What to do if a contractor defaults on a contract?

Before taking action the surety will conduct an investigation, which takes time. Assuming it accepts the claim, the surety then has options as to how to proceed, including financing the defaulted contractor, tendering a replacement contractor, or simply paying the cost to complete, minus the unpaid contract balance.

What happens when a subcontractor withholds payment?

Subcontractors reduce their workforce, or stop coming to the jobsite. Notices of mechanics’ liens appear in the mail. The owner’s first inclination may be to withhold further payment. In return, the contractor stops work and refuses to continue unless payment is released.

What causes a contractor to file a lawsuit?

The most common lawsuits filed against contractors occur when the contractor fails to follow the agreed upon contract. Examples of this include missing deadlines or failing to perform all of the work required. The contractor overcharges which could lead to a breach of contract claim.

Can a homeowner sue a construction company?

If you are a homeowner and are unhappy with a contractor’s work, you may be able to sue the contractor on your own. Suing a contractor can be a time consuming and stressful experience. There are many steps involved in filing a successful lawsuit, including collecting evidence and calculating damages.

Is it possible to sue a general contractor?

If you have a general contractor dispute, try some simpler resolution alternatives before you call in Perry Mason. No matter how carefully you pick your contractor, a dispute with your general contractor is possible. Fortunately, you have several options to resolve it — a time-consuming and expensive lawsuit isn’t always necessary.