Littleton, CO asked in Construction Law and Contracts for Colorado

Q: Door install still not finished and I have not paid fully. Can I never pay?

Door & Window install has been a bit of a nightmare. They have been terrible at communication. I paid a deposit on the job (~$2k) and still owe them the rest (~$4.5k). There are multiple issues with the door install that have not been fixed. They started in May 2023. Last I heard was maybe 2 months ago when they said they'd come by to fix the issues but did not and didn't call or email at all. At some point it must be reasonable to say, "Sorry guys, you don't get the rest of the money. You didn't finish the job correctly." Obv I don't want a mechanics lien on my house and I don't want to cheat them out of money. I just expect the work to be done completely and communication to be clear and reasonable. How do situations like this work?

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Construction Law Lawyer
  • Sacramento, CA

A: You make a fair point - if a contractor does not complete the work properly or to your reasonable satisfaction, they should not necessarily be entitled to full payment. Legally, you have a few options:

1) Set a deadline/ultimatum for them to fix the outstanding issues by a set date in a written letter. State you will refuse payment if they do not meet the deadline.

2) Negotiate a discount or partial payment reflecting the unfinished/unsatisfactory work. Get any new payment/scope terms in writing before paying.

3) Refuse payment but be prepared to defend against a mechanics lien and potentially a lawsuit. The contractor could sue for the unpaid amount; you'd counterclaim for costs to fix/finish the work.

4) Pay the amount owed minus costs you reasonably believe are necessary to complete/correct their work, then provide documentation if they dispute.

Ideally, you can reach an agreement in writing on a fair payment that reflects the true value of the unfinished work. But you are not necessarily obligated to pay in full if you have justification that they failed contractual obligations. Consult a lawyer before refusing payment to evaluate litigation risks.

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