Delaware Code
Chapter 36. Delaware Contractor Registration Act
§ 3607. Denial, suspension, or revocation of certificate of registration.

(a) The Department may deny, suspend, or revoke a certificate of registration if the contractor or an officer, partner, director, stockholder, or agent of the contractor does any of the following under this chapter:

(1) Fails to comply with any requirement of this chapter.
(2) Wilfully makes a misstatement or omits a material fact in an application for or renewal of a certificate of registration.
(3) Fails to provide all information, including records, forms, or documents, requested by the Department under this chapter.
(4) Performs work without full compliance with this chapter.
(5) Contracts with or uses a subcontractor who is not registered under this chapter in the completion of a public works contract.
(6) Fails to cooperate or interferes with an investigation by the Department.
(7) Violates a criminal or civil law or regulation related to the ability of the contractor to comply with the labor laws of this State.
(b) (1) The Department shall reject an application that is incomplete or contains inaccurate information.
(2) If a contractor knowingly supplies incomplete or inaccurate information to the Department under this section, all of the following apply:

a. The application for registration must be rejected.
b. The contractor may not apply for registration until 1 year from the date of the notice of disqualification.
c. The contractor is subject to other applicable penalties, including under Chapter 12 of Title 6.
(c) (1) The Secretary shall exercise reasonable discretion in deciding whether to deny, suspend, or revoke a certificate of registration under subsection (a) or (b) of this section.
(2) The Secretary may not revoke or suspend a certificate of registration for longer than 5 years. The Secretary shall consider the following criteria to determine the length of time that a certificate of registration is denied, revoked, or suspended:

a. The contractor's record of previous violations of any civil or criminal law related to the fitness of the contractor to bid on or engage in construction services or maintenance including this chapter and the prevailing wage law, § 6960 of Title 29.
b. If the contractor should reasonably have known that a subcontractor to a contract did not have a certificate of registration, had a lapsed certificate of registration, or had a certificate of registration revoked or suspended.
c. The total number of unregistered subcontractors at a work site and the size and scope of the project on which the unregistered subcontractor worked.
d. If the contractor in contract with a subcontractor who is not registered under this chapter obeyed the Department's directive to remove the unregistered subcontractor from the work site to cure the violation of this chapter.
(d) (1) The Department may require as a condition of initial or continued registration that a contractor who has violated either this chapter or the prevailing wage law, § 6960 of Title 29, must provide a surety bond payable to the Department.
(2) The Department shall require a surety bond if there is a pending investigation or litigation of a violation of a state or federal labor law alleged against the contractor which the Secretary finds would constitute a knowing violation of this chapter.
(3) The surety bond must be in the amount and form that the Secretary deems necessary for the protection of the contractor's workers, but must not exceed $10,000 per worker.
(4) The surety bond must be released upon a final adjudication of the investigation or litigation under paragraph (d)(2) of this section if the final adjudication is in favor of the contractor.