FILED Department of Business aad Professional Regulation Deputy Agency Clerk STATE OF FLORIDA CLERK Evette Lawson-Proctor DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULAT] pete 7/8/2011 File # | DEPARTMENT OF BUSINESS AND i PROFESSIONAL REGULATION, Petitioner, v. Case No. 2011-002262 DAVID B. KALTHOFF, JR., Respondent. / ADMINISTRATIVE COMPLAINT The Department of Business and Professional Regulation (“Petitioner”) files this Administrative Complaint before the ‘ Construction Industry Licensing Board, Division I, against David B. Kalthoff, Jr. (“Respondent”), and alleges: 1. Petitioner is the state agency charged with regulating the practice of contracting pursuant to Section 20.165, Florida Statutes, and Chapters 455 and 489, Florida Statutes. 2. At all times material to this Complaint, Respondent was licensed as a Certified General Contractor in the State of Florida, having been issued license number CGC 1505581. 3. Respondent's address of record is 28531 Southwest 164° Avenue, Homestead, Florida 33033, 4, At all times material to this Complaint, Respondent was the primary qualifying agent of Construction Project, Inc. (“Construction Project”). Document in Unnamed Filed August 24, 2011 2:46 PM Division of Administrative Hearings 5. Section 489.1195(1) (a), Florida Statutes, provides that all primary qualifying agents for a business organization are jointly and equally responsible for supervision of all operations of the business organization; for all field work at all sites; and for financial matters, both for the organization in general and for each specific job. 6. On or about November 12, 2008, Ivan and Deyanira Giraldez (collectively “Complainant”), entered into a written contract with Respondent d/b/a Construction Project for the remodeling of Complainant’s residence located at 6260 Southwest 144 street, Coral Gables, Florida. 7. The original contract price was $123,967.00. 8. Construction Project accepted an initial payment in the amount of $22,393.22. 9. The contract price after change orders was $267,881.10. 10. Complainant paid Construction Project a total of $244,388.86. 11. The contract did not include a written statement explaining Complainant’s rights under the Florida Homeowners’ Construction Recovery Fund. 12. Construction Project proceeded on the job without obtaining applicable local building department permits and inspections. Document in Unnamed 2 13. Construction Project did not obtain a necessary permit within 30 days after the date of receiving Complainant's deposit. 14. On or about June 15, 2010, R&M Systems Group, Inc., recorded a valid lien against Complainant’s property in the amount of $4,160.87 for labor, material, and/or services in connection with electrical contractor services furnished during the period of August 17, 2009, through March 21, 2010, for which Respondent received payment from Complainant. 15. Respondent failed to remove the lien within 75 days after the date the lien was recorded. COUNT _ONE 16. Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one through 15 as though fully set forth herein. 17. Section 489.129(1)(g)1., Florida Statutes (2010), provides for discipline against a licensee for committing mismanagement or misconduct in the practice of contracting that causes financial harm to a customer. Financial mismanagement or misconduct occurs when valid liens have been recorded against the property of a contractor’s customer for supplies or services ordered by the contractor for the customer’s job; the contractor has received funds from the customer to pay for the supplies or services; and the contractor has not had the liens removed from Document in Unnamed the property, by payment or by bond, within 75 days after the date of such liens. 18. Respondent allowed a valid lien to be recorded against Complainant’s property for supplies or services for which Respondent received funds from Complainant, and failed to have the lien removed from Complainant’s property within 75 days. 19. Respondent violated Section 489.129(1)(g)1., Florida Statutes (2010), by receiving funds from Complainant to pay a subcontractor or supplier, allowing a subcontractor or supplier to file a valid lien against Complainant’s property, and failing to have the lien removed. COUNT TWO 20. Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one through 15 as though fully set forth herein. 21. Section 489.126(2) (a), Florida Statutes (2008), states: “A contractor who receives, as initial payment, money totaling more than 10 percent of the contract price for repair, restoration, improvement, or construction to residential real property must apply for permits necessary to do work within 30 days after the date payment is made, except where the work does not require a permit under the applicable codes and ordinances.” 22.. Section 489,.129(1) (i), Florida Statutes (2008), provides for discipline against a licensee for failing in any Document in Unnamed 4 material respect to comply with the provisions of Chapter 489, Part I, Florida Statutes or violating a rule or lawful order of the board. 23. Respondent received an initial payment amounting to more than ten percent of the total contract price, but failed to apply for necessary permits within 30 days. 24, Respondent violated Section 489.129(1) (i), Florida Statutes (2008), when Respondent violated Section 489.126(2) (a), Florida Statutes (2008), by failing to apply for permits necessary to do work within 30 days after receiving a deposit greater than ten percent of the contract price. COUNT THREE 25. Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one through 15 as though fully set forth herein. 26. Section 489.1425, Florida Statutes (2008), states that any agreement or contract for repair, restoration, improvement or construction to residential real property must contain a written statement explaining the consumer's rights under the Florida Homeowners’ Construction Recovery Fund, except where the value of all labor and materials does not exceed $2,500.00. 27. Section 489,129(1) (i), Florida Statutes (2008), provides for discipline against a licensee for failing in any material respect to comply with the provisions of Chapter 489, Document in Unnamed BE Part I, Florida Statutes, or violating a rule or lawful order of the board. 28. Respondent contracted with Complainant for the repair, restoration, improvement, or construction to Complainant’s residential real property, the value of all labor and materials exceeded $2,500.00, and Respondent: failed to notify Complainant of Complainant’s rights under the recovery fund via written statement included in the contract. 29, Respondent violated Section 489,129(1) (i), Florida Statutes (2008), when Respondent violated Section 489.1425, Florida Statutes (2008), by failing to include in the contract a written statement explaining Complainant’s rights under the Florida Homeowners’ Construction Recovery Fund. COUNT FOUR 30. Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one through 15 as though fully set forth herein. 31. Section 489,129(1) (0), Florida Statutes (2008), provides for discipline against a licensee for proceeding on any job without first obtaining applicable local building department permits and inspections. 32. Respondent proceeded on the job without obtaining applicable local building department permits and inspections. Document in Unnamed 6 33. Respondent violated Section .489.129(1) (0), Florida Statutes (2008), by proceeding on any job without obtaining applicable local building department permits and inspections. WHEREFORE, Petitioner respectfully requests the Construction Industry Licensing Board enter an Order imposing one or more of the following penalties: place on probation, reprimand the licensee, revoke, suspend, deny the issuance or renewal of the certificate or registration, require financial restitution to a consumer, impose an administrative fine not to exceed $10,000 per violation, require continuing education, assess costs associated with investigation and prosecution, impose any or all penalties delineated within Section 455.227(2), Florida Statutes, and/or any other relief that the Board is authorized to impose pursuant to Chapters 489, 455, Florida Statutes, and/or the rules promulgated thereunder. (SIGNATURE PAGE FOLLOWS) Document in Unnamed Signed this 28° day of June, 2011. KEN LAWSON, Secretary Department of Business and Professional Regulation By: Kyle Christopher Kyle Christopher Assistant General Counsel Florida Bar No. 40853 Department of Business and Professional Regulation Office of the General Counsel 1940 N. Monroe Street, Ste. 42 Tallahassee, FL 32399-2202 (850) 488-0062 Telephone (850) 921-9186 Facsimile PC Found: 06/28/2011 By: Del Vecchio, P./Malphus, W. Document in Unnamed

Docket for Case No: 11-004346PL