You hired a contractor to improve your home, but now you’re left with shoddy work, unfinished projects, or a contractor who disappeared with your money. Bad contractors cause homeowners billions in losses every year. The good news is you have legal options to recover your money and hold negligent contractors accountable.
Quick Answer
You may be able to sue a contractor for breach of contract, negligence, or fraud if they performed substandard work, abandoned the project, or misrepresented their qualifications. Your options include small claims court for smaller amounts, civil court for larger claims, or filing complaints with your state licensing board. Many contractors carry insurance or bonds that may cover your damages.
Common Contractor Problems
| Problem | Examples |
|---|---|
| Substandard work | Work that doesn’t meet building codes, uses wrong materials, or fails shortly after completion |
| Abandoned projects | Contractor stops showing up, leaves work incomplete |
| Cost overruns | Final bill far exceeds estimate without justification |
| Missed deadlines | Project takes months longer than promised |
| Money taken, no work done | Contractor takes deposit and disappears |
| Unlicensed work | Contractor wasn’t properly licensed for the work |
| Property damage | Contractor damages your home during the project |
Legal Claims Against Bad Contractors
Breach of Contract
If you had a written or oral contract, the contractor may have breached it by:
- Not completing the work
- Performing work that doesn’t match specifications
- Using inferior materials
- Missing agreed deadlines
- Exceeding the agreed price without authorization
Negligence
Contractors must perform work with reasonable skill and care. Negligence occurs when:
- Work falls below professional standards
- Work violates building codes
- Contractor causes property damage through carelessness
Fraud
You may have a fraud claim if the contractor:
- Lied about their license or qualifications
- Took payment with no intention of doing the work
- Made false claims about materials or methods
- Submitted fake permits or inspections
Consumer Protection Violations
Many states have laws specifically protecting consumers from contractor misconduct, which may provide:
- Double or triple damages
- Attorney fee recovery
- Easier standards of proof
What You Can Recover
- Cost to complete or repair – Money needed to fix or finish the work properly
- Difference in value – Difference between what you paid for and what you received
- Return of payments – Money paid for work not performed
- Related expenses – Hotel costs if home is uninhabitable, storage fees, etc.
- Property damage – Repairs to damage caused by the contractor
- Statutory damages – Additional penalties under consumer protection laws
- Attorney fees – In some states and some contracts
Steps to Take
1. Document Everything
Gather evidence:
- Photos and videos of defective work
- The contract and any change orders
- All payments (canceled checks, receipts, credit card statements)
- Communications (emails, texts, notes of phone calls)
- Estimates from other contractors to fix the work
- Building inspection reports
2. Send a Demand Letter
Before suing, send a written demand:
- Describe the problem specifically
- State what you want (repair, refund, completion)
- Set a deadline (usually 10-30 days)
- Mention you’ll pursue legal action if not resolved
- Send via certified mail with return receipt
Many states require a demand letter before suing contractors.
3. Check Their License and Bond
Research the contractor through your state licensing board:
- Were they properly licensed?
- Do they have a contractor’s bond?
- Are there other complaints filed against them?
If bonded, you may be able to file a claim against the bond.
4. File a Complaint with the Licensing Board
Report the contractor to your state’s contractor licensing authority:
- May result in disciplinary action
- May trigger mediation or restitution
- Creates a record for other consumers
- May strengthen your legal case
5. Consider Mediation
Before court, mediation may help:
- Faster and cheaper than litigation
- May preserve the possibility of contractor completing work
- Some contracts require mediation first
6. Choose Your Legal Forum
Small Claims Court
For smaller amounts (limits vary by state, typically $5,000-$15,000):
- No lawyer required
- Lower costs
- Faster resolution
- Simpler procedures
Civil Court
For larger amounts or complex cases:
- No damage limit
- Full discovery process
- More formal procedures
- Attorney recommended
The Contractor’s Bond
Licensed contractors often must carry a surety bond. If your contractor is bonded:
- You can file a claim against the bond
- The bond company may pay for your damages
- Bond amounts vary by state (typically $10,000-$25,000)
- Claims must usually be filed within a certain time
Check with your state licensing board for bond information and claims procedures.
What If the Contractor Is Unlicensed?
If your contractor wasn’t properly licensed:
- In many states, unlicensed contractors cannot sue you for payment
- You may be able to recover all payments made to an unlicensed contractor
- The contractor may face criminal penalties
- Your homeowner’s insurance may not cover work done by unlicensed contractors
Always verify a contractor’s license before hiring.
Collecting Your Judgment
Winning a lawsuit is only half the battle. To collect:
- Contractor’s bond – File a claim if bonded
- Wage garnishment – Court can order payment from contractor’s income
- Bank levy – Court can seize funds from contractor’s accounts
- Property lien – Place a lien on contractor’s property
- Insurance claim – Contractor’s liability insurance may cover damages
Some contractors are “judgment proof” (no assets to collect). Investigate the contractor’s ability to pay before investing heavily in litigation.
Preventing Contractor Problems
For future projects:
- Verify license and insurance before hiring
- Check references and online reviews
- Get multiple detailed written bids
- Use a written contract specifying work, materials, timeline, and payment schedule
- Never pay more than 10-30% upfront
- Make payments tied to completed milestones
- Don’t make final payment until work is complete and inspected
Frequently Asked Questions
What if I don’t have a written contract?
You can still sue based on an oral contract, but it’s harder to prove. You’ll need evidence of what was agreed upon—emails, texts, witness testimony. For future projects, always get agreements in writing.
How do I prove the work was defective?
Evidence can include: photos of the problems, reports from building inspectors, estimates from other contractors to fix the work, expert testimony, and building code violations.
What if the contractor threatens to put a lien on my property?
Contractors can file mechanic’s liens for unpaid work, but you can challenge improper liens. If the work was defective or incomplete, the lien may not be valid. Consult an attorney if you receive a lien notice.
Can I sue if the contractor is out of business?
You may still have options:
- Sue the individual contractor personally
- File a claim against their bond
- File a claim with their insurance
- Sue the contractor’s other business entities
How long do I have to sue a contractor?
Statutes of limitations vary:
- Breach of contract: 4-6 years in most states
- Construction defects: May have special longer deadlines
- Fraud: Typically 3-4 years from discovery
Don’t delay—consult an attorney promptly.
When to Contact a Lawyer
Consider consulting a construction or consumer protection attorney if:
- Damages exceed small claims court limits
- The contractor is threatening you with liens or lawsuits
- There are significant structural defects or safety issues
- Multiple parties are involved (subcontractors, suppliers)
- You need help navigating bond or insurance claims
- The contractor is disputing your claims
Many attorneys offer free consultations for contractor disputes.
Last updated: January 2025
This article provides general information about suing contractors for bad work in the United States. Laws vary by state and individual circumstances. Consult with a qualified attorney in your state for advice specific to your situation.
