Fullerton, CA asked in Collections, Contracts and Construction Law for California

Q: Can a home contractor cancel without notice, demand payment in three days, then send to collections during negotiations?

A contractor had two projects on a single dwelling home and only completed one. Attempts made to get the second done were either not answered, or appointments made only to be canceled, for four months after the first part was completed. When the issue was escalated to the contracting company business owner, further movement happened, but ultimately the materials wanted were unavailable due to "supply chain issues." The homeowner rejected the materials and said they needed to consider other solutions. The business estimated a price difference without those materials but did not present a deadline for decision. A few weeks later, the business emailed that the homeowner needed to pay the balance in three days. The homeowner responded with a dispute and an alternate tally. The business replied with acceptance of some of the homeowner's response, but then sent the information to a collection agency a day later. What are the homeowner's options at this stage?

1 Lawyer Answer
Joshua D. Brysk
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  • Construction Law Lawyer
  • Pleasanton, CA
  • Licensed in California

A: It sounds like there is still a possibility to negotiate a solution which will be most beneficial for both parties. If direct talks are not working, I would to the contractor that a mediation be used. If a resolution cannot be reached, each party has potential claims and only a thorough review by competent counsel will tell you the odds you will prevail.

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