Before You Hit "Send": Responding to a Licensing Board Complaint

A licensing board complaint can feel personal, frustrating, and even unfair.

Maybe the complaint is tied to a payment dispute, or perhaps the customer is upset about a change order or the project has turned into a long list of exaggerated punch-list items, workmanship complaints, or claims that have little to do with your actual license.

Regardless of the legitimacy of the complaint, the manner in which you respond matters.

A licensing board complaint is not the same thing as a regular customer disagreement. The board is usually looking through a much narrower lens. They may be reviewing whether you had the proper license, whether your license covered the work performed, whether you stayed within your monetary limit, or whether the project was properly bid from a licensing standpoint.

That is very different from a customer claiming the work was not done correctly, refusing to pay a final invoice, or trying to use a complaint as leverage in a dispute. While the board may take interest in these situations, their regulatory authority lies within the narrower focus described above.

Thus, your response should not be emotional, overly defensive, or filled with a point-by-point reply to every accusation.

When a complaint is received, the instinct is often to explain everything and respond “in kind” to virtually every sentence (meaning tit for tat). To correct every statement is a misstep, as is responding to every little detail. Doing so can make the issue bigger than it needs to be. Responding objectively and professionally goes a long way in my opinion, and when there is an inflated consumer on the other end of the complaint but you are cool, calm, and collected which transcends the paper on which the words are written, this is apparent to the reader for the board.

A stronger response is usually calm, professional, and focused on the real issue: whether the complaint actually raises a licensing matter or derivative issue within the board’s scope.

Notably, be careful with document requests, affidavits, or communications from investigators. If you receive a request asking you to complete a statement, sign an affidavit, or turn over project files, do not rush to respond on your own. Key conversations with your advisors need to occur because a request does not mean you are obligated to produce the requested items.

Pause before you send anything. Please!

The way you respond can impact how the issue moves forward, whether the matter stays narrow, and whether it creates additional attention from the board or other regulatory agencies. (Fun fact: They talk).

Additionally, keep your contact information current with the licensing board. If notices are sent to an old email address or outdated mailing address, you could miss an important deadline. In many cases, failing to respond on time can make the situation worse.

The best approach is to stay prepared before a complaint occurs. Your immediate response sets the stage of whether the situation goes right or left, so tread carefully.

Keep your license information current. Know your monetary limit. Maintain clean project records. Save customer communications. Document change orders, payment issues, project updates, and dispute-related conversations in a professional way.

Remember the emails, texts, contracts, invoices, and project records you create today may become the exact documents you need to protect you later. Document your projects to the moon and back.

A complaint does not automatically mean you did something wrong. Perception is reality, so don’t feed into the perception the complainant tries to paint of you.

Stay calm. Be professional, and do not treat a licensing board complaint like a casual customer argument.

Your business is worth protecting. Elevate the issue to your construction attorney, and keep calm and carry on. All For Contractors is All For You! ‘Til our next Tool Talk…