The State (CCB) and the city both have questioned past employees, clients of the company, the owners, current clients that work is currently being done at, telling those clients that they should hire someone other than the company they have currently (us) to finish the job. With statements like "If I were you" or "you should really think about hiring another contractor". This is happening right now and not one written notice indicating that an investigation is even taking place. There has been some communication but there has been nothing in writing. The state gave a deadline to when the company would find out what was going to happen that deadline has come and gone and the company still waits not knowing what is going to happen. Is this okay, or is this something that goes on everday.
I do not know of authority for a board like this to begin an investigation sua sponte. If they received notice form an inspecting authority that the work was substandard, that might be grounds for beginning such an investigation. But even in that instance, under a "right to face your accuser" theory, the contractor should be advised what is going on. Boards tend to shelter themselves from this "face your accuser" notion with the excuse that anonymity allows people to come forward without fear of retribution. It appears the statements the board members are making to the current clients are libelous and would be "libel per se" in Georgia, not requiring any proof of damages. It sounds like there is some underlying motivation here like a board member's brother-in-law's being a contractor who needs work. I would suggest a thorough investigation into what is really going on.
I'm pretty sure the CCB can investigate anyone in their jurisdiction without any formal notice to you that an investigation is taking place or on-going, although notice is required before you are penalized or disciplined in any way. The real question here is whether they can be passing these comments onto customers or potential customers without a substantial basis for the comments.
If you've been orally notified that an investigation is on-going, than certainly it can be on-going without a formal written notice. However, if a lot of time has passed and you haven't heard anything, and you're worried about the investigation - or, if you're just being investigated at all - you may want to consider the benefits of hiring counsel experienced with contractor licensing.
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