What to Do When a Contractor Does Bad Work

Use the board directory first. Marketing claims and verbal assurances are not substitutes for the public record.

Step 1: Document Everything Immediately

Before any confrontation or communication with the contractor, document the problem thoroughly:

• Photograph everything - wide shots showing context and close-ups showing defects
• Date-stamp your photos by photographing a newspaper or using your phone's metadata
• Preserve your contract - all written communications, change orders, and receipts
• Get an independent assessment - have another licensed contractor evaluate the work and provide a written assessment

Documentation is the foundation of every remedy available to you. Do this before anything else.

Step 2: Communicate in Writing

Contact the contractor in writing, email or certified letter, specifying:

• The specific defects or incomplete work, referenced to contract specifications
• What remedy you're requesting (repair, redo, or refund)
• A reasonable deadline (10-14 business days is common)
• A statement that you're preserving your right to pursue further remedies

Many disputes resolve at this stage. Contractors who can't or won't fix problems often move on once they realize you're prepared to escalate.

Step 3: Stop All Payments

Do not make further payments until the dispute is resolved. If you paid by credit card, dispute the charge immediately with your credit card company, credit card chargebacks are a powerful consumer protection tool.

Keep the remaining contract balance withheld as leverage. This is your strongest negotiating tool.

Step 4: File a Complaint with the Licensing Board

If the contractor is licensed, file a complaint with your state licensing board. Licensing boards have the authority to:

• Investigate and discipline contractors (suspension, revocation, probation)
• Order restitution in some states
• Trigger bond claims (if the contractor has a required surety bond)

Important: Licensing board complaints are public record in most states. The mere filing often motivates contractors to resolve issues before an investigation begins.

How to File an Effective Complaint

• Attach your contract and the independent contractor assessment
• Include your photo documentation
• Reference the specific code sections or contract language violated
• Be factual, not emotional, boards respond to documented facts

Step 5: File a Claim on the Contractor's Bond

If the contractor was required to carry a surety bond (check the licensing board database), you may have a direct claim against the bond for:

• Defective work not corrected
• Abandonment of contract
• Failure to pay for materials (mechanic's lien protection)

Contact the bonding company listed on the contractor's license record. Bond claims are typically resolved within 30-90 days. Bond amounts are limited (typically $5K-$100K) - they're baseline protection, not full coverage.

Step 6: Consider Small Claims or Civil Court

Small claims court handles disputes up to varying limits by state, from roughly $2,500 on the low end (e.g., Kentucky) to $25,000 on the high end (e.g., Tennessee, Delaware):

• No attorney required - self-represent with your documentation
• Filing fees are $30-$100 in most states
• Judgment can be enforced against the contractor's assets or bank account

For larger disputes, a construction defect attorney can help you pursue a civil lawsuit. Many work on contingency for clear cases of contractor fraud.

Step 7: Report to the Attorney General

Your state Attorney General's consumer protection division handles contractor fraud. Multiple complaints against a single contractor can trigger investigations and prosecutions. File at your state's AG website.

Understanding Mechanic's Liens, and How to Prevent Them

A mechanic's lien is a legal claim a contractor (or their suppliers) can place against your property if they claim they weren't fully paid. This can appear on your title even if your dispute is legitimate.

To protect yourself:

• Always get lien waivers from the contractor and all subcontractors before making payments
• Pay directly to suppliers for major materials when possible
• Use a joint check agreement for large projects (check made out to contractor and supplier)

Recourse When the Contractor Is Unlicensed

Working with an unlicensed contractor in a licensing-required state limits your options significantly:

• No licensing board complaint (they're not regulated)
• No bond claim (they weren't required to have one)
• Small claims and civil court are still available
• Report to the licensing board's unlicensed activity enforcement unit, this can result in criminal charges
• File a consumer fraud complaint with the AG