Costa Mesa Contractor Licensing Problems: What to Do If You Receive a CSLB Complaint or Citation

Costa Mesa contractor licensing problems can occur when the Contractors State License Board (CSLB) receives a complaint or issues a citation based on alleged infractions. A contractor licensing dispute can involve workmanship disputes, advertising problems, employee-classification issues, or accusations of unlicensed activity.

Knowing about contractor licensing laws, what CSLB investigates, how complaints are filed, and what you should do right away can make a big difference in defending your license.

Hire a Contractor Licensing Attorney

Engels-Janzen has extensive experience representing contractors who have been the subject of a CSLB complaint, citation, or other licensing action. Our lawyers understand the rules for advertising, contracts, classifying employees, jobsite compliance, and more. We also know how the CSLB reviews evidence.

When you work with Engels-Janzen, you work directly with an attorney who can review the documents, analyze any potential violations, and advise you on how to respond. Our trusted legal team has construction law experience and real-world construction industry knowledge and can provide our clients with realistic, practical advice they can rely on to protect their licenses and stay in compliance with California’s licensing laws.

Procedural Basics of CSLB Complaints and Investigations

CSLB complaints can be filed by homeowners, subcontractors, competitors, public agencies, or others who have concerns about workmanship, contract defects, advertising, or other practices that the complainant may interpret as unlicensed activity. After an initial review of the documents submitted by the parties, the CSLB then contacts those involved to determine if a violation is possible or likely to have occurred.

The California Contractors State License Board receives more than 20,000 consumer construction complaints every year. Contractors must take all complaints seriously, respond in a timely manner, and retain any documentation that may support their side of the story during the CSLB’s initial investigation.

Responding to a CSLB Citation or Request for Information

The CSLB usually issues a citation after an investigation when the board believes a violation occurred, such as using an incorrect contract, misclassifying workers, or failing to follow advertising rules. In many cases, a formal citation can quickly follow a complaint investigation. In fiscal year 2022-23, CSLB issued 802 order-of-correction and fine citations against licensed contractors and 772 similar citations against non-licensees statewide.

Contractors need to respond promptly with documentation that clearly explains the work performed and addresses the specific alleged violation. A contractor may be able to negotiate the citation terms by asking for a conference or challenge the findings by filing a formal appeal.

Administrative Hearings, Accusations, and License Discipline

If the issue cannot be resolved with a citation, the CSLB may file a formal accusation with the Office of Administrative Hearings (OAH) seeking suspension, revocation, or probation of a license. Contractors are often not as familiar with the OAH processes as they would be with a civil claim. Therefore, it is critical to be aware of the administrative rules of procedure, evidentiary requirements, and timeframes for the administrative case.

In an OAH proceeding, an administrative law judge hears testimony and reviews documents and professional opinions. The contractor can present evidence showing they were not in violation, there were mitigating circumstances for the problem, or errors occurred in the investigation. Outcomes can range from dismissal to the requested discipline or lesser penalties, including corrective training and conditions before the license is reinstated.

Preventing Licensing Problems Through Compliance and Education

Contractors operating in Costa Mesa can prevent many licensing problems by being familiar with and following CSLB regulations. Projects near the Westside industrial corridor, Newport Blvd. commercial district, or residential areas with strict permitting requirements have heightened due diligence. Reviewing contract forms, advertising, and employee-classification practices can prevent many common violations.

Costa Mesa construction jobs often have multiple subcontractors and detailed municipal requirements, so careful oversight helps prevent errors leading to CSLB complaints, citations, or expensive administrative proceedings. Regular training sessions, internal audits, and documentation reviews can also reinforce compliance.

FAQs

What Happens if a Contractor Ignores a CSLB Complaint?

If a contractor completely ignores a CSLB complaint, the board might take the allegations at face value and could move forward with issuing citations, fines, or even a formal accusation for disciplinary action against the contractor’s license.

In some cases, refusal to cooperate could also be considered a separate violation of the Contractors State License Law. Prompt response allows a contractor to address misunderstandings, provide supporting documentation, and demonstrate good faith efforts to cooperate with the investigation.

How Can a Contractor Strengthen Their Defense During a CSLB Investigation?

A successful defense during a CSLB investigation is built on good recordkeeping, clear communication, and evidence demonstrating the contractor met necessary standards. Organized documentation, such as contracts, change orders, permits, photos, and correspondence, can help the investigator understand the project scope and work.

Contractors are also advised to refrain from casual conversations on the matter, instead relying on factual and written responses. A professional and cooperative attitude can go a long way in safeguarding a contractor’s credibility.

What Contract Requirements Under California Law Commonly Lead to CSLB Violations?

California has very specific requirements for the content of most residential project contracts under Business & Professions Code §7159. Disclosure and content requirements include the payment schedule, start and completion dates, a 3-day right to cancel, and accurate deposit limits. Contractors commonly receive CSLB citations when using generic or outdated contract templates that lack the required disclosures. Even seemingly minor omissions, such as not including the Mechanics Lien Warning, can subject a Costa Mesa contractor to a citation.

Can Advertising Mistakes Lead to Licensing Problems for Costa Mesa Contractors?

Advertising in any form, including online, vehicle lettering, yard signs, social media posts, etc., is required by Business & Professions Code §7027.1 to include the contractor’s license number. Additionally, a variety of other advertising claims can be cited by CSLB as false and misleading. These include stating a price for a service outside of a contractor’s license classification or promising a service that the contractor does not perform.

Contact a Contractor Licensing Attorney

CSLB complaints require quick, informed action. Engels-Janzen can assess your situation, explain available options, and help protect your license. Contact our firm to discuss your contractor licensing issue today and hire a contractor licensing attorney.