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Contractor has taken my money to work on my house but will not finish the job. What rights do I have?

Murrieta, CA |

I live in CA and I made the biggest mistake of paying a contractor in full (I know, bad idea) in my area to work on my house. I had hired him last fall to paint my house and he did an amazing job. I hired him to paint the inside of my house and install a backsplash in my kitchen. I also hired him to install a sprinkler system in my yard. He created an invoice for the yard work and has only done about $250 of the $650 listed. About the backsplash, I'm not sure I got an invoice from him, but he started the work back in December of last year and never installed it even though I paid him in full. Now he comes by once every few weeks and digs a small hole here and there. I assume he's stringing me along. We never contracted for a completion date. Can I take him to court?

The next time I talk with him, should I give him a deadline to finish the work before asking for my money back or threatening taking him to court? We're already 2 and 1/2 months on the yard work (a project he said he'd have done in no less than 2 weeks) and 5 months on installing the backsplash. How do I handle a situation like this? Is there a fair and reasonable time frame for simple projects before a judge can rule that this guy has no intention of honoring his word? I'm in the hole about $800 with the guy. Not a huge amount, but enough to make it worth my while to get the money back (if not at least part of it). I just don't know how to handle the situation at this point. Probably worth noting is that I don't have any formal contracts drafted up between myself and this contractor. Just an invoice for the yard work and verbal agreements for the backsplash work in my kitchen.

Attorney Answers 2

Posted

My first question is whether this "contractor" is licensed. In California, it is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more in labor and materials. California Business & Professions Code section 7031(a) prevents an unlicensed contractor from collecting on debts owed to them by consumers under contracts due to their unlicensed status. This means that a court will not enforce the illegal contract. Furthermore, California Business & Professions Code section 7031(b) gives consumers who have contracted with unlicensed contractors the ability to sue for restitution or reimbursement of all monies paid to the unlicensed contractor for "any act or contract. In short, an unlicensed subcontractor will not only be unable to collect against the owner but may actually be liable to pay back to the owner every penny that was already paid him. This law applies even if the unlicensed contractor completes the job and even if the work performed is otherwise perfect. Consumers, building officials and legitimate licensed contractors can report alleged unlicensed activity to the Contractors State License Board's Statewide Investigative Fraud Team (SWIFT).

Secondly, you could make a complaint to the California Contractors State License Board (CSLB). Complaints within the CSLB's jurisdiction involve failure of a licensed contractor to fulfill the terms of an agreement and poor workmanship.

http://www.cslb.ca.gov/Consumers/FilingAComplaint/HowTheComplaintProcessWorks.asp

Finally, you might want to make a claim on the contractor's bond. As a general rule, a building contractor must obtain and maintain a performance bond in the principal amount of $12,500 in order to do business in California. (Bus. & Prof. Code, § 7071.6(a).) As an alternative to a bond, the contractor's law allows a contractor to deposit cash in lieu of a bond with the Contractor's State License Board ("CSLB"). (Bus. & Prof. Code, § 7071.12.)
The beneficiaries who are entitled to make a claim against the cash deposit include: "A person damaged as a result of a willful and deliberate violation of this chapter by the licensee, or by the fraud of the licensee in the execution or performance of a construction contract." (Bus. & Prof. Code § 7071.10(c).) Wilful or deliberate failure by any licensee or agent or officer thereof, to pay any moneys, when due for any materials or services rendered in connection with his operations as a contractor, when he has the capacity to pay or when he has received sufficient funds therefor as payment for the particular construction work, project, or operation for which the services or materials were rendered or purchased constitutes a cause for disciplinary action. (Bus. & Prof. Code, § 7120.) The amount of the bond, or cash in lieu of a bond, recoverable by such beneficiaries is limited to $7,500.00. (Bus. & Prof. Code, § 7071.9(b).)

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5 comments

Asker

Posted

Thanks so much for the response. This is super helpful. I'm not totally sure if the guy is licensed or not. My initial guess is that he is not based off my experiences with him. I'm going to call and find out tomorrow. Your answers have been super helpful in my situation. I really, really appreciate your time. Thanks again so much! I'll post back as this situation hopefully comes to a conclusion.

Frank Wei-Hong Chen

Frank Wei-Hong Chen

Posted

To check a contractor's license in California, go to: https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/checklicense.aspx

Asker

Posted

Yeh, I checked that link and could not find his name so I'm assuming he does not have a license. I called him this morning and asked if he had a contractor's license. He said he does and when I asked for the number, he flipped out and began telling me he had rights (guess he automatically assumed I was going to report him) and he would not (or rather said he does not know the number) give it to me. At this point tomorrow is the deadline he and I had agreed on to finish the yard work. He said he'll have it done by tomorrow, so if not, I'll pursue a legal course of action.

Frank Wei-Hong Chen

Frank Wei-Hong Chen

Posted

California law actually requires the contractor to put the contractor's license number on the written contract itself.

Asker

Posted

Unfortunately there was no contract for any of the work he's done for me over the last 8 months. It has just been verbal agreements for the work that he's done so far. I've paid him $3100 so far for work he's done for me and I only received a couple of hand written invoices on some generic invoice paper with no letterhead or CA license number. His business card doesn't have it either, so I'm pretty sure he doesn't have one. Based off my interaction with him, I think he realizes that and after the way he reacted yesterday on the phone when I asked for his CA license number, I think he knows he's in hot water.

Posted

First, talk with him about your concerns...second develop a final "punch list" on the items that you believe were not completed or not finished to your reasonable satisfaction. If he agrees to complete the requested work on a reasonable time line, then you should be happy. If he does not respond in a reasonable manner nor agree to complete the job in a timely manner, you will want to contact the CSLB to file a complaint...and yes, you will want to mention that you are considering filing the CSLB complaint in your conversations with the contractor.

By Grace...
Shawn Jackson ESQ. (707) 584-4529
Business Development Attorney EMAIL: Attorneys@CaliforniaBusinessDevelopment.com
www.CaliforniaBusinessDevelopmentAttorneys.com
www.CaliforniaBusinessDevelopmentCenter.com
www.CaliforniaBusinessDevelopmentPlans.com

No communication resulting herein shall create an attorney-client relationship unless a separate retainer agreement is signed by attorney and client. The information provided is not legal advice nor is it conveyed in the course of an attorney-client relationship, but is intended merely as a general overview with regard to the subject matter covered. You should not act upon this information without seeking professional counsel such as any attorney in this office in a subsequent email communication (agreement) and the formation of an attorney client relationship.

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1 comment

Asker

Posted

Hey Shawn, I really appreciate you taking the time to write this out. It's been a frustrating situation overall and I've learned quite a lot in the process. I'm pretty sure he's not licensed and per Frank's explanation above, he could get into a lot of legal hot water if he's been doing this type of work without a license. Supposedly he's going to finish the work tomorrow at which point I'm going to be done with him.

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