State licensing regulators have petitioned for fines, a restraining order and licensing sanctions against two Midvale construction firms accused of not paying subcontractors and suppliers and operating without a license, documents said.
According to the petition filed with the state Division of Occupational and Professional Licensing, Tim Savage Concrete and Construction, a licensed contractor, entered into an agreement to perform construction work on a Salt Lake residence.Statewide Construction Inc., an unlicensed company of which Savage is an officer, also contracted to do the concrete work at the same residence for $210,000.
Nine months after signing contracts, both companies were terminated, but not before being paid $250,681 for labor and materials, the petition said.
Within two months of termination, 11 mechanic's liens totaling $76,846 in unpaid bills were filed against the property, the petition said. But Savage and Statewide refused to pay the liens, claiming they were still owed $9,911 on the concrete contract.
When Savage was working on the home, use of poor-quality concrete required a wall to be demolished and poured again, the petition said. Savage submitted fraudulent bills to an insurance company that agreed to pay 50 percent of the cost of repouring the wall, the petition said.
Last June, Savage pleaded guilty in 3rd District Court to a misdemeanor charge of theft by deception stemming from the bills he submitted and payment he received from the insurance company.
Licensing regulators accuse Tim Savage Concrete and Construction and Statewide Construction of five counts of unprofessional conduct. The state also petitions the contractors licensing board to place sanctions on Savage's contractor license, levy fines against Statewide and issue a restraining order against Statewide from engaging in the construction business.