Quick Answer: What To Do If You Get Scammed By A Contractor?

Can you sue a contractor for emotional distress?

As explained by the court, contract damages are generally limited to those that are within the contemplation of the parties.

And on the tort action the court stated that damages for mental suffering and emotional distress are generally not recoverable in an action for breach of an ordinary commercial contract..

How much can you sue a contractor for?

Generally, your total claim must be below a specific dollar amount to be eligible for small claims court. In some states this is only a few thousand dollars, but in others it can be as much as $10,000. Usually you can only sue for money in small claims court.

Can you go to jail for getting scammed?

Fraud convictions bring with them the possibility of a jail or prison sentence. Though sentences differ widely, a misdemeanor conviction can lead to up to a year in a local jail, while a felony conviction can lead to multiple years in prison. Federal charges can lead to 10 years or more in federal prison.

Can I withhold money from a contractor?

You can withhold payments from a subcontractor if he does not perform the job in the time frame specified by contract. … You cannot withhold payment from a subcontractor for work performed, but you can withhold time penalties and the cost of your damages until the issue is resolved in court.

How do I know if my contractor is unhappy?

When talking with the contractor, explain why you are unhappy with his work, and get him to sign a document detailing the solutions that you have both agreed on, so that if he flakes, you have written proof. Remember to avoid writing an online review before talking with your contractor.

What insurance should my contractor have?

Contractors and carpenters should have a general liability policy or CGL that is designed for their field of work. Professionals such as CPAs and consultants should carry professional liability insurance, which includes errors and omissions coverage. Hired workers should also carry workers’ compensation insurance.

How do I get my money back from a bad contractor?

7 Ways to deal with a bad contractorFirst, compile all paperwork.Fire them.File a claim if contractor is bonded.File a complaint with the state licensing board if contractor is licensed.Request mediation or arbitration.File a suit in small claims court.Hire an attorney.File complaints and post public reviews.More items…•

What should you not say to a contractor?

8 Things You Should Never Say to a Contractor’I’m not in a hurry’ … ‘I know a great roofer/electrician/cabinet installer!’ … ‘We had no idea this would be so expensive’ … ‘Why can’t you work during the thunderstorm/snow/heat wave?’ … ‘I’ll buy my own materials’ … ‘I can’t pay you today. … ‘I’ll pay upfront’ … ‘I’m old school.

How long do I have to pay my contractor?

According to California’s requirements, retainage amounts must be paid to the prime contractor within 45 days of completion of project. Once paid, the contractor must pay their subs within 10 days of receiving all or part of a retention payment.

How should contractors be paid?

Paying a contractor cash In general, it is usually not a good practice to pay cash up front. But if cash payments are necessary, choose smaller payment increments throughout the course of the project to ensure that the job is done according to your preferences.

How do I make sure a contractor is legitimate?

The short answer: Hire someone with a contractor’s license. Qualified general contractors are licensed by the state. If your job will cost $1,000 or more—including materials and labor—you should ask the contractor to show you his license.

What happens if I don’t pay a contractor?

Contractor May Sue If you don’t pay a contractor, there’s a good chance he’ll sue you in court for the money that you owe. Even if a written contract doesn’t exist, the contractor can still testify that a verbal agreement was made and demand that you pay the money agreed upon.

How much does it cost to sue a contractor?

Contact the clerk of the court to obtain and file the necessary paperwork — most courts make the information available online. Filing costs average around $50, and you may incur additional fees for collection if your contractor loses and still doesn’t pay.

Can you sue a contractor for bad work?

In certain situations where you are suing a contractor for work they performed while unlicensed and they did a bad job, you may sue for up to three times the damages. The lawsuit must take place in civil court, and the treble damages may not exceed $10,000. (See CCP 1029.8).

How much should a contractor hold back?

The standard hold-back amount is about twice the value of the punch list items. How much retainage? Retainage is typically in the 5% to 10% range, although some contractors will negotiate for a fixed fee or limit.