Discipline
Discipline
The Discipline domain tests the NSCB’s complaint and enforcement process, the grounds for discipline, and the penalties. Discipline is not limited to bad workmanship; paperwork, financial, and licensing violations also count.
Core rules
- Grounds. Common grounds include unlicensed contracting, exceeding the monetary limit, abandoning a project, diversion of construction funds, failure to pay subcontractors or suppliers, code violations, false statements on an application, and failure to maintain bond or insurance.
- Complaint and investigation. Anyone can file a complaint with the NSCB. The Board investigates, may request documents and interviews, and can issue a citation or set a hearing. The licensee must respond on time.
- Hearing and due process. The licensee receives notice of the charges and an opportunity to be heard. The Board may consider evidence, testimony, and prior discipline.
- Penalties. The Board can reprimand, fine, suspend, revoke, place on probation, order restitution, and assess costs. Fines and restitution can be imposed together; a bond claim may also follow.
- Criminal and civil exposure. Unlicensed contracting and fraud can lead to criminal charges. A suspended or revoked licensee who keeps working is subject to further discipline.
- Reporting. Licensees must report changes and certain events required by the Board; failure to do so can be separate grounds.
Worked example
A homeowner pays a $15,000 deposit; the contractor stops work and cannot account for the money. The homeowner files an NSCB complaint. The Board investigates diversion of funds, may suspend the license, order restitution, and impose a fine. The homeowner may also claim against the surety bond, but the bond is not a substitute for all damages.
Traps
Ignoring an NSCB letter; assuming a bond pays every judgment; working after suspension; and failing to keep receipts that rebut a diversion claim.