Most disputes can be settled with clear records and calm, written communication. When they can’t, you have more options than you might think.
Licensing, permit, lien and tax rules vary by state and city and change over time. This guide is general information, not legal or tax advice; check with your local building department, state licensing board or a professional for your situation.
Checklist
- Document everything: photos, the contract, payments and every message.
- Raise problems in writing and give the contractor a fair chance to fix them.
- Licensing boards, state recovery funds, card disputes and small claims court are all options.
- Act quickly; deadlines for complaints, claims and lawsuits can be short.
Even with careful hiring, projects can go wrong: work that doesn’t match the contract, endless delays or a contractor who stops showing up. Here’s a sensible order of steps.
1. Gather your records
Collect the contract, change orders, invoices, receipts, lien waivers, permits and every message. Take dated photos and videos of the problems. A clear record is the foundation for everything that follows.
2. Talk, then write
Start with a conversation, since many problems are misunderstandings. Then follow up in writing: describe the problem, refer to the relevant part of the contract, say what you want done and set a reasonable deadline.
Per our contract dated June 3, the tile in the main bathroom was to be installed level with the floor. Several tiles are uneven, as shown in the attached photos. Please fix this by July 15. I’m holding the final payment of $1,800 until the work is complete.
3. Use the official channels
- The licensing board: most state boards take complaints against licensed contractors and may mediate or discipline. Unlicensed contractors can usually be reported too. See how to check a contractor’s license.
- Recovery funds: some states run funds that help homeowners who lost money to licensed contractors, usually after other steps have been tried.
- The building department: if you suspect unsafe or unpermitted work, ask for an inspection.
- Your state attorney general’s consumer protection office.
Tip
If you paid by credit card, you may be able to dispute charges for work that wasn’t delivered as agreed. Contact your card issuer quickly, as time limits apply.
4. Mediation or small claims
Mediation services, sometimes offered free through local programs or licensing boards, can help both sides reach an agreement. For smaller amounts, small claims court is usually quicker and cheaper than a full lawsuit. For large losses, talk to a lawyer.
Watch the deadlines
Complaint windows, bond claims and court deadlines can be short. Don’t wait months hoping the contractor will return.
Many disputes begin with a vague contract. For next time, use our contract checklist, and protect your home from liens with lien waivers.
Homeowners ask
Can I stop paying if the work is bad?
Withholding payment for work that hasn’t been done properly may be reasonable under your contract, but it can also lead to a lien claim. Put your reasons in writing and get advice for large amounts.
What is small claims court?
A simplified court for smaller disputes, where people often represent themselves. Each state sets its own dollar limit and procedures.
What if the contractor simply disappears?
Report it to your licensing board and state attorney general, and to the police if you believe it’s fraud. If you paid by card, contact your card issuer promptly.