When you’re running a general contracting business in North Carolina, understanding who is most likely to file complaints against you can be invaluable. Over the years, we’ve worked extensively in this area of law, helping contractors safeguard their professional licenses so they can focus on what they do best—building and managing projects. Through our experience since opening our firm in 2019, we’ve identified the five most common types of people who file complaints with the North Carolina Licensing Board for General Contractors. While anyone can technically file a complaint, these five categories represent the majority of cases we’ve encountered.
1. Planning and Permitting Department Personnel
The most frequent complainants are people who work within the planning and permitting departments. This group includes inspectors, clerks, and other officials responsible for issuing and verifying permits. These individuals are closely involved in the regulatory side of construction and have direct oversight on whether projects comply with local codes and regulations.
For example, a permit clerk might notice an issue when pulling permits or during inspections and decide to file a complaint if they believe a general contractor is not adhering to the required standards. These complaints are typically grounded in regulatory concerns and can be quite serious, as they involve public safety and compliance with local laws.
It’s important for general contractors to maintain good relationships with these officials by being transparent, cooperative, and proactive in addressing any concerns. Ignoring or being disrespectful to the permitting department can quickly escalate into formal complaints that might jeopardize your license.
2. Customers and Former Customers
Coming in a close second, and arguably the most obvious group, are customers or former customers. These are the people who hire general contractors to complete projects and sometimes become dissatisfied with the work or the handling of the contract. Complaints from customers can arise for a variety of reasons, ranging from legitimate grievances to disputes over money or expectations.
One common scenario involves disagreements over the scope of work or change orders. For instance, a customer might contract a general contractor to remodel a bathroom for $120,000. Later, they might ask for additional work, such as moving a wall to create more space, which was not included in the original contract or any change orders. When the contractor refuses to perform extra work without additional payment, disputes often follow. The customer may then file a complaint, sometimes as a way to pressure the contractor into doing more work or accepting less payment.
From our experience, some complaints from customers are genuinely warranted, especially when mistakes have been made and not corrected. However, many complaints boil down to money and unmet expectations. Unfortunately, some customers are difficult to please no matter what you do. We’ve seen cases where customers seem to want a problem just to justify withholding payment.
To manage this, many businesses implement a client grading system—assigning customers grades like A, B, C, D, or F based on their behavior, payment history, and communication style. This system helps businesses identify ideal clients and avoid those who are likely to cause trouble. If a customer has a history of excessive complaints or demands, it might be better to avoid working with them to protect your time and resources.
When dealing with customers, especially those who might be difficult, clear communication and written contracts are critical. Standing firm on your contract terms and ensuring everyone understands the scope and costs upfront can prevent many disputes from escalating to the point of a complaint.
3. Former Employees
Former employees represent another common source of complaints. Sometimes, when employees are let go due to performance issues—such as consistently being late, taking excessively long breaks, or failing to complete tasks—they might retaliate by filing complaints with theBoard.
These complaints can be either legitimate or frivolous, but either way, they can cause headaches for contractors. That’s why vetting employees carefully before hiring is crucial. Just as you screen clients, you should screen employees to ensure they are reliable, honest, and a good cultural fit for your company.
During the hiring process, avoid simple yes-or-no questions. Instead, ask open-ended questions that encourage candidates to reflect on their past experiences. For example, asking “Tell me about the last time you had a negative interaction with a customer” can reveal a lot about how they handle conflict and whether they might pose a risk to your business reputation.
Good employee screening can save you from future problems, including damaging complaints filed out of spite. Remember, your employees represent your business, and their actions can impact your license and your reputation.
4. Former Business Partners
Business relationships are complex, and when partnerships end on bad terms, complaints can follow. Former business partners who feel wronged or excluded may file complaints against a general contractor as a form of retaliation or to express dissatisfaction with how the partnership dissolved.
In one case we handled, a client’s former business partner filed a frivolous complaint after the partnership dissolved. Thankfully, we were able to resolve it with a dismissal, but it was time-consuming and stressful.
Maintaining good communication with business partners is key to avoiding these conflicts. Regular meetings, even brief check-ins, can help ensure everyone is on the same page and that any issues are addressed before they escalate. For example, weekly or monthly meetings with a clear agenda can help keep the partnership healthy and productive.
Even if you don’t have frequent meetings, scheduling periodic face-to-face or virtual check-ins can prevent misunderstandings and foster a collaborative environment. When both partners feel heard and involved, the likelihood of complaints decreases significantly.
5. Neighbors of Customers
While less common, neighbors of customers can also file complaints against general contractors. This usually happens when construction activities impact the surrounding community, such as parking disputes or debris accumulation.
For example, my family’s experience in Florida involved a neighbor upset about where construction vehicles were parked. Although the parking was on public right-of-way, the neighbor insisted it was their property and repeatedly complained. To avoid escalating the conflict, the contractors chose to park elsewhere, even though it was less convenient.
Another example comes from my own neighborhood near downtown Raleigh, where a neighbor complained about trash overflowing from a dumpster during a remodeling project. While I didn’t escalate the issue to the GC Board, I did contact the permitting department to get the responsible party to clean it up. The problem was resolved quickly, but it shows how small neighborhood disputes can potentially lead to formal complaints if not handled diplomatically.
In dealing with neighbors, it’s best to be courteous and try to resolve issues amicably whenever possible. If a neighbor’s request is reasonable and doesn’t significantly disrupt your project, accommodating them can prevent unnecessary headaches. However, if a neighbor becomes aggressive or unreasonable, you may need to involve law enforcement or other authorities to protect your safety and your work.
Building Strong Relationships to Minimize Complaints
A common thread among all these complaint sources is the importance of maintaining strong, professional relationships. Whether it’s with permitting officials, customers, employees, business partners, or neighbors, open communication and mutual respect can significantly reduce the likelihood of complaints.
Here are some practical tips to help you maintain positive relationships and minimize complaints:
Be proactive with permitting departments: Keep them informed and respond promptly to their concerns.
Vet customers carefully: Use a grading system or other methods to identify potential red flags before taking on a project.
Communicate clearly with customers: Set expectations early, document everything, and handle disputes professionally.
Screen employees thoroughly: Ask open-ended questions during interviews and check references.
Maintain regular communication with business partners: Schedule meetings with agendas to stay aligned.
Be considerate of neighbors: Address concerns quickly and courteously to avoid escalation.
Handling Complaints When They Arise
Despite best efforts, complaints sometimes happen. When they do, it’s essential to handle them professionally and quickly. Many complaints filed with the GC Board are frivolous and can be resolved without serious consequences if you respond appropriately.
If you receive a complaint, consider these steps:
Review the complaint carefully: Understand the issues raised and gather any relevant documentation or evidence.
Communicate with the complainant: Sometimes a direct conversation can resolve misunderstandings.
Respond promptly to the Board: Provide clear, factual information to defend your position.
Seek legal assistance if necessary: A lawyer experienced in contractor licensing law can help navigate the process and protect your license.
Remember, protecting your professional license is important to your business’s success. If you’re facing a complaint or want to prepare in advance, professional legal advice can make a significant difference.
Conclusion
Running a general contracting business in North Carolina means managing complex relationships with a variety of stakeholders. From permitting officials to customers, employees, business partners, and neighbors, understanding who is most likely to file complaints and why can help you avoid pitfalls and protect your license.
By maintaining open communication, setting clear expectations, thoroughly vetting clients and employees, and fostering positive relationships, you can reduce the risk of complaints and build a successful, sustainable business.
If you ever find yourself dealing with a complaint or want to learn more about protecting your general contractor license, don’t hesitate to seek professional advice. Safeguarding your license means you can keep building North Carolina—one project at a time.
*Nothing in this blog establishes an attorney-client relationship. Nothing in this blog is legal advice. If you have any questions, please check out our other blogs and our Youtube channel. You can also call us at 919-521-8810 with questions.