Loomis, CA asked in Contracts for California

Q: I paid a contractor 20,000. He has yet a lot to do what can I do

He quit cause he says he lost his business but the work hasn't been completed what should I do

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1 Lawyer Answer

A: Some questions need to be answered: What does he mean by "lost his business"? How much of the work has he completed? What remains to be done? Did you pay $20,000.00 up front? What is the total value of the contract?

The usual procedure to follow when a contractor does not finish the job is to write him letter, point out the default, and demand that he finish. If he cannot do that, you terminate him and hire another contractor to complete the job, pay him, then sue the original contractor for the extra cost you incurred, plus whatever you overpaid for the work the original contractor performed.

Next time be aware that a contractor violates the law if he demands more than 10% down on any contract. After that you pay him only after he has completed that phase of the contract AND received a lien release from any sub-contractor who did the work. That means he paid the sub, and you reimburse him the amount he paid.

Mr. Robin Mashal agrees with this answer

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