Full question:
We hired a contractor in September of 2004 to start a rather large addition of approximately 800 sq. feet. He didn't start the job until December of 2005. At this point we had him sign a memo that we had notarized that stated he would complete the job by March 15, 2006. Keep in mind when we signed the contract in Sept 04 we expected him to start immediately. We had only given him about 4,000 dollars to that point for a deposit and permits. The total contract amount was 68,000 dollars which was to be paid in 8,500 dollar increments. He started to buckle down and really get into the job. We paid him according to the contract. He then asked to be paid ahead of schedule which didn't seem like a problem because he was working and things were getting done. Well we ended up paying 2 payments ahead of schedule in the summer of 2006. It is now December and the job is still not complete. He is rarely here and complains that he is broke. Is there anything we can legally do to get this job complete or recoup our money so we can hire someone else?
- Category: Contractors
- Date:
- State: Pennsylvania
Answer:
If your contractor does not have a performance bond, you may not be able to recover the money through that route. However, there are legal options available to you. If the contractor breaches the construction contract by not completing the work, you can seek damages. There are two main ways to measure damages: the cost of completion or repair, and the diminution in value, also known as comparative value.
The preferred method of calculating damages is usually the cost of completion or repair according to the contract specifications. This approach allows you to obtain performance equivalent to what you originally contracted for. Once substantial performance is shown, a construction contractor may be entitled to recover the contract price, minus reasonable costs for fixing any defects in the work or materials.
For further assistance, you may want to consult with a legal professional familiar with construction law in your state.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.