My contract includes electrical work. Can I withhold the final payment until it is done.?

Question

I had a garage built. Everything was completed except the electrical work promised which included hooking up the garage door opener, a light inside and one outside. They just sent me a invoice saying the work was completed and they want the final payment. Can I hold off paying until the electrical work is done?

Answer 1

Yes why would you pay for something you did not get? You will have no power after you pay, and they will have little reason to complete the work. Be sure to get a Release of Lien before you turn over the check. You can get a partial lien -- you list the portion you have paid for.

Answer 2

If you have been making ongoing payments, then yes you can withhold payment of the final until electrical work is complete. You can not withhold more than the value of the electrical work. Make sure that the contract you have specifically states the electrical work and not that it was a verbal agreement between you and the general contractor. File a complaint for breach of contract with the licencing authority in your area so that it is on the contractors file for future customers.

Answer 3

Most States in the U.S., have a law that specifically states that NO final payment is to be made before a final inspection is made.

I assume you had the work done with a permit, so if it isn't finished, then you haven't had your final inspection yet.

As a contractor for more years than I want to remember, my advice is " absolutely no final payment til all work is completed and passed final inspection".

If the contractor hassles you, then contact the construction official of your town, and he'll deal with the contractor.

Hope this helped.

Answer 4

Please hold off. I've pre-paid a couple of times and the guy always disappears. Sometimes they come back only if you threaten to sue; other times they don't come back at all.