5 Questions to Ask Before Hiring A Contractor

Avoid expensive litigation. Know the warning signs of contractors who might abandon work and leave you stranded.
How to avoid falling victim to unscrupulous contractors.

If a contractor abandons a project or scams you, there are several legal remedies and steps you can take to seek justice or compensation. Here's a breakdown:

1. Review the Contract
Check for breach of contract: If the contractor didn’t perform as promised, they likely breached the contract.

Notice and Cure Clause: Some contracts require you to give written notice before terminating the agreement.

Payment terms: Ensure you’re not withholding payment improperly, which the contractor might use as a defense.

2. Gather Documentation
Save all texts, emails, receipts, photos of work done or not done, invoices, and copies of the contract.

Take photos or video of incomplete or faulty work.

3. Send a Demand Letter
A formal demand letter (ideally written by an attorney) gives the contractor a chance to fix the issue or repay money.

Often, this alone prompts action to avoid legal escalation.

4. File a Complaint
State Licensing Board: If the contractor is licensed, you can file a complaint with your state’s licensing agency.

Better Business Bureau (BBB) or local consumer protection agency.

5. Small Claims Court
Ideal for amounts usually up to $5,000–$10,000, depending on your state.

No lawyer is required.

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Quick, low-cost option to get repayment.

6. Civil Lawsuit
For larger claims or serious damages, you can file a lawsuit in civil court.

You can sue for:

Breach of contract

Negligence

Fraud or misrepresentation

Unjust enrichment

Place a Lien or Seek a Mechanic’s Lien
In some states, you (or subsequent contractors) can place a mechanic’s lien if materials or labor were unpaid and work remains unfinished.

8. Criminal Charges
If the contractor took money and disappeared with no intention of doing the work, this may qualify as fraud or theft.

Report to:

Local police

District attorney

State attorney general’s office (especially if the victim is elderly!)

Helpful Tip:
If you're in the U.S., laws vary by state, so it's often wise to consult a local construction attorney for advice specific to your situation.

Would you like help drafting a demand letter or identifying your state's licensing board or small claims process?