San Diego Business Journal

Drywall Construction Stopped on Downtown Apartment Project

By Lou Hirsh Monday, April 14, 2014
Photo courtesy of California Contractors State License Board

Photo courtesy of California Contractors State License Board

Work on the drywall portion of the $150 million, 45-story Pinnacle Towers apartment project in downtown San Diego has been stopped, after the California Contractors State License Board determined that a subcontractor was not properly licensed in the state.

State officials identified the subcontractor as Clayton Wall & Ceiling Systems Inc. Drywall work was stopped after an unannounced inspection of the construction site on April 4 at 1443 Island Ave, by investigators with the license board, California Department of Industrial relations, and the San Diego District Attorney’s Office.

The state also issued a total of $79,000 in civil fines against Clayton, which is based in British Columbia.

Officials of primary contractor Pinnacle International Development Inc., based in Vancouver, B.C., could not immediately be reached for comment.

Pinnacle contracted with Clayton on Aug. 8, 2013, for the $6.34 million drywall job. Clayton applied for a California contractors license on Dec. 3, 2013, and drywall work began in January, even though Clayton has not yet completed the licensing process, state officials said.

Clayton’s license application is on hold until fines are paid or until an appeal is heard. Pinnacle may face administrative action for contracting with a subcontractor who is not licensed in the state, officials said.