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Received a Complaint from the NC Licensing Board for General Contractors?

January 31, 2025

As a licensed general contractor,  your reputation and professional license are crucial to your livelihood. The North Carolina Licensing Board for General Contractors (NCLBGC) is tasked with ensuring that contractors adhere to high standards of workmanship, professionalism, and integrity. While the board’s oversight is essential to the industry, receiving a complaint can feel overwhelming and threatening to your career.

If you’ve been notified of a complaint, you have a right to defend yourself. Here is what contractors need to know about the board’s disciplinary process and how to set themselves up for a favorable outcome. 

Common Reasons for NCLBGC Complaints

Whether or not they have a basis in fact, your first step after receiving a notice is understanding the accusations. Here are several common complaints made against general contractors: 

  1. Substandard Workmanship: Allegations of poor construction quality or failure to meet building codes.
  2. Failure to Comply with Permit Requirements: Performing work without proper authorization.
  3. Breach of Contract: Disputes arising from unmet contractual obligations or delays.
  4. Misrepresentation or Fraud: Misleading clients or providing false information.
  5. Unlicensed Activity: Operating outside your licensed scope or performing work without proper permits.
  6. Financial Mismanagement: Complaints regarding unpaid subcontractors, liens, or mishandled funds.
  7. Safety Violations: Noncompliance with OSHA standards or other safety regulations.

Steps for Contractors Who Receive a Complaint

Finding out that you are the subject of a complaint before the Board of General Contractors may make you feel angry, attacked, or overwhelmed. While all of those reactions are completely valid, it is important to remain calm and address the issue head-on. 

1. Don’t Ignore the Complaint

Board actions are time-sensitive. Even if you believe the complaint is unfounded or frivolous, you will still be required to take action. Failing to respond can result in default judgments, license suspensions, or other penalties. Take the matter seriously and act promptly.

2. Review the Complaint Carefully

Examine the details of the complaint to understand the allegations and involved parties. Begin gathering any relevant documentation, such as contracts, emails, and project records.

3. Don’t Contact the Complainant

While it’s tempting to try to resolve the matter directly, doing so without legal guidance can worsen the situation. Anything you say could be used against you, so protect yourself by using only the proper legal channels for communication. 

4. Consult a Professional License Defense Attorney

Working with an attorney experienced in contractor licensing issues is crucial. A deep understanding of the processes and procedural requirements of the NCLBGC will allow your lawyer to make the best strategic decisions and provide the most effective representation. 

Tips for Defending Your General Contractor License

Whether you’re only just learning about your complaint or you’re already working with a lawyer, preparation is the key to a successful defense. Keep the following in mind as you strategize your response, and refer to your attorney for specific advice on how to proceed with your unique case.  

Document Everything

Retain detailed records of contracts, communications, and project timelines. These documents are often critical to disproving allegations or clarifying misunderstandings.

Be Cooperative

Be aware and respectful of deadlines and procedures. Maintain transparency with investigators, but don’t overshare. Your attorney can guide you on how to respond appropriately and ensure all your filings are completed properly and on time. 

Address Deficiencies

If the complaint involves legitimate concerns, taking proactive corrective action demonstrates professionalism and good faith. Your lawyer may suggest continuing education programs or other remedial measures to improve optics before the board. 

Possible Disciplinary Outcomes

The NCLBGC has the authority to impose severe penalties, including license suspension, revocation, or fines. Beyond the immediate consequences, disciplinary action can harm your professional reputation and future business opportunities, so treat complaints with the seriousness they deserve. 

An experienced license defense attorney can help you understand the complexities of board investigations, advocate on your behalf, and protect your career.