(3) - R4-9-108(a) Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. Charge :5 A.R.S. § 32-1154(A)(3) - R4-9-108(b) Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Charge :6 A.R.S. § 32-1154(A)(12) - A.R.S. § 32-1158

Failure in any material respect to comply with this chapter; Namely A.R.S. § 32- 1158. Charge :7 A.R.S. § 32-1154(A)(16) Knowingly contracting beyond the scope of the license or licenses of the licensee.

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Charge :8 A.R.S. § 32-1154(A)(17) Contracting or offering to contract or submitting a bid while the license is under suspension or while the license is on inactive status.

Charge :9 A.R.S. § 32-1154(A)(22)

Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held.

If the matter proceeds to a hearing and the administrative law judge determines that any

of the charges listed above are supported by a preponderance of the evidence, then

Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be

subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E)

and (F).

FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-09587. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: of 6

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted] The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than October 27, 2023. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings. of 6

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not of 6

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated October 12, 2023. By: /s/ Shaquira Adebule Shaquira Adebule Legal Assistant II Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, October 12, 2023 to: Respondent Certified Mail No: [number redacted] Black Diamond Builders LLC 280 E Sherri Dr Gilbert, AZ 85296

Copy mailed by USPS First Class mail this same date to: Respondent Black Diamond Builders LLC 280 E Sherri Dr Gilbert, AZ 85296 Complainant Jimmie Johnson 1008 E Bluebell Lane Tempe, AZ 85288 Copy sent electronically this same date to: Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar Case No. 2023-09587 / SA

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Mediation Notice

Mediation Services Mediation services are available to the parties. What is Mediation? Mediation is a method of resolving disputes where the parties can end conflict without the expense and time associated with the full administrative process. Who Participates in During mediation, a mediator will attempt to help the Mediation? parties find an optimal solution to the conflict. Both parties must agree to participate in mediation, and both parties must bring a representative to mediation that has full authority to settle the entire matter. Mediation Is Not Neither the Registrar nor the Office of Administrative Mandatory Hearings will penalize a party for not agreeing to mediation. Where do the Parties The parties will meet at the Office of Administrative Meet for Mediation? Hearings to participate in mediation. The Office of Administrative Hearings is located at 1740 W Adams St., Lower Level, Phoenix, Arizona 85007. When does Mediation can occur after the Registrar issues a citation, but Mediation Occur? before the administrative hearing. Why Should Parties Mediation can be an alternative to the full administrative Consider Mediation? process. Mediation is beneficial because it is (1) time- efficient, (2) cost-effective, (3) confidential, and (4) capable of providing flexible solutions to complex problems. How to Request If the parties wish to mediate this case, they must file a Joint Mediation Request for Mediation with the Office of Administrative Hearings. A Joint Request for Mediation is included with this Mediation Notice. REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA _________________________ Case No. _______________ COMPLAINANT,

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

The parties jointly request that this matter be referred to mediation in the Office of Administrative Hearings (OAH). ☐ This matter is set for hearing on __________________(date). ☐ This matter is not currently set for hearing. MEDIATION AGREEMENT By requesting this mediation and signing below, the parties understand, represent, and agree: 1. The parties are prepared to commence mediation and will be ready for mediation on _____________________(date); 2. The parties will participate in the mediation process in good faith; 3. This request for mediation is not intended to hinder or delay administrative proceedings; 4. No party will contend that the mediation limits the power of OAH and its administrative law judges to conduct an administrative hearing and issue decisions under A.R.S. §§ 41-1092 – 1092.12; 5. The parties will be courteous and respectful throughout the mediation process to all participants; 6. The mediation is completely voluntary and the principal purpose is to allow the parties a full and fair opportunity to discuss settlement; of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 7. The mediator may conduct joint and separate meetings with the parties and may suggest resolutions to the parties’ dispute, but the mediator has no authority to impose a settlement upon the parties; 8. The mediation process is confidential. Communications made, material created for or used during, and acts occurring during mediation are confidential and may not be discovered or admitted into evidence in any proceeding except as provided by A.R.S. § 12-2238; 9. The mediator is not subject to service of process or a subpoena to produce evidence or to testify regarding any evidence or occurrence relating to the mediation except as provided in A.R.S. § 12-2238(C); 10. Neither the mediator, nor the Registrar of Contractors, nor the Office of Administrative Hearings is subject to civil liability for any act or omission in connection with any mediation service or activity except for acts involving

intentional misconduct or reckless disregard of a substantial risk of injury to the rights of others; 11. Throughout the mediation process, each party must have a representative present who will have full settlement authority to settle all claims at issue in the administrative

proceeding. 12. The mediation process will terminate when: a. The parties reach settlement; b. The mediator determines that further efforts at mediation are no longer likely

to achieve a settlement; or c. One of the parties withdraws from mediation. _____________________________________ _______________________ Complainant (or representative) Date

_____________________________________ _______________________ Respondent (or representative) Date

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 ARIZONA REGISTRAR OF CONTRACTORS

Douglas A. Ducey, Governor Jeff Fleetham , Director

Form REQUEST TO CLOSE CASE RC-Lg-701A

Instructions Complete this form to request that the Registrar close a case where the Registrar previously issued a citation. Before the Registrar issues an order closing a case that resulted in citation, both parties must agree to the closure. After consideration, the Registrar may approve the request.

If both parties do not demonstrate their willingness for the Registrar to issue an Order of Closing by completing this form, then the matter will continue to proceed to administrative resolution. This means that, if not already done so:

The Respondent will be required to: 1. Submit a written answer as directed by the Citation and required under A.R.S. § 32-1155(A). o Failure to timely submit an answer may result in the admission of the allegations contained within the citation. A.R.S. § 32-1155(B); and 2. Request a settlement conference under A.R.S. §41-1092.06, if desired.

The Complainant will be required to establish, before the administrative law judge, the merits of their claim.

A. CASE INFORMATION 1. Case Number 2. Complainant 3. Respondent

B. PARTIES ACKNOWLEDGMENT & SIGNATURE Complainant acknowledges that by signing and submitting this Request to Close Case, if the Registrar grants this request: 1. The Registrar may decline to reopen this case; and 2. Complainant’s future remedies, if any, may be limited to another forum. Respondent acknowledges that by signing and submitting this Request to Close Case, if the Registrar grants this request: 1. Respondent’s license record will have a “Closed Case” designation associated with this case; and 2. This case will appear on the Respondent’s public license record available through the Registrar of Contractors’ website as a “Resolved/Settled/Withdrawn” case for a period of seven years.

_____________________ _____________________ ______________ Complainant’s Name Complainant’s Signature Date

_____________________ _____________________ ______________ Respondent’s Name Respondent’s Signature Date

1700 W. Washington Street, Suite 105 ● Phoenix AZ 85007-2812 602.542.1525 ● Within AZ 877.692.9762 ● Fax 602.542.1599 ● www.roc.az.gov

Form RC-Lg-701A Request to Close Case Rev 1/18/2019 Page 1 of 1 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Printed Name Signature Date

Jimmie Johnson

RCC099 12/05/18 Page 3 of 3 Complaint #2023-09587 P 1 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 2 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 3 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 4 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 5 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 6 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 7 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 8 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 9 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 10 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 11 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 12 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 13 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 14 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 15 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 16 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 17 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 18 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 19 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 20 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 21 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 22 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 23 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 24 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 25 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 26 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 27 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 28 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 29 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 30 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 31 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 32 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 33 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 34 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 35 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 36 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 37 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 38 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 39 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 40 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 41 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 42 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 43 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 44 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 45 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 46 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 47 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 48 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 49 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 50 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 51 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 52 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 53 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 54 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 55 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 56 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 57 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 58 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 59 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 60 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 61 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 62 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 63 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 64 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 65 JSI date September 7, 2023 at 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130 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 131 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 132 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Complaint #2023-09587 P 133 JSI date September 7, 2023 at 11:00 AM JSI PHOTOS Jobsite Inspection Notes

Case No.: 2023-09587 Investigator: Miles Crosby Inspection Date: September 7, 2023 Inspection Time: 11:00 AM

Complainant: Jimmie Johnson Respondent: Black Diamond Not Present: Builders LLC Not Present:

Jobsite General Notes:

JSI photos taken with my Google Pixel 3a work phone JSI audio recorded with my Olympus DM-720 JSI photos and audio have been placed into the Salesforce Case folder.

As this project is still in progress it should be completed according to plans and at the contracted amount, with any change orders that are agreed upon by and signed by both parties. Changes with vague costs and not properly documented that do not meet the criteria of Title 32 Chapter 10 will not be accepted. Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, local building codes and manufacturers installation instructions.

The Respondent was not present for the JSI and upon calling did not answer his phone. I sent a courtesy text to which the Respondent advised, “No sir I believe there is no need you already claimed I’m 100 responsible for that job whether I bought the materials or not, and I don’t need Tobe [to be] around that kind of hostility, I assume I just won't be building anymore.” The respondent is referring to the Building Confidence Complaint 2023-07944. The BCP resulted in the moving forward of this Formal Complaint due to the inaction of the Respondent with the Complainant after the BCP. The Respondent did not communicate any further once that appointment was concluded. At the time of the BCP, it was discovered that the Respondent was purposely misleading the Complainants and lying about the use of subcontractors. The Respondent went as far as lying to me about who installed the electrical for the downstairs. The Respondent advised the Complainants that the electrical would be done by Dragon Electric, who is a licensed electrical contractor. When the Complainants contacted the Dragon Electric they discovered no contract 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

was made with the Respondent. When I questioned the Respondent about this, he stated he has other electricians he uses but would not advise the name of the electrician to me. Eventually, he advised he did the electrical himself, which is not in the scope of his license. This pattern continued throughout the BCP inspection. The Respondent used the ignorance of the Complainant to adjust the plans with no review from an engineer or city approval. The Respondent blamed the plans and design for his changes.

The Respondent has stated he was fired by the Complainants, as reason for his inaction. No documentation was provided to substantiate this and the Respondent is still under contract to complete the job for the contracted amount.

Complaint Item: 1 - Deck joists are 24" centers but should be at 16" per plan Investigator’s Observation: Joist were not build according to plans. Respondent attempted to change the design of the plans without proper engineering signoff. Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 2 - We were told numerous times that costs were higher than original bid but never received a written change order with associated costs per contract. Then days later, would increase price again. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. However, the Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, local building codes and manufacturers installation instructions. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 3 - Excavation was not done correctly per plan which resulted in the downstairs patio being 3 feet shorter than the plan and the need for a 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

retaining wall, then contractor charged us an additional $10,230. Investigator’s Observation: The Respondent has changed multiple items from the plans with no documentation or engineering to support the change. Respondent should complete according to plans or have proper documentation.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code.

Complaint Item: 4 - Bathroom windows should have been tempered glass per approved city plans. Investigator’s Observation: The glass had not yet been installed. This item is considered in progress and should be completed according to plans. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 5 - Basement electrical floor outlets on plan were missed when cement poured. Investigator’s Observation: At the BCP inspection, the Respondent stated he completed the electrical himself. The Respondent does not have the ability to complete electrical work per his license.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Complaint Item: 6 - GC took bank draw of $10,500 for electrician (Dragon Electric). Discovered that Dragon Electric does not have a contract in place with Black Diamond builders and did not do any of the electrical work. GC is doing electrical work. Investigator’s Observation: This item is in relation to Item #5 and is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 7 - Garage foundation is not correct. Holes in footings and poor workmanship. Investigator’s Observation: The footer for the garage wall has a very large gap with no attempt of correction. In fact, the Respondent proceeded to hide the mistake by covering up the hole with dirt. This is the garages support footer.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Departure from or disregard of: (b) A building code of this state or any political subdivision of this state in any material respect that is prejudicial to another.

Complaint Item: 8 - Roof gable is on plan and required by HOA. Intentionally omitted by GC without informing us. When we asked about the gable, GC indicated he didn't think it looked good and didn't feel it was necessary. Gable is still not completed. Investigator’s Observation: Respondent did not follow plans and specs and left the roof incomplete.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar;

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

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Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 9 - GC allowed permits to expire with no notification to us or city. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Complaint Item: 10 - GC removed pillars/posts for deck without getting revision re-engineered or approved by city and did not provide written change order showing associated costs. GC verbally indicated there would be no additional costs because the money saved on material for pillars/posts would be used for larger beams, yet we were charged extra several times for deck materials. In addition, remaining pillars/posts and beams do not appear to be placed correctly or safe. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 11 - Incorrect Trex decking material ordered, $3,600, then cut too short to use and still expects us to pay for it. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Complaint Item: 12 - GC took bank draw of $35,000 in April stating it was for North Mechanical who did the HVAC work. Recently discovered that North

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Mechanical was never paid. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Complaint Item: 13 - GC stated that the wall with the egress window in the basement would not work as designed on plan. Informed us that we would have leakage issues down the road. Told us that we needed a walkway and retaining wall to avoid issues. Never provided a written change order or associated costs and refuses to supply invoices/receipts. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents. Stem walls should be completed in accordance with IRC R608.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Complaint Item: 14 - GC ordered Tongue and Groove planks for patio ceiling. Planks were delivered and left outside for weeks which resulted in a good portion of the planks being unusable. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. However, the Respondent should cull the material as necessary. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Complaint Item: 15 - Several times throughout the project, the GC 'abandoned' the site with no work being done for weeks at a time which contributes to the project not meeting timeline. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Complaint Item: 16 - We are being told by the fireplace installer that the chimney does not meet the manufacture specs which were given to the GC. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Complaint Item: 17 - GC states that the roof is complete and roofers have been paid, yet the gable, chimney, and front porch need to be fixed before the roof can be completed. Investigator’s Observation: This item is in relation to Items #8 and #16. This is an in progress item that should be completed per plans and specs. Governing Rule:

Complaint Item: 18 - GC refuses to provide a list of all subcontractors he has contracted with, receipts for work and/or labor, proof of payments to subcontractors, or to refund all outstanding money he has taken for deposits on future material purchases. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Respondent should comply with ARS contractual laws. Governing Rule:

Complaint Item: 19 - Because GC refuses to provide receipts/invoices/cancelled checks that we have requested multiple times, we are unsure of how much money is owed back to us.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Complaint Item: 20 - Ridge vent that was on the plans was omitted. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Complaint Item: 21 - Beams over master bedrooms patio doors are smaller than the plan and need changed. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 22 - Due to length of build past HOA guidelines, driveway not being paved and mound of dirt not being removed, has resulted in runoff from our lot and is plugging the neighbors drainage which they want rectified at our expense. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Complainant: Jimmie Johnson 1008 E Bluebell Lane Tempe, AZ 85288

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Respondent: Black Diamond Builders LLC DBA: 280 E Sherri Dr Gilbert, AZ 85296

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 September 19, 2023

License No. ROC 297510

Re:Complaint No. 2023-09587

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on October 5, 2023.

RESTRICTIONS  You may not perform or hire other contractors to perform work that is outside the scope of your license.  If your license is currently suspended for administrative reasons1, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated.

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

Compliance Item: 1 - Deck joists are 24" centers but should be at 16" per plan Investigator’s Observation: Joist were not build according to plans. Respondent attempted to change the design of the plans without proper engineering signoff. Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar;

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F). 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 2 - We were told numerous times that costs were higher than original bid but never received a written change order with associated costs per contract. Then days later, would increase price again. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. However, the Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, local building codes and manufacturers installation instructions. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 3 - Excavation was not done correctly per plan which resulted in the downstairs patio being 3 feet shorter than the plan and the need for a retaining wall, then contractor charged us an additional $10,230. Investigator’s Observation: The Respondent has changed multiple items from the plans with no documentation or engineering to support the change. Respondent should complete according to plans or have proper documentation.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 have the particular construction project or operation completed in accordance with such plans and specifications and code.

Compliance Item: 4 - Bathroom windows should have been tempered glass per approved city plans. Investigator’s Observation: The glass had not yet been installed. This item is considered in progress and should be completed according to plans. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 5 - Basement electrical floor outlets on plan were missed when cement poured. Investigator’s Observation: At the BCP inspection, the Respondent stated he completed the electrical himself. The Respondent does not have the ability to complete electrical work per his license.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 6 - GC took bank draw of $10,500 for electrician (Dragon Electric). Discovered that Dragon Electric does not have a contract in place with Black Diamond builders and did not do any of the electrical work. GC is doing electrical work. Investigator’s Observation: This item is in relation to Item #5 and is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule: Violation of any rule adopted by the Registrar;

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 7 - Garage foundation is not correct. Holes in footings and poor workmanship. Investigator’s Observation: The footer for the garage wall has a very large gap with no attempt of correction. In fact, the Respondent proceeded to hide the mistake by covering up the hole with dirt. This is the garages support footer.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Departure from or disregard of: (b) A building code of this state or any political subdivision of this state in any material respect that is prejudicial to another.

Compliance Item: 8 - Roof gable is on plan and required by HOA. Intentionally omitted by GC without informing us. When we asked about the gable, GC indicated he didn't think it looked good and didn't feel it was necessary. Gable is still not completed. Investigator’s Observation: Respondent did not follow plans and specs and left the roof incomplete.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 10 - GC removed pillars/posts for deck without getting revision re-engineered or approved by city and did not provide written change order showing associated costs. GC verbally indicated there would be no

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 additional costs because the money saved on material for pillars/posts would be used for larger beams, yet we were charged extra several times for deck materials. In addition, remaining pillars/posts and beams do not appear to be placed correctly or safe. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 13 - GC stated that the wall with the egress window in the basement would not work as designed on plan. Informed us that we would have leakage issues down the road. Told us that we needed a walkway and retaining wall to avoid issues. Never provided a written change order or associated costs and refuses to supply invoices/receipts. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Compliance Item: 21 - Beams over master bedrooms patio doors are smaller than the plan and need changed. Investigator’s Observation: Respondent did not follow plans or specs and did not provide any supporting documents.

Does not meet standards. Respondent should correct by appropriate means. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Compliance Item: 9 - GC allowed permits to expire with no notification to us or city. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Compliance Item: 11 - Incorrect Trex decking material ordered, $3,600, then cut too short to use and still expects us to pay for it. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Compliance Item: 12 - GC took bank draw of $35,000 in April stating it was for North Mechanical who did the HVAC work. Recently discovered that North Mechanical was never paid. Investigator’s Observation: This is a statement and not an allegation

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 that implicates poor work that I can inspect and report on. Governing Rule:

Compliance Item: 14 - GC ordered Tongue and Groove planks for patio ceiling. Planks were delivered and left outside for weeks which resulted in a good portion of the planks being unusable. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. However, the Respondent should cull the material as necessary. Governing Rule:

Compliance Item: 15 - Several times throughout the project, the GC 'abandoned' the site with no work being done for weeks at a time which contributes to the project not meeting timeline. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Compliance Item: 16 - We are being told by the fireplace installer that the chimney does not meet the manufacture specs which were given to the GC. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Compliance Item: 17 - GC states that the roof is complete and roofers have been paid, yet the gable, chimney, and front porch need to be fixed before the roof can be completed. Investigator’s Observation: This item is in relation to Items #8 and #16. This is an in progress item that should be completed per plans and specs. Governing Rule:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Compliance Item: 18 - GC refuses to provide a list of all subcontractors he has contracted with, receipts for work and/or labor, proof of payments to subcontractors, or to refund all outstanding money he has taken for deposits on future material purchases. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Respondent should comply with ARS contractual laws. Governing Rule:

Compliance Item: 19 - Because GC refuses to provide receipts/invoices/cancelled checks that we have requested multiple times, we are unsure of how much money is owed back to us. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Compliance Item: 20 - Ridge vent that was on the plans was omitted. Investigator’s Observation: This is an in progress item that should be completed per plans and specs. Governing Rule:

Compliance Item: 22 - Due to length of build past HOA guidelines, driveway not being paved and mound of dirt not being removed, has resulted in runoff from our lot and is plugging the neighbors drainage which they want rectified at our expense. Investigator’s Observation: This is a statement and not an allegation that implicates poor work that I can inspect and report on. Governing Rule:

Please direct all questions regarding this Directive to the undersigned Investigator. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Sincerely,

Miles Crosby Miles Crosby, Investigator #213 928 6370485 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Choose an item. Choose an item. Choose an item. Choose an item.

License mailing address (if different from account/company address of record):

Black Diamond Builders LLC

280 E Sherri Dr Gilbert, AZ 85296

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Complainant Attorney:

,

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Respondent Attorney:

,

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Legal New Mail - AZROC <[email redacted]>

complaint 2023-09587 message

Bryan Young <[email redacted]> Sun, Oct 22, 2023 at 9:49 AM To: [email redacted]

To whom it May concern, this letter is in response to the complaints and accusation made by Jim Johnson property 1111 karen way Payson Arizona. This property is an owner builder permit, The owners themselves have purchased materials and supplies as well as hired subcontractors to do the work, I (Bryan Young) was hired to help run and facilitate the project, My license and company therefore should not be in question everything done on the property was all okayed by Jim Johnson before doing. On The of July 2023 I was fired and asked to leave because they were going in a different direction, due to being over budget and time. I was told they were hiring Tim Gable, a friend of theirs and a builder to take over the project. Arizona is a right to work state. I do not need to give a reason nor any notice to quit nor does anyone need to do that to fire someone they hired. As for some of these issues I will Go over them Starting with the lower patio stem wall. The pictures you took even show the natural grade to be 24 inches below the patio (page 5 ) This means that they would have to make a cantilever patio, with nothing holding back any dirt or protecting the patio from sliding down the hill. That retaining wall has to be there to retain the dirt and make the patio level, yes I suppose we could have lowered the house by 5 feet to allow the patio slab to daylight out to natural grade, But that would have done 2 things 1)cost a lot more in excavation to cut the hillside down,2 you would have had to build a retaining wall on the north side of the house around garage to retain the hillside and protect the 2 homes above from eroding down the hill. The columns for the deck are still there; they have not been removed;(page 103,104,101 )they just need post. #3) The deck redesign was approved @ 24 oc before it was built. There is a claim of not reading the plans, well the decking materials are called out for on the plans as 2x material which spans 24 o.c just fine, not trex ,and not following the plans let look at other things, the foundation plans show a simpson osb strong wall below grade with dirt pushed up against it. they show no osb sheer around the house, no drops to allow plumbing and hvac to be run , No hold downs, very little strapping, we ran 1 1/8 osb subfloor instead of 3/4, double sills plates instead of single at all windows. 6x Now for the headers a solid 6x8 header is stronger and spans more then just the 2 2x10s that's on the plans. I was making the house stronger and safer, The hole in the foundation wall is to be used for fresh air into the mechanical room if need be with a 8 inch pipe run under the garage slab .As charge 8 The house is an owner builder my license was not involved, 2 as soon as I found out about it I fixed the issue, the R o c is aware of what happened a sub started a fire at a job site and burnt down the garage I refused to pay them they went after my license and now the are being sued by the home owners. Thank you Bryan young Mediation Notice

Mediation Services Mediation services are available to the parties. What is Mediation? Mediation is a method of resolving disputes where the parties can end conflict without the expense and time associated with the full administrative process. Who Participates in During mediation, a mediator will attempt to help the Mediation? parties find an optimal solution to the conflict. Both parties must agree to participate in mediation, and both parties must bring a representative to mediation that has full authority to settle the entire matter. Mediation Is Not Neither the Registrar nor the Office of Administrative Mandatory Hearings will penalize a party for not agreeing to mediation. Where do the Parties The parties will meet at the Office of Administrative Meet for Mediation? Hearings to participate in mediation.

The Office of Administrative Hearings is located at 1400 West Washington, Suite 101, Phoenix, Arizona 85007. When does Mediation can occur after the Registrar issues a citation, but Mediation Occur? before the administrative hearing. Why Should Parties Mediation can be an alternative to the full administrative Consider Mediation? process. Mediation is beneficial because it is (1) time- efficient, (2) cost-effective, (3) confidential, and (4) capable of providing flexible solutions to complex problems. How to Request If the parties wish to mediate this case, they must file a Joint Mediation Request for Mediation with the Office of Administrative Hearings. A Joint Request for Mediation is included with this Mediation Notice. REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA _________________________ Case No. _______________ COMPLAINANT,

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

The parties jointly request that this matter be referred to mediation in the Office of Administrative Hearings (OAH). ☐ This matter is set for hearing on __________________(date). ☐ This matter is not currently set for hearing. MEDIATION AGREEMENT By requesting this mediation and signing below, the parties understand, represent, and agree: 1. The parties are prepared to commence mediation and will be ready for mediation on _____________________(date); 2. The parties will participate in the mediation process in good faith; 3. This request for mediation is not intended to hinder or delay administrative proceedings; 4. No party will contend that the mediation limits the power of OAH and its administrative law judges to conduct an administrative hearing and issue decisions under A.R.S. §§ 41-1092 – 1092.12; 5. The parties will be courteous and respectful throughout the mediation process to all participants; 6. The mediation is completely voluntary and the principal purpose is to allow the parties a full and fair opportunity to discuss settlement; of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 7. The mediator may conduct joint and separate meetings with the parties and may suggest resolutions to the parties’ dispute, but the mediator has no authority to impose a settlement upon the parties; 8. The mediation process is confidential. Communications made, material created for or used during, and acts occurring during mediation are confidential and may not be discovered or admitted into evidence in any proceeding except as provided by A.R.S. § 12-2238; 9. The mediator is not subject to service of process or a subpoena to produce evidence or to testify regarding any evidence or occurrence relating to the mediation except as provided in A.R.S. § 12-2238(C); 10. Neither the mediator, nor the Registrar of Contractors, nor the Office of Administrative Hearings is subject to civil liability for any act or omission in connection with any mediation service or activity except for acts involving

intentional misconduct or reckless disregard of a substantial risk of injury to the rights of others; 11. Throughout the mediation process, each party must have a representative present who will have full settlement authority to settle all claims at issue in the administrative

proceeding. 12. The mediation process will terminate when: a. The parties reach settlement; b. The mediator determines that further efforts at mediation are no longer likely

to achieve a settlement; or c. One of the parties withdraws from mediation. _____________________________________ _______________________ Complainant (or representative) Date

_____________________________________ _______________________ Respondent (or representative) Date

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 PREHEARING DISCLOSURE STATEMENT INSTRUCTIONS ***DO NOT SUBMIT THESE INSTRUCTIONS WITH THE PREHEARING DISCLOSURE FORM***

ADMINISTRATIVE RULES A copy of the Arizona Administrative Code’s Rules for the Registrar of Contractors can be located on the Registrar’s Website.

PREHEARING DISCLOSURE REQUIREMENT Under A.A.C. R4-9-118(A), before a hearing, the parties must prepare a disclosure statement. The disclosure statement must contain: • A list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony; and • A list of all the exhibits that the party will use at the hearing.

FILE PREHEARING DISCLOSURE STATEMENTS • The Prehearing Disclosure Statements and Exhibits may be submitted to the Arizona Office of Administrative Hearings using any of the following: • Electronically: https://portal.azoah.com/submission/ • In-Person or by Mail: 1740 West Adams Street, Lower Level, Phoenix, Arizona 85007

EXCHANGING DISCLOSURE STATEMENTS AND EXHIBITS Under A.A.C. R4-9-118(B) (effective November 5, 2017), a party to the hearing must serve on every other party and file with the Office of Administrative Hearings a copy of: • The disclosure statement; and, • Any exhibit that the party will use at the hearing. Service: The disclosure statement and exhibits must be served on all parties in accordance with Arizona Administrative Code R2-19-108 Filing Documents. Under A.A.C. R2-19-108, service is completed by: • Personal delivery; • 1st class, certified or express mail; or • Facsimile. Timing: The disclosure statement and the exhibits must be served and filed not less than seven calendar days before the date of the hearing. Under A.A.C. R2-19-108, a document is served on a party: • On the date it is personally served; • Five days after it is mailed by express or 1st class mail; • On the date of the return receipt if it is mailed by certified mail; or • On the date indicated on the facsimile transmission.

CONSEQUENCES FOR FAILING TO DISCLOSE Under A.A.C. R4-9-108(C), if a witness or an exhibit is not timely disclosed as required the rules, and good cause for the failure to disclose is not shown, then the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

Form RC-L-800A Prehearing Disclosure Statement Rev. 10/08/2019 Instructions Form PREHEARING DISCLOSURE STATEMENT FORM RC-L-800A

PART 1: WITNESS LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony. If you need additional space to list all witnesses, complete and attach additional Witness Lists. Example 1. Name 2. Telephone Number 3. Email Address

John Doe (123) 456-7890 [email redacted] 4. Subject Matter of Expected Testimony

John Doe will testify regarding the poor workmanship and poor installation of the Garage Door. Mr. Doe will also testify regarding the invoices and change orders for the project.

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 1 of 3 PART 2: EXHIBIT LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the exhibits that the party will use at the hearing. Note: All exhibits listed below must be provided to all parties to the hearing. See A.A.C. R4-9-118(B). If you need additional space to list all witnesses, complete and attach additional Exhibit Lists. Example Contract for new garage door. Invoice #10001 – Cost for garage door replacement.

Exhibit Exhibit Name

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 2 of 3 PART 3: ACKNOWLEDGEMENT & SIGNATURE I certify that the above information is true and correct and that I will serve a copy of this disclosure statement and any exhibits listed in Part 2 to all parties to the hearing in accordance with A.A.C. R4-9-118. I acknowledge and understand that if I fail to properly disclose a witness or exhibit, the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

I am the (check one):  Complainant  Respondent Docket No.

Print Name Signature Date

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 3 of 3