Longmont, CO asked in Contracts and Construction Law for Colorado

Q: If I paid a contractor a deposit for a kitchen remodel and he used my deposit to fund other projects do I have recourse?

It has come to light that over a month after the deposit was paid, the contractor has dispersed none of the funds provided to him by us toward our project. No work has been done and no materials acquired. The contract was signed July 16th of 2023 and contract stated work would be completed by August 20th 2023.

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1 Lawyer Answer
Michael Joseph Larranaga
Michael Joseph Larranaga pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Parker, CO
  • Licensed in Colorado

A: You do need to contact an attorney. Depending on the circumstances, in many circumstances, the initial deposit needs to be held in a trust account and failure to properly account for the deposit can be theft. Further, it could also be a fraud and/or breach of contract issue. Regardless, you should not sit on your hands. You need to talk to an attorney to determine if you need to fire the current contractor, demand payment, and pursue damages.

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