Can I dispute a contractor's invoice and lien rights in Virginia due to false claims and lack of documentation?

Question

I hired a contractor for water/mold mitigation after a sewage backup. My insurer approved payment based on Xactimate, and the contractor accepted. Months later, the contractor issued an invoice claiming a balance over $8,000. The invoice falsely states it is 'Xactimate-based' when it is not. Neither I nor my insurer received documentation justifying the difference, despite repeated requests. The contractor has now threatened lien rights, delaying my repair funds and leaving my home unrepaired. Contractor insists on $8,000+ based on the invoice mislabeled as 'Xactimate-based' without a signed estimate or documentation, while insurer refused further payment. Contractor is asserting lien rights, so do I have a case under Virginia law to dispute the invoice and potential lien? Could this situation support a claim for misrepresentation or consumer protection violations?

James L. Arrasmith · Answer

You have the right to dispute the contractor’s invoice if it includes charges that are false, unsupported, or misrepresented as being Xactimate-based. Virginia law allows homeowners to challenge a contractor’s claim, especially if there is no signed estimate or proper documentation justifying the additional charges. Keep a record of all communications, requests for documentation, and any responses from the contractor. 
 
Lien rights in Virginia can only be exercised under certain conditions, and you may have grounds to contest a lien if the invoice is inaccurate or misleading. The contractor must follow the legal procedures for asserting a lien, and failing to provide proper documentation may weaken their claim. You can send a formal written dispute outlining the false statements and requesting verification of the charges. 
 
Additionally, misrepresentation or violation of consumer protection laws could be argued if the contractor knowingly billed you for amounts not authorized or falsely claimed they were Xactimate-based. Documenting all facts, including insurer communications, photos, and contracts, will strengthen your case. Consulting with an attorney familiar with construction law and consumer protection in Virginia will help you navigate both the invoice dispute and potential lien defense. Acting quickly is important to prevent the contractor from delaying repairs or asserting lien rights improperly.

Q: Can I dispute a contractor's invoice and lien rights in Virginia due to false claims and lack of documentation?