When dealing with the complexities of licensing and regulation in the construction industry, understanding the role and implications of a consent order from the North Carolina Licensing Board for General Contractors in North Carolina is essential. Whether you are a licensed contractor facing a complaint or someone accused of performing unlicensed work, knowing how consent orders work can help you protect your professional license and your business.
Types of Consent Orders with the General Contractor’s Board
There are two primary types of consent orders issued by the Licensing Board for General Contractors in North Carolina:
- Consent orders related to unlicensed work allegations
- Consent orders arising from complaints against licensed contractors
Each type has distinct processes and consequences, so it’s important to understand the differences.
Consent Orders for Unlicensed Work Allegations
When someone is accused of performing work that requires a general contractor license without actually holding one, the Board initiates a formal complaint process. This often culminates in the Board filing for an injunction in Wake County Superior Court. An injunction is a court order that prohibits you from continuing unlicensed work.
If you recognize that you have performed unlicensed work—perhaps a project that exceeded $40,000 in labor and materials—you might want to resolve the matter without prolonged litigation. Entering into a consent order can be a strategic choice. This agreement acknowledges the injunction and the board’s findings, and it becomes a binding court order.
When negotiating a consent order in this context, a key goal is minimizing attorney’s fees and court costs. The board’s attorneys typically charge high rates, and drawn-out disputes can quickly become expensive, potentially costing thousands of dollars. By agreeing to a consent order early on, you can often reduce those financial penalties.
However, a critical point to remember is that once a consent order with an injunction is in place, you must never perform unlicensed work again. Doing so would violate the court order and could lead to severe consequences.
Consent Orders for Licensed Contractors Facing Complaints
Licensed general contractors who have complaints filed against them with the Board have a different process. Since the Board regulates licensed professionals, it can handle these complaints administratively without involving the court system. In these cases, a consent order is an agreement between you and the board to resolve the complaint without a formal hearing. This can be appealing if you want to avoid the uncertainty of a contested hearing, especially when the outcome is unpredictable due to witness availability or other factors.
One of the benefits of entering a consent order here is that you retain some control over the outcome. For example, if the board initially proposes a six-month license suspension, you might negotiate for a lesser penalty to avoid significant harm to your business. It’s essential, however, to get all terms in writing and not rely on verbal agreements.
Consent orders in this context include agreed-upon findings of fact, conclusions of law, and the penalties or administrative actions imposed. While these orders are not published on the Board’s website, they remain part of your professional record and can be obtained through a public records request.
Key Considerations When Entering a Consent Order
Understand the implications: A consent order is a formal agreement that can impact your license and business reputation.
Negotiate carefully: Aim to reduce financial penalties and avoid harsh disciplinary actions like suspensions if possible.
Don’t ignore legal advice: Hiring an attorney who handles professional license defense can help you handle the process effectively.
Follow the terms strictly: Violating a consent order, especially one involving an injunction, can lead to serious legal consequences.
Know your rights: You always have the right to a hearing if you prefer to contest the allegations rather than agree to a consent order.
Why Professional Legal Help Matters
The processes surrounding consent orders—whether for unlicensed work or complaints against licensed contractors—are complex and nuanced. The stakes are high because your professional license and livelihood are on the line.
Working with a legal professional who focuses exclusively on professional licensing can make a significant difference. They can help you understand your options, negotiate better terms, and protect your future in the industry.
Final Thoughts
Consent orders from the General Contractor’s Board play an important role in resolving licensing disputes in North Carolina. Whether you are accused of unlicensed work or facing a complaint as a licensed contractor, understanding how consent orders function can help you make informed decisions.
Remember, entering into a consent order is a serious decision with long-term consequences. Approach it thoughtfully, seek expert guidance, and prioritize compliance to safeguard your professional license and continue building a successful business.
*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.