Construction at the Pinnacle site
  • Construction at the Pinnacle site
  • Image by Contractors State License Board
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A Canadian drywall contractor was kicked off the job at the $150 million, 45-story Pinnacle Towers development on the 1400 block of Island Avenue downtown for failing to obtain a California contractor's license, the state licensing board announced on Friday, April 11.

On December 3, 2013, the British Columbia-based Clayton Wall & Ceilings Systems, Inc., applied for a state license. They had already been awarded a $6.34 million contract for drywall work at the project in August.

Although the licensing process was never completed, a surprise inspection on March 28 found that work was nonetheless under way. Investigators have determined Clayton likely began work on the project sometime in January.

"When it comes to contracting without a license the law is very clear," said Contractors State License Board registrar Steve Sands in a statement announcing the work stoppage. "You cannot enter a contract to work, or actually do any work until you’re licensed. There’s no gray area here."

State authorities have barred Clayton from resuming work until the licensing process is complete. The firm also faces a $15,000 fine from the contractors board as well as a $64,000 penalty from the state labor commissioner. Developer Pinnacle Bayside Development may also face fines and disciplinary action for hiring an unlicensed firm.

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Bvavsvavev April 12, 2014 @ 10:56 a.m.

Why did the general contractor even accept this bid? It is my understanding that bids need to have a few basic prequalifications such as license, insurance, bond, etc. Someone dropped the ball here!


Burwell April 12, 2014 @ 1:14 p.m.

It looks like both companies are Canuck-owned. Them Canadians is thicker than thieves. The builder contracted with another Canadian company to keep an American drywall company from earning a profit. Most of the drywall workers were probably shipped in from Canada to keep Americans from working.


jnojr April 12, 2014 @ 1:54 p.m.

So... no allegations that the work wasn't up-to-par, or anything wrong was going on... only that paperwork hadn't been done and government hadn't been handed money.


Visduh April 12, 2014 @ 4:04 p.m.

Something tells me that if they were using non--citizen workers, they were from south of the border, not north of the border. NAFTA brought down many barriers, but not ones like these. State licensing laws still apply, like it or not.


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