CSLB launches an investigation into the unlicensed contractor debacle

Posted on April 20, 2011

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The Contractors’ State Licensing Board confirmed that they are launching an investigation into the statewide AOC unlicensed contractor debacle. CSLB’s Chief of Enforcement David Fogt confirmed that the board would be “conducting an investigation and taking appropriate action” via e-mail.

We heard through the grapevine about a week ago that the CSLB had already launched an investigation and that the people from OCCM responsible for hiring them and approving their work were “headed for the doors as fast as possible” Things you hear in the AOC grapevine don’t always pan out.

Last week, we had a reporter send in an inquiry as to the existence of an investigation. Today that reporter received a telephone call and an email confirming the inquiry. How far will this inquiry go? The AOC utilized a collection of top-tier unlicensed contractors and unlicensed joint ventures over a period of five years. Below those unlicensed contractors, the top tier contractors also subcontracted to unlicensed contractors. All of those actions we understand are covered by a four year statute of limitations. Then we have the AOC’s role in the unlicensed contractor debacle that should be looked into. They knowingly hired them without licenses. After they found out they were unlicensed, they extended their contracts after filing suit against them and spent the whole time looking the other way while approving their overpriced work.

As if the two civil suits weren’t evidence enough of a willingness on behalf of the AOC to engage unlicensed entities, out of the current list of companies being permitted to move forward in the bidding process on the 10 year “deal of the decade” facilities maintenance contract about half of them lack any or proper contractors licenses!