What can I do if a contractor refuses to return after a payment dispute, breaching the contract?

Question

I hired a contractor to renovate my bathrooms and paid a 25% deposit of $850. There was no mention of refunds in the contract, nor were there any milestones or completion dates specified. The contractor has installed the bathtub and completed most plumbing in the upstairs bathroom but still needs to complete all finishing work there, as well as replace the standup shower in the downstairs bathroom. After a payment dispute, the contractor refuses to return, breaching the written contract. What remedies can I demand in my breach of contract demand letter, such as the return of the deposit or termination of the contract?

James L. Arrasmith · Answer

You’re within your rights to issue a breach of contract demand letter when a contractor walks off the job without completing the work. In your letter, you can demand the return of part of the deposit to reflect the unfinished work, or you can request the immediate resumption and completion of the project. Be clear about what work has been done, what remains, and how the contractor’s refusal to return violates the agreement. 
 
Even if the contract didn’t outline refund terms or deadlines, there’s still an expectation of good faith and reasonable performance. You can give the contractor a firm deadline—such as 10 to 14 days—to either resume the job or issue partial reimbursement for the incomplete portion. Also state that failure to comply may result in you seeking legal action, which could include small claims court or a complaint with your state’s contractor licensing board. 
 
Keep a copy of the letter for your records and send it via certified mail so you have proof of delivery. Include photos, receipts, and a brief summary of all communication attempts. Showing that you’ve made a fair and clear effort to resolve the issue can strengthen your position if you end up in court. You’re not asking for anything unreasonable—just the work you paid for or a fair resolution.

Q: What can I do if a contractor refuses to return after a payment dispute, breaching the contract?