Receiving a complaint from the Florida Department of Business and Professional Regulation (“DBPR”) can be unsettling for a licensed contractor. A complaint can involve allegations ranging from workmanship and permitting issues to abandonment, financial mismanagement, unlicensed activity, fraud, or violations involving a contractor’s qualifying responsibilities.
The filing of a complaint, however, does not mean that DBPR has determined that the contractor violated Florida law.
A DBPR disciplinary case generally moves through several stages: complaint review, investigation, probable cause, a formal Administrative Complaint, and, when necessary, an administrative hearing. Understanding that process can help a contractor respond strategically before the matter progresses.
1. The DBPR Complaint
Florida contractor discipline is governed primarily by Chapters 455 and 489, Florida Statutes.
Under section 455.225, Florida Statutes, DBPR is required to investigate a written, signed complaint when it is “legally sufficient.” A complaint is legally sufficient when it alleges ultimate facts that, if true, would constitute a violation of the statutes or rules governing the profession. DBPR can also investigate certain anonymous complaints and may initiate an investigation on its own when it has reasonable cause to believe a violation occurred.
For contractors, alleged violations may involve issues such as:
- Performing work outside the scope of a license;
- Failing to obtain required permits or inspections;
- Abandoning a construction project;
- Financial mismanagement;
- Misapplication of construction funds;
- Fraud or misrepresentation;
- Gross negligence or repeated negligence;
- Assisting unlicensed contracting;
- Improper use of a contractor’s license;
- Qualifying a business without properly participating in its operations; or
- Other violations of Chapter 489 or applicable CILB rules.
Section 489.129 contains the principal statutory grounds upon which the Construction Industry Licensing Board (“CILB”) may discipline a licensed contractor.
2. DBPR Notifies the Contractor and Begins Its Investigation
When DBPR undertakes an investigation, section 455.225 generally requires the Department to provide the contractor, or the contractor’s attorney, with a copy of the complaint or other document that triggered the investigation.
The contractor is ordinarily permitted to submit a written response within 20 days after service of the complaint or investigative document. Importantly, that response is later considered during the probable-cause process.
This makes the initial response much more than a routine customer-service letter.
A contractor should carefully evaluate the allegations before submitting a response and determine what evidence exists to rebut or explain them.
Depending upon the allegations, relevant evidence may include:
- Construction contracts and proposals;
- Change orders;
- Invoices and payment records;
- Permit and inspection records;
- Emails and text messages;
- Photographs and videos;
- Project schedules;
- Subcontractor agreements;
- Proof of completed or corrective work;
- Communications with building officials;
- Licensing and corporate records;
- Evidence concerning the contractor’s supervision of the project; and
- Evidence concerning the role of any qualifying agent, employee, subcontractor, or other person involved.
DBPR investigators may obtain additional documents, interview witnesses, review permitting records, and investigate the factual circumstances surrounding the complaint.
3. The Contractor’s Initial Response Can Matter
One of the most significant opportunities to defend a DBPR complaint may arise before any formal disciplinary charge has been filed.
The contractor’s response should identify factual inaccuracies, provide supporting documentation, and explain circumstances that may not be apparent from the complaint itself.
For example, an owner’s allegation that a contractor “abandoned” a project may look substantially different when the contractor produces communications showing that work stopped because the owner failed to make required payments, denied access to the property, terminated the contractor, or prevented further performance.
Similarly, a permitting complaint may require examination of who was contractually responsible for obtaining the permit, what work was actually performed, when the permit was obtained, and whether the alleged conduct constitutes a disciplinary violation under the circumstances.
A contractor should therefore avoid submitting an emotional or unnecessarily expansive response simply because the allegations appear inaccurate.
The response becomes part of the investigative record.
4. DBPR Can Dismiss the Case During the Investigation
Not every DBPR complaint proceeds to prosecution.
After determining that a complaint is legally sufficient, DBPR conducts its investigation. The Department may dismiss all or part of a case if it concludes that there is insufficient evidence to support prosecution of the allegations.
This is one reason an early, well-supported response can be important.
A contractor may be able to demonstrate through contracts, photographs, permits, communications, or other records that the factual premise of the complaint is incorrect or that the conduct alleged does not establish a statutory violation.
For certain initial minor violations, Florida law also permits DBPR to issue a notice of noncompliance rather than commence ordinary disciplinary proceedings.
5. The Case Goes to a Probable Cause Panel
If the investigation proceeds, DBPR prepares an investigative report containing its findings and recommendation concerning probable cause.
The matter is then presented to the appropriate probable cause panel.
The probable cause panel does not conduct a full trial. Its function is to determine whether sufficient grounds exist to proceed with formal disciplinary charges.
The panel may:
- Find probable cause;
- Find no probable cause;
- Request additional investigation; or
- In appropriate circumstances, issue a letter of guidance rather than finding probable cause.
If probable cause is found, the panel generally directs DBPR to file a formal complaint against the contractor.
Until this stage, the investigation is generally confidential. Under section 455.225, the complaint and investigative information ordinarily remain confidential until 10 days after probable cause is found, unless the contractor waives confidentiality. Different rules apply to actions against unlicensed persons.
6. What Is an Administrative Complaint?
If probable cause is found, DBPR may file a formal Administrative Complaint.
The Administrative Complaint is different from the original complaint submitted by the property owner or other complainant.
The original complaint starts the investigation.
The Administrative Complaint is the formal charging document in which DBPR identifies the statutory or regulatory violations it intends to prosecute.
At this point, the matter has moved from an investigation into an administrative disciplinary proceeding.
The contractor should carefully review each count of the Administrative Complaint because the response determines how the case will proceed.
7. The Contractor Has the Right to Challenge the Charges
Florida’s Administrative Procedure Act provides procedures for challenging agency action affecting a person’s substantial interests.
When the contractor disputes material facts alleged by DBPR, the contractor may request a formal administrative hearing under sections 120.569 and 120.57(1), Florida Statutes.
The election-of-rights documents accompanying an Administrative Complaint are particularly important because they specify the available hearing options and the deadline for requesting a hearing.
Failing to timely request the appropriate hearing can severely limit the contractor’s ability to challenge the allegations.
A contractor receiving an Administrative Complaint should therefore pay immediate attention to the response deadline.
8. What Happens at DOAH?
When there are disputed issues of material fact and a formal hearing is properly requested, the case is generally referred to the Florida Division of Administrative Hearings (“DOAH”).
At DOAH, the matter is assigned to an Administrative Law Judge (“ALJ”).
Although a DOAH proceeding is administrative rather than a traditional civil lawsuit, it functions in many respects like a trial.
The parties may:
- Conduct discovery;
- Exchange documents;
- Take depositions where permitted;
- File motions;
- Present witness testimony;
- Introduce documentary evidence;
- Cross-examine opposing witnesses;
- Present legal argument; and
- Submit proposed findings and conclusions.
Florida law expressly gives parties in a section 120.57(1) proceeding an opportunity to present evidence and argument, conduct cross-examination, submit rebuttal evidence, and file exceptions to the resulting recommended order.
DBPR is represented in the proceeding and has the burden of proving the disciplinary allegations under the standards applicable to professional disciplinary cases.
9. The Administrative Law Judge Issues a Recommended Order
Following the final hearing, the Administrative Law Judge does not ordinarily enter the final disciplinary order against the contractor.
Instead, the ALJ issues a Recommended Order containing findings of fact, conclusions of law, and a recommended disposition of the case.
The parties then have an opportunity to file exceptions to portions of the Recommended Order.
The case ultimately returns to the CILB, which enters the Final Order imposing discipline, dismissing charges, or otherwise resolving the proceeding. Section 455.225 expressly provides that the appropriate regulatory board issues the final order in a disciplinary case.
10. Can a DBPR Case Be Settled?
Yes.
Many contractor disciplinary cases are resolved without a final contested DOAH hearing.
Settlement negotiations can occur at different stages of the proceeding. Depending upon the allegations, disciplinary history, evidence, and applicable penalty guidelines, a settlement may involve some combination of:
- A reprimand;
- An administrative fine;
- Probation;
- Continuing education;
- Restitution;
- Payment of investigative or prosecution costs;
- Conditions placed on the contractor’s license; or
- Other agreed disciplinary terms.
Any settlement remains subject to the required agency approval process. Section 455.225 provides that a consent order or agreed settlement is subject to approval by the Department.
Whether settlement is advisable depends heavily upon the strength of DBPR’s case and the consequences of accepting the proposed discipline.
A contractor should not evaluate a settlement based solely upon the dollar amount of a proposed fine. Discipline can become part of the contractor’s licensing history and may have consequences for future licensing, qualifying relationships, insurance, business opportunities, or later disciplinary proceedings.
11. What Penalties Can the CILB Impose?
Under section 489.129, the CILB has substantial disciplinary authority.
Potential penalties include:
- Reprimand;
- Probation;
- Suspension;
- Revocation;
- Denial of issuance or renewal of a license;
- Restitution for qualifying financial harm;
- Continuing education requirements;
- Assessment of investigation and prosecution costs; and
- Administrative fines of up to $10,000 per violation.
The seriousness of the potential consequences makes it important to evaluate not only whether the contractor technically violated a provision, but also the appropriate defenses, mitigating circumstances, disciplinary history, and applicable penalty guidelines.
12. What Should a Contractor Do After Receiving a DBPR Complaint?
A contractor receiving notice of a DBPR investigation should consider taking several immediate steps.
First, calendar the response deadline. A DBPR complaint should not sit unanswered while the contractor attempts to resolve the underlying dispute informally.
Second, preserve the entire project file, including text messages, emails, photographs, contracts, invoices, permitting documents, and communications with subcontractors and building officials.
Third, identify the precise allegation. The fact that an owner is dissatisfied with a project does not by itself establish a licensing violation.
Fourth, develop the factual record early. Documents that explain why work stopped, who was responsible for a particular issue, whether corrective work was offered, or whether the customer’s allegations are inaccurate may become important when the case reaches probable cause.
Finally, a contractor facing allegations that could result in professional discipline should consider obtaining legal advice before submitting a substantive response or communicating extensively with the investigator.
A DBPR Complaint Is Not Yet a Finding of Wrongdoing
A DBPR complaint begins a process. It is not a final determination that the contractor committed a violation.
The distinction is important.
Between the filing of the original complaint and the entry of a Final Order are multiple stages at which the allegations and evidence are evaluated: legal sufficiency, investigation, probable cause, formal prosecution, settlement, and, where necessary, an evidentiary hearing before an Administrative Law Judge.
Contractors who understand that process are better positioned to preserve evidence, respond accurately, identify defenses, and address the allegations before they develop into formal discipline.
Andrew Douglas, P.A. represents Florida contractors and construction businesses in DBPR and CILB matters, including complaint responses, licensing investigations, Administrative Complaints, settlement negotiations, and proceedings before the Florida Division of Administrative Hearings.
This article is provided for general informational purposes only and does not constitute legal advice. DBPR disciplinary proceedings are fact-specific, and applicable deadlines and procedures should be reviewed based upon the documents issued in the particular matter.