IBOL COMPLAINT MEMORANDUM

 

 

††††††††††† DATE:††††††††††† June 8, 2010

 

††††††††††† TO:††††††††††††††††† Idaho State Contractors Board

 

††††††††††† SUBJECT:††††† Investigative Report

 

Fiscal Year 2010 (to date)

††††††††††† Total Complaints received†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 292

††††††††††††††††††††††† (Including 120 insurance files.)

††††††††††† Status:

††††††††††††††††††††††† Closed by Board action††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 33

††††††††††††††††††††††† Closed following disciplinary action††††††††††††††††††††††††††††††††††††††††††††††††††††††† 2

††††††††††††††††††††††† Pending Office of the Attorney General††††††††††††††††††††††††††††††††††††††††††††††† 51

††††††††††††††††††††††† Remaining under investigation††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 128

††††††††††††††††††††††† Awaiting Board determination†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 78

 

Fiscal Year 2009

††††††††††† Total Complaints received†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 238

††††††††††††††††††††††† (Including 5 insurance files.)

††††††††††† Status:

††††††††††††††††††††††† Closed by Board action††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 70

††††††††††††††††††††††† Closed following disciplinary action††††††††††††††††††††††††††††††††††††††††††††††††††††† 40

††††††††††††††††††††††† Pending Office of the Attorney General††††††††††††††††††††††††††††††††††††††††††††††† 67

††††††††††††††††††††††† Remaining under investigation††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 57

††††††††††††††††††††††† Awaiting Board determination†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 4

 

Fiscal Year 2008

††††††††††† Total Complaints received†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 394

††††††††††††††††††††††† (Including 109 insurance files.)

††††††††††† Status:

††††††††††††††††††††††† Closed by Board action††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 231

††††††††††††††††††††††† Closed following disciplinary action†††††††††††††††††††††††††††††††††††††††††††††††††† 104

††††††††††††††††††††††† Pending Office of the Attorney General††††††††††††††††††††††††††††††††††††††††††††††† 34

††††††††††††††††††††††† Remaining under investigation††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 21

††††††††††††††††††††††† Awaiting Board determination†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 4

 

Fiscal Year 2007

††††††††††† Total Complaints received†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 634

††††††††††††††††††††††† (Including 422 insurance files.)

††††††††††† Status:

††††††††††††††††††††††† Closed by Board action††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 556

††††††††††††††††††††††† Closed following disciplinary action††††††††††††††††††††††††††††††††††††††††††††††††††††† 68

††††††††††††††††††††††† Pending Office of the Attorney General††††††††††††††††††††††††††††††††††††††††††††††††† 8

††††††††††††††††††††††† Awaiting Board determination†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 2

 

Fiscal Year 2006

††††††††††† Total Complaints received†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 56

††††††††††† Status:

††††††††††††††††††††††† Closed by Board action††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† 45

††††††††††††††††††††††† Closed following disciplinary action††††††††††††††††††††††††††††††††††††††††††††††††††††† 10

††††††††††††††††††††††† Pending Office of the Attorney General††††††††††††††††††††††††††††††††††††††††††††††††† 1

 

For Board Determination:

 

Insurance Cases:

 

I-CON-2007-434, I-CON-2010-9, -134, -137, -162, -193, -199, -204, -268, -293, -294, -301Rs failed to provide proof of liability insurance after IBOL received cancellation notices from Rsí insurance companies.Rs subsequently provided documentation verifying current insurance coverage.IBOL recommends that the Board authorize closure.

 

I-CON-2010-4, -48, -52, -139, -158, -184, -194, -195, -197, -198, -206, -226, -256, -257, -266, -272, -279, -285, -300Rs failed to provide proof of liability insurance after IBOL received cancellation notices from Rsí insurance companies.Rs subsequently provided statements informing IBOL that Rs are out of business and requested that Rsí registrations be cancelled.IBOL recommends that the Board authorize closure.

 

I-CON-2010-131R failed to provide proof of liability insurance after IBOL received a cancellation notice from Rís insurance company.R informed IBOL that the reason he let his insurance lapse is because his work is seasonal and he does not work in winter.IBOL explained to R that in order to maintain his registration he must maintain his insurance.R subsequently provided documentation verifying current insurance coverage.IBOL recommends that the Board authorize closure.

 

I-CON-2010-132, -159, -166, -196, -203, -248, -271, -297 †††† Rs failed to provide proof of liability insurance after IBOL received cancellation notices from Rsí insurance companies, and Rs failed to respond to certified letters from IBOL.Rsí registrations subsequently expired and have not been renewed.IBOL recommends the Board authorize closure.

 

I-CON-2010-208, -213, -215, -220, -222, -223, -224, -225, -228, -232, -235, -239, -247, -249, -250, -251Rs failed to respond to audit requests but subsequently submitted documentation verifying current insurance.IBOL recommends that the Board authorize closure.

 

I-CON-2010-217, -218, -221, -234, -240, -241, -243, -244, -246In response to the audit request, Rs submitted the completed verification forms but failed to include copies of certificates of insurance.Rs subsequently submitted appropriate certificates of insurance, and IBOL recommends that the Board authorize closure.†††††††††

 

I-CON-2010-161††††† R failed to provide proof of liability insurance after IBOL received a cancellation notice from Rís insurance company.In response to a letter from the Investigative Unit, R explained that he had not been working as a contractor and thought he only needed insurance while performing contracting work.After being informed that he must carry insurance at all times while he is registered, R immediately obtained insurance and provided proof of insurance to IBOL.IBOL recommends that the Board authorize closure.

I-CON-2010-192††††† R failed to provide proof of liability insurance after IBOL received a cancellation notice from Rís insurance company.R informed IBOL that he let his insurance lapse because he does not work during the winter.IBOL explained to R that in order to keep his registration he must maintain his insurance.R subsequently provided documentation verifying current insurance coverage.IBOL recommends that the Board authorize closure.

I-CON-2010-205††††† In response to the audit request, R submitted a letter stating that he had not worked as a contractor for many months and had let his insurance lapse.After discussions with IBOL, R understood that he must maintain insurance if he wished to keep his registration.R subsequently provided documentation verifying current insurance coverage.IBOL recommends that the Board authorize closure.

 

I-CON-2010-219, -229, -238In response to the audit request, Rs submitted certificates for current insurance but failed to submit proof of insurance for the audit period.Rs subsequently submitted the correct certificates verifying insurance coverage during the audit period, and IBOL recommends that the Board authorize closure.

 

I-CON-2010-230, -242In response to the audit request, Rs submitted the completed verification form but failed to include copies of certificates of insurance.IBOL contacted Rsí insurance company and verified that Rs had the appropriate insurance in place during the audit period.IBOL recommends that the Board authorize closure.

 

I-CON-2010-231R sent in proof of insurance coverage in response to an insurance audit, but the insurance coverage was under Rís personal name and not under Rís company name, which is registered.Since that date, Rís registration has expired and R has not renewed.IBOL recommends that the Board authorize closure.

 

I-CON-2010-233R failed to respond to the audit request, and Rís registration subsequently expired and has not been renewed.IBOL recommends that the Board authorize closure.

 

I-CON-2010-237In response to the audit request, R submitted proof of liability coverage but failed to include proof of workersí comp.R subsequently submitted appropriate documentation, and IBOL recommends that the Board authorize closure.

 

Non-Insurance Cases:

 

I-CON-2007-263C alleged R did a poor job installing hardwood floors.Investigation revealed that shortly after the floors were installed, Rís business was sold to another individual.The new owner stated that he was familiar with the floors and that there was shrinkage.The new owner stated that the work order clearly included a warning that R could not guarantee against swelling, shrinking, cupping or buckling.The new owner stated that he was at the job site once after the job was completed and informed C that it was typical to have shrinking because there is a basement under that section of the floor.The new owner stated that he had not heard from C since that time.In addition, C did not respond to the investigatorís contact attempts.IBOL recommends that the Board authorize closure.

 

I-CON-2008-178C alleged R practiced contracting without registration.During the course of the investigation, the investigator discovered that R passed away as a result of a car accident.IBOL recommends that the Board authorize closure.

 

I-CON-2008-236C alleged R has refused to address issues with a new construction house.A pro reviewer found that the biggest issue is a concern regarding sand in the well, and it is up to C to pay to have the well drilled deeper.The pro reviewer did find that the following items need to be re-inspected by the local building official:(1) no railings on the 3-step stairs from the utility room to the garage, and (2) there is a 3Ē overhang on the first step of interior stairs.IBOL recommends that the Board authorize closure and issue R an advisory letter regarding the pro reviewerís concerns.

 

I-CON-2008-237C alleged R drilled a faulty well and there was too much sand in the well.The pro reviewer found that R has honored his warrantee, that R did everything in his power to rectify the situation, and that it is Cís responsibility to pay to have the well drilled deeper.IBOL recommends that the Board authorize closure.

 

I-CON-2008-376C alleged R was not a registered contractor at the time C worked for R as an employee.Investigation revealed that R was actually a foreman for the business, which was registered at the time.IBOL recommends that the Board authorize closure.

 

I-CON-2009-44C alleged R provided substandard work in connection with installing a sprinkler system.Investigation revealed that since the filing of the complaint, C has sold the property and informed the investigator that she no longer wishes to pursue the complaint.In addition, Rís registration expired in May 2008 and R informed the investigator that he has not practiced as a contractor since that time.IBOL recommends the Board authorize closure.

 

I-CON-2009-58C alleged R failed to disclosure discipline R received in another state on Rís application.Investigation revealed that Rís license in the other state had been suspended for allowing his insurance and bond to expire but R had not been disciplined.IBOL recommends that the Board authorize closure.

 

I-CON-2009-64C alleged R failed to address warranty issues regarding standing water around a newly constructed house.Investigation revealed that R attempted to correct the issue by installing a dry well and recommended that the adjoining homeowner, whose house is at a higher elevation than Rís, plant grass on the bare land to keep water from running onto Cís property.The investigation did not reveal that R was grossly negligent or reckless in the performance of construction; therefore, IBOL recommends that the Board authorize closure.

 

I-CON-2009-79C alleged R failed to complete a clean-up job as contracted.At the start of the investigation, C informed the investigator that Cís insurance company had settled the matter with R, that there is no longer an issue, and C considered the matter closed.IBOL recommends that the Board authorize closure.

 

I-CON-2010-18C alleged R failed to follow generally accepted practices in the preparation and painting of Cís home.A pro reviewer found that R acted in a professional manner regarding quality and ethical standards.IBOL recommends that the Board authorize closure.

 

I-CON-2010-28C alleged R was hired to blow out a sprinkler system and, in the process, damaged the backflow device.Investigation revealed that R was not registered and did intermittent landscaping work, and reimbursed C for the backflow device.During an interview with the investigator, R admitted that he had done one project over the $2,000 threshold, and R stated that he did not know that a lawn maintenance business needed to be registered as a contractor.(The investigation did not, however, provide any evidence concerning the job that R stated was over $2,000.)R stated that his landscaping business was closing, and on 3/24/10 Articles of Dissolution were filed with the Secretary of Stateís Office.IBOL recommends that the Board authorize closure with a warning letter to R.

 

I-CON-2010-64C alleged that R was hired to remove grass and lay down a weed barrier and rock.C stated weeds are growing in the rocks due to R not washing off the rock before putting it down. Investigation revealed that the R had attempted to work with C, but C failed to do the required upkeep such as spraying to prevent weed growth.R stated that C chose to use river rock, which is screened but not washed, because it was cheaper than rainbow rock which is washed.R stated that since the completion of the project, he has pulled the weeds on Cís property and had the area sprayed and treated.The investigator contacted another landscaper who had been called by C, and the landscaper stated that he advised C that there is no way to avoid weeds because the wind will carry dust, seeds and spores which will germinate in ľĒ of dirt.†† IBOL recommends the Board authorize closure.

 

I-CON-2010-93C alleged R practiced contracting without registration.Investigation revealed that R is a building supply store, and C ordered stained siding to install on a customerís house.R used a subcontractor to stain the siding the color of Cís choice, but C picked up the siding from R and alleged the stain on the siding was defective.Investigation also revealed that C filed a small claims case against R, and Cís claim was dismissed.During the course of the investigation, the investigator discovered that C had ordered the materials before becoming registered.C informed the investigator that the siding job was his first contractor job and he used the money he was fronted to purchase his liability insurance and his contractor registration.C stated that without the job he did not have the money to purchase the insurance or registration.As to R, because R is exempt from the Contractors Act (54-5205(2)(e):ďA person who only furnishes materials, supplies or equipment without that person installing or fabricating them into or consuming them in the performance of the work of the construction contractorĒ), IBOL recommends that the Board authorize closure of the case against R.As to C, it appears that C submitted an estimate to the homeowner for the job prior to registration.IBOL recommends that the Board authorize closure with a warning letter to C.

 

I-CON-2010-103C alleged R did not build Cís home to the architectís specifications.The pro reviewer found that R acted in accordance with the requirements and standards associated with a registered contractor in Idaho and stated that the case was more of a homeowner disagreeing with how the State of Idaho regulates contractors than it is of a legitimate complaint of faulty workmanship.The pro reviewer stated that it is clear that C received equal if not more value for the work performed by R, and that all of the corrections that were made to the structure far exceeded building code requirements and C was the benefactor of such.The pro reviewer also noted that the designer was not a licensed architect and therefore the building inspector only had to make sure that the building adhered to the minimum building code requirements.IBOL recommends that the Board authorize closure.

 

I-CON-2010-122C alleged R referred C to a non-registered contractor in July 2007.Investigation revealed that R does not recall referring the non-registered individual due to the length of time that has elapsed.In addition, R stated that he closed his business and retired in 2009.The investigator has been unsuccessful in contacting the unregistered individual, and a separate case was opened against the unregistered individual.The investigation did not reveal any evidence that R engaged the unregistered individual in violation of the Boardís laws; therefore, IBOL recommends that the Board authorize closure.