Contractor not completing job..Paid in Full..?

Question

Hello,

I have paid my contractor in full and all of a sudden he does not want to finish the job. I have receipts of my full payment to him and several written contracts which I made myself and he signed that state that he would complete the work. I do not have an actual contract which is supposed to be provided by the contractor. The contractor is licensed and fully insured. I have all documentation of his license and information regarding his insurance and workers disability stuff. Please help..What can I do?

Answer 1

The first step in this is to write a letter detailing demanding that he finish the work - include details of your agreement, payments already made, what you believe the work that is still incomplete is etc. Give him 7 days to respond or else you will take it further. Hopefully that will work!

If not you need to consider what your agreement was - did you decide on a finish date for the contract (ie; this must be completed in 2 weeks) or was it however long was reasonable? Have you ask him why he hasn't finished the job - is there a reason perhaps or is he just flat-out refusing now that he's got the money?

If he is refusing now that he's got the money and you have passed your agreed completion date (or in lieu of this, reasonable time to complete the job), then it seems to be a repudiation - that's where one party is willing and able to complete the contract (you as you have already performed your part) and the other is not willing (him). It may also be a breach of contract.

If there was no agreed finish date, and only a short period of time has elapsed then this may not amount to a repudiation as he may still be willing to perform. However there is also a thing called an anticipatory breach which is where if you can prove on the balance of probabilities that he won't complete performance you could possibly get out of the contract. As you haven't given details it is very hard to give you specific advice.

Ultimately my advice would be to talk to him first - find out why he's not doing the job and whether there is any reason. If he doesn't respond, send the letter of demand. If he doesn't respond to that, perhaps contact the licensing board and see whether there is anything they could do to help. Finally if that doesn't work, the only other option is the legal path in which you'd have to weigh up whether it is worth it to sue or not (ie; how much is the work worth compared to possible legal fees etc).

Good luck.

Answer 2

You can file a complaint against him with the licensing board and Better Business Bureau. The licensing board may tell you to take him to Court or see a lawyer. Depending on the value of the project, you might be able to sue him yourself in small claims court or interest a lawyer in taking the case on contingency.

You say that you have several written contracts but that you don't have a written contract from him. If the materials that you have contain enough information, they may be an enforceable, written contract -- you don't need a contract from the contractor to have a binding agreement. Do they identify price, the work to be performed, and a schedule? Recommendations - 1. Have a written record of your demand that he complete the work, and tell him that you will sue and file complaints if he does not recommence work in accordance with your contract within a specified number of days. 2. File a Complaint with the Licensing Board and the Better Business Bureau, copied to him. 3. Get written estimates for performance of the remaining work from other contractors, which will be your damages if you have to sue him. 4. Seek legal advice. A lawyers' letter may get more action from him than your own letter, and may not cost much more. You need to know if there are any additional things that you can do, such as making a claim on any bond that he may have provided to get a license (only in some states). If he did any work with subcontractors or bought materials for your job, you should need to find out if he paid them or they might file liens even if you already paid your own contractor.

If it looks like you're a fraud victim, you will want to file a police report. Sometimes the Courts can get you restitution as part of any plea bargain or sentencing, if they find that this guy victimized you.

Answer 3

I have same problem. I hired a contractor Ash (Ashok Akelkar), an indian guy office in Artesia to add one room and a small bathroom. It is almost a year now and he has not done even 40% work. Actually he started the work without any plan and permit, even though I stated in contract that all work would be done according to Fullerton city code. Well, now city is not approving even the 40% work done and I have paid him almost 85% of the total contract price. I have well documented contract with his agreement and receipts of all payments made but the problem is that if I go to the court and win the case (I am 100% sure I will win), I won't get my full refund, I heard they pay back in small installments. I feel helpless, don't know what to do? In the start he said he is licensed but later on admitted he is using his friend's license. He is old but he lies perfectly. These contractors are from real hell...............

Answer 4

Your company is pulling a fast one on you. They cannot terminate you as an employee and then call you a contractor, make you do the same exact work and hours and move the pay to a 1099-Misc. If they really do make you an independent contractor (and show the IRS that this qualifies), they are passing all tax responsibilities off to you. This is a big deal. An employee owes 7.65% of their pay for payroll taxes and the employer matches it. If you were truly an independent contractor, you would pay 15.3% (both sides). This is on top of your income tax which since it's not longer being withheld, you become responsible for calculating sending in quarterly estimated payments. No, you do not need a business ID. This is true even if you start doing work for multiple businesses. Look at IRS form SS-8 and form 8919 (NEW FOR 2007).

Answer 5

RULE NUMBER 1 in hiring a contractor is you don't pay in full until AFTER the job is finished!

Answer 6

Was there a "finish" date? if not has it been a "reasonable" amount of time to finish the job? If you answer yes, go get an estimate for the cost to finish the work and take him to small claims court.

Answer 7

Contact a lawyer and take him to court if all of your paper work is in order you will win the case.