Contractor won't finish the job? What to do, and what not to do

The crew stopped coming. Calls go to voicemail, or every week there's a new reason. Before you hire someone else or stop paying, take a few steps that protect you if this turns into a dispute.

First, is it a delay or abandonment?

Not every stall is the contractor's fault. Rule these out:

• Waiting on you. Allowance items you haven't chosen, or materials you agreed to supply. AIA's guidance puts timely selection of allowance items on the owner (AIA Contract Documents).
• Waiting on an inspection or a permit sign-off.
• A back-ordered item that blocks the next trade.

If none of those apply and the crew simply isn't showing up, treat it as a problem now, not in a month.

Check the dates in your contract

The FTC says a contract should include an estimated start and completion date (FTC). California's CSLB says a home improvement contract must provide a date of completion (CSLB), and its checklist asks, "Does the contract tell you when work will start and end?" (CSLB checklists). Also look for a termination clause and a notice-and-cure clause, which may say how much notice you must give before ending the contract.

What to do, in order

1. Start an attendance log today. Date, who showed up, hours on site, what got done. Take photos at the end of each day.
2. Send written notice. Say what's unfinished, refer to the contract dates, and give a specific date to resume. Email works, and so does a letter with tracking. Keep copies.
3. Stop paying ahead of the work. Pay only for work done. In California, payments can't exceed the value of work performed, apart from the down payment (Cal. BPC § 7159.5).
4. Get lien releases for what you've paid. Subs and suppliers may still be owed. See lien waivers for homeowners.
5. Make a list of what's left. Room by room, item by item. You'll need it to get a price from a replacement contractor and to back up any claim.
6. Get advice before you terminate or bring in someone else. Firing a contractor the wrong way can shift the blame to you.

What the law says in some states

• California: abandoning a contract without legal excuse is grounds for discipline against a contractor's license (Cal. BPC § 7107). So is wilfully failing to prosecute a job with reasonable diligence, causing material injury to another (§ 7119). CSLB lists abandonment and failure to proceed with diligence among the problems it takes complaints on (CSLB, How the Complaint Process Works).
• Texas: the disclosure statement Texas requires for residential contracts tells owners to reserve 10% of payments during construction and for 30 days after final completion, termination, or abandonment of the contract by the contractor (Tex. Prop. Code § 53.255).

Other states have their own rules. Your state's contractor licensing board or attorney general is the place to check. If talking fails, the next steps (mediation, complaints, bond claims, small claims) are in what to do in a contractor dispute.

Re-plan the budget and the dates

Finishing with a new contractor can cost more than the original contract's remaining balance. Compare what you've paid, the value of the work done, and a new price for what's left, then decide what has to happen now and what can wait. For realistic durations, see the remodel timeline by room.

Keep it in one place

RenoBinder tracks every decision and change order with dates, and every budget line as planned, committed, or paid. When you need to show what was agreed and what was paid, it's already written down.

General information, not legal advice. Rules on termination, abandonment, and payment vary by state. Talk to a local attorney before ending a contract.

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