What Can You Do If A Contractor Takes Your Money

Many homeowners have major projects done in their homes every year—most of them using licensed contractors to get the job done. Commercial and residential contractors must meet certain licensing guidelines to operate their businesses legally in the state of Virginia.

However, even when you’ve vetted a contractor in terms of their experience, license status, bonding, and insurance, the project still might not go as planned. If you end up with a contractor that does poor work, you may face challenges in recovering your financial losses.

There are several steps you can take to get your money back, however, when a contractor does shoddy work. The first thing to do is communicate with the contractor; see if the two of you can find a solution to the problem without going to court. If that doesn’t work, here are some other options to consider:

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Go To Small Claims Court

Criminally charging a contractor by filing a claim in small claims court is a viable solution if you feel the contractor owes you money. This is the appropriate court to file a small monetary claim against the contractor.

If you are in Virginia, the most you can claim is $5,000. During a small claims court case, you’ll present your claim against the contractor for poor work, failure to meet contractual obligations or any other matter in which you were victimized by the company.

Hire A Fraud Attorney

If you have a claim worth more than your state’s limit or feel like an experienced legal expert can help with the matter, you can hire an experienced attorney to help you navigate the complicated legal process.

Attorneys with a thorough understanding of contractor fraud and extensive experience with the construction industry can find a weakness in a contract, and how the work done or left incomplete violates the contract. An experienced Virginia attorney can help you establish how much you’re owed and the best legal option for getting your money back.

However, it’s essential to note that hiring a lawyer is a costly remedy. That’s because you may have to pay thousands of dollars to get legal representation, and the process to file a lawsuit is time-consuming.

Post Online Reviews

Perhaps the fastest and most cost-effective way to get a contractor’s attention and recover your money is by posting reviews on online review websites, such as Google My Business.

You can use a combination of online review websites, social media, or community boards to provide an elaborate review about your experience with a contractor and the shoddy work they’ve done.

Contractors need to maintain an excellent reputation to attract more clients, so leaving a negative review may prompt them to remedy the situation. However, you must post reviews that are true, and you need to have evidence of the poor work, if possible. That’s because contractors can sue you for false statements or libel if you post an online review that isn’t true.

Contact Virginia’s Licensing Board

In Virginia, the Department of Professional and Occupational Regulation manages businesses involved in the repair, construction, removal, and improvement of properties owned by others. This board has the mandate to issue or cancel contractor licenses.

Contractors’ licenses comprise the class of license (A, B, or C), which governs the value of projects or contracts, and the specialty or classification which determines the type of work a contractor can do.

Also, the Board regulates individual tradespeople, such as plumbers and electricians. You can file your complaint with the licensing board by calling to have a complaint form mailed to you, downloading and printing a complaint form, or using the online complaint form.

Withhold Further Payment

Often, contractors “rob Peter to pay Paul.” This means they use the money they get from one client to buy materials or pay for hired help for another job. For a contractor who has abandoned your project, is slow to complete certain stages of the project, or can’t complete the project, withholding their payment might be the best way to make your point and get them to finish the job. However, make sure your contract specifies the conditions in which payment withholding is an option.

Conclusion

Any of these measures can help you get your money back from an incompetent contractor and prevent the contractor from doing shoddy work for another client in the future. However, talk with the contractor first to see if they can refund your money or complete the project.

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