Effective January 1, 2007, what were known as CCB "claims" are now CCB "complaints."
Currently, only the administrative rules reflect this change; it is expected that the 2007 Legislature will update the statutes.
Who Can File CCB Complaints?
In general, anyone who has a contract with a licensed contractor can file a CCB complaint (see chart).
CCB complaints are for breach of contract claims only; the CCB does not process insurance or tort claims.
Complaints can be filed against contractors by homeowners, suppliers or subcontractors.
Complaints can be filed against subcontractors by contractors.
WHO CAN YOU MAKE COMPLAINTS AGAINST?
TYPE OF COMPLAINT
LICENSING STATUS
Owner, employee, primary contractor and subcontractor complaints.
Respondent must have been licensed during all or part of the subject work period.
Material Supplier complaints.
One or more invoices must be dated during a period when the respondent was licensed. Damages are limited to materials delivered during the time the respondent was licensed.
What Kinds of Complaints Can be Made?
Complaints can only be filed against licensed contractors (complaints against unlicensed contractors are a matter for the CCB Enforcement Division).
Complaints can be for breach of contract, for improper work, or for negligent work.
Complaints follow a different procedure for "large commercial complaints" - for those, you must first file a lawsuit in court (there are a few exceptions).
All other complaints are processed through the CCB system.
There is no monetary limit on the amount claimed through a CCB complaint. The surety bond amount does not set the limit for complaints.
What are the Deadlines for Complaints?
In general, CCB complaints must be made within one year (see chart).
You must send the 30-day notice before you can file the Complaint.
DEADLINES FOR OWNER-FILED COMPLAINTS
OWNER STATUS
TIME LIMITATION
New structure.
Earlier of the date that is one year after structure first occupied or two years after the date of substantial completion.
Existing structure.
One year after the date of substantial completion.
New or existing structure;
contractor fails to begin work.
One year after the date parties entered the contract. This limitation overrides the provisions above for new and existing structures.
New or existing structure; contractor fails to substantially complete work.
One year after the date the contractor ceased work. This limitation overrides the provisions above for new and existing structures.
DEADLINES FOR NON-OWNER FILED COMPLAINTS
COMPLAINANT/ RESPONDENT STATUS
TIME LIMITATION - LAST DAY TO FILE COMPLAINT
Contractor vs. subcontractor on a new structure.
Earlier of: 14 months after structure first occupied or two years after the date of substantial completion.
Contractor vs. subcontractor on an existing structure.
Fourteen months after the date of substantial completion.
Contractor versus subcontractor, where subcontractor fails to substantially complete work (new or existing structure).
Fourteen months after the date the subcontractor ceased work.
Material supplier, rental equipment company, employee, or a subcontractor versus a licensed contractor.
One year after the date the indebtedness was incurred.
What Happens if You Receive Notice of a CCB Complaint?
First, try to work things out directly with the Complainant.
Consider hiring an attorney experienced in CCB complaints.
Ask the attorney whether you can hire him for a limited purpose only (such as a consultation). If you do so, recognize and understand the limited purpose of the attorney's involvement. Do not later call up the attorney and complain that things didn't work out how you hoped.
If you can't work things out directly, then send your version of events to the CCB.
Be sure to attend the on-site meeting. The CCB person will wear two hats: Investigator and Mediator.
As Investigator, the CCB person will look at the items listed in the complaint. He will ask both sides to express their views. He may note that, due to their nature, some items may not require investigation (for example, a claim of over payment).
The CCB rules allow the complainant to add new items up through the first day of an on-site investigation.
The CCB will hold the contractor to "generally accepted building practices and industry standards" as the standard of performance.
After investigating the complaint items, the CCB person will switch to his Mediator role.
He may separate the parties to meet privately with each side.
Be prepared to settle the complaint at that meeting. Try to remain flexible and open to solutions.
If the settlement agreement requires you to perform work, make that work a top priority and send your best people to perform it. The CCB generally permits a contractor the opportunity to make repairs.
The terms of the settlement agreement are open to negotiation. Be prepared by bringing proposed settlement language with you to the on-site investigation.
The settlement agreement may be a "substituted agreement." That means it overrides the prior construction agreement and is now the only agreement between the parties. This can have positive and negative consequences. If the settlement requires the homeowner to pay money to the contractor, then the contractor wants it to be a substituted agreement.
If you can't reach a settlement, then the CCB Investigator Mediator will write a report.
The CCB Dispute Analyst will then decide whether to issue a Proposed Order (based upon the file to date) or whether to refer the complaint to the Office of Administrative Hearings.
If the CCB issues a Proposed Order and you want a hearing, the deadline to request it is 21 days after the date of the Proposed Order.
If the complaint is referred to a hearing, you should decide quickly whether or not you want an attorney involved.
Remember, there are different procedures for complaints concerning "large commercial" projects.
How Can You Minimize CCB Complaints?
If you are not already oriented to the "customer is always right" philosophy, this is one reason to consider it.
Maintain a spirit of compromise. Remember, to you these are business issues; to the homeowner, they are personal issues.
CCB complaints, even if settled quickly, are public records forever. The CCB website will show at least a summary of your past record of complaints.
INFORMATION NEEDED TO SUPPORT A COMPLAINT
TYPE OF COMPLAINT
REQUIRED INFORMATION
Subcontractor
Copies of invoices and summary of invoices.
Employees
Copies of time cards or other pay information.
Employee Trust Complaints
Names of employees, work dates and hours, amount of unpaid benefits and job site address.
Material suppliers
Copies of invoices and summary of job site addresses, dates of invoices, invoice numbers and invoice amounts.
Negligent or improper work complaints
List of negligent or improper work.
Breach of contract
Description of the breach.
Construction lien complaints
Proof of payment to primary contractor, copy of Notice of Right to Lien, copy of recorded lien (with recording number), copies of all invoices or other billings underlying the lien, copy of accounting for lien claimant's billings and any foreclosure documents.