Hiring a contractor and not getting what you paid for or what they promised can be frustrating. Fortunately, there are plenty of options available if a contractor does poor or unfinished work, damages your property, breaches the contract, or rips you off. A dispute with a licensed contractor may get resolved in mediation or arbitration, or a small claims court if he or she lacks a valid license. First, catalog the contracts, invoices, e-mail and texts, receipts, checks, among other documents or communications. Depending on the statute of limitations for your state—and if there was a contract involved or not—determine how long you may have to file a claim. Also, calculate the damages you'll want to claim; depending on the amount and the state you’re in, it might get settled in a small claims court. Spiegel & Utrera, P.A. can assist you with properly documenting and filing your claim.

When a contractor performs poorly, the first and most obvious action is to fire the contractor. Let’s briefly talk about the implications of that and other options you have available: Firing your contractor could result in a breach of contract unless you can prove that he breached the contract first by not performing to the specifics of the contract. Some contracts include arbitration as a clause to resolve a dispute instead of involving a small claims court. Hiring a lawyer is your best bet, preferably one that doesn’t break the bank and offers a free consultation.

The first thing you may want to do is have an attorney review the contract to see if there’s any terms or conditions that were violated, resulting in a breach of contract. If so, your attorney will notify the contractor with a breach of contract letter. The letter will provide specific details of the breach and other remedies to keep this out of court. The breach of contract letter provides the court with proof that the contractor was notified and that you attempted to correct the breach of contract. You will need to provide your attorney with any related records, documents or paperwork that will strengthen your case. In the case of a breach of contract, there are several methods to remedy the situation.

The primary objective of remedies in contract law is to make sure that the non-breaching party ends up in the position they would have been in if the contractor had performed as the contract promised. The contractor at fault pays compensation for any damages incurred by the breach, along with payment to the non-breaching party for hiring someone else to complete what they failed to deliver—among any other losses. Punitive damages may be given out to punish the contractor and to deter others from doing the same. Punitive damages typically apply to a contractor that acted maliciously, fraudulently, willfully.

There are many options and tools available to you when dealing with a bad contractor. You can try contacting the state's licensing board which regulate contractor licenses and file a complaint. Leave reviews on social media, the Better Business Bureau, directories like Yelp and Google, and consumer review websites. You can try and resolve this in a small claims court in which you would represent yourself, but we highly advise that you call us for a free consultation first. You could be eligible for greater monetary compensation than a small claims court can handle, which is typically only $10,000 in damages. Gather all documents, invoices, receipts, contracts, e-mails, texts, and any other communications between you and the contractor. Document and track all attempt to resolve your issue with the contractor to make your case as strong as possible. If you can meet their requirements, the Contractor (or Homeowners) Recovery Fund may compensate you for damages due to a contractor's negligent, fraudulent, incompetent, or dishonest practices. We’ll discuss all of your options with you and review your case to make sure you receive maximum compensation.

No matter which state you reside in, the law will likely favor a homeowner rather than a home improvement contractor. The law applies strict standards and requirements when a contractor does any home improvement work inside a private home. In states like New Jersey, if a home improvement contract begins work before a contract is completely written and signed by both parties; one of the parties may sue the other for treble damages as well as their attorney fees. Additional things are required of home improvement contractors rather than a signed written agreement but in any case, the home improvement contractor must follow two steps. First, the home improvement contractor must determine whether or not the work being performed in the home is classified under “home improvement.” For example, in some states installing windows or a fence does not require a permit and doesn’t leave a contractor open to these strict laws, however, doing any electrical work or any bathroom plumbing will likely be classified as home improvement work which comes with strict requirements. It is in your best interest to know and understand the law before any work is performed in a private residence. Builders who fail to keep customers dry and comfortable will almost inevitably end up in a lawsuit. Complaints also focus on defective products that fail to live up to their advertised claims, such as lifelong plastic plumbing systems and untested, leaky windows. Homeowners often feel cheated when these simple components cause trouble in their $200,000 homes. They resort to the law to help them recoup. Defects occur for many reasons, some more frequent than others. These include complex house design; changing customer expectations; new, untested, and incompatible materials; a lack of quality control on the job site; changes in the workforce; compressed schedules; and the lack of widely accepted standards for quality verification.