If you’re a contractor, architect, or builder and a licensing complaint is made against you with Tennessee’s Department of Commerce and Insurance, this can result in significant fines and even the loss of your license. Without a license, a contractor has few options to earn a living. If a licensing complaint is made against you, it’s critical that you act fast and contact a Nashville license defense attorney. In this brief article, the construction attorneys at Cotney Construction Law will discuss six of the most common reasons why a complaint is filed against a contractor.
The Primary Reasons for a License Complaint
If an entity files a complaint against a licensed contractor, it must be proven that the contractor violated a specific provision within the rules and requirements of their license. Here are six common reasons why a complaint is filed against a contractor:
- Failure to Have a License or Permit: there’s an array of licensing classifications that exist for specialized construction tasks. If a contractor performs work in any area in which they are unlicensed, this can result in a significant penalty. Similarly, contractors need to make certain they have obtained the proper permits before breaking ground on a project.
- Misallocation of Funds: if a contractor knowingly misapplied funding on a project, this is a serious issue that can result in excessive fines and even criminal charges. If a contractor accidentally experiences a serious financial oversight on a project, this can result in the contractor’s loss of license and compensation for damages.
- Project Abandonment: for a variety of reasons, a contractor may elect to stop working on a project. Contractors should always consult an attorney to ensure they have a legal right to stop working on any projects or else they may be accused of project abandonment. Project abandonment could result in the contractor losing their license and having to pay damages.
- Fraud: If a contractor fails to disclose their criminal history to the agency overseeing a project or their bid proposal contains many misleading or fraudulent items related to the scope of work, this could result in a claim being filed against the contractor for their fraudulent conduct.
- Negligence: whether it’s a design error, surveying or inspection mistake, building gaffe, or just poor supervision, any type of design or building flaw that results in a construction defect can also potentially result in an architect or contractor losing their license.
- Injuries and Property Damage: Similarly, if a poorly executed construction project resulted in an injury to a worker or bystander or property damage occurred, the contractor’s poor performance overseeing the project can potentially impact the status of their license.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.