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My contractor has abandoned the job: What do I do?

On Behalf of | Sep 12, 2022 | Construction Law |

As a real estate investor, you are certainly going to interact with contractors. From constructing new homes and establishments to flipping houses for a living, you will inevitably engage a contractor at some point. 

However, working with contractors is not always a walk in the park for investors. It is not uncommon for a contractor to do a shoddy job or simply go missing in action. So what do you do if a contractor abandons your project midway?

Resolving a dispute with a contractor

You are officially in dispute with the contractor when they fail to live up to the terms of the construction contract. If this happens, your goal should be to try and resolve the matter as soon as possible so work can resume either with the contractor or their replacement. 

It helps to understand why your contractor abandoned projects in the first place. With this established, one of the options you may consider to resolve the dispute is negotiation. This may even be required if you have a negotiation or arbitration clause in your contract agreement. 

If you cannot reach an out-of-court agreement, then you could consider litigation. During your lawsuit, you may seek financial damages for any losses that are directly attributable to the contractor’s decision to abandon the project. These damages would vary depending on the actual harm that resulted from the contractor’s actions. You could also seek compensation for any payments made prior to the abandonment. 

Every construction work has its share of challenges. Knowing your legal options can help you protect your rights and interests and pursue justice when a contractor fails to live up to their end of the bargain.