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Contractor Cited Under License Law for Failing to Correct Substandard Work
 


April 17, 2000


(A version of this article appears in the California Construction Law Reporter, published by the West Group.)



By James Acret

Tellis built a home for owners in five months and sold it to them at a contract price of $226,000. After Tellis completed the work on three punchlists, owners signed off on the final escrow instructions, escrow closed and Tellis was paid in full.

Eight months later, owners gave Tellis a punchlist of 22 items, some which Tellis repaired. Tellis refused to replace the tile kitchen floor but merely wanted to replace loose tiles. Tellis also disputed owners' claim that the swamp cooler was undersized but acknowledged the other requested repairs were needed and was willing to make them.

Owners filed a complaint with the Contractors State License Board in August 1996, complaining that 27 items required repair. The board employed an industry expert, Michael Mollica, who concluded that 20 items were below industry standards, including the kitchen floor, which should be replaced. Between October 24, 1996, and January 22, 1997, Deputy Board Registrar Fountain attempted to resolve the matter informally. Tellis refused to, then agreed to, repair the floor. He was given a deadline of January 31, 1997, which was extended to February 6. Tellis then advised Fountain that the tile contractor was unable to repair the floor until March.

Owner on February 7 complained to Fountain's supervisor, Marquez, who, without reviewing the case file, agreed that Tellis had had ample opportunity to complete the repairs and authorized owners to hire someone else. Owners had the repairs completed for $5,286, and the board filed a citation against Tellis. Tellis appealed the citation, and an administrative law judge affirmed the board's findings. Tellis filed a petition for a writ of administrative mandamus, which the trial court denied. AFFIRMED. Tellis v. Contractors State License Board, ___ Cal.App.4th ___, ___ Cal.Rptr.2d ___, 2000 Daily Journal D.A.R. 3017 (4 Dist. 2000)

The substantial evidence rule applies. Business and Professions Code §7109, subdivision (a) provides:

A willful departure in any material respect from accepted trade standards for good and workmanlike construction constitutes a cause for disciplinary action, unless the departure was in accordance with plans and specifications prepared by or under the direct supervision of an architect.

Assuming, without deciding, that "willful departure" requires knowledge that the work is substandard, substantial evidence supports the decision of the board. Tellis was a knowledgeable licensed contractor with substantial experience. He failed to properly prepare surfaces for tiling, used improper adhesives causing the tiles to fall off, failed to use proper caulking when setting sinks so that the sinks came loose, improperly mixed and installed mortar so that the shower stall leaked, failed to bond tiles properly to floor and to maintain a flat plane at the tile surface, and failed to attach tile trim properly around the sink, which caused seepage.

Business and Professions Code §7113 provides:

Failure in a material respect on the part of a licensee to complete any construction project or operation for the price stated in the contract for such construction project or operation or in any modification of such contract constitutes a cause for disciplinary action.

Tellis argues he was ready, willing and able to repair the 17 items. But he was paid in full and ostensibly completed the project in September 1996. Any material substandard work existing at that time constituted a violation of §7113. His later agreement to repair the work does not negate the violation. There is evidence that Tellis might have completed the repairs if he had been given a couple more months to do so, but there also is evidence that he was given ample time to make the repairs, initially refused, then delayed and finally arranged for repairs to be made by someone not available for over a month. Thus, the owners were justified in retaining someone else to do the work. If the board gives a contractor an opportunity to make repairs, the contractor should act expeditiously, knowing that any delay may subject a contractor to prosecution.


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To learn more about Howrey's Construction Practice Group, click here. For more information about books and other legal materials written by James Acret, click here and enter "Acret" in the site search engine. To learn more about topics covered in this article, contact Paul Berning at 415-848-4996 or at paulberning@howrey.com.


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