How to Handle a Dispute with Your Contractor

Contractor disputes are stressful but manageable if you act systematically. Here's how to handle them.

Step 1: Document everything

Before you do anything else, document the problem. Photos, videos, written descriptions with dates. Save all text messages and emails. This is your evidence.

Step 2: Communicate in writing

Send the contractor a written notice (email is fine) describing the specific problem, what you expect to be fixed, and your deadline. Keep it factual and businesslike. This creates a paper trail.

Step 3: Withhold the final payment

If work is incomplete or defective, you have the right to withhold the amount of money that corresponds to the incomplete or substandard work. Never withhold more than you can document. Keep the rest of your payment schedule.

Step 4: File a complaint with the state licensing board

Every state has a contractor licensing board that investigates complaints. Filing a complaint often gets a faster response from contractors than legal threats because their license is at stake. This is free and doesn't prevent you from pursuing other remedies.

Step 5: Consider small claims court

For disputes under $5,000–$10,000 (limits vary by state), small claims court is affordable and doesn't require a lawyer. Bring all your documentation.

Step 6: Consult an attorney

For large disputes, defective construction that caused property damage, or contractors who abandoned the job mid-project, an attorney specializing in construction law can advise you on liens, bond claims, and litigation.