ALJDEC

98F-2413-ROC · Registrar of Contractors · 1998-08-10

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: July 28, 1998 APPEARANCES: Larry Garberick appeared for Complainant AARA Construction, Inc., represented by Mr. D. Kim Lough, Esq. Respondent Construction Management America, Inc. was represented by Mr. Richard Spector, Esq. ADMINISTRATIVE LAW JUDGE: Kay A. Abramsohn _____________________________________________________________________

This matter came on for hearing for the purpose of determining whether Respondent had violated state law as alleged by Complainant and as cited by the Arizona Registrar of Contractors (Registrar). Although the parties believed they could make a stipulation at the hearing to resolve the matter, a verbal stipulation statement offered by Complainant was not agreed to by Respondent. Based on the entire record, the following Recommended Findings of Fact, Conclusions of Law and Recommended Order are made: FINDINGS OF FACT 1. Complainant AARA Construction, Inc. is licensed to perform roofing construction work in Arizona under its Class B license issued by the Registrar. 2. Respondent Construction Management America, Inc. is licensed to perform contracting work in Arizona under its Class B license issued by the Registrar.

3. Complainant bid on a roofing project [the porta cochere and lobby] at Hawthorne Suites in Scottsdale, Arizona. Complainant submitted its bid of $12,000.00 to Respondent in November 1997, with the total contract balance to be due on the completion of the work. Complainant received the job. 4. Complainant completed its work before December 11, 1997, when it made its request for payment of the $12,000.00 total due on the contract. 5. Respondent subsequently filed its contractor’s Application and Certificate for Payment dated January 19, 1998 to the Owner [Summit Scottsdale, LLC (Summit)] for a current balance due of $78,636.49. The line items on that Application and Certification for Payment include a line [at CP 66, line 36] for the Complainant roofing work in the amount of $12,589.09. 6. On February 9, 1998, Owner Summit cut its check to Respondent in the amount of $78,636.49. 7. More than fourteen days has passed since Respondent received that payment, and Complainant has not been paid for its completed roofing work.

8. On March 24, 1998, Complainant filed its complaint against Respondent regarding nonpayment for the completed work. 9. On May 8, 1998, Registrar issued its Citation and Complaint against Respondent alleging the possible violations of Arizona Revised Statutes (A.R.S.) §32-1154.A.7, A.11, A.23, and A.13, specifying §32-1129.A and B. 10. The hearing evidence established that more than fourteen days has passed since Respondent received payment on this Complainant’s work, and Complainant has not been paid for its completed work. 11. The hearing record showed that Complainant has filed the requisite bond pursuant to A.R.S. §32-1129.E. CONCLUSIONS OF LAW 1. The Registrar of Contractors is empowered to enforce the provisions of the contracting laws of the State of Arizona and to determine violations of the statutes applicable to all licensed contractors. A.R.S. §32-1104.A.4. 2. The record supports a finding that Respondent is in violation of A.R.S. §32-1154A.7 and §32-1154.A.11, which are each grounds for suspension or revocation of a license or grounds for an administrative penalty. 3. The record supports a finding that Respondent is in violation of A.R.S. §32-1154.A.13, specifically §32-1129.B, which is a ground for suspension or revocation of a license or for other disciplinary action by the Registrar pursuant to A.R.S. §32-1154.B through D. RECOMMENDED ORDER Based on the above, the Administrative Law Judge recommends that on the effective date of the Order entered in this matter, the Respondent Construction Management America, Inc.’s Class B license be suspended indefinitely until the Registrar receives written notification that Respondent has completed its payment in total to Complainant. It is further recommended that if Respondent accomplished the above on or before the effective date of the Registrar’s Order entered in this matter, that the above mentioned indefinite suspension shall not take place and this Registrar’s case number 98-2413 shall be closed. RECOMMENDED and DATED this day: August 12, 1998.

_________________________________ Kay A. Abramsohn Administrative Law Judge

Original transmitted by mail this ____ day of August, 1998, to:

Michael P. Goldwater, Director Registrar of Contractors ATTN: Joyce Armijo 800 West Washington, 6th Floor Phoenix, AZ 85007

By _________________________

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Office of Administrative Hearings 1700 West Washington, Suite 602 Phoenix, Arizona 85007 (602) 542-9826