§ 5-65-12 - Procedure for making claims against a contractor – Investigation by board – Disciplinary action.
SECTION 5-65-12
§ 5-65-12 Procedure for making claimsagainst a contractor – Investigation by board – Disciplinary action.– (a) Any person having a claim against a contractor of the type referred to in§ 5-65-11, may file with the board a statement of the claim in any formand with any fee that the board prescribes. The filing fee may be reimbursed tothe claimant by the respondent, if the respondent is found to be at fault.Claims resolved prior to issuance of an order may be removed from thecontractor's registration board record pursuant to administrative regulations.
(1) All claims filed with the contractor's registration boardshall be heard by a designated hearing officer, unless either party prior tothe administrative hearing, files a civil action on the matter in a statecourt. Upon receipt of a written notice and a copy of the filed civil complaintthe board shall discontinue processing the claim. If documentation is notreceived, the hearing will be conducted.
(2) A court judgment may constitute the basis for regulatoryaction against a contractor's registration, which may result in the impositionof fines and penalties. A petition to enforce a mechanic's lien does notnecessarily constitute a civil action for purposes of this section.
(b) The board may refuse to accept, or refuse at any time tocontinue processing a claim if:
(1) The same facts and issues involved in the claim have beensubmitted to any other entity authorized by law or the parties to effect aresolution and settlement;
(2) The claimant does not permit the contractor against whomthe claim is filed to be present at any inspection made by the board;
(3) The board determines that the contractor against whom theclaim is filed is capable of complying with the recommendations made by theboard relative to the claim, but the claimant does not permit the contractor tocomply with the recommendations. The board may refuse to accept further processof a claim under this paragraph only if the contractor was registered at thetime the work was first performed and is registered at the time the board makesits recommendations; or
(4) The board determines that the nature or complexity of theclaim is such that a court is the appropriate forum for the adjudication of theclaim.
(c) The board shall not process a claim unless it is filed ina timely manner as follows:
(1) If the owner of a new structure files the claim, theboard must receive the claim not later than one year after the date thestructure was first occupied as determined from the date of issuance of thecertificate of occupancy, or one year after the date of the closing on thestructure, whichever occurs later.
(2) If the owner of an existing structure files the claim,the board must receive the claim not later than one year after the date thework was substantially completed as determined by the certificate of occupancy,or the date that work ceased.
(3) Regardless of whether the claim involves a new orexisting structure, if the owner files the claim because the contractor failedto begin the work pursuant to a written contract, the board must receive theclaim not later than one year after the date the parties entered into a writtencontract.
(4) Regardless of whether the claim involves a new orexisting structure, if the owner files a claim because the contractor failed tosubstantially complete the work, the board must receive the claim not laterthan one year after the date the contractor ceased work on the structure.
(5) If a registered general contractor files the claimagainst a registered subcontractor, because the subcontractor failed tosubstantially complete the work, the board must receive the claim not laterthan one year after the date the subcontractor ceased to work on the structure.
(6) If a material or equipment supplier, an employee, or aregistered subcontractor files the claim, the board must receive the claim notlater than one year after the date the registrant incurred the indebtedness.
(7) Any corrective work performed to resolve a claim shall bethe responsibility of the contractor for one year beyond the completion datebut only for corrective work performed.
(d) Upon acceptance of the statement of claim, the boardshall give notice to the party against whom the claim is made and shallinitiate proceedings to determine the validity of the claim. If, afterinvestigation, the board determines that a violation of this chapter or of anyrule promulgated under this chapter has occurred, the board shall order anyaction deemed appropriate, including action on the contractor's registrationand compensation to the claimant for any damages incurred as the result of theviolation or claim. If the contractor performs accordingly, the board shallgive that fact due consideration in any subsequent disciplinary proceedingbrought by the board; provided, that the board shall suspend for a period ofone year certification of any registrant who is found by final determination tohave willfully and knowingly violated any provisions of this chapter withrespect to three (3) or more structures within a one year period.
(e) In any action brought by a person under this chapter, theboard may award, in addition to the relief provided in this section, trebledamages, reasonable attorneys' fees and costs and any award for services ofprocess costs pursuant to § 5-65-26.
(f) Notwithstanding any language limiting an action pursuantto this chapter, whenever a consumer shall notify, in writing, a contractor ofany problem with work performed by a contractor or subcontractor within oneyear of the completion of the work and said problem has not been corrected bythe contractor or subcontractor, the aggrieved party shall have up to two (2)years from the date of completion of the contractor's work to file a claim withthe contractors' registration board. Such two (2) year period shall not beconstrued as an extension of any one year warranty period expressed in anycontract.