ALJDEC - Licensing

2023A-10211-CHC-ROC · Registrar of Contractors · 2024-03-08

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Jeremy Underwood,

COMPLAINANT,

Bjelde Construction, LLC

License No. ROC 260364,

RESPONDENT.

No. 2023A-10211-CHC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: March 1, 2024

APPEARANCES: Complainant Jeremy Underwood appeared on his own behalf. Lyle Nils Bjelde appeared on behalf of Respondent Bjelde Construction, LLC. Edward Scheidell appeared as a witness for Complainant.

ADMINISTRATIVE LAW JUDGE: Sondra J. Vanella

EXHIBITS ADMITTED INTO EVIDENCE: None

FINDINGS OF FACT

Bjelde Construction, LLC (“Respondent”) is the holder of License Number 260364 issued by the Arizona Registrar of Contractors (“Registrar”). Lyle Nils Bjelde is Respondent’s Qualifying Party and Member.

In June 2022, Jeremy Underwood (“Complainant”) contracted with Respondent for Respondent to perform a kitchen remodel at Complainant’s home. The contract price was $40,692.00. Complainant paid Respondent a deposit in the amount of $17,000.00. On or about July 7, 2022, Complainant paid Respondent an additional $5,346.00. On or about April 17, 2023, Complainant paid Respondent an additional $8,138.00. Therefore, Complainant has paid Respondent a total of $30,484.00 of the contract price.

In or about October 2023, the Registrar received a Complaint against Respondent from Complainant alleging that Respondent had abandoned the project.

The Registrar assigned the Complaint to Investigator Steve Klein. After a November 2, 2023 Jobsite Inspection, Investigator Klein issued a Written Directive to Respondent dated November 6, 2023, that provided as follows:

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 November 23, 2023.

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

Complaint #1 Contractor demolished our kitchen in April 2023 with no time frame for work commencement or completion, despite contract saying that upon start date, work was to be completed within 6-8 weeks.;

Demolition of kitchen left my wife, child, and myself with no oven to prepare meals since the demotion included removing the oven, cabinets, and dishwasher. ;

Demolition of kitchen left the ceiling in the kitchen open, exposed to the attic, throughout the hottest part of the summer, causing electricity bills to soar and uncomfortable temperatures inside the house.;

The open ceiling in the kitchen allowed for old insulation to fall down and created a significant amount of dust and airborne particulates that have made us cough and sneeze.;

The demolition created a gap in the kitchen window seal allowing pests and bugs into the house.

Despite being promised that the kitchen cabinets had been ordered, the contractor never produced proof of the cabinet order, nor a timeline on installing the paid for cabinets.;

The HVAC subcontractor for the general contractor damaged the living room ceiling when installing new duct work in the attic.

The contractor has been unresponsive to numerous attempts to communicate both via phone, email, text messages, and the builder trend app.Edit Items Of Concern

Inspector’s Observation: The job has not been completed.

• Respondent shall complete project per original contract agreement, plans, specifications, properly executed change orders, verbal agreements, local building codes and manufacturer’s installation instructions.

Complaint #2 The change order contract for electrical work to be completed was related to the overall kitchen and home remodel project that I contracted/paid Bjelde Construction LLC and Bjelde Electric LLC to perform. There were 3 different contracts/change orders related to the electrical portion of the remodel project. The electrical scope included Upgrading existing 150A panel service to new 200A panel. This was completed along with the related grounding, mass, etc. work. However, the other items were not completed, including: new outlet installation for new cabinets in kitchen, new can light installation, new 220v outlet for wall oven in kitchen, and raising outlets in living room after floor infill. Bjelde Electric / Bjelde Construction has been unresponsive by email, phone, text messages, and app-message within builder trend. No effort has been made to schedule the remaining electrical work that has already been paid for. Unsafe electrical conditions in kitchen, including exposed/unsecured 110v and 220v outlets remain in kitchen. Electricians were aware of the unsecured hot outlets during and after the installation of the new 200A panel. One of the change orders stated that the living room outlets would be raised, per code, after the living room infill. This has not been completed, despite the floor being raised for nearly 5 months.

Inspector’s Observation: The job has not been completed.

All errors in original.

Following the deadline set forth in the Written Directive, it was ascertained that Respondent had not performed any work as required by the Written Directive. Consequently, a Compliance Inspection was not performed.

Thereafter, Investigator Klein forwarded the Complaint to the Registrar’s Legal Department for the issuance of a Citation. The Registrar issued a Citation against Respondent charging possible violations of A.R.S. §§ 32-1154(A)(1), 32-1154(A)(3), namely A.A.C. R4-9-108(a), and 32-1154(A)(22).

Complainant testified that Respondent did not complete its contracted scope of work, that there has been no communication from Respondent, no indication that the work will be completed, and no discussion of a financial resolution. Complainant referenced some of the photographs taken by Investigator Klein at the Jobsite Inspection to illustrate the condition in which Respondent left Complainant’s home, specifically, with a non-functional kitchen and a large hole in the ceiling. Complainant testified that Respondent only performed demolition in the kitchen and then abandoned the project. Complainant expressed his frustration with the state of the project, the amount of money he paid to Respondent, and the length of time that has transpired with no resolution.

Mr. Bjelde testified that he “was not personally involved in this project” and “was not involved in ordering the cabinets.” Mr. Bjelde testified that he “didn’t handle finances so [he] doesn’t know what happened to [Complainant’s] money.” Mr. Bjelde acknowledged that the project is not complete and testified that his license is suspended.

Administrative notice is taken of Respondent’s prior License record on March 8, 2024. Such prior License record reflects that Respondent’s License Number 260364 was first issued on December 31, 2009, and is revoked. Such prior License record also reflects that there are twelve (12) open complaints, two (2) resolved/settled complaints, and eleven (11) complaints resulting in discipline against Respondent’s license.

CONCLUSIONS OF LAW

This matter lies within the Registrar’s jurisdiction.

Complainant bears the burden of proof to establish Respondent’s statutory violation(s) by a preponderance of the evidence. “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”

The evidence established that Respondent contracted with Complainant to perform a kitchen remodel at Complainant’s home, Respondent accepted a deposit in the amount of $17,000.00 and requested additional payments of $5,346.00 and $8,138.00, equating to a total of $30,484.00, and yet failed to perform any work on the project after demolishing the kitchen notwithstanding the fact that approximately sixteen (16) months had elapsed between the execution of the contract and when Complainant filed the instant Complaint. The Administrative Law Judge concludes based on the credible evidence presented at hearing, that Respondent abandoned the project without legal excuse, having been paid to perform its scope of work and failing to do so within any semblance of a reasonable period of time. Therefore, the credible evidence of record established that Respondent violated A.R.S. § 32-1154(A)(1).

The credible, substantial, and probative evidence established that Respondent failed to perform its scope of work despite the passage of over a year and being paid $30,484.00. Therefore, Complainant established that Respondent did not complete the project in a professional and workmanlike manner in violation of A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(a).

The evidence established that Respondent did not complete the required work following the Written Directive being issued, and that valid justification for such failure did not exist. Therefore, Complainant established that Respondent failed to take appropriate corrective action following a Written Directive from the Registrar in violation of A.R.S. § 32-1154(A)(22).

Upon consideration of all of the egregious facts and circumstances presented by this case, the Administrative Law Judge concludes that the Registrar should revoke Respondent’s license.

RECOMMENDED ORDER

Based on the foregoing, it is recommended that on the effective date of the Order, Respondent’s License Number 260364 shall be revoked.

Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.

Done this day, March 8, 2024.

/s/ Sondra J. Vanella

Administrative Law Judge

Transmitted by either mail, e-mail, or facsimile to:

Tom Cole, Director

Registrar of Contractors

Jeremy Underwood

[email redacted]

Bjelde Construction, LLC

[email redacted]

By: OAH Staff